Experience and prospectsuse of derivatives financial instrumentsin the agricultural sector of Ukraine

Abstract

In the context of reforming the Ukrainian economy, the primary task is to ensure the continuity of the process of formation and use of financial resources in the country and abroad. The subjects of the financial system are experiencing a shortage of resources, which is a consequence of the downturn in business activity of enterprises, a decrease in their tax potential, and a deterioration in the investment climate.

The article assesses the practice of using various financial instruments in the system of forming investment resources of the agricultural sector of Ukraine; considered the essence and classification of financial instruments in accordance with national and international standards.

Rapid integration processes in the domestic agricultural sector lead to the emergence of new financial instruments for attracting investment resources. Particular attention is paid to derivative financial instruments and the possibility of their use in the modern practice of domestic agricultural enterprises.

The main problems faced by the participants of the financial derivatives market are identified, the international experience of their use, as well as the experience of their application in the agricultural sector of the Ukrainian economy, are investigated. The use of modern market instruments for hedging price risks and the direction of development of derivatives as hedging instruments are analyzed using the example of enterprises of the agro-industrial complex. These results indicate the interest of market participants in modern market instruments hedging of price risks, which creates the need  for an appropriate national development program derivatives as risk hedging instruments.  The factors influencing the demand and use of hedging instruments by the participants of the Ukrainian grain market were identified, recommendations were developed for the development of the use of derivatives in the Ukrainian grain market and the necessary actions on the part of stakeholders, including government bodies, grain market participants, agricultural producers, investors. In order to achieve positive changes in ensuring the sustainable development of the agricultural sector, it is necessary not to dwell on the results obtained, but to work towards the qualitative and territorial deepening of the introduced innovative financial instruments.