State Regional Development Fund resumes operations

The State Regional Development Fund has resumed operations after a three-year suspension caused by Russia's full-scale war. Starting September 1, local communities will be able to submit applications for recovery project funding from the Fund, Deputy Minister for Communities and Territories Development of Ukraine Oleksiy Riabykin announced at a briefing on Monday.

"We are pleased to relaunch the State Regional Development Fund. Today, our priority is frontline communities, but other regions will also be eligible for support. We aim to make the project selection process as open and transparent as possible, so that funds are used effectively to rebuild our communities," Riabykin said.

According to him, this year's state budget allocates UAH 1 billion for such projects. Implementation will follow a transitional public investment management model. Communities located outside active combat zones may submit applications between September 1 and 10 through the DREAM digital platform.

The cost of submitted projects must not exceed UAH 50 million, and they must be completed by the end of 2025. If a community fails to use the subsidy within the year, the funds may be returned to the state budget.

Currently, several thousand community projects are already registered in the system and could potentially qualify for the subsidy. Once the September 10 deadline for submissions passes, the project selection process will begin. It will be transparent and accountable, with active participation from communities and regions.

"The Ministry has already demonstrated this approach in selecting projects under the Ukraine Recovery Program, where EUR 100 million was allocated. We involved all communities, all regional state administrations, as well as experts, civil society, and various ministries to ensure full transparency and openness in the selection process," Riabykin said.

To receive funding, communities must meet four key conditions when preparing their applications. First, the project must align with the overall regional development strategy. Second, the facility to be restored must be publicly owned – by the state or the community. Third, the project documentation must meet requirements. And finally, the local budget must be able to cover at least 10% of the project's cost.

According to the 2026–2028 Budget Declaration, the State Regional Development Fund is slated to receive UAH 90 billion over the next three years, with UAH 30 billion allocated annually. The ministry stressed that the prudent, transparent, and accountable use of the State Regional Development Fund's money this year will serve as a pilot process and a preparation stage for full-scale public investment management in the coming months.