The Cabinet of Ministers of Ukraine has approved the redistribution of subventions from the state budget to local budgets to enable the implementation of 33 additional regional recovery projects. The relevant amendments were made to Government Order No. 596-p of July 4, 2023, at the initiative of the Ministry for Communities, Territories and Infrastructure Development of Ukraine.

The source of the subvention is the funds allocated by the European Investment Bank (EIB) under the joint program of Ukraine and the EIB Ukraine Recovery Program. According to the decree, under the Program, the allocation of UAH 5.292 billion was approved to finance 108 community projects that were competitively selected under the procedure agreed with the EIB. At the same time, following an additional selection process, the Ministry for Communities, Territories and Infrastructure Development recommended 33 more projects submitted by local governments, local executive authorities, and executive bodies of village, town, and city councils of territorial communities for funding and approval by the European Investment Bank.

Thus, the total amount of the subvention in the amount of almost UAH 5.3 billion will be redistributed to restore 141 regional projects, including educational and healthcare institutions, administrative service centers, public facilities, etc. in Vinnytsia, Dnipropetrovsk, Zhytomyr, Kyiv, Kirovohrad, Odesa, Poltava, Sumy, Kharkiv, Cherkasy and Chernihiv regions.

Background information

The financial agreement between Ukraine and the European Investment Bank, which was ratified on July 14, 2021, approved the intention to attract a EUR 340 million loan to implement projects to restore and modernize the infrastructure of regions that have been destroyed by russian aggression, as well as those regions that host a significant number of IDPs. The state budget for 2023 provides for UAH 5.3 billion to implement the measures of the relevant financial agreement, which are provided as a subvention from the state budget to local budgets. Based on the results of the previous selections (2022-2023), the Cabinet of Ministers of Ukraine approved the distribution of the relevant subvention among community budgets for the implementation of 109 projects by its Resolution No. 596 dated 04.07.2023.