The Ukraine Facility Plan will be finally approved in a few days. For the first time in Ukraine, there now exists an integrated economic development plan with a medium-term horizon, a clear structure and specific funding. The programme budget is EUR 50 billion for the next 4 years. The Ukraine Facility includes a tool for attracting investment - the Ukraine Investment Framework (Pillar 2). This is a tool that will help to attract the private sector to the development of the Ukrainian economy, in particular, it opens up additional opportunities for cities and communities.

This was emphasised by Yuliia Svyrydenko, First Deputy Prime Minister of Ukraine - Minister of Economy of Ukraine, during a discussion panel at the Second International Summit of Cities and Regions on 9 May.

“The Ukraine Investment Framework is a component of the Ukraine Facility, a EUR 9.3 billion instrument. Through a variety of risk-sharing instruments, blended finance and grants, the UIF will help attract around EUR 40 billion to the Ukrainian economy in the coming years. In order to make the most of this instrument, we encourage companies and municipalities to start preparing applications now. We understand that not everyone has the expertise to do this at the required level, so the Ministry of Economy is ready to provide the necessary assistance. We are working with donors and investors to attract funding for expert teams, that will help prepare investment projects,” Yuliia Svyrydenko noted.

The Ukraine Facility Plan also includes investment indicators to strengthen the capacity of communities. EUR 1.05 billion has been allocated for this purpose over the next 4 years. The first of them concerns improving access to safe and quality education. The next is to strengthen the healthcare sector. The third area is the development and restoration of social infrastructure.

As part of the Ukraine Facility Plan, the regions will also receive funds to strengthen energy infrastructure, including energy efficiency. The fifth area is the construction and rehabilitation of transport infrastructure.

All of these regional projects will be initiated by regional authorities as part of the regular budget procedure.

First Deputy Prime Minister of Ukraine also reminded that to support manufacturers operating across the country, the Made in Ukraine policy initiated by President Volodymyr Zelenskyy had recently been launched. These are support tools ranging from affordable loans and grants to compensation programmes, for which almost UAH 45 billion has been envisaged in the state budget for this year. Both local authorities and international partners can contribute to the co-financing or additional funding of these instruments.

In addition, Yuliia Svyrydenko mentioned other examples of successful cooperation with international organisations that contribute to regional development. Thus, the regional development agencies of Khmelnytskyi, Vinnytsia, Odesa and Sumy Oblasts have recently signed memoranda of cooperation with the Oost NL (East Netherlands Development Agency). This opportunity has become a reality with the support of the Ministry of Economy, the European Association of Development Agencies (EURADA), and the UCORD project with the support of Switzerland. This will help, among other things, to build relationships between Dutch and Ukrainian companies to improve the economic situation in Ukrainian regions.