MECHANISMS OF DEOFFSHORIZATION IN THE SYSTEM OF PROTECTION OF UKRAINE’S FINANCIAL INTERESTS IN THE CONTEXT OF GLOBAL TRANSFORMATIONS

Abstract

The article explores the transformation of global financial architecture under the influence of deoffshorization processes and their implications for the protection of national financial interests, with a particular focus on Ukraine. The research examines the shift from traditional offshore-based capital mobility toward enhanced transparency, regulatory coordination, and tax cooperation driven by international standards of financial disclosure and information exchange. The study emphasizes that modern deoffshorization is not merely a fiscal initiative but a systemic restructuring of global capital flows aimed at reducing tax base erosion, combating aggressive tax planning, and restoring public trust in taxation systems. Special attention is given to the mechanisms of automatic exchange of financial information, transparency of multinational corporate activities, and the growing role of tax authorities in monitoring cross-border capital movements. The Ukrainian experience of integrating into the global transparency framework is analyzed, highlighting both institutional progress and operational challenges under conditions of wartime economic pressure. The research demonstrates that the introduction of international financial reporting standards and control instruments significantly expands the state’s capacity to detect concealed assets and limit capital  outflows through offshore jurisdictions. The article further investigates the persistence of capital round-tripping and the discrepancy between nominal and real sources of foreign direct investment, which reflects the continued structural dependence of Ukrainian capital on foreign legal environments. These patterns indicate that while formal transparency has increased, economic motivations for offshore structuring remain strong due to institutional weaknesses and investment risks. The findings confirm that deoffshorization generates both fiscal benefits and regulatory burdens for businesses, particularly in economies experiencing crisis conditions. The balance between strengthening financial control and maintaining an attractive investment climate emerges as a key policy dilemma. The study argues that sustainable protection of national financial interests requires not only stricter tax enforcement but also institutional reforms aimed at improving legal certainty, property rights protection, and economic stability. The research concludes that global transparency trends can become a catalyst for economic modernization in Ukraine if complemented by domestic reforms that reduce incentives for capital flight. Effective deoffshorization should evolve from a punitive control mechanism into a strategic instrument for strengthening financial sovereignty, enhancing budget sustainability, and fostering long-term economic growth.