1. AC T I O N P L A N
STAT E R EG I O N A L P O L I C Y

2. DIFFERENT CITIZEN ACCESS TO RECEIVING SERVICES AND
DIFFERENT OPPORTUNITIES
▪ Education
▪ Healthcare
▪ Housing and utilities
▪ Entrepreneurial activity
ASSYMETRY IN THE DEVELOPMENT OF THE REGIONAL AND
DEVELOPMENT OF TERRITORIES IN THE REGIONS
• Regions differ by the level of gross regional product
• Certain territories require a considerable interference of the state
DEMOGRAPHIC CRISIS
• Internal and external migration
• Some oblasts already have less than 1 million population (Chernihiv,
Kirovograd, Chernivtsi)
DISUNITY OF THE UKRAINIAN SPACE
▪ Different political views (particularly with regard to the foreign policy
vector)
REGI ONAL
POL I CY
MAI N
CHAL L ENGES
UKRAI NE

3. UNEVEN DISTRIUTION OF ENTERPRISES
KEY I MPL EMENTATION CHAL L ENGES
STAT E REGI ONAL POL I CY
LACK OF FINANCING FOR STATE
GOALS
▪ Since 2014 the State Strategy of
Regional Development has not been
financed
UNPREDICTABLE AMOUNT OF
FUNDS FOR SRP
▪ SFRR is financed differently every
year (less than 1% of the SBU)
▪ Unfair distribution of 20% of SFRR
NON-TRANSPARENT MECHANISM
OF PROJECT SELECTION
▪ Political influence
▪ Projects are not aligned with state
and regional strategies
▪ Projects are weak
CONTRADICTIONS IN LEGISLATION
▪ LoU “On Stimulating the
Development of Regions”
▪ LoU “On the Foundations of State
Regional Policy”
▪ Budget Code of Ukraine

4. NATIONAL PRIORITIES
OF STATE REGIONAL POLICY
TERRITORIAL UNITY HUMAN DEVELOPMENT AND
ACCESSIBILITY OF HIGH
QUALITY SERVICES
ECONOMIC DEVELOPMENT OF
REGIONS AND CERTAIN
TERRITORIES

5. PRI ORITY
TASKS
OF STAT E
REGI ONAL
POL I CY
THREE LEVEL
PLANNING
SYSTEM
EFFECTIVE STATE
FINANCING OF STRATEGICALLY
IMPORTANT PROJECTS
FINANCING
MONITORING LEGISLATION
HARMONIZATION
▪ State Strategy of Regional Development
until 2027 and Activity Plan for its
implementation for 2021-2023
▪ Regional Development Strategies
▪ Community Development Strategies
▪ Transparent project selection (“no plans without
money, no money without plans”)
▪ Complex online system of project selection
▪ Investment map of the regions
▪Complex system of monitoring the
communities and territories development
(strategies and projects, socio-economic
indexes)
▪Interdepartmental coordination commission
on SRP
▪Regional Development Agency (RDAs)
INSTITUTIONAL
CAPACITY AND
COORDINATION
▪ To harmonize regional development legislation with
sectoral legislation
▪ SFRR (to increase the SFRR, to allocate part of the funds
to SSRD implementation)
▪ Fair distribution of funds between the regions
▪ Development of community infrastructure
5

6. PRI ORITY
TASKS
OF STAT E
REGI ONAL
POL I CY
The existing
network of
public services and
social infrastructure
INFRASTRUCTURE OF COMMUNITIES AND REGIONS
▪ GIS system of infrastructure of communities and regions
▪ Determining the need in updating the network of public
services provision taking into consideration the new
communities
▪ Public investments into the formed network
CROSS-BORDER COOPERATION
▪ Introduction of European approaches to CBC
▪ Activation of inter-governmental cross-border cooperation
TRANSFORMATION OF COAL-MINING REGIONS –
NATIONAL PROGRAMME UNTIL 2030
▪ Investment development of coal-mining territories
▪ Diversification of local economy
▪ Development of community infrastructure
▪ Human capital development programmes
6

7. PRI ORITY
L EGI SL ATION
OF STAT E
REGI ONAL
POL I CY
COMPLEX CHANGES TO THE LAW OF UKRAINE “ON THE FOUNDATIONS OF
STATE REGIONAL POLICY”
▪ New quality of the three-level strategic planning: national – region – community
▪ Establishment of National Regional Development Agency
▪ Regional RDAs received new opportunities in the implementation of regional policy.
Possibility to finance RDAs through SFRR
▪ Created a complex system of monitoring communities and regions development
LAW OF UKRAINE “ON STIMULATING REGIONAL DEVELOPMENT” (NEW
EDITION) + AMENDMENTS TO THE TAX CODE
▪ Moving away from “depressiveness” towards determining the types of “problematic
territories”
▪ Clear instruments of state and regional support of problematic territories’ development
▪ Fair and effective taxation stimuli (taxation preferences, free economic zones)
LAW OF UKRAINE “ON CROSS-BORDER COOPERATION” (NEW EDITION)
▪ State fund of cross-border cooperation and the new quality of projects in the field of
cross-border cooperation
I N I T I AT I V ES
7

8. KEY PROVISIONS OF THE DRAFT LAW
ON REFORMING SFRR No.4200
A m e n d m e n t s t o A r t i c l e 2 4 - 1 o f B C U
3% of the forecasted
income of the State
Budget of Ukraine is
directed to the State Fund
of Regional Development
(SFRD)
SFRD finances projects and programs
of the State Strategy (SSRD)
▪ 50% of SFRD – financing of State Strategy of regional
development
SFRD finances projects and programs
of Regional Strategies
▪ 30% of SFRD – financing of Regional Development
Strategies
Enacting the Law in the part
concerning the reform of SFRR
and project implementation
January 1, 2021
SFRD finances projects and program,
Development of community
infrastructure
▪ 20% of SFRD – financing programs and projects pf
village, town and city councils according to programmes
of socioeconomic development of the respective
administrative-territorial units
▪ National Commission,
which includes the
representatives of the
Committee on Budget
and the Committee on
Local Self-
Government, selects
the projects 8

9. PRI ORITY
L EGI SL ATIV E
OF STAT E
REGI ONAL
POL I CY
I N I T I AT I V ES
HARMONIZATION OF SEC TORAL
L EGI SL ATION WI T H T HE REGI ONAL POL I CY L EGI SL ATI ON
CREATION OF INTSTRUMENTS FOR THE ECONOOIC DEVELOPMENT OF
THE REGIONS
Draft Law of Ukraine “On the Special Mode of Innovative Activity of Technological Parks”
Draft Law of Ukraine “On Vocational (Vocational-Technical) Education”
Draft Law of Ukraine “On Introduction of Amendments to the Tax Code of Ukraine, Aimed at Attraction of
Investments into the Industrial Sector of Economy by Introducing Stimuli in Industrial Parks” (4th quarter)
Draft Law of Ukraine “On Introduction of Amendments to the Customs Code of Ukraine, Aimed at
Attraction of Investments into the Industrial Sector of Economy by Introducing Stimuli in Industrial Parks”
Draft Law of Ukraine “On Introduction of Amendments to the Law of Ukraine “On Public-Private
Partnership”
Draft Law of Ukraine “On Strategic Planning”
9

10. Development of an Activity Plan for SSRD
implementation as well as the regional
development programme (with the
consideration of territory types)
Establishment of a complex system of
monitoring the communities and
territories development
Work with OSAs and LSG on strategic
planning documents (regional
strategies until 2027 and Activity Plans
for their implementation)
Provision of permanent expert support
to MinRegion through the establishment
of a multi-donor Office of Regional
Development
Information-communication support
of the regional policy
Work on prospective legislation
Updating a common results
framework in accordance with the
Government priorities in the field
of state regional policy
Institutional support of MinRegion, OSAs,
regional development agencies with the
functions of “Euro-integration Offices”
PRIORITIES TO BE SUPPORTED
BY INTERNATIONAL DEVELOPMENT PARTNERS

11. FINANCING MECHANISMS
IMPLEMENTATION OF
REGIONAL DEVELOPMENT
PROJECTS
STATE BUDGET OF
UKRAINE (SFRD, OTHER
STATE PROGRAMMES)
LOCAL
BUDGETS
PUBLIC-PRIVATE
PARTNERSHIP.
CONCESSIONS
CREDIT
FUNDS OF IFO
DONOR SUPPORT (EU
AND OTHERS)
INVESTMENTS
(DOMESTIC AND
FOREIGN)