FOREIGN ECONOMIC ACTIVITIES OF THE EU AND UKRAINE DURING THE FULL-SCALE INVASION OF RUSSIA IN UKRAINE

As a result of an analysis of the activities of the European Union and Ukraine during the full-scale russian invasion, it was found that the consequences of this conflict affected a wide range of aspects of both sides' economic and social development. In particular, after the full-scale invasion, a significant number of Ukrainians, namely 4.2 million people, applied for asylum in EU countries, focusing mainly on such countries as Germany, Poland, and the Czech Republic. In addition to large-scale migration, the article highlights trends in macro-financial assistance from the EU, which reached €3 billion in January and €1.5 billion monthly from March to October 2023. The joint financial support of the EU and its members amounted to 131.9 billion euros, which shows the decisive actions of Europe to help Ukraine in the face of a full-scale invasion. Military aid, particularly from the US and the EU, amounted to about €40 billion, while humanitarian assistance covered various sectors, including asylum (27%), cash aid (24%), and other areas. In light of studies of trade relations between Ukraine and the EU, it is stated that previous growth trends in 2021 were sharply interrupted by the invasion, which led to a sharp decrease in trade volume. Investment activity was also analyzed, showing that EU direct investment in Ukraine fell by US$12 billion, indicating investor distrust due to the hostilities. On the other hand, investments from Ukraine to the EU increased by USD500 million, as investors preferred the stable zone of the EU countries. In addition, the article examines the inflation processes in the 27 EU countries during the full-scale invasion. It conducts a regression analysis to identify the factors that most significantly influence this macroeconomic indicator. The analysis results show that remittances are a crucial determinant of inflationary trends in the EU, and other essential factors such as GDP, unemployment, and net migration are also identified. All these aspects of the analysis highlight the severe difficulties facing the EU and Ukraine in the context of the invasion and point to the importance of understanding and responding to the complex economic challenges arising from this crisis.