Baltic Journal of Economic Studies 212 Vol. 11 No. 3, 2025 This is an Open Access article, distributed under the terms of the Creative Commons Attribution CC BY 4.0 1 National University of Ostroh Academy, Ukraine E-mail: iryna.drobush@oa.edu.ua ORCID: https://orcid.org/0000-0002-0006-8676 2 National University "Odesa Law Academy", Ukraine (corresponding author) E-mail: kornuta02@gmail.com ORCID: https://orcid.org/0000-0001-7130-6347 3 National University of Ostroh Academy, Ukraine E-mail: mykola.ukrainets@oa.edu.ua ORCID: https://orcid.org/0009-0002-2334-2487 DOI: https://doi.org/10.30525/2256-0742/2025-11-3-212-221 ENSURING STATE SOVEREIGNTY AS A GUARANTEE OF THE COUNTRY'S ECONOMIC DEVELOPMENT Iryna Drobush1, Liudmila Kornuta2, Mykola Ukrainets3 Abstract. The establishment of an effective system of law and order, peace and security constitutes a fundamental responsibility of the international community. A fundamental element of this process pertains to the matter of sovereignty, which is a prerequisite for a state's participation as an equal participant in international relations. However, the equality of states in international communication gives rise to a variety of approaches to interpreting the meaning of this category, which complicates the task of regulating international law and order. In modern conditions, an effective way to ensure state sovereignty is to develop an economic security strategy, which plays a key role in ensuring the national security of such large states as the United States and China, as well as integration associations (the European Union), since the effectiveness of all other components of national security, in particular military security, largely depends on its state. The purpose of this study is to clarify the conceptual foundations of the mechanism for ensuring state sovereignty, the interconnection of key elements with economic development policy, European integration and public authority as a guarantee of the country's economic development. Methodology. The structural restructuring of the domestic economy and national security system during the formation of Ukrainian statehood, and eventually Ukraine's integration into European and Euro-Atlantic structures, is dynamic in nature and requires constant methodological reflection. The study was conducted on the principles of dialectical logic. The multifaceted, multifactorial and multifunctional nature of the phenomena of state sovereignty and economic security necessitates the use of a systematic, structural- functional and situational approach to their study. The work also employed methods of systematic, logical, institutional and retrospective analysis, as well as forecasting. The provisions and conclusions were developed using comparative analysis, conflict studies, rational choice theory, neo-institutionalism, geopolitics and geoeconomics. In international law, state sovereignty is not only a judgement on the aesthetics of the legal space, but also an arena in which there is a constant struggle between the ideals of justice and geopolitical realities. Ensuring Ukraine's state sovereignty as an independent, democratic, social and legal state is a complex, multifaceted and multi-level process that includes such key areas of activity as: guaranteeing the stability of the Ukrainian state; developing all elements of Ukraine's legal system; improving the efficiency of the organisation and functioning of the entire system of state power, not just individual branches and/or bodies of state power; strengthening the economic, cultural, social, political, environmental and security potential of the state; positioning Ukraine on the international and domestic arena as an active player capable of solving complex problems at the national and global levels and capable of predictable and reliable international co-operation; strengthening the democratic nature of the Ukrainian state and guaranteeing the foundations of Ukraine's constitutional order. National security is a prerequisite for economic development, while economic development contributes significantly to the protection of national security. A thorough examination of GDP dynamics reveals encouraging indications of recovery in the aftermath of the war-induced decline, underscoring the resilience of economic and public governance mechanisms. In order to ensure economic security, and thus national security and state sovereignty, it is vital that the state focuses on protecting against all types of significant threats, risks and challenges. It is imperative for Ukraine to exercise vigilance not only in regard to incidents that surpass expectations and bear grave consequences, but also in the prevention of threats associated with potential Baltic Journal of Economic Studies 213 Vol. 11 No. 3, 2025 concealed conflicts. In the process of involving other states in ensuring its economic security, Ukraine should not focus on forcing its allies to adhere to its policy objectives. Sanctions imposed by the EU and individual states against Russia should focus on issues of international and regional security. The sustainability and effectiveness of sanctions will depend on their perceived legitimacy and awareness of the risk to international and regional law and order. Keywords: state sovereignty, economic development, economic security of the state, economic sovereignty, European integration, public authority. JEL Classification: A10, B13, E21, E62, F02, F20, H77, R33, O10 Introduction One of the reasons that has led to interstate wars and conflicts throughout human history has been and remains the issue of the status and regime of states' territories and their borders. However, the geopolitical attribute of a state is not simply its territory, but the corresponding political space defined by state borders enshrined in national and international law (Kononenko, 2023). In the context of the ongoing war in Ukraine and the struggle of the Ukrainian armed forces to restore its territorial integrity and independence, it is more relevant than ever to study issues related to clarifying the essence, content and functionality of such concepts as state territory, sovereignty, state sovereignty, supremacy of power, as well as related concepts of economic development and prosperity of the country. Building an effective system of law and order, peace and security is one of the key tasks of the international community (Melnychenko, 2024). The cornerstone of this process is the issue of sovereignty, which is a prerequisite for a state's participation in it as an equal participant in international relations. However, the equality of states in international communication gives rise to a variety of approaches to interpreting the meaning of this category, which complicates the task of ensuring international law and order. Despite considerable doctrinal development of the issue of sovereignty, it must be noted that legal literature has not yet established a consistent classification of the prerequisites for different interpretations of its meaning by states with different legal systems. Today, the concept of "sovereignty" is vague, despite its use by all countries of the world. Economic sovereignty is linked to state sovereignty and is considered as the supremacy of the state on its own territory (Lemak, 2024). In today's world, economic security plays a key role in ensuring the national security of large countries such as the United States and China, as well as integration associations (the European Union), since the effectiveness of all other components of national security, including military security, largely depends on its state (Yakoviyk, Turenko, 2021). At the same time, economic instruments can serve both as a non- military form of state protection and as an effective means of aggression. Ukraine's fundamental national interests have remained unchanged since the founding of the state. However, today, promoting these interests requires an approach that responds to the acute and painful challenges of the present day. The purpose of this study is to clarify the conceptual foundations of the mechanism for ensuring state sovereignty, the interconnection of key elements with economic development policy, European integration and public authority as a guarantee of the country's economic development. 1. Research Methodology In international law, state sovereignty is not only a judgement on the aesthetics of the legal space, but also an arena in which there is a constant struggle between the ideals of justice and geopolitical realities. In this regard, the study of the political and legal phenomenon of sovereignty enables not only the comprehension of the legal framework, but also significant progress in the quest for a panacea to ensure the harmonious coexistence of state interests and universal justice (Melnychenko, 2024). Since the concept of state sovereignty has special political and legal significance, in order to outline clear conceptual contours and establish the reasons for the differences in the various meanings attributed to its understanding, it is important to consider several approaches to its understanding. In general, it should be noted that the issues of the essence, characteristics, content and transformation of sovereignty as a scientific category and phenomenon of social reality have a long history and a solid historiography. The specificity and multifaceted nature of this category have led to its interdisciplinary study within the fields of history, political science, sociology, economics, and, undoubtedly, among legal scholars and constitutionalists (Parkhomenko, 2024). It is worth mentioning that modern scientific research is based on the ideas of ancient thinkers and philosophers, including T. Hobbes, G. Grotius, J. Locke, N. Machiavelli, C. Montesquieu, Baltic Journal of Economic Studies 214 Vol. 11 No. 3, 2025 J.-J. Rousseau, as well as well-known domestic researchers: S.S. Dnistrianskyi, S.O. Kotliarevskyi, M.I. Paliienko and others. Foreign researchers have studied the issue of sovereignty at every stage of its evolutionary development. Ulrich Beck and Anthony Giddens viewed theories about risk society as social technologies. Diego Valdés examined issues of control of power in a democracy. Jürgen Habermas studied communicative interactions as the basis of social structure. E. Toussaint (2014) studied global political economy processes, criticising global financial institutions (the IMF and the World Bank) and becoming the founder of alternatives to neoliberal capitalism. The state sovereignty of Ukraine appears as a feature that consolidates and simultaneously ensures the state's ability, thanks to its inherent mechanisms and institutions of state power, to exercise its "supreme" and "sovereign" will, and as an essential characteristic of a state that has constitutionally proclaimed itself a democratic, legal and social state, for which the human being, their life and health, honour and dignity, inviolability and security are the highest social values (Skrypnyuk, 2014). In this context, state sovereignty reveals its complex structure, which includes several elements or components that form its content and essence. This issue has been particularly acute since 2022. According to the research by I. V. Yakoviyk and A. Yu. Turenko (2021), various approaches can be used to assess the security guarantee system, revealing the degree of aggression towards a state on the part of other states: realistic (Hobbes, 2000), according to which one country inevitably has to fight against others in the international arena; idealistic (I. Kant), based on the model of "perpetual peace"; rationalistic (H. Grotius), according to which states are limited in their conflicts by certain rules. One can also highlight a realistic approach, which assumes that modern states are engaged in fierce competition (Bollen, Rojas-Romagosa, 2018). It should be noted that such confrontation may concern not only hostile states (e.g., trade wars between the US and China), but also allies (the US and Japan or the European Union) (Steinbock, 2018). At the beginning of the XXI century, changes in the geopolitical situation influenced the development of the research school of Ukrainian scientists, and the number of scientific and analytical publications by Ukrainian researchers increased significantly. First and foremost, it is worth mentioning works on the general theory of national security, which usually focus on various aspects of economic security, its connection with other subtypes of national security, and the system of ensuring state sovereignty (Miroshnichenko, 2010; Yakoviyk, Turenko, 2021). Political and legal documents (national security strategies) of leading countries play an important role in these studies. However, a shortcoming of these studies is the lack of a systematic presentation of political mechanisms for ensuring national security. However, the generalisations and conclusions contained in these scientific works are of considerable methodological importance for research into the possibilities of economic development of the state. This is particularly important at the present time, when researchers are trying to formulate strategies for recovery during wartime and post-war development. 2. Theoretical Research 2.1 Problems of Ensuring Ukraine's State Sovereignty According to the Declaration of State Sovereignty of Ukraine, adopted on July 16, 1990, Ukraine's state sovereignty is the supremacy, independence, completeness, and indivisibility of the republic's power within its territory, as well as independence and equality in foreign relations. This document was an important step towards Ukraine's independence, which was proclaimed on August 24, 1991. The concept of "state sovereignty" has recently undergone significant changes. It is evident that this was primarily due to a rethinking of the relationship between concepts such as "state sovereignty" and "national sovereignty" and "popular sovereignty". This has led to a shift in focus from the independence and autonomy of state power as "absolute values and characteristics" to its source, as well as the extent to which sovereign state power is capable of realising the goals and objectives that underlie its sovereign power in domestic and foreign affairs. The main characteristics of internal state sovereignty are considered to be: the effective functioning of state authorities (legislative, executive, judicial, control and supervisory), the existence of an effective and dynamically progressing legal system, and the provision of the basic internal functions of the state (Skrypnyuk, 2014). From this perspective, state sovereignty is interpreted not so much as a self-sufficient goal, but rather as a characteristic of the state and a way of organising and functioning of the system of state power. The internal aspect of ensuring Ukraine's state sovereignty includes several important elements (Shemshunenko, 2011). Firstly, Ukraine's sovereignty extends to its entire territory. This provision is enshrined in Article 2(1) of the Constitution of Ukraine. This means that the authority of the Ukrainian state is the source of law, which is binding on the entire population. At the same time, this authority is exclusive, as only Baltic Journal of Economic Studies 215 Vol. 11 No. 3, 2025 the Ukrainian state has the legal right to use state coercion. The extension of state sovereignty to the entire territory does not mean that the state cannot transfer part of its powers to the local level. Secondly, it should be noted that the sovereign Ukrainian state, as a source of law and at the same time a legal and social state, cannot issue legal acts based solely on its own interests and considerations of expediency. This means that the sovereign law-making process of the Ukrainian state is implemented in accordance with certain legal values and principles: the inalienability of natural human and civil rights, the priority of human and civil rights, the rule of law, legality, etc. Thirdly, the sovereignty of the Ukrainian state, which has declared itself democratic, legal and social, does not arise ex nihilo, but has a clearly defined source. This provision is enshrined in Article 5 of the Constitution of Ukraine, which establishes that the bearer of sovereignty and the sole source of power in Ukraine is the people, who exercise power directly and through state authorities and local self-government bodies (Skrypnyuk, 2014). Fourthly, Ukraine's state sovereignty not only has a number of universal characteristics (unity, indivisibility, inalienability, etc.) that make it identical to the sovereignty of any other state, but is also characterised in terms of the specific results of the state's day-to-day functioning. The sovereignty of a state is not so much "freedom from" when the state implements the slogan "the will of the state is the highest law" as it is "freedom for". Therefore, ensuring state sovereignty means constantly strengthening the functional effectiveness of the state, improving internal and external security, preventing any attempts at external or internal expansion that could undermine the integrity of the state, reduce its economic potential, worsen social security for citizens, destroy the foundations of the constitutional order, and so on (Skrypnyuk, 2014). At the current stage of development of the Ukrainian state, dynamic transformations are taking place, related to the impact of the full-scale Russian- Ukrainian war, the intensification of international relations, the strengthening of Ukraine's influence in the geopolitical arena, and institutional problems of ensuring international law and order. The ongoing war in Ukraine has also caused significant changes in the perception of the purpose of existing international blocs and intergovernmental alliances. Alongside economic co-operation, the issue of ensuring collective security through military co-operation and safeguarding the state sovereignty and territorial integrity of member countries has come to the fore. This is of key importance for any state, as it is an integral attribute and a condition for its existence. Having constitutionally enshrined its foreign economic policy of Euro-Atlantic integration, Ukraine must ensure the transformation of its political, legal and economic systems, while receiving economic, political and military support and assistance. The prospect of Ukraine's accession to the EU will require amendments and additions to the Constitution of Ukraine and the formation of a number of normative acts in order to preserve its sovereignty, maintain its ability to independently form and implement domestic and foreign policy, and become a full member of the EU (Parkhomenko, 2024). 2.2 Economic Security of the State as a Prerequisite for Ensuring Sovereignty Economic security is an important element of statehood and a prerequisite for ensuring its sovereignty. Ensuring economic security is the most important function of the state, and therefore economic security always has a certain political dimension (Turenko, 2021). The role of economic security in ensuring the viability of the state shows a steady trend towards constant complication and growth. Today, it is no longer an exaggeration to say that economic security is synonymous with the national security of modern states (Interim National Security Strategic Guidance, 2021). The guidance states unequivocally that "in today's world, economic security is national security" (Renewing, 2021). A similar view of the place and role of economic security in the national security system can be observed in China: "The CPC prioritises economic development as a central task and a driving force for China's modernisation in all areas, including the armed forces" (Military and Security, 2020). A misunderstanding of economic security and the absence of a clear and pragmatic economic policy can pose a greater threat to the state than public debt and its consequences (Economic Security, 2011). Former United States Comptroller General D. M. Walker (2011) notes that few people know that for most of its history, the United States has operated without a strategic, integrated, forward-looking, and results-oriented strategic plan. As a result, the United States has relied too long on its past successes. Today, the United States ranks below average among industrialised countries in key indicators such as savings, critical infrastructure, investment in fundamental research, education outcomes and healthcare. With regard to the European Union as a quasi- federal, supranational association, the concept of economic security is interpreted somewhat differently. Firstly, the term "economic security" is linked to defining the EU’s place in the global economic system. Baltic Journal of Economic Studies 216 Vol. 11 No. 3, 2025 Secondly, emphasis is placed on the ability of the EU as a whole and its Member States to compete in an increasingly globalised world. By pooling their resources, companies in the European Union will be able to match and, in some cases, surpass the economic power of competing countries (the US, China, Japan and other economically developed countries). Thirdly, the implementation of the principles of economic equality and solidarity, without which it is impossible to achieve the goals of European integration. At the same time, it should be agreed that the content of the European Union's economic security concept should not be considered in isolation from an analysis of the national doctrines, programmes and concepts of economic security of the leading EU Member States (Muratova, 2020). In American political and legal traditions, a national security strategy is a fundamental document of the state, adopted for the term of the president's office, which answers the question of how the state authorities understand the main goals and guidelines, principles and directions of activity to ensure security, and how it intends to ensure the coordinated use of the instruments (legal, diplomatic, informational, military and economic) at its disposal to counter threats and challenges to the nation (Yakoviyk, 2021). In contrast to the United States, the tradition of developing and periodically updating basic strategies in the field of national security in the regulatory activities of Ukrainian state bodies, in particular the president, only began to take shape in 2007. Therefore, strategic acts have not been the subject of comprehensive research in domestic legal theory for a long time. A correct understanding of the meaning of economic security is important for constructing a legal model of economic security. In domestic legislation and scientific research, the legal mechanism for ensuring economic security is mainly interpreted as a system of protective measures against various types of threats and dangers. Among legal researchers, a common approach is to interpret security as the protection of the vital interests of society and the state, as well as national values and way of life, from a wide range of external and internal threats of various natures (military, economic, environmental, political, informational, and others) (Yakoviyk, 2021). To ensure the sustainable development of society and the state, it is equally important for the state to take action aimed at realising its economic interests. The National Security Strategy considers "the sustainable development of the national economy and its integration into the European economic space" as one of the areas for realising Ukraine's national interests and ensuring its national security. at the same time, it is noted that "low levels of well-being breed despair and uncertainty about the future, provoke violence, which hinders development and perpetuates backwardness". The National Security Strategy of Ukraine (2020) (paragraphs 24–29) identifies the main internal factors that threaten Ukraine's economic security, hinder its economic growth, attract domestic and foreign investment, reduce its competitiveness and ultimately undermine national stability, human, economic and military potential: inconsistent and incomplete reforms, corruption, slow development of market relations in key areas, including land and subsoil use, the significant role of the public sector in the economy, and imperfect and fragmented legislation; insufficient competition and monopoly dominance, particularly in the energy sector and infrastructure, low energy efficiency; lack of investment in the modernisation and development of critical infrastructure; insufficient capacity to adapt the economy to climate change; emigration, particularly of skilled workers and young people (Strategy 2020). The amendments made in 2024 (Law of Ukraine No. 3858-IX, 2024) to the National Security Strategy of Ukraine cover a wide range of issues, including economic, energy, environmental, biological, information and cyber security, as well as foreign policy activities, ensuring state security, integrated border management and food security. These strategies define the main directions of the state's activities in the field of protecting national interests and ensuring sustainable development. For example, this approach was adopted in the national security strategies of the Baltic states as early as the mid-1990s. The Framework Strategy for National Security of the Republic of Lithuania (1996) interpreted economic security as consistent growth of the country's economy, creation of favourable conditions for the development of all sectors of the economy, creation of preventive measures to reduce the shadow economy, ensuring a higher standard of living for citizens and creating a competitive economy (Makštutis, 2006). The economic security of a state is not a spontaneous product of the activities of the state and other interested parties. It requires concerted efforts on the part of the state and civil society. Given that state sovereignty, sustainable development of the national economy and its integration into the European economic space are recognised as fundamental national interests, the current state of the country's economic security determines the possibility and necessity of periodic institutional reforms and improvements to political and legal regulators and institutions aimed at eliminating or mitigating factors that negatively affect the sustainable development of the economy and its integration into the regional and global economic space (The Law of Baltic Journal of Economic Studies 217 Vol. 11 No. 3, 2025 Ukraine. "On Amendments to the Law of Ukraine ‘On National Security of Ukraine’ Regarding the Strategic Foundations of Integrated Management of the State Border of Ukraine", 2024). 3. Research Results In analysing the impact of geopolitical and international legal threats on the state, its sovereignty and the development of statehood, it is important to note that the level and nature of this impact are significant. A thorough examination of the present circumstances in Ukraine, encompassing the full- scale war, active hostilities on Ukrainian territory, the annexation and temporary occupation of certain regions, and the augmentation of international collaboration with intergovernmental organisations, illuminates the profound impact of these developments on the state and the progression of its statehood. Nevertheless, it is imperative to underscore that these phenomena do not in any way challenge Ukraine's sovereignty. As of today, Ukraine, as an independent and sovereign state (Kurakin, Kyrychenko, 2024): is officially recognised by the international community; participates independently in international relations; represents the interests of the Ukrainian people in their pursuit of independence; exercises public authority at both national and international levels; implements a coherent system of legal norms; Ensuring Ukraine's state sovereignty as a modern independent, democratic, social and legal state includes the activities of state authorities with the assistance of civil society institutions in relation to: – Ensuring the stability of the Ukrainian state; – development of all elements of the legal system of Ukraine; – improving the efficiency of the organisation and functioning of the entire system of state power, not just individual branches and/or bodies of state power, ensuring the evolutionary development of the system of state power; – strengthening the economic, cultural, social, political, environmental and security potential of the state (with particular attention being paid to the social security of Ukrainian citizens); – positioning Ukraine on the international and domestic arena as an active player capable of solving complex problems at the national and global levels; – strengthening democracy in Ukraine, guaranteeing the foundations of Ukraine's constitutional order, strengthening institutions of direct democracy that ensure the principle of national sovereignty (Bilyavsky, 2022). An analysis of doctrinal sources leads to the conclusion that the main meaning of economic security lies in the following (Yakoviyk, Turenko, 2021): – Introduction, support and provision, through various means, methods and techniques, of an economic situation in which entities (the state, society, regions, individual enterprises and individuals) are not threatened by internal or external dangers; – targeted activities of entities aimed at identifying, preventing, mitigating and eliminating dangers and threats that could cause unacceptable damage to national economic interests, as well as risk management. The direct object of economic security is the national interests of the state, which are related to ensuring the economic foundations of statehood, its economic self-sufficiency, and an adequate standard of living for the population. In practice, state policy in the field of economic security is implemented mainly through laws that regulate the most important issues of economic activity and vest the state with important control functions, as well as other regulatory and legal acts. Unfortunately, not all of Ukraine's regulatory and legal acts in the field of security pay sufficient attention to the problem of ensuring the economic security of the state (Seregina, 2012). In order to facilitate effective recovery, it is imperative to possess a comprehensive understanding of international assistance, encompassing both its volume and regularity. The capacity for economic growth is constrained, necessitating the mobilisation of internal resources, particularly through the generation of tax revenues. The challenges of de-shadowing the economy and combatting corruption are of a long- term nature, yet immediate funding must be secured through increased taxation. The creation of effective absorption capacity is instrumental in ensuring the optimal utilisation of international aid (Gbur, Krylova, 2024). An analysis of Ukraine's gross domestic product (GDP) is an important element in understanding the country's economic stability, especially in the context of global challenges such as war, economic crisis and changes in the international economic situation (Sustainable Economy, 2025; State Statistics Service, 2025). Thus, an analysis of Ukraine's GDP over 12 years shows trends that can be used to assess the country's economic stability. As can be seen from Table 1, despite significant GDP growth, real GDP always lags behind. In other words, the trend of inflationary growth continues, but the amount in absolute and relative terms fluctuates from year to year. The most significant disparity was observed in 2015 and 2022. It is precisely such dynamics that enable one to ascertain the true state of economic stability, economic difficulties and risks. An analysis of Ukraine's GDP structure by final use shows how all goods and services produced in the country are spent. It includes consumer spending, Baltic Journal of Economic Studies 218 Vol. 11 No. 3, 2025 investment, government spending and net exports (exports minus imports). Understanding this structure helps to analyse the economic situation in the country and determine priorities for further development. In general, consumer spending accounts for a significant share of Ukraine's GDP, indicating high consumer spending, high prices and high inflation. Gross accumulation, which reflects the investment activity of the population, tends to decline and in recent years has accounted for up to 20% of total GDP. Government spending also plays a significant role, especially in the context of social programmes and infrastructure projects. The export and import of goods and services play an important role in shaping the stability of Ukraine's economy, especially in the face of global challenges. These indicators are key indicators of economic openness and interaction with international markets, Table 1 Ukraine's GDP from 2012 to 2024 (million UAH) Indicators Year Nominal GDP / (in actual prices) Real GDP (in previous year's prices) Difference (real – nominal) 2012 1408889 1304064 -104825 -7.4% 2013 1454931 1410609 -44322 -3.0% 2014 1566728 1365123 -201605 -12.9% 2015 1979458 1430290 -549168 -27.7% 2016 2383182 2034430 -348752 -14.6% 2017 2982920 2445587 -537333 -18.0% 2018 3558706 3083409 -475297 -13.4% 2019 3974564 3675728 -298836 -7.5% 2020 4194102 3818456 -375646 -9.0% 2021 5459574 4363582 -1095992 -20.1% 2022 5191028 3865780 -1325248 -25.5% 2023 6537825 5518062 -1019763 -15.6% 2024 7658659 6821088 -837571 -10.9% Source: formed on the basis of (Sustainable Economy, 2025; State Statistics Service, 2025) Table 2 Structure of Ukraine's GDP by final use from 2005 to 2024 (million UAH) Nominal GDP for the year Consumer expenditures Gross accumulation Export of goods and services Import of goods and services % of GDP % of GDP % of GDP % of GDP 2005 441452 337879 76.5 99876 22.6 227252 51.5 -223555 -50.6 2006 544153 424060 77.9 134740 24.8 253707 46.6 -269200 -49.5 2007 720731 558581 77.5 203318 28.2 323205 44.8 -364373 -50.6 2008 948056 758902 80.0 264883 27.9 444859 46.9 -520588 -54.9 2009 913345 772826 84.6 155815 17.1 423564 46.4 -438860 -48.0 2010 1082569 914230 84.5 199918 18.5 549365 50.7 -580944 -53.7 2011 1316600 1105201 83.9 282474 21.5 707953 53.8 -779028 -59.2 2012 1408889 1269601 90.1 257335 18.3 717347 50.9 -835394 -59.3 2013 1454931 1350220 92.8 228474 15.7 681899 46.9 -805662 -55.4 2014 1566728 1409772 90.0 220968 14.1 770121 49.2 -834133 -53.2 2015 1979458 1715636 86.7 303297 15.3 1044541 52.8 -1084016 -54.8 2016 2383182 2018854 84.7 512830 21.5 1174625 49.3 -1323127 -55.5 2017 2982920 2552525 85.6 618914 20.7 1430230 47.9 -1618749 -54.3 2018 3558706 3196756 89.8 667953 18.8 1608890 45.2 -1914893 -53.8 2019 3974564 3785133 95.2 500614 12.6 1636416 41.2 -1947599 -49.0 2020 4194102 3923203 93.5 315026 7.5 1637399 39.0 -1681526 -40.1 2021 5459574 4766568 87.3 754369 13.8 2224704 40.7 -2286067 -41.9 2022 5191028 5408161 104.2 654629 12.6 1840563 35.5 -2712325 -52.3 2023 6537825 6916714 105.8 989221 15.1 1868904 28.6 -3237014 -49.5 2024 7658659 7680835 100.3 1427806 18.6 2252428 29.4 -3702410 -48.3 Source: formed on the basis of (Forbes, 2025; Sustainable Economy, 2025; State Statistics Service, 2025) Baltic Journal of Economic Studies 219 Vol. 11 No. 3, 2025 as well as important factors for ensuring the country's economic growth and stability. Net exports from 2005 to 2024 fluctuate between 40% and 50% of GDP, but in recent years, from 2022 to 2024, it has accounted for less than 40%. In the context of a full-scale invasion, this is influenced not so much by global economic conditions or the competitiveness of Ukrainian goods on world markets, but rather by political and logistical risks. There has also been a decline in imports of goods (Forbes, 2025). At the same time, analysis of the table on exports and imports shows serious transformations in Ukraine's foreign trade in services amid global challenges, in particular war and economic sanctions. In 2023, total exports of services remained at the 2022 level, with a decline in the share of material resource processing services, reflecting a reduction in processing capacity due to the war (Gbur, Krylova, 2024). Concurrently, transport and telecommunications services maintain their significance as export commodities, despite a decline in their relative contribution. This phenomenon is indicative of challenges encountered in the logistics sector. However, it simultaneously underscores the pivotal role of information and technology services in facilitating the adaptation of the economy to novel circumstances. An examination of data pertaining to the years 2022-2023 reveals a notable increase in the importation of services, with a particular emphasis on public and government services. This observation suggests a necessity to provide support to public administration and to ensure stability in wartime circumstances (Sustainable Economy, 2025). Ensuring the stability of Ukraine's economy in wartime is an extremely difficult task that requires coordinated efforts by the state, business, communities and international partners. A pivotal step in this direction is the establishment of state recovery funds, which are designed to rebuild infrastructure, transform the economy, support business, and manage public debt. In consideration of the data presented, international organisations have revised their forecasts and ratings for Ukraine, with a consequent lowering of their assessments. The European Commission has revised its GDP growth forecast for Ukraine, lowering it to 2.0% for 2025 (a decrease from the previously expected 2.8% in November 2024) and to 4.7% for 2026 (a further decrease from the previously expected 5.9%). The IMF lowered its estimate of Ukraine's GDP growth in 2025 to 2–3%, the EBRD to 3.5% (from 4.7%), and the World Bank to 2% (from 6.5%) (Forbes, 2025). It is important to acknowledge that sufficient economic security cannot be attained exclusively through concerted economic policies implemented by the state. In certain cases, the economic security of the state may require actions by international organisations, integration associations and individual states. These actions should be carried out on a subsidiary basis and in accordance with the principles of international law and international economic law. In such circumstances, the establishment of a regulatory framework is imperative to facilitate the coordination of collective and individual actions by international organisations and individual states in providing assistance to a state that has been subject to external influence. The state's need for subsidiary support for its own economic security from international organisations, integration associations and individual states is often objective in nature. This is primarily due to systemic problems affecting the global financial, demographic and environmental systems, and since 2020, the fight against the pandemic, in particular COVID-19. Since 2022, Ukraine has been receiving full-scale assistance against Russian aggression (Sustainable Economy, 2025; Forbes, 2025). The critical situation surrounding the Russian- Ukrainian military conflict cannot be overcome without economic assistance and the imposition of economic sanctions on the Russian Federation by the United States, the European Union, and other countries (Council Decision, 2014; Yakoviyk, 2019). Conclusions The following conclusions can be drawn based on the research conducted. Ensuring the state sovereignty of Ukraine as an independent, democratic, social, and rule-of-law state is a complex, multifaceted, and multilevel process. It encompasses the following key areas of activity: ensuring the stability of the Ukrainian state’s form of government; developing all elements of Ukraine’s legal system (including not only the system of legislation, but also legal relations, legal practice, public and individual legal consciousness, legal implementation, and so on); increasing the efficiency of the organisation and functioning of the entire system of state power, rather than just individual branches and/or bodies of government; strengthening the economic, cultural, social, political, environmental, and security potential of the state; positioning Ukraine on both the domestic and international arenas as an active actor capable of addressing complex challenges at the national and global levels and of engaging in predictable and reliable international co-operation; and reinforcing the democratic nature of the Ukrainian state and ensuring the foundations of Ukraine’s constitutional order. The issue of ensuring state sovereignty as a guarantee of a country's economic development is one of the most pressing issues of the XXI century. The formation of the concept of state sovereignty is dependent Baltic Journal of Economic Studies 220 Vol. 11 No. 3, 2025 on a number of factors, including national security and its component, economic security. The latter is dependent on the goals of economic policy, such as protecting the economic well-being of certain segments of the population or society and the state as a whole. The extent of state intervention in economic relations, and the tools and mechanisms used to achieve this, can be divided into several stages. In today's world, it is difficult to achieve economic growth without a secure and stable political and social environment. National security is a prerequisite for economic development, while economic development significantly contributes to the protection of national security; these are dualistic processes of evolutionary development. The establishment of a strategy for sustainable economic development in Ukraine within the context of global challenges constitutes a pivotal element of state policy, with the objective of ensuring stability and economic recovery in the face of crisis, occasioned by war and other external factors. An analysis of GDP dynamics shows positive trends of recovery after the decline caused by the war, which indicates the adaptability of economic and public governance mechanisms. In order to ensure economic security, and thus national security and state sovereignty, it is vital that the state focuses on protecting against all types of significant threats, risks and challenges. It is imperative for Ukraine to exercise vigilance not only in regard to incidents that surpass expectations and bear severe consequences, but also in the prevention of threats associated with potential concealed conflicts. In the process of engaging other states in the pursuit of economic security, Ukraine should refrain from any attempts to compel its allies to adhere to its own policy objectives. The imposition of sanctions by the EU and individual Member States against Russia should be focused on issues of international and regional security. The sustainability and effectiveness of sanctions is contingent upon their perceived legitimacy and awareness of the risk to international and regional law and order. In the context of contemporary geopolitical transformations, the challenges of a post-globalised world and the destruction of certain foundations of the international legal order, the territory of a state remains its intrinsic feature, ensuring its functioning as a socio-political institution; in addition to its traditional meaning, it can be seen as a line of defence; the military occupation of another state's territory is against international law, is an act of aggression and violence, and has no legal consequences; the temporarily occupied territories of Ukraine have a special legal status, different from the rest of the country, as defined by law; the membership of states in supranational associations is one of the ways in which a state exercises its sovereign rights and does not change the essence of their national sovereignty. References: Bilyavsky, D. S. (2022). The right to war as a component of sovereignty. Russian-Ukrainian War: Law, Security, World (April 29-30, 2022). 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