FUNCTIONING OF THE FINANCIAL LEASING MARKET IN THE AGRICULTURAL SECTOR OF UKRAINE

Abstract

Introduction. The current stage of Ukraine’s economic development, intensified by the consequences of the full-scale war, has significantly increased the need for sustainable mechanisms of investment support for the agricultural sector. Limited access to bank lending, rising costs of modern agricultural machinery and heightened production risks constrain the ability of agricultural enterprises to modernize their technical base. Under these conditions, financial leasing becomes one of the key instruments for maintaining investment activity and ensuring technological renewal in agriculture. Purpose. The purpose of the article is to assess the functioning of the financial leasing market in the agricultural sector of Ukraine and to identify its role, opportunities and limitations in supporting the renewal of agricultural machinery under crisis and wartime conditions. Methods. The research is based on methods of economic and statistical analysis, comparison, structural and dynamic analysis, as well as generalization and systematization of analytical and official statistical data for the period 2017–2023. Results. The study reveals that the financial leasing market in Ukraine demonstrates high sensitivity to external shocks. During the period of economic growth in 2017–2019, leasing operations in agriculture expanded due to improved investment conditions and higher demand for agricultural equipment. In 2020, the COVID-19 pandemic caused a noticeable decline in leasing activity, while the full-scale invasion in 2022 led to a sharp contraction of the market, disruption of logistics and increased financial risks. In 2023, signs of gradual recovery were observed, supported by government programs, international financial assistance and the adaptation of leasing companies to wartime conditions. It is also established that legal entities – leasing companies remain the dominant participants in the market, whereas financial companies play a more limited but potentially growing role. Conclusion. Financial leasing remains an important instrument for maintaining investment activity and renewing the technical base of agricultural enterprises in Ukraine. To enhance its effectiveness in the post-war recovery period, it is necessary to improve regulatory conditions, expand state support programs and reduce the cost of financing. Strengthening these elements will allow leasing to become a more powerful driver of technological modernization and competitiveness of the agricultural sector.