Factors of the region’s investment climate formation under modern socio-economic conditions

The article considers the main factors influencing formation of the investment climate in territories with currently unstable socio-economic and political environment through the example of the Donetsk re gion. Among a wide range of characteristics that reflect the state of territories’ investment climate, the au-thors have distinguished and analyzed three major groups, which are the state of the political and legal envi-ronment, the level of economic development of the society, and the specifics of the socio-cultural environ-ment. The most significant characteristics of the investment climate are identified. These include, first, such political and legal factors as the territory’s political stability and development of regulatory framework; se-cond, economic factors that characterize the development of the investment infrastructure, the intensity of implementing innovations, the stability of the national currency, the transparency of the tax system, the ma-turity of the financial market in the variety of its forms; third, social factors reflecting the military risks and demographic (human resource) trends. Also, the article discusses influence of the following factors on the investment climate of crisis territories: reasonableness and sustainability of the concepts of the territory’s development; principles of the national budget formation; capacity and solvency of the internal market; availability of raw materials; level of the integrated logistics infrastructure formation; inflation rate; dynam-ics of growth of the gross domestic product, volume of capital investments, production output, logistics costs in supply chains; development of education and medicine; criminal and environmental risks; level of unemployment and informal employment; social hierarchy and relationships in the society; quality and avail-ability of social infrastructure. Recommendations are made on how to overcome the crisis situation and gradually regenerate and improve investment climate in the Donetsk region. This implies going through three major stages: achievement of peace, optimization of labor resources quality, attraction and effective use of financial resources from various sources.