Current situation and financial support of the transport industry in Ukraine

• Main Author: O.A. Vyhovska
• Format: Article
• Language: English
• Published: Zhytomyr Polytechnic State University 2019-12-01
• Series: Економіка, управління та адміністрування
• Subjects: financial support; transportation; transport; financing; economic entity
• Online Access: http://ema.ztu.edu.ua/article/view/193085/193415
• ISSN: 2664-245X; 2664-2468

The state of the Ukrainian transport industry is characterized by a decline in passenger transportation, a critical level of financial support and tariffs for transportation services, a high degree of physical and moral deterioration of fixed assets. Self-financing is determined to be the main domestic source of financial security, and external sources include international support, credit and government support for transport industry entities. In a crisis, the transport industry needs substantial state support by creating conditions for cheaper credit resources, organizing public-private partnerships and micro-credit activities. The dynamics of internal sources of financing of the enterprises of the transport industry, which testify to the unprofitable activity of economic entities, are analyzed, although the indicators of the net income of the economic entities of the transport industry in Ukraine show steady growth. It is determined that the deterioration of the main means of state-forming economic activities of the country affects the competitiveness, slowdown of economic and social indicators of development of Ukraine, the level of technological risks and the burden on the ecological state of the environment. The structure of gross value added is analyzed, which shows the necessity of introducing the measures to reform the system of state and regional government, introducing new technologies, finding ways to attract investment in the development of this important sector of the economy. It is proved that one of the ways of development of the transport industry is to attract credit from the European Bank for Reconstruction and Development, the European Investment Bank and other international financial institutions. Such cooperation opens the opportunities for solving a number of problems for Ukrainian utilities and local self-government bodies. Ensuring the accelerated economic development of Ukraine is possible only if the efficient use of transport infrastructure as the main component of the national transport system and its dynamic development will take place.