FINANCIAL LEASING IN UKRAINE: ADVANTAGES, DISADVANTAGES, AND WAYS OF IMPROVEMENT

Abstract

The topic of financial leasing is gaining increasing importance in the context of Ukraine’s economic modernization and integration into the global financial system. This paper explores the multifaceted nature of financial leasing as a strategic mechanism for attracting investment resources, particularly for small and medium-sized enterprises. It begins by addressing the legal and economic essence of leasing relationships and the key actors involved in leasing transactions. The regulatory landscape is also considered, with attention given to how current laws and institutions shape the functioning of the leasing sector. The study then shifts focus to analyzing the current state of financial leasing in Ukraine. Special attention is given to the dynamics and structure of leasing operations over recent years. The discussion covers both the practical advantages of leasing for Ukrainian enterprises and the persistent limitations that hinder its broader application. These include fiscal burdens, legal ambiguities, and institutional deficiencies that reduce the attractiveness of leasing arrangements. The author pays particular attention to identifying systemic barriers that prevent the formation of a stable and competitive leasing market. In the concluding section, the article explores prospective directions for improving the legal and institutional framework to enhance leasing development in Ukraine. Drawing from selected elements of international experience, the paper outlines potential reforms and policy measures that could stimulate the use of financial leasing as a viable tool for capital formation and asset renewal. The analysis emphasizes the need to adapt the regulatory approach in a way that fosters trust, reduces risk, and expands access to leasing services, thereby supporting long-term economic resilience. The author argues that leasing, when properly regulated and incentivized, may become an essential component of the country’s investment strategy. Moreover, increasing financial literacy among market participants and ensuring transparent enforcement practices can significantly strengthen confidence in leasing mechanisms.