Uman National University | today: 06/20/2025

Improving the Institution of State Aid in Ukraine Based on the Guiding Principles and Framework Provisions of the European Union

Author(s) Kostyuk W. S., PhD in Economics, ,
А. А. ОСІПОВА, , ,
Костюк Я. Ю., , ,
Category Economics
year 2025 issue Випуск 106 Частина 2
pages 208-217 index UDK 346.2
DOI 10.32782/2415-8240-2025-106-2-208-217 (Link)
Abstract This article explores modern approaches to improving the institution of state aid in Ukraine, taking into account the guiding principles and regulatory provisions of the European Union. The authors substantiate the need to harmonize Ukrainian legislation in the field of competition and state aid with the norms of the EU acquis as a prerequisite for further European integration and the development of fair competition. A comprehensive analysis is conducted on the legal nature of state aid, its functions, and the principles of admissibility and effectiveness assessment criteria. Special attention is given to the analysis of legislative changes in Ukraine during martial law and the challenges faced by national regulators amid economic transformation. The paper examines the functioning of the state aid legal framework in the European Union, particularly the application of the balancing test as a tool for assessing the economic feasibility of public support, taking into account both its positive and negative consequences. Based on the analysis of the legal frameworks of the EU and Ukraine, the authors propose ways to improve mechanisms for monitoring, transparency, and accountability of state aid. The paper emphasizes the expediency of implementing digital control tools such as the SANI, TAM, and SARI electronic platforms, adapted to the Ukrainian context. The use of such platforms is expected to reduce corruption risks, ensure public access to information on the allocation of budgetary resources, and enhance trust in government policies supporting businesses. The study’s findings highlight the necessity of gradually restoring a fully functional legal framework for state aid even under martial law and the importance of continuing reforms toward the implementation of European standards in competition policy. It concludes that the introduction of a system of clear admissibility criteria for state aid, based on the principles of transparency, justification, legal certainty, and consistency, is essential for effective public resource management and successful Ukraine–EU convergence.
Key words competition, state aid, principles of admissibility and inadmissibility of state aid, criteria and principles of state aid, balancing test
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