ECONOMIC CYBER-ESPIONAGE IN THE CONTEXT OF GLOBAL DIGITAL TRANSFORMATION AND THE WAR IN UKRAINE: RISKS TO ECONOMIC SECURITY, CYBER THREATS AND REGULATORY CHALLENGES

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Published: Sep 28, 2026

  Oleksandr Makhlai

  Dmytro Bulatin

  Yurii Vykhodets

Abstract

This article examines economic cyber-espionage as a systemic threat to economic security, considering it in the context of global digital transformation and the growing reliance of modern economies on information technology. It explores how cyber-espionage has evolved from an intelligence-related activity to become an instrument of economic competition, technological rivalry and geopolitical influence. Particular attention is paid to the mechanisms involved in obtaining confidential commercial information, intellectual property, technological developments and strategic economic data by exploiting vulnerabilities in digital infrastructures. The research identifies the key features of economic cyber-espionage, such as its transnational nature, the anonymity of the perpetrators, the long-term persistence of cyber operations and the involvement of state-sponsored advanced persistent threat (APT) groups. The article analyses the economic consequences of cyber-espionage, including losses associated with intellectual property theft, disruption to innovation processes, reduced competitive advantage and increased cybersecurity costs. The article pays special attention to the role of cyber-espionage in the context of Russia’s war against Ukraine, where cyber operations have become an integral part of hybrid warfare. The article shows that cyber-attacks on Ukrainian government institutions, critical infrastructure, defence enterprises and economic entities pose security threats and are attempts to undermine economic resilience and acquire valuable strategic information. The study emphasises the challenges of international legal regulation and institutional responses to economic cyber-espionage. The lack of universally recognised rules governing state-sponsored cyber operations, the difficulty of attributing cyber attacks, and the limitations of international co-operation mechanisms all significantly reduce the effectiveness of countermeasures. The article concludes that economic cyber-espionage has become a significant factor in global economic security. In order to protect digital economies and ensure sustainable development, it is essential to strengthen international co-operation, develop unified regulatory approaches, improve cybersecurity governance and integrate cyber resilience into national economic strategies.

How to Cite

Makhlai, O., Bulatin, D., & Vykhodets, Y. (2026). ECONOMIC CYBER-ESPIONAGE IN THE CONTEXT OF GLOBAL DIGITAL TRANSFORMATION AND THE WAR IN UKRAINE: RISKS TO ECONOMIC SECURITY, CYBER THREATS AND REGULATORY CHALLENGES. Baltic Journal of Economic Studies, 12(4), 352-359. https://doi.org/10.30525/2256-0742/2026-12-4-352-359
Article views: 34 | PDF Downloads: 8

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Keywords

economic cyber-espionage, economic security, digital transformation, cybersecurity, intellectual property protection, cyber threats, advanced persistent threats, hybrid warfare, Ukraine

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