The institutional problems of agglomeration development in modern Ukraine are investigated. The main institutional traps that increase transaction costs in the agglomeration process and limit the development potential of agglomerations are outlined. In particular, it concerns institutional traps: structural disproportions, negative expectations, vain hopes, grant dependence, divergence, incompatibility of motives, and illegalization. The basic mechanisms and effects that facilitate the formation, spread, and fixation of institutional traps are described, both in the evolutionary context and from the point of view of modern socio-economic conditions in Ukraine. The essence of the effects of coordination, assimilation, combination, cultural inertia, and lobbying in the agglomeration process is revealed. Examples of their negative impact on agglomeration processes in Ukraine are given using the example of the emergence and expansion of some institutional traps. It has been proven that gaps in the regulatory and legal system of agglomeration development in modern Ukraine are very important factors in forming an institutional trap. The significant role of the institutional and legal environment in overcoming institutional traps is indicated, and the need for its improvement is noted. At the same time, it is shown that today, the importance of factors such as the efficiency of agglomerations’ public governance and the quality of human and social capital of the territorial communities that are part of them is growing. In particular, attention is focused on the expediency of intensifying intermunicipal cooperation and intersectoral partnership. Special attention is paid to business, scientific, and educational institutions, civil society institutions, and others in overcoming institutional traps. At the same time, priority areas of their positive impact on increasing the efficiency of the Ukrainian agglomeration functioning are outlined. Priority tasks for eradicating existing institutional traps and preventing their further emergence at the stage of post-war recovery of the Ukrainian economy are substantiated. The focus is on Ukraine’s adaptation to EU institutional standards and the popularization of successful European practices of agglomeration and their management. It is proposed that experts from EU member states be involved in training representatives of Ukrainian agglomerations and transferring their relevant experience. Simultaneously, the feasibility of broader use of Nudge technologies, gamification tools, and advocacy for positive changes is emphasized to level the destructive impact of institutional traps on the quality of the investment climate of agglomerations and on the efficiency of using their resource potential. It is proposed that agglomerations be provided with clear signs of their industry specialization based on existing competitive advantages and economic traditions of development of their communities. 

institutional traps, agglomerations, economic development, governance mechanisms, regional economy, post-war recovery 

Agglomeration processes are objective in nature, which determines their development in Ukraine throughout the period of its independence. However, these processes in our country mostly occur spontaneously. Because of that they primarily rely on non-formal institutions, such as verbal agreements, administrative stereotypes or social needs. At the same time, agglomerations forming and their development prove a very important trend in the modern world economy: increasing of social and economic role of big cities in the era of globalization and digitalization. At one time, this problem was partially solved at the first stage of the administrative-territorial reform in Ukraine before the large-scale invasion. However, after the start of the active phase of hostilities, the situation has deteriorated significantly. On the one hand, a large number of internally displaced persons and relocated businesses have appeared. They are concentrated mainly in large cities and surrounding rural communities. On the other hand, due to the loss of a significant part of human capital, tensions in the local governments that are the centers of agglomerations have increased, especially in the process of implementing administrative and management functions of territorial management. This has significantly realized the problem of developing high-quality institutional support for increasing the socio-economic potential of the development of agglomerations. At the same time, it should be noted a need to improve the regulatory and legal regulation of agglomerations in view of determining their place in the post-war economic recovery of Ukraine. First of all, this concerns the regulation of the activity of the institute of urban agglomerations at the legislative level. It is also necessary to create an appropriate institutional basis for the training of qualified management personnel capable of ensuring the development of Ukrainian agglomerations at the stage of post-war economic recovery using modern management technologies. In particular, in this context, it is worth emphasising the wide implementation of project management, IT technologies and network marketing, as well as modern tools of territorial branding for agglomerations and strategizing their comprehensive development. 

agglomerations, territorial communities, institutional support, spatial development, governance mechanisms, post-war recovery 

The war and its consequences for the Ukrainian economy have significantly increased the security challenges for most regions of our country. Security problems in the energy sector took one of the first places due to the destruction or damage of most energy infrastructure objects as a result of hostilities or artillery fire and missile strikes. The southern and northeastern regions are in the most threatening and difficult situation as their energy facilities are exposed to almost daily shelling. The situation is somewhat better in the central and western regions of Ukraine but there, too, missile strikes have significantly damaged a number of power plants, thermal power plants, transformer substations and other energy infrastructure facilities. All this urges the state authorities and local governments of each region of Ukraine to take urgent measures aimed at strengthening energy security and implementing modern systems for the protection of energy infrastructure objects. Primarily, the expediency of deconcentration and spatial distribution of energy generating and transmission capacities should be noted. At the same time, it is necessary to strengthen their physical protection and stimulate the involvement of investments in the technological modernization of the regional energetics. The problem will be partly solved by implementing renewable energy components and increasing the efficiency of heat and power generation based on the use of alternative fuels.The introduction of technological innovations and the spatial distribution of energy facilities within individual regions may lead to an increase in transformational and transactional costs of energy production and its transmission to end users. Because of that magnification the energy efficiency of housing and communal services and budget institutions is very important direction of increasing energy security in almost all regions of Ukraine. To do this, energy-saving technologies should not only be introduced, but social populism, traditional for Ukraine, should be abandoned in the energy and housing and communal spheres in favor of market mechanisms for electricity and thermal energy pricing. 

energetics, energy security, energy efficiency, regional economy, global challenges, global fluctuations