The impact of ecological risks caused by the war on the financial condition of the economy and export potential

Negative ecological factors of influence, initiated from outside of the country, have become risk factors for agricultural producers, which in their turn affect the financial results of enterprises, and, therefore, are financial risks. The unpredictability of the impact of external sources of enviro...

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Main Authors: O.H. Vasylenko, O.M. Labenko
Format: Article
Language:English
Published: Zhytomyr Polytechnic State University 2025-01-01
Series:Економіка, управління та адміністрування
Subjects:
Online Access:http://ema.ztu.edu.ua/article/view/321600
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author O.H. Vasylenko
O.M. Labenko
author_facet O.H. Vasylenko
O.M. Labenko
author_sort O.H. Vasylenko
collection DOAJ
description Negative ecological factors of influence, initiated from outside of the country, have become risk factors for agricultural producers, which in their turn affect the financial results of enterprises, and, therefore, are financial risks. The unpredictability of the impact of external sources of environmental damage and the uncontrollability of their consequences require the appropriate management strategies to ensure the profitability of agricultural enterprises. The article shows the negative impact of environmental factors on financial results on the example of an enterprise that grows organic sunflower for export. The possibility of scaling of these impacts in the territories with the greatest soil damage after military operations is analyzed, which may affect the countryʼs export potential. The results of research conducted in the UK confirmed the impact of degraded soils on farm profits under two scenarios. Under war conditions the mechanism of action of external sources of environmental damage lies in shifting of economic responsibility for the «externally caused» negative impact on the environment, on enterprises and society in Ukraine. There is no legal mechanism for compensation for the specified damage in international courts and there is no single recognized methodology for its calculation. In order to manage the risks associated with soil contamination or degradation after military operations, a strategy, that involves the constant monitoring of the soil condition, development of restoration methods and creation of base of implementing organizations which will act according to international requirements, has been proposed.
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spelling doaj-art-9f8619fda62d40b49c3402b2b921eb192025-08-20T02:00:42ZengZhytomyr Polytechnic State UniversityЕкономіка, управління та адміністрування2664-245X2664-24682025-01-0111047885doi.org/10.26642/ema-2024-4(110)-78-85The impact of ecological risks caused by the war on the financial condition of the economy and export potentialO.H. Vasylenko0https://orcid.org/0009-0005-5628-0640O.M. Labenko1https://orcid.org/0000-0001-9192-9891Institute of Microbiology and Virology named after D.K. Zabolotny, NAS of Ukraine, UkraineNational University of Life Resources and Environmental Sciences, UkraineNegative ecological factors of influence, initiated from outside of the country, have become risk factors for agricultural producers, which in their turn affect the financial results of enterprises, and, therefore, are financial risks. The unpredictability of the impact of external sources of environmental damage and the uncontrollability of their consequences require the appropriate management strategies to ensure the profitability of agricultural enterprises. The article shows the negative impact of environmental factors on financial results on the example of an enterprise that grows organic sunflower for export. The possibility of scaling of these impacts in the territories with the greatest soil damage after military operations is analyzed, which may affect the countryʼs export potential. The results of research conducted in the UK confirmed the impact of degraded soils on farm profits under two scenarios. Under war conditions the mechanism of action of external sources of environmental damage lies in shifting of economic responsibility for the «externally caused» negative impact on the environment, on enterprises and society in Ukraine. There is no legal mechanism for compensation for the specified damage in international courts and there is no single recognized methodology for its calculation. In order to manage the risks associated with soil contamination or degradation after military operations, a strategy, that involves the constant monitoring of the soil condition, development of restoration methods and creation of base of implementing organizations which will act according to international requirements, has been proposed.http://ema.ztu.edu.ua/article/view/321600financial risksecological and environmental risksexport potentialenvironmental damagestrategy
spellingShingle O.H. Vasylenko
O.M. Labenko
The impact of ecological risks caused by the war on the financial condition of the economy and export potential
Економіка, управління та адміністрування
financial risks
ecological and environmental risks
export potential
environmental damage
strategy
title The impact of ecological risks caused by the war on the financial condition of the economy and export potential
title_full The impact of ecological risks caused by the war on the financial condition of the economy and export potential
title_fullStr The impact of ecological risks caused by the war on the financial condition of the economy and export potential
title_full_unstemmed The impact of ecological risks caused by the war on the financial condition of the economy and export potential
title_short The impact of ecological risks caused by the war on the financial condition of the economy and export potential
title_sort impact of ecological risks caused by the war on the financial condition of the economy and export potential
topic financial risks
ecological and environmental risks
export potential
environmental damage
strategy
url http://ema.ztu.edu.ua/article/view/321600
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