Economic and legal aspects of the functioning of the IT sphere in the conditions of war

Abstract

As of 2024, Ukraine has been enduring military aggression from the Russian Federation for over two years. This war has affected all aspects of the country’s life, including the IT industry. In such circumstances, it is essential to evaluate the losses incurred by the digital sector due to military operations and devise strategies for its post-war rehabilitation. The purpose of this study was to assess the state of IT sector in Ukraine, regarded as the main driver of post-war recovery of Ukraine, and to gauge the extent of the damage inflicted by the war. The study was conducted using economic and statistical analysis methods. The findings revealed that in recent years, the IT industry has become one of the top three export sectors, contributing significantly to foreign exchange earnings and comprising about 5% of GDP. The industry also provides jobs for over 300,000 people. During the war, the IT sector demonstrated resilience, adapting to critical conditions and maintaining positive growth trends. However, despite these achievements, the war negatively impacted the sector, slowing its growth. During the first year of the war, the potential losses of the IT sector ranged from 0.4 to 1.9 billion US dollars. Areas requiring the development of regulatory support are identified. The post-war recovery of Ukraine should be centred on a progressive sector that integrates and unites all areas of the IT industry. Primarily, a digital transformation of the energy sector, transport, and logistics systems is proposed. The results of this study can inform the development of strategies for the post-war recovery of the Ukrainian economy and the forecasting of its development indicators