1. STATE REGIONAL POLICY:
Ivan Lukeria
Deputy Minister for Communities and Territories Development of Ukraine
Meeting of Subgroup «Regional Development» of SWG «Decentralization and regional development», 1 July 2021
Priorities of the Ministry for Communities and
Territories Development of Ukraine

2.  National level:
 State regional development strategy for
2021-2027
 Action plan for 2021-2023 on the
implementation of the State regional
development strategy for 2021-2027
 Regional level:
 24 Regional strategies (SMART-
specialization)
 24 Action plans on the implementation
of Regional strategies
 Local level:
 1469 Communities development
strategies
Concentration of resources for
supporting the SMART-specialization of
the regions
Effective regional development planning
and implementation of the potential of
each community and region
Transparency of development
planning
Regional development coherence and
reduction of disparities
A three-level
system of
strategic
planning
The RESULTS
of the implementation of the updated State Regional Policy

3. The RESULTS
of the implementation of the updated State Regional Policy
COMPREHENSIVE UPDATE OF THE
SYSTEM OF STATE REGIONAL POLICY
FORMATION AND IMPLEMENTATION
«ON THE PECULIARITIES OF
REGIONAL DEVELOPMENT
STIMULATION»
INCREASING THE EFFECTIVENESS
OF THE USE OF FUNDS FROM THE
STATE FUND FOR REGIONAL
DEVELOPMENT
Draft Law 5323 Draft Law 5649 Draft Law 4200
Pending the second reading Pending the first reading Pending the first reading
 Three-level system of strategic planning:
state – region – community
 Effective planning of regional
development and realization of potential
of each community and region
 Methodical support of strategic planning
at the local level
 Concentration of resources for
supporting the SMART-specialization of
the regions
 Digitization of regional development
management
 GIS-system for regional development
monitoring
 Improving the quality and reasoning of
management decisions
 Comprehensive solution of territorial
problems
 Effective use of the potential of each
region
 Reduction of disparities in the
development of regions
 Concentration of public investments for the
implementation of integrated
development projects
 Creating favourable conditions for
attracting investments and building
infrastructure
 Increasing the level of employment,
creating new jobs, and eradicating poverty
in each region
 Cooperation and mutual responsibility of
all subjects of the State regional policy
 3% of the revenues of the State budget
 Attracting additional funds to the SFRD from
EU assistance programs, donors, and MFIs
 Transparent selection of the projects is
carried out through an online platform
 50% of the SFRG funds are directed for the
implementation of the projects in order to
achieve the goals of the State Strategy
 30% of the SFRG funds are directed for the
implementation of the projects in order to
achieve the goals of the regional strategies
 20% of the SFRG funds are directed for the
implementation of the projects in order to
develop the infrastructure in the
communities

4. The RESULTS
of the implementation of the updated State Regional Policy
308 Projects
UAH
billion
4,5
40 Economic development projects
 1,2 UAH billion from the SFRD
necessary
financing 1%
in fact
financing <1%
The SFRD funds in 2015-2021, UAH billion
 7,2 UAH billion from the expected investments
2,9 3,0 3,5
6,0 6,9
4,9 4,5
4,9 5,8 6,7
8,4
9,3
7,7 9,6
sequester
Industrial park
infrastructure
development projects
Selected projects to be funded
from the SFRD in 2021

5. SECTORAL BUDGET
SUPPORT - 2021
83 REGIONAL DEVELOPMENT PROJECTS ARE BEING IMPLEMENTED
IN UKRAINE FOR WHICH 667 UAH MILLION ARE ALLOCATED FROM
THE STATE BUDGET
The RESULTS
of the implementation of the updated State Regional Policy
Innovative
economy and
investments
Rural
development
Tourism
development
Human
development
All-Ukrainian
solidarity
Support for the
development of
depressed areas
Effective
management of
regional development
123,0
UAH mln
127,8
UAH mln
114,1
UAH mln
50,0
UAH mln
146,2
UAH mln
64,0
UAH mln
41,3
UAH mln
9 projects 13 projects 13 projects 12 projects 7 projects 8 projects
21 projects

6. COMMON RESULTS FRAMEWORK
of the Cooperation between the Minregion and Development Partners
MINREGION
Development
partners
The size of public financing is
predictable and sufficient for the
achievement of the goals of the
three-level planning system
Strategic goal 2
A three-level system of strategic
planning of regional
development (national, regional,
local levels) is created and
functions
Strategic goal 1
Institutional architecture of the
state regional policy is capable to
ensure effective implementation
of policy tasks and achievement
of its goals
Strategic goal 3
Monitoring and assessment
provides open access to
information on the processes of
communities and territories
development in order to make
effective managerial decisions
Strategic goal 4
15 TASK 52
ACTIVITIES

7. THE PRIORITIES OF THE MINREGION
Action Plan for 2021-2023 on the Implementation of the State
Regional Development Strategy for 2021-2027
207 Activities
 1 – Decree of the President of Ukraine
 21 – Laws of Ukraine
 45 – Resolutions of the Cabinet of
Ministers of Ukraine
 6 – Orders of the Cabinet of Ministers
of Ukraine
 63 – Decisions of the central executive
bodies
 71 – common activities of the central
and regional executive bodies and local
governments
All activities are
compliant with the
SSRD for 2021-2027
Responsible executors
are determined
Specific time-frames are
fixed
Indicators of result are
determined
52 Activities –
responsible executor Minregion

8. THE PRIORITIES OF THE MINREGION
Regional development programs
10 FUNCTIONAL TYPES OF
TERRITORIES
territorial community
boundary
district (rayon) boundary
region (oblast) boundary
capital of Ukraine - Kyiv
BORDER TERRITORIES IN
ADVERSE CONDITIONS
AND TERRITORIES ON THE
LINE OF COLLISION
BORDER TERRITORIES
URBAN
AGGLOMERATIONS
RURAL SETTLEMENTS IN
ADVERSE CONDITIONS
CENTERS OF ECONOMIC
DEVELOPMENT
MOUNTAIN TERRITORIES OF
UKRAINAIN CARPATHIANS
NATURE RESERVED TERRITORIES
COASTS OF THE BLACK SEA AND
AZOV SEA
MONOFUNCTIONAL CITIES
TEMPORARILY OCCUPIED
TERRITORIES
Development of rural territories
«New Ukrainian village»
Macroregion Azov - Black Sea
Digital transformation of regions
Centers of economic development
and urban agglomerations
Development of mountain
territories
Border territories in adverse
conditions

9. THE PRIORITIES OF THE MINREGION
The transformation of the coal-producing regions
 Step-by-step
 State support
 Long-term approach
 Broad public involvment
 Synchonised processes
 Investment to coal-producing
regions
 Long-term human development
programmes
 Diversification of local economy
 Comfortable environment in
mining towns
 Social support to miners and
their family members
 State budget
 Local budgets
 Investments (domestic and
foreign)
 Public-private partnership
 Loans form IFI
 Funds from donors (EU and
others)
«State target programme of just transfromation of the
coal-producing regions by 2030»
PRINCIPLES COMPONENTS
FINANCING OF THE PROGRAMMES

10. THE PRIORITIES OF THE MINREGION
The economic carcass of the state
The development of each of the 24
regions will be based on the Centers
of Economic Growth
150 centers of economic
development (cities and capable
communities with the greatest
economic potential)
At least 150 development projects -
economic magnets of the regions

11. THE PRIORITIES OF THE MINREGION
Industrial Parks
State Fund of Regional Development Sectoral budget support
2016-2020 2021
Industrial park «Swema»,
Shostka city
1,5 UAH mln
Industrial park «Trostianets»,
Trostianets city
3,0 UAH mln
Industrial park,
Novodnistrovsk city
3,0 UAH mln
Industrial park (fish processing plan
«AzovAkvaInvest»), Mariupol city
24,1 UAH mln
Industrial park Zhytomyr city
20,0 UAH mln
Industrial park «Myrotske» Buchach city council;
18,2 UAH mln
Industrial park, Kamianka Buzka city (Lviv regions)
9,7 UAH mln
Project «A Network of industrial parks
«Western Industrial cluster»
Total budget - 12 UAH million,
from State budget – 10,2 UAH million
Applicant : Regional development agency of
Zhytomyr region
5 new industrial parks
Increased employment in Zhytomyr, Ternopil
and Rivne regions
Promotion of industrial parks

12. THE PRIORITIES OF THE MINREGION
Establishment of Geoinformation System for Monitoring
Development of Regions and Communities (GIS)
Purpose of GIS:
 Visualization of point objects and information
about them on the interactive map
 Visualization of statistical information by
territories in the form of thematic maps, graphs
and trends
 Comparison of territories and objects according to
statistical information
 Construction of zones of influence (zones of
accessibility of institutions) on the basis of the
standard of maximum distance
 Tabular forms of reports on various areas of socio-
economic development of regions

13. THE PRIORITIES OF THE MINREGION
The public investments map
An instrument to
increase the investment
attractiveness of the
region, community, city
An instrument to
increase the efficiency
of budget funds
Comprehensive
characteristics of the
investment potential of the
regions, communities, cities
Interactive platform for description of the process
of selection and implementation of regional
development projects
 National budget
 Local budgets
 Raised funds
 Education
 Science
 Healthcare
 Culture
 Sport
 The social protection
 Roads
 Transport
 Housing and Utilities
 Energy
 Construction
 E-services networks
 Ministries
 Regional state administrations
 Local government bodies
 State enterprises
 Utilities enterprises
 Budget institutions and others
By sources of public investment
By networks/ objects of social
institutions
By networks / objects of
infrastructure
By fund managers

14. THE PRIORITIES OF THE MINREGION
Communities development strategies
Support of communities and development
and implementation of strategic documents
 Development and approval of
methodical recommendations
 Providing support (methods, experts,
trainings)
Communities
development
strategies approved
Draft
strategies
570
467
Total strategies
required
1469

15. COOPERATION BETWEEN THE MINREGION AND DEVELOPMENT PARTNERS
The Regional Development Project Office (RDPO)
Regions
Conceptualization of
regional
development
projects and its
centralized
coordination
Support in strategic
development and
coordination of
regional institutions
RDPO
Strategic advisory unit
Analytics and project
management unit
Communications unit
Ministry for Communities and
Territories Development of
Ukraine
Development partners
providing expertise on:
Minister
Deputy minister responsible
for regional policy
Directorate of Regional Policy
• legal support of regional
policies
• institutional support
• strategical planning
• digital transformation of
regional management
• effective communication
of regional policies
Regional State Administrations
Monitoring, supervision and reporting
Regional development agencies (RDA)
Advising, projects preparation, coordination,
designing of the management instruments
Local governments and their
associations
Cooperation, creation of support demand,
communication with citizens

16. GOALS, FUNCTIONS AND PRINCIPLES OF RDPO
GOALS FUNCTIONS PRINCIPLES
• Increase of the cooperation between
Minregion and international partners that
provide institutional and expert support of
the regional development policies
• Increase of institutional capacities and
coordination of regional development
• Introduction of the balanced 3-level
system of planning and implementation of
regional development
• Creation of the effective system of
monitoring and evaluation of regional
development projects
Advisory and strategical management
• Expert support in implementation of regional development
policies
• Preparation of educational, analytical and methodological
materials
• Depository of best practices and their adaptation for further
integration
• Ensure cooperation between stakeholders
Project implementation
• Creation and support of the institutional provision through the
network of RDAs
• Strategical planning of regional development through creation
of working plans of projects and program
• Analysis of the legal framework and preparation of
recommendations
• Development of needed legal and organizational infrastructure
for digitalization of regional development policies
Communication
• Communication of the regional development policies
• Communication of the SSRD 2021-2027 implementation
• Development of internal communication system among
stakeholders
• Team of professionals with rich
experience in regional
development
• Technical and analytical support of
the Minregion, aligned with
sectoral Ministries to ensure
sustainable policy implementations
• Integration of work with
development partners through
exchange, consultations and
discussions

17. RDPO organizational structure and functions to face current main bottlenecks
STRATEGIC ADVISORY UNIT
ANALYTICS AND PROJECT
MANAGEMENT UNIT
COMMUNICATIONS UNIT
HEAD OF RDPO
• Vision and strategical planning through
coordination with Development
partners
• Assessment of Ministry’s functions, with
following recommendations and
development of proper legal framework
• Creation of reports on megatrends in
urban, rural development and depository
of best practices in Ukraine and abroad
• Conceptualization of vision into projects
and their design
• Seeking of financing opportunities,
preparation of technical proposals, and
procurement of project implementation
• Supervision of projects and monitoring
of their effects
• Development of efficient internal
communication system in the Ministry
• Communication campaigns for the projects
and programs
• Communication of the implementation of
SSRD 2027
PRIORITY PROJECTS
Local Data portal
Strategic frameworks for
functional types of
territories
Capacity building
of RDAs
Educational
program for
territorial managers
Industrial parks
Development partners on regional development