FINANCIAL DETERMINANTS OF THE FUNCTIONING OF CREATIVE INDUSTRIES IN UKRAINE UNDER CONTEMPORARY CHALLENGES

Abstract

The article provides a comprehensive analysis of the financial determinants of the functioning of creative industries in Ukraine in the context of modern socio-economic challenges caused by the COVID-19 pandemic, the full-scale armed aggression of the Russian Federation, and the general instability of the macroeconomic environment. It is substantiated that creative industries play an important role in shaping the state’s innovative potential, strengthening cultural identity, and ensuring sustainable economic development, while remaining particularly vulnerable to financial risks and crisis phenomena. The study analyzes the dynamics of gross value added, employment, and income of creative sector entities in the pre-war and wartime periods. A significant narrowing of the financial base of the industry after the start of the full-scale invasion is revealed, manifested in declining declared incomes, reduced aggregate demand, limited access to credit resources, and increased dependence on state and international support. Particular attention is paid to the dominance of intangible assets in the value structure of creative enterprises, which complicates the use of traditional financial instruments and reduces the sector’s investment attractiveness. The article systematizes the main sources of financing for creative industries, including budgetary and quasi-budgetary programs, grant mechanisms, international donor assistance, private investment, and alternative financial instruments. The role of the Ukrainian Cultural Fund and European Union programs in ensuring financial stability under crisis conditions is also examined. The study emphasizes the need to improve the institutional environment, enhance financial literacy among creative industry actors, develop specialized financial products, and establish a coordinated state policy for financial support. It concludes that the formation of an effective system of financial determinants is a key prerequisite for strengthening sustainability, competitiveness, and the integration of creative industries into post-war recovery and long-term economic development.