PROBLEMS OF CIRCULAR ECONOMIC TRANSFORMATION IN UKRAINE IN THE CONTEXT OF WAR

Abstract

The article examines the problems that arise on the way to the circular transformation of Ukraine's economy in the context of a full-scale war. The author assesses the need to move from a linear economy that operates on the principle of “extract – process – use – dispose” to a circular economy as an economy of rational consumption and resource recovery. The author clarifies the concept of “circular economy transition” and formulates the main goal of transition to a circular economic model. It is noted that the widespread implementation of the principles of circular economy in the practice of most economic agents is intended to ensure the effect of decoupling, i.e., achieving a level of economic and social activity at which economic growth and welfare of society are accompanied by stabilization and, subsequently, reduction of the negative anthropogenic impact on the environment. The article analyzes the current state of the circular economy in Ukraine, as well as the key economic, technological and regulatory barriers that slow down its implementation. These include: low level of environmental taxation; imperfect public procurement system, which determines the main criterion for a product or service not by its energy efficiency and lack of harmful environmental impact, but only by its price; non-transparency of the secondary resources market; high initial investment costs in the absence of state support for investment projects based on the use of closed-loop technologies. Particular attention is paid to the impact of the war on the circular transition process, namely: an increase in the NBU discount rate, which leads to an unacceptable increase in the cost of credit resources for enterprises operating in a circular economy; an excessive increase in the state budget deficit, which negatively affects the financial capacity of the state support for circular transformation; an increase in the tax burden and complication of tax administration, which leads to a significant decrease in the motivation of producers of goods and services, in particular, to The author concludes that there is a need for comprehensive state support, cross-sectoral cooperation and adaptation of European practices in the field of circular economy.