The document summarizes the priorities and plans for Ukraine's state regional policy in 2021 as presented by the Deputy Minister for Communities and Territories Development. Key points include: - Developing a new 2021-2027 State Regional Development Strategy to replace the previous 2015-2020 strategy and establish a three-level strategic planning system. - Shifting to an integrated, multisectoral approach that considers the specific needs and potentials of different types of territories rather than just a sectoral approach. - Focusing investments on "hard" infrastructure projects as well as "soft" development projects and establishing regional development agencies to support projects. - Key priorities for 2021 include developing industrial parks, economic centers, and

1. Meeting of sectoral working group «Decentralization and regional development»
20 April 2021
STATE REGIONAL POLICY:
Minregion priorities for 2021
Ivan Lukeria
Deputy Minister for Communities and Territories Development of
Ukraine

2. NEW STATE REGIONAL POLICY
STATE REGIONAL DEVELOPMENT STRATEGY
2015-2020
STATE REGIONAL DEVELOPMENT STRATEGY
2021-2027
IMPLEMENTATION AND
FINANCING MECHANISMS
Action plans on the implementation of the State regional
development strategy up to 2020 were not implemented /
not funded
Action plans for 2021-2023 and 2024-2027 on the implementation of
the State regional development strategy
Financing of the regional development investment programs within the
framework of SRDS-2027 at the expense of SFRD and sectoral budget
programs
POLICY OBJECTS
Territories as separate administrative-territorial units:
regions - districts - villages, settlements, cities
Functional types of territories - macro-, micro-regions and points of
economic growth
PLANNING APPROACH
Sectoral approach that doesn’t take into account the specifics
of different types of territories
Integrated / multisectoral «top-down» and «bottom-up» approach
TYPES OF PROJECTS
Subsidies and state investments in “hard" social
infrastructure (kindergartens, schools, etc.)
Investments in "hard" and "soft" development projects considering
problems and potentials of the territories
SUBJECTS OF POLICY
FORMATION AND
IMPLEMENTATION
Central and local executive bodies (mostly regional state
administrations)
Multilevel governance: central, regional, local.
Regional development agencies (RDAs)

3. STRATEGIC AND OPERATIONAL GOALS OF
THE STATE REGIONAL POLICY
Formation country that is
cohesive in social, humanitarian,
economic, environmental and
spatial dimensions
Increasing the level of regions
competitiveness
Creating effective multilevel
governance
STRATEGIC GOAL 1
STRATEGIC GOAL 2
STRATEGIC GOAL 3
GROSS REGIONAL PRODUCT IN 2018
(thousand UAH / person)

4. Development of the strategic planning system at the
state, regional and local levels
Concentration of resources on support of regions
SMART-specialization
Effective regional development planning and
implementation of each community and region
potential
Transparency of development planning
Regional development coherence and reduction of
disparities
SMART
спеціалізація
THREE-LEVEL SYSTEM
OF STRATEGIC PLANNING
(state, region, community)
 State regional development strategy
 Action plan on the implementation of the State
regional development strategy (regional development
programs)
 24 Regional strategies and action plans on
implementation
 1470 Community development strategies

5. 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
Regional development priorities
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
IMPLEMENTATION OF 230 ACTIVITIES IN 2021-2023

6. Khersonska
Zaporizka
Dnipropetrovska
Kharkivska
Donetska
Luhanska
Odeska
Kirovohradska
Sumska
Cherkaska
Poltavska
Mykolaivska
Kyivska
Chernihivska
Ivano-
Frankivska
Zakarpatska
Lvivska
Volynska Rivnenska
Khmelnytska
Zhytomyrska
Vinnytska
Ternopilska
Chernivetska
Autonomous
Republic of
Crimea
150 centers of economic
development (cities and
capable communities with
the greatest economic
potential)
At least 150 development projects -
economic magnets of the regions
Regions (oblasts) boundaries
The economic carcass of the state
The development of each of the
24 regions will be based on the
Centers of Economic Growth

7. Regional development priorities
The existing
network
of public services
provision and social
infrastructure
NETWORK OF PUBLIC SERVICES PROVISION
 To form a perspective network of public services
provision taking into consideration the new
communities
 Public investments into the formed networks
CROSS-BORDER COOPERATION
 Introduction of European approaches to CBC
 Stimulating intergovernmental cross-border cooperation
STIMULATING DEVELOPMENT OF FUNCTIONAL AREAS
 Broadening the opportunities for territories which require
state support (mountainous areas of the Carpathians, Azov-
Black Sea macroregion, the border and sparsely populated
areas, other)
President’s Decree «On
the Development of the
Ukrainian Carpathians»

8. ІНСТИТУЦІЙНА
ПІДТРИМКА
Legislative initiatives in the sphere of the State regional policy
 Three-level system of strategic planning:
state – region – community
 Regional development coherence and
reduction of disparities
 Concentration of resources on support of
regions’ SMART-specialization
 Digitization of the process of regional
development management
 Creation of the GIS-system for regional
development monitoring
• Creating equal conditions for dynamic,
balanced development of regions
• Reduction of disparities in the development of
regions
• Concentration of public investments for the
implementation of integrated development
projects
• Creating favorable conditions for attracting
investments and building infrastructure
• Effective use of the potential and features of
each region
 3% of the revenue part of the State budget
 Transparent selection of the projects is
carried out through the information resource
(on-line platform)
 50% of the SFRG is directed on the
implementation of the projects in order to
achieve goals of the State Strategy
 30% of the SFRG is directed on the
implementation of the projects in order to
achieve goals of the regional strategies
 20% of the SFRG is directed on the
implementation of the projects in order to
develop communities’ infrastructure
COMPREHENSIVE UPDATE OF THE
SYSTEM OF STATE REGIONAL POLICY
FORMATION AND IMPLEMENTATION
«ABOUT THE FEATURES OF
REGIONAL DEVELOPMENT
STIMULATION»
INCREASING THE EFFECTIVENESS
OF THE STATE FUND FOR REGIONAL
DEVELOPMENT USAGE
Draft Law 5323 DRAFT LAW OF UKRAINE Draft Law 4200

9. Lvivska
Volynska
Rivnenska
Zhytomyrska
Zaporizka
Donetska
Luhanska
Odeska
Mykolaivska
Khersonska
Kirovohradska
Ternopilska
Khmelnytska
Vinnytska
Chernivetska
Zakarpatska
Ivano-
Frankivska
Kyivska
Kyiv
Chernihivska Sumska
Poltavska Kharkivska
Dnipropetrovska
Cherkaska
144
154
165
228
205
96
102
202
216
161 165
148
132
142
189
114
187 256
155
85
221
562
80
119
272
necessary
financing 1%
in fact
financing <1%
Volume of the SFRD in 2015-
2021, UAH billion
Financing of the State Fund for Regional
Development in 2021

10. Lvivska
Volynska
Rivnenska
Zhytomyrska
Zaporizka
Donetska
Luhanska
Odeska
Mykolaivska
Khersonska
Kirovohradska
Ternopilska
Khmelnytska
Vinnytska
Chernivetska
Zakarpatska
Ivano-Frankivska
Kyivska
Kyiv
Chernihivska
Sumska
Poltavska Kharkivska
Dnipropetrovska
Cherkaska
12
7
9
6
10
9
19
14
16
7 16
13
13
24
9
16
16 4
11
5
19
17
10
6
6
294 Approved
projects
UAH billion
4,34
Projects of the State Fund for
Regional Development in 2021
Reconstruction for the industrial park (territory
of the fish-canning plant «AzovAkvaInvest»),
Mariupol
24.1 million UAH
Building of the infrastructure of the industrial
park on the Kyiv highway,
Zhytomyr
20.0 million UAH
Building of the infrastructure of Bucha city
council’s industrial park «Myrotske»
18.2 million UAH
Building of the engineering and transport
infrastructure of the industrial park - new
construction (first stage),
Kamianka-Buzka (Lviv region)
9.7 million UAH
Financial support for the
development of industrial
parks
Economic
development projects
1.2 billion UAH of provided money
7,2 billion UAH - an expected amount of attracted investments
 Building of the network for public services provision
 Communities economic development projects

11. Geoinformation System for Monitoring the
Development of Regions and Communities (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
Functional purpose
of GIS:
Мінрегіон

12. Forming the system of regional development
institutional support
Regional development agencies
Expected results of the agencies work:
 Optimal combination of state, regional and
local initiatives, government, business and the
public
 Setting-up the effective project activity system,
preparing quality regional development
projects
 Increasing investment attractiveness of the
regions, involving investments
 Support of the development of small and
medium-sized businesses in the regions
 Concentration of public investments on
support of regions SMART-specialization
 Development of cross-border cooperation and
interregional economic integration, preparation
and implementation of projects
Khersonska
Zaporizka
Dnipropetrovska
Kharkivska
Donetska
Lyhanska
Odeska
Kirovohradska
Sumska
Cherkaska
Poltavska
Mykolaivska
Kyivska
Chernihivska
Ivano-
Frankivska
Zakarpatska
Lvivska
Volynska Rivnenska
Khmelnytska
Zhytomyrska
Vinnytska
Ternopilska
Chernivetska
Autonomous
Republic of
Crimea
regions, in which the founders of the regional
development agency include regional state
administrations and regional councils
regions, in which the founders of the regional
development agency don't include regional councils
regions, in which the regional development agency is
not established
regions, in which the pilot project on establishment
institutions "Regional development agency "European
integration office" is being implemented