Ukrderzhfond to act as a Paying Agency for the introduction of European mechanisms to support the agricultural sector: Government's decision
The Cabinet of Ministers of Ukraine has designated the Ukrainian State Fund for Support of Farming Enterprises (Ukrderzhfond) as the Paying Agency in the field of state support for agriculture and rural development. The relevant order was adopted on 31 December.
The designation of Ukrderzhfond as a Paying Agency forms the institutional basis for the adaptation of the domestic agricultural sector to the requirements of the European Union. This is necessary for the implementation of the EU's Common Agricultural Policy (CAP) instruments and the further attraction of European financial resources. This is the first step towards Ukraine's participation in European support programmes for farmers.
Within the powers defined by the Law of Ukraine "On the Principles of State Agricultural Policy and State Rural Development Policy", the Paying Agency shall perform the functions of administering state support for agricultural producers in accordance with EU requirements.
The introduction of such a mechanism is intended to ensure the application of European approaches to financing the agricultural sector, in particular the introduction of clear rules on transparency, control and accountability for the use of funds.
"The designation of the Paying Agency is a key step towards the implementation of the European model of agricultural support in Ukraine. We are creating a transparent and controllable financing mechanism that will provide agricultural producers with equal access to state and international aid and, at the same time, meet EU standards," said Denys Bashlyk, Deputy Minister of Economy, Environment and Agriculture of Ukraine.
He also added that the decision was an important step in Ukraine's European integration process, as it would help build trust in the state support system and open up new opportunities for the sustainable development of the agricultural sector and rural areas in line with European rules.
Background information
A paying agency is a specialised budgetary institution authorised to administer financial support in the field of agriculture and rural development in accordance with EU standards.