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Journal of the National Academy of Legal Sciences of Ukraine

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State aid to undertakings as a legal instrument for advancing the objectives of national climate policy: prospects for the development of national legislation in light of EU law

Vladimir Anatolyevich Ustimenko , Ruslan A. Dzhabrailov , Tetiana S. Hudima , Stanislav Sieriebriak

Received 24.07.2026, Revised 24.08.2026, Accepted 30.09.2026

Abstract

The article highlights the significant progress achieved in the development of the State aid regime under EU law and the increasing use of its instruments to advance the strategic objectives of climate security in conjunction with the requirements of economic resilience and the strengthening of the competitiveness of undertakings operating in strategic sectors of the economy. It is argued that the further development of Ukraine’s legal framework governing the economy should be based on contemporary trends in EU law, which are reflected in the ongoing modernization of national legislation on State aid to undertakings. The prospective legislation of Ukraine should therefore take into account the forms, types, and implementation mechanisms of State aid developed under EU law for the purpose of achieving the objectives of national climate policy. In particular, the article examines the specific features of electricity pricing mechanisms, selected tax incentives, and compensation mechanisms as instruments for supporting undertakings. Their implementation into the national legal system would require considerably fewer institutional changes, while potentially proving more effective during the process of approximation to EU law than other, legally more complex forms and types of State aid. To ensure a systematic approach, enhance the effectiveness of legislative planning, and secure consistency with the EU State aid rules, particular importance should be attached to supplementing Chapter 8 “Competition Policy” of the National Programme for Approximation with measures aimed at implementing into Ukrainian legislation the provisions of EU law governing the forms and types of State aid examined in this study that facilitate the achievement of national climate policy objectives. Relying on the method of legal forecasting, the article argues that, if the existing structure of the planned legislative acts is maintained and no measures are taken to clearly distinguish their respective regulatory scopes, the implementation process may reduce the effectiveness and coherence of Ukraine’s legislation governing the granting of State aid to undertakings for the achievement of national climate policy objectives. The article further emphasizes that the effectiveness of subordinate legislative level will largely depend on the extent to which Ukrainian laws incorporate legal provisions that align the forms and types of State support for achieving national climate policy objectives with the institutional components of the EU State aid system.

Keywords:

state aid; undertaking; climate policy; economic resilience; competition; EU law

https://doi.org/10.31359/1993-0909.2026.33.3.201

Retrieved from Journal NALSU №3, 2026 year

Pages 201-230

References Suggested citation

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Suggested citation

Vladimir Anatolyevich Ustimenko , Ruslan A. Dzhabrailov, Tetiana S. Hudima, & Sieriebriak, S.V. (2026). State aid to undertakings as a legal instrument for advancing the objectives of national climate policy: prospects for the development of national legislation in light of EU law. Journal of the National Academy of Legal Sciences of Ukraine, 33(3), 201-230. https://doi.org/10.31359/1993-0909.2026.33.3.201