Interaction between state and private investors in the implementation of priority projects in Ukraine

The aim of this article is to present a thorough and comprehensive analysis of the causes and problems of cooperation between the state and private investors in Ukraine. We examine the role of government regulation in ensuring public-private partnership. The authors developed the scheme of a new investment model that includes a balanced application of state instruments, which are secured with financial resources, and legislative strengthening the common approaches to: 1) the investors's participation in co-financing of the investments; 2) transparency in the fulfilment of projects and distribution of results and assets; 3) financial responsibility for improper fulfillment of obligations, risk management and fair distribution of possible financial losses. This will create proper conditions for the formation of stable incentives for private investors to participate in investment projects in the framework of achieving national priorities. The authors specify the essence of long-term investment commitments arising under public-private partnership; designed accounting principles for unpredictable and deferred investment assets and liabilities of the state and private investors. The developed approach can be used to improve the accounting practice of public finance, finance of budget funded organizations, banks, companies and other participants of the investment process and, in general, to ensure the protection of investors' interests. The authors justify various suggestions for improving public investment policy, and formulates recommendations as to the ways to increase efficiency of the interaction between public and private investors in the implementation of priority projects in Ukraine. The paper contributes to debates on the assessment of the fair value of investment assets and liabilities. Article is written as part of the research on "Financial support for structural modernization of the real sector of Ukraine's economy" currently conducted by the Department of Finance of the Real Sector of State Organization "Institute for Economics and Forecasting of Ukrainian National Academy of Sciences".