Minregion is developing a concept for reforming the State Fund for Regional Development (SFRD)

The Fund should become more modern and flexible, with the capacity to attract international resources.

The concept proposes:

transforming the programme into a separate institution;

providing for the possibility of attracting, in addition to state budget funds, international assistance, charitable contributions and, in the future, reparations;

establishing a supervisory board and an executive directorate to ensure transparent management and effective use of resources;

using the institution as an instrument to support communities in attracting loans and working with European programmes.

A new procedure for using SFRD funds has already been approved in 2026. Under it, the Fund’s resources in 2026 will be directed to implementing medium-term priority public investment plans of regions and territorial communities that are consistent with:

- the State Strategy for Regional Development and its implementation action plan

- regional development strategies and action plans

- territorial community development strategies and plans for their implementation.

“Minregion, together with international partners and experts, is developing an updated operating model for the SFRD. Much consultation and joint work lies ahead. It is also important to find a shared vision with the Ministry of Finance and jointly develop an effective model,” said Vitalii Bezghin, Minister for Communities, Territories and Internally Displaced Persons of Ukraine.

The Fund should be transformed into a fully fledged instrument for implementing state regional policy that can effectively direct funds towards the development of communities and regions.