On July 8, the government approved the new Procedure for the Use of Funds from the State Fund for Regional Development (SFRD) and the Procedure for the Assessment and Prioritization of Medium-Term Plans for Priority Public Investments in Regions and Territorial Communities.

These decisions were drafted by the Ministry of Community and Territorial Development of Ukraine. The documents were approved in accordance with the European Commission’s recommendations set forth in the Report on Ukraine’s Progress within the framework of the 2025 EU Enlargement Package.

The Law of Ukraine “On the State Budget of Ukraine for 2026” allocates 2 billion hryvnias to finance the State Fund for Regional Development. The funds will be directed toward the implementation of medium-term plans for priority public investments by regions and local communities in accordance with the State Strategy for Regional Development and the Action Plan for its implementation, regional development strategies and action plans, as well as local community development strategies and their implementation plans.

In accordance with the approved procedure, 30% of the State Fund for Regional Development’s funds will be allocated to projects that ensure the fulfillment of the objectives of the State Strategy for Regional Development, and 70% will be allocated to projects identified in regional development strategies and the strategies of territorial communities.

The new procedure also establishes a clear division of responsibilities among all participants in the process and introduces a unified methodology for evaluating them based on socio-economic development indicators and defined criteria.

This decision marks an important step in the implementation of public investment management reform and will contribute to a more efficient use of budget funds, regional development, and the alignment of Ukrainian regional policy with European approaches.