PROBLEMS OF ATTRACTING FOREIGN INVESTMENTS IN THE ECONOMY AND THEIR IMPACT ON THE SECURITY AND DEFENCE CAPACITY OF UKRAINE

Abstract

The investment potential of the Ukrainian economy is a necessary condition for the successful market transformation of the Ukrainian economy. One of the key factors in the development of the economy and security of a certain state is innovation and, most importantly, modern production technologies and management experience. A high rate of economic development can currently be ensured by countries capable of effectively importing technical and managerial innovations from the developed economies of the world. The most effective mechanism for attracting and implementing technologies and best practices is direct foreign investment in the economy of Ukraine. The introduction of modern investment agreements, concession contracts and others, which are widely used abroad, are still poorly implemented in Ukraine to attract foreign investments. In addition, many complaints of foreign investors were caused by the low efficiency of the national judicial system, in particular, the complexity of the appeal process, formalism and bias in the case of the practical impossibility of holding judges accountable for the damages caused by their decisions. The problem of the attitude of Ukrainian officials and employees of Ukrainian diplomatic institutions in the formation of the investment image of Ukraine and the proactive attraction of investors requires changes and special attention. According to research results, one of the main obstacles to the activity of nominal investors is the instability of legislation in the field of taxation, the number and complexity of tax administration, which makes long-term planning of the enterprise impossible. To a large extent, the majority of foreign investors have the problem of non-reimbursement of value added tax upon export, given that most companies with foreign investments are export-oriented. The next obstacles for the activities of foreign investors are overly complicated licensing and certification procedures, customs clearance, land pledge and its acquisition by foreigners. Taking into account the numerous permits and approvals that must be collected in order to start your business and conduct ongoing work, the organization of economic activity has a negative impact on the investment climate in the country. The government, together with the public, should urgently start the process of developing and implementing an effective policy of promoting the attraction of investments in the country's economy. A long delay in determining the government's position on the new investment policy and in making relevant decisions may lead to the fact that Ukraine will lose opportunities and lose to other countries in the competition for investment initiatives. To ensure that the result of Ukraine's investment policy is the innovative modernisation of industries that will determine the country's competitiveness in the near future, as well as the creation and development of new approaches in the economy and the economy. Innovative development will help increase productivity, scientific and structural restructuring of the economy. This will ensure sustainable growth of the country's economy and security in the long term.