LEGAL FRAMEWORK FOR BUSINESS ENTITY RELOCATION DURING ARMED AGGRESSION: THEORETICAL CONCEPTS AND MODELS FOR UKRAINE

Abstract

This article presents a comprehensive scientific
study of the legal framework governing the relocation
of business entities under conditions of armed
aggression, with particular consideration of the
specific features of Ukraine’s current legal
framework. A theoretical and legal interpretation of the concept of "relocation" is proposed, encompassing
both voluntary and forced transfer processes of
businesses and their assets from high-risk areas to
safer regions to preserve production potential and
maintain the economic resilience of the nation. The
study examines the legal nature of relocation as an
instrument for stabilizing the national economy under
martial law and substantiates the role of state
intervention in this process.
The primary objectives and purposes of
relocation are identified, including the preservation of
economic activity, prevention of infrastructure
degradation, maintenance of employment levels, and
ensuring continuity of critical services. The article
examines the unique characteristics of relocating
municipal enterprises, which play a key role in
meeting the basic needs of the population and
ensuring the stable operation of public utility
infrastructure. Specific legal challenges associated
with the relocation of municipal enterprises are
highlighted, such as protection of property rights,
ensuring operational continuity, and addressing the
legal and financial constraints that slow the relocation
process.
The study analyzes key gaps in the current
Ukrainian legislation regarding the relocation of
businesses during martial law and proposes
improvements to the legal framework based on
international experience. Specifically, the article
highlights the practices of the United States, Israel,
and Germany, where comprehensive legislative
mechanisms provide for relocation cost
compensation, tax incentives, subsidies, and
concessional lending for relocated enterprises.
Legislative models are proposed for Ukraine,
including the introduction of financial incentives,
specialized administrative procedures for municipal
enterprises, and compensatory mechanisms aimed at
mitigating financial losses for relocated business
entities.
The article underscores the necessity of
developing institutional and legal mechanisms that
would enhance the implementation of state policies on
business relocation based on principles of efficiency, transparency, and accountability.

Keywords: relocation, business entities, enterprises, municipal enterprises, legislation.