Energy independence and financial stability of economic entities in the conditions of war
Russia’s invasion of Ukraine has caused many social, economic, environmental and energy problems. Most business entities faced problems at the national level that affected their financial and economic activities. The mass departure of workers abroad, rising natural gas prices, internal relocation, and constant shelling force business entities to search for new approaches to the management and development of their enterprises. The purpose of the study – substantiate and test the scientific and methodological approach to achieving energy independence of economic entities as a way to avoid their insolvency in times of war. In the course of the study, a critical analysis of the thematic literature was performed, and a set of general scientific and special research methods was used: expert assessments, observation, analogy, grouping, obtaining a consensus, deductive, inductive reasoning, systematisation, system-functional, measurement, analysis, comparison, logical generalisation, systematisation, hypothesis, a repeated combination of independent scenarios, extrapolation, elasticity estimation and graphical. The study identified the consequences of the military invasion of Ukraine and developed an algorithm for actions during the war. Four scenarios have been identified, under which the investigated business entity can solve the urgent problems. It is substantiated that the best scenario is the one in which it is required to increase its production capacity by setting up a “full cycle” production using a continuous pyrolysis system for the recycling of worn-out tires. The rationality of its use is proved. The scientific and methodological tools for interaction between business entities and the state during the war have been improved based on a systematic approach, which, unlike the existing ones, deepens the significance of shifting the centre of gravity from the macro to the micro level and is based on the proposed algorithm of actions (identifying the problem, developing possible scenarios for its immediate solution, compliance of the chosen scenario with the national interests of the state, finding a source of funding for the implementation of one of the scenarios), which determines the most optimistic scenario of the balance of interests between the state and business entities. The practical value of the proposed lies in the identification of economic, social, environmental and energy efficiency of the developed algorithm of actions in practice, on the example of financial and economic activities of the entity. Such an approach, on the one hand, allows for achieving energy independence soon and is a way to avoid the insolvency of economic entities in the conditions of war. On the other hand, it should become a reliable base for the national economy in the period of post-war reconstruction
[1] Ukrainian Union of Industrialists and Entrepreneurs. (2021). An overview of the impact of the war on the industry of Ukraine and a forecast of prospects in the economy. Retrieved from http://surl.li/czrob.
[2] Stock quotes: Natural gas. Medium and long-term market. (n.d.). Retrieved from http://surl.li/czroj.
[3] Border crossing. (n.d.). Retrieved from https://dpsu.gov.ua/.
[4] Kholodnova, A. (2022). The Minister of Defense said the number of Ukrainians mobilized to the rmed Forces. Retrieved from http://surl.li/czron.
[5] Gunnella, V., Jarvis, V., Morris, R., & Tóth M. (2022). Natural gas dependence and risks to euro area activity. Retrieved from https://www.ecb.europa.eu/pub/economic-bulletin/focus/2022/html/ecb.ebbox202201_04~63d8786255.en.html.
[6] National strategy for increasing foreign direct investment in Ukraine. Section 2.2: Energy. (n.d.). Retrieved from http://www.nicouncil.org.ua/uk/strategy/304-2-2.html.
[7] Kopetska, Yu.O. (2016). The essence, main types and classification of energy resources as components of the production potential of the enterprise. Uzhhorod National University Herald. Series: International Economic Relations and World Economy, 7(2), 21-26.
[8] Demirbas, A. (2000). Recent advances in biomass conversion technologies. Energy Educational Science and Technology, 6, 19-40.
[9] Fedrets, O., Zos-Kior, M., & Pysarenko, R. (2020). Methodical approaches to estimation of energy resources costs in agriculture. Economy and Society, 22. doi: 10.32782/2524-0072/2020-22-45.
[10] Rathore, N.S., & Panwar, N.L. (2007). Renewable energy sources for sustainable development. New Delhi: New India Publishing Agency.
[11] Bergmann, A., Colombo, S., & Hanley N. (2008). Rural versus urban preferences for renewable energy developments. Ecological Economics, 65, 616-625.
[12] Reddy, A.K.N., & Subramanian, D.K. (1979). The design of rural energy centers. Proceedings of the Indian Academy of Sciences, 2, 395- 416.
[13] Demirbas, A. (2006). Global renewable energy resources. Energy Sources, Part A: Recovery, Utilization, and Environmental Effects, 28(8), 779-792.
[14] Ivashkiv, I.M., Stefanyshyn, L.S., & Korol, S.V. (2020). Economic prerequisites for the use of renewable energy resources at domestic enterprises in the context of the development of green energy. Ahrosvit, 13-14, 61-65.
[15] Kralova, I., & Sjöblom, J. (2010). Biofuels-renewable energy sources: A review. Journal of Dispersion Science and Technology, 31(3), 409-425.
[16] Pilusa, J., & Muzenda, E. (2016). Combustion characteristics of waste tyre pyrolysis fuel as industrial burner fuel. Retrieved from https://www.intechopen.com/chapters/51119.
[17] Flanagan, M., Kammer, A., Pescatori, A., & Stuermer, M. (2022). How a Russian natural gas cutoff could weigh on Europe’s economies. IMFBlog Charts. Retrieved from http://surl.li/czrqi.
[18] Halser, C., & Paraschiv, F. (2022). Pathways to overcoming natural gas dependency on Russia – the German case. Energies, 15, article number 4939. doi: 10.3390/en15144939.
[19] Bowman, J. (2022). Clean energy is the key to real energy independence. Retrieved from http://surl.li/czrvd.
[20] European Commission. (2022). REPowerEU: Joint European action for more affordable, secure and sustainable energy. Retrieved from http://surl.li/czrvf.
[21] Bekhrad, K., Aslani, A., & Mazzuca-Sobczuk, T. (2020). Energy security in Andalusia: The role of renewable energy sources. Case Studies in Chemical and Environmental Engineering, 1, article number 100001.
[22] Juaidi, A., Montoya, F.G., Ibrik, I.H., & Manzano-Agugliaro, F. (2016). An overview of renewable energy potential in Palestine. Renewable and Sustainable Energy Reviews, 65, 943-960.
[23] Juaidi, A., Montoya, F.G., Gázquez, J.A., & Manzano-Agugliaro, F. (2016). An overview of energy balance compared to sustainable energy in United Arab Emirates. Renewable and Sustainable Energy Reviews, 55, 1195-1209.
[24] Antonenko, A., Nitsovych, R., Pavlenko, O., & Takac, K. (2018). Reforming Ukraine’s energy sector: Critical unfinished business. Retrieved from https://carnegieeurope.eu/2018/02/06/reforming-ukraine-s-energy-sector-criticalunfinished-business-pub-75449.
[25] Energy security. (n.d.). Retrieved from https://www.iea.org/reports/ukraine-energy-profile/energy-security.
[26] Cohen, P. (2022). Climate fears on back burner as fuel costs soar and Russia crisis deepens. Retrieved from http://surl.li/czrru.
[27] Goldin Ian. (n.d.). Retrieved from https://iangoldin.org.
[28] Cohen, P. (2022). Climate fears on back burner as fuel costs soar and Russia crisis deepens. Retrieved from https://www.nytimes.com/2022/02/23/business/economy/russia-ukraine-energy-security-climate-change.html.
[29] Gunnella, V., Jarvis, V., Morris, R., & Tóth, M. (2022). Natural gas dependence and risks to euro area activity. Retrieved from http://surl.li/czrsg.
[30] Omeliuk, T. (2021). “Megatex Industrial” plans to increase production capacity. Retrieved from http://surl.li/czrst.
[31] Resolution of the Cabinet of Ministers of Ukraine No. 179 “On the Approval of the National Economic Strategy for the Period until 2030. (2021, November). Retrieved from https://www.kmu.gov.ua/npas/pro-zatverdzhennyanacionalnoyi-eko-a179.
[32] Law of Ukraine No. 2320-IX “On Waste Management” (2022, June). Retrieved from https://zakon.rada.gov.ua/laws/show/2320-20#Text.
[33] Huffman, G.P., & Shah, N. (1998). Can waste plastics and tires be recycled economically. Chemtech, 28, 34-43.
[34] Pilusa, J., & Muzenda, E. (2016). Combustion characteristics of waste tyre pyrolysis fuel as industrial burner fuel. doi: 10.5772/63078.
[35] Geddie, J., Siddiqui, Z., & Gloystein, H. (2019). Burning tires: The murky oil business polluting parts of Asia. Retrieved from http://surl.li/czrto.
[36] International Energy Agency. (2011). Technology roadmap: Biofuels for transport. Paris: International Energy Agency. doi: 10.1787/9789264118461-en.
[37] Aleksieieva, O. (2020). Recycling of tires – where to hand over car tires. Retrieved from http://surl.li/czrty.
[38] Official website of the State Statistics Service of Ukraine. (n.d.). Retrieved from https://www.ukrstat.gov.ua.
[39] Mirokdetok. (2020). Processing of tires, tires, spent HTV into liquid pyrolysis fuel, pyrolysis, reactor. Tire recycling: Step-by-step discovery of the production of tire pyrolysis with your own hands. Retrieved from https://mirokdetok.ru/uk/pererabotka-shin-pokryshek-otrabotannyi-rti-v-zhidkoe-piroliznoe-toplivo.
[40] Wang, H., Xu, H., & Xuan, X. (2013). Review of waste tire reuse and recycling in China – current situation, problems and countermeasures. Advances in Natural Sciences, 1, 81-90.
[41] Draft Order of the Ministry of Economy No. 738 “On the Approval of the Procedure for Evaluating Applications, Evaluation Criteria and the Required Number of Points (Evaluations) for Making Decisions on Granting Grants for the Creation or Development of Processing Enterprises, the form of a Business Plan, the form of a Grant Agreement, as well as the Deadlines for Submitting Applications and the Maximum Amount of Grants”. (2022, September). Retrieved from https://www.drs.gov.ua/wp-content/uploads/2022/07/3748.pdf.
[42] Savchuk, D., Kharlamov, O., & Kotykovych, I. (2019). Experience in the protection of rural settlements from flooding in the irrigated zone . Scientific Horizons, 5(78), 95-104. doi: 10.33249/2663-2144-2019-78-5-95-104.
[43] Azzuni, A., & Breyer, C. (2018). Energy security and energy storage technologies. Energy Procedia, 155, 237-258. doi: 10.1016/j.egypro.2018.11.053.
[44] Zinchuk, T., Kutsmus, N., Usiuk, T., Kovalchuk, O., & Zaburanna, L. (2021). Inclusive development of the world countries under conditions of globalisation: models and arguments. Scientific Horizons, 24(6), 81-91. doi: 10.48077/scihor.24(6).2021.81-91.