THE IMPACT OF WAR ON THE FOREIGN ECONOMIC ACTIVITIES OF AGRICULTURAL ENTERPRISES: CHALLENGES AND POSSIBLE SOLUTIONS

Abstract

Ukraine’s agro-industrial complex has traditionally played an important role in global food security. Before the full-scale invasion, Ukraine was one of the leading exporters of grain, sunflower oil, and other agricultural products. However, the war has significantly impacted this sector, creating new challenges for agribusiness and the state. A significant share of Ukrainian agricultural exports relied on Black Sea ports. Still, the temporary blockade of those ports and military operations in maritime trade routes forced Ukrainian producers to seek new logistical solutions. Infrastructure destruction, rising transportation costs, financing issues, and cargo insurance problems have led to a decline in export volumes and, consequently, losses for the national economy. At the same time, the crisis has created the preconditions for developing alternative export routes, diversifying markets, and strengthening international cooperation.

The relevance of this study lies in the need for a thorough analysis of the problems faced by Ukrainian agricultural exports during the war, an assessment of their impact on the national economy, and the development of possible solutions to preserve and expand export potential.

The war has significantly impacted Ukrainian agricultural exports, leading to declines in volumes due to port blockades, infrastructure damage, and rising logistical costs. The loss of access to maritime routes forced a shift to rail and road transport through Ukraine's western borders, slowing deliveries and increasing export costs. Additionally, there was a need to seek new markets to replace traditional trade routes.

Key problems facing the agricultural sector during the war include the destruction of infrastructure such as grain storage facilities, transport hubs, and production capacities, which complicates the effective distribution of products. Logistical difficulties stemming from route changes and limited capacity at rail and road border crossings have driven up export costs. Other challenges include reduced investment attractiveness, limited access to credit, fuel supply issues, and high cargo insurance risks during transportation.

Despite these challenges, new opportunities are emerging. International partners, such as the EU and the UN, are actively supporting the creation of alternative logistics corridors, including the “Danube Corridor” and the “Solidarity Lanes.” The development of rail and river transport, the expansion of Danube port capacities, and improvements in cross-border infrastructure offer opportunities to adapt Ukrainian exports to new conditions. In addition, there is growing support for exporting value-added products, which may boost agricultural sector revenues.