Pecularities and basic sources of political parties financing in democratic countries are investigated in the article. The pecularities of financial activity of political parties in Ukraine, including electoral process are examined. The problems of political parties financing in Ukraine are determined and the ways of their solving are offered. Conclusions and recommendations are offered.

The author indicates that state financing of political parties is the main trend in modern European parliamentary development. Sufficient number of laws on this issue in Ukraine makes it impossible to clarify the system of political parties financing because their norms contradict one another as they were passed at different times and are based on different concepts of the state policy. These laws don`t allow to keep control over the order and the amount of sponsors` fees, as well as to control accounts and their use, that causes deformation of the political party itself and turns it into a close-type agency. The author comes to the conclusion that: it is necessary to structure political parties, one should define carefully the correlation between financial needs of the political party activity and its financing proportions, taking into account different sources, political parties should form public opinion dealing with this issue.

Key words: political party, electoral process, election campaign, financing, state financing, private financing, financial control.

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