Keywords
energy resources
energy security
state management
financial mechanism
How to Cite
Abstract
The article is devoted to the disclosure of the financial mechanism of state management in the field of ensuring energy security in Ukraine. The modernization of the energy system of Ukraine is considered the most important task for ensuring the development of the energy sector, taking into account environmental and social aspects. Many energy facilities in Ukraine are quite worn out and do not meet the requirements of energy efficiency and environmental safety. However, the process of modernization of this sphere is faced with many financial problems, which significantly slow down the introduction of the necessary changes. Taking into account the global trends of transition to energy sources that are safe for the environment, the need for comprehensive modernization of the domestic energy sector becomes even more urgent. Energy security is a basic element of the national security of any state. Our state has a rather small share of renewable energy sources and an insufficient amount of state investment in the energy sector. This confirms the need to increase state funding for the modernization of the energy system. Direct investments in Ukraine also lag significantly behind the indicators of other countries, which necessitates the creation of favourable conditions for attracting investments. The level of energy efficiency in our country remains quite low. This confirms the need to introduce more energy-efficient technologies. The purpose of the article is to reveal the financial mechanism of state management in the field of ensuring energy security in Ukraine. It is determined that the financial mechanism of state management in the field of ensuring energy security plays an important role in the process of ensuring the stable development of the country. Ukraine has considerable potential to improve its indicators in this area; however, this requires increased investment, the development of renewable energy, improving energy efficiency, and the formation of strategic reserves of energy resources. It is established that the financial mechanism of state management in the field of ensuring energy security plays an important role in ensuring the stable development of our country. The financial mechanism of state management in the field of ensuring the energy security of Ukraine is carried out mainly through the state budget (it is the main source of financing for state bodies and programs designed to ensure the energy security of the country), and may also provide for international financial resources and loans (can be attracted to implement grandiose energy efficiency projects and renovation and restoration of energy infrastructure facilities), investments and other sources (allocated for the implementation of measures in the field of energy conservation and energy efficiency), provided for by law.
References
1. Baranowski, M., Jabkowski, P., & Kammen, D. M. (2025). From the Russian invasion of Ukraine to the battlefield of the future: The geopolitical fight for Ukraine’s mineral wealth. Energy Research & Social Science, (123), 104043. https://doi.org/10.1016/j.erss.2025.104043
2. Esonye, C., Esonye, C. O., Agha, E. O., Ume, C. S., Njemanze, C. V., Eyisi, C. E., & Adepoju, T. F. (2023). The 2022 Russia invasion on Ukraine: The biofuel energy security challenge on Ukraine and some related countries. Heliyon, (9), e21483. https://doi.org/10.1016/j.heliyon.2023.e21483
3. Haar, L., & Haar, L. N. (2019). A financial option perspective on energy security and strategic storage. Energy Strategy Reviews, (25), 100364. https://doi.org/10.1016/j.esr.2019.100364
4. Horyn, V. P. (2024). Finansovi determinanty enerhetychnoi bezpeky derzhavy v umovakh viiny [Financial determinants of the state’s energy security in wartime]. In Conference Proceedings Innovative Approaches to Technology and Economic Development, June 27, 2024 (pp. 67–72). Svalyava. https://dspace.wunu.edu.ua/bitstream/316497/52004/1/Tezy_Svaliava_2024.pdf (in Ukrainian)
5. Iakymchuk, O. F., & Postelzhuk, O. P. (2024). Analiz finansovykh vkladen u sferu enerhetychnoi bezpeky Ukrainy [Analysis of financial investments in the sphere of energy security of Ukraine]. Investytsii: praktyka ta dosvid – Investments: Practice and Experience, (16), 164–169. https://doi.org/10.32702/2306-6814.2024.16.164 (in Ukrainian)
6. Javed, A., Yong, L., & Ashraf, J. (2025). Financial development and energy security risk: Do human capital and institutional quality make a difference? Borsa Istanbul Review, (25), 100607. https://doi.org/10.1016/j.bir.2025.03.007
7. Kartal, M. T., Pata, U. K., & Alola, A. A. (2024). Energy security risk and financial development nexus: Disaggregated level evidence from South Korea by cross-quantilogram approach. Applied Energy, (363), 123135. https://doi.org/10.1016/j.apenergy.2024.123135
8. Mazur, I. M. (2014). Kontseptualni zasady orhanizatsiino-ekonomichnoho mekhanizmu zabezpechennia enerhetychnoi bezpeky ekonomiky Ukrainy [Conceptual principles of the organizational and economic mechanism for ensuring the energy security of the economy of Ukraine]. Investytsii: praktyka ta dosvid – Investments: Practice and Experience, (4), 67–73. http://www.investplan.com.ua/?op=1&z=3421&i=12 (in Ukrainian)
9. Melnikov, I. K. (2024). Suchasni mekhanizmy finansuvannia vidnovliuvanoi enerhetyky Ukrainy ta perspektyvy postvoiennoho vidnovlennia [Modern mechanisms for financing renewable energy in Ukraine and prospects for post-war recovery]. Problemy suchasnykh transformatsii. Seriia: Ekonomika ta upravlinnia – Problems of Modern Transformations. Series: Economics and Management, (13). https://doi.org/10.54929/2786-5738-2024-13-03-04 (in Ukrainian)
10. Mykhailova, L. M., Semenyshyna, I. V., Polukhin, A. V., & Lukashevych, Ya. P. (2023). Analiz dzherel finansuvannia proektu rozvytku enerhetyky v Ukraini (vid teorii do praktyky) [Analysis of sources of financing for the energy development project in Ukraine (from theory to practice)]. Akademichni vizii – Academic Visions, (16). https://academy-vision.org/index.php/av/article/view/147/135 (in Ukrainian)
11. Nguyen, H. H., Nguyen, P. V., & Ngo, V. M. (2024). Energy security and the shift to renewable resources: The case of Russia-Ukraine war. The Extractive Industries and Society, 17, 101442. https://doi.org/10.1016/j.exis.2024.101442
12. Opoku, E. E. O., Acheampong, A. O., & Frempong, J. (2025). Geopolitical risks, financial system and the energy trilemma. Energy Economics, 149, 108724. https://doi.org/10.1016/j.eneco.2025.108724
13. Palasevych, M., & Luchakivskyi, A. (2024). Finansovi mekhanizmy stymuliuvannia enerhoefektyvnosti ekonomiky: mizhnarodnyi dosvid ta perspektyvy dlia Ukrainy [Financial mechanisms for stimulating energy efficiency in the economy: International experience and prospects for Ukraine]. Stalyi rozvytok ekonomiky – Sustainable Economic Development, 3(50), 136–140. https://doi.org/10.32782/2308-1988/2024-50-21 (in Ukrainian)
14. Parashar, M., & Jaiswal, R. (2025). Financial access, depth, and efficiency: The key pillars for enhancing energy equity, security, and sustainability. Environmental Challenges, (19), 101117. https://doi.org/10.1016/j.envc.2025.101117
15. Pecheniuk, A. (2025). Problemy finansovoho zabezpechennia modernizatsii enerhetychnoi infrastruktury Ukrainy v suchasnykh umovakh [Problems of financial support for the modernization of the energy infrastructure of Ukraine in modern conditions]. In Proceedings of the III All-Ukrainian Scientific and Practical Internet Conference Development of Financial and Economic Relations in Society in the Context of Financial Risks (pp. 199–202). Kamianets-Podilskyi: Podilskyi State University. https://lnk.ua/be8Ar8kV5 (in Ukrainian)
16. Tichý, L., & Dubský, Z. (2024). The EU energy security relations with Russia until the Ukraine war. Energy Strategy Reviews, (52), 101313. https://doi.org/10.1016/j.esr.2024.101313
17. Zhou, X.-Y., Lu, G., Xu, Z., Yan, X., Khu, S.-T., Yang, J., & Zhao, J. (2023). Influence of Russia-Ukraine war on the global energy and food security. Resources, Conservation and Recycling, (188), 106657. https://doi.org/10.1016/j.resconrec.2022.106657
18. Żuk, P., & Żuk, P. (2022). National energy security or acceleration of transition? Energy policy after the war in Ukraine. Joule, (6), 1190–1202. https://doi.org/10.1016/j.joule.2022.03.009
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Copyright (c) 2025 Vitalii Lohosha