The Ukrainian State Fund has been designated to perform the functions of a paying agency
3 July 15:11
Ukraine has officially designated a Paying Agency that will administer state support for agriculture in the future in accordance with the rules of the European Union’s Common Agricultural Policy. This was reported by the Ministry of Economy, Environment, and Agriculture, according to "Komersant Ukrainian".
“On July 1, 2026, the decision of the Cabinet of Ministers of Ukraine on the appointment of the Paying Agency—a key element of the system for administering state support programs in accordance with European Union standards—came into effect,” the statement reads.
In accordance with the Cabinet of Ministers’ order, the agency’s functions have been assigned to the Ukrainian State Fund for Support of Farming Enterprises, which will operate as a budgetary institution.
The Ministry of Economy has approved a new version of the Ukrderzhfond’s charter, which expands its powers. In addition, the fund has been designated to perform the functions of the Paying Agency.
Currently, the Ministry of Economy is finalizing the regulatory framework necessary for the full launch of the agency’s operations in accordance with European Union requirements.
“The establishment of the Paying Agency marks the practical phase of implementing the European model of state support for agriculture in Ukraine. The next steps include completing regulatory and institutional preparations, establishing the necessary procedures, and obtaining accreditation from the European Commission. This will confirm the Ukrainian Paying Agency’s compliance with EU requirements and enable it to fully administer support programs in accordance with the standards of the Common Agricultural Policy,” emphasized Denys Bashlyk, Deputy Minister of Economy, Environment, and Agriculture of Ukraine.
It will define the mechanisms for administering support programs, financial control, accounting, internal audit, risk management, information security, fraud prevention, and interaction with other government agencies.
The ministry emphasizes that the adoption of these documents will be one of the key steps in preparing the Paying Agency for accreditation by the European Commission.
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Functions of the Payment Agency
As a reminder, last November, President Volodymyr Zelenskyy signed a law establishing the Paying Agency, which will oversee support programs in the agricultural sector.
The law stipulates that the Payment Agency will provide financial support to farmers, similar to the EU’s “Common Agricultural Policy.”
The Payment Agency will be an independent institution responsible for the distribution, administration, and monitoring of financial assistance in the agricultural sector.
The agency will promote the equitable distribution of aid among all categories of agricultural producers, increase trust in the state support system, and enable the effective use of both budgetary resources and international aid received for the recovery and development of the agricultural sector.
The adoption of the bill was a necessary condition for harmonizing Ukrainian legislation with European Union law in the field of agricultural policy. The bill is also part of the Ukraine Facility program.
In addition, the bill proposes the creation of an Integrated Administration and Control System (IACS), an Agricultural Data System (ADS), and a digital agricultural database to monitor the development of farming communities.
The implementation of these systems is scheduled for 2027.
Earlier in October, the Verkhovna Rada voted to establish a Payment Agency for farmers, which was an EU requirement and a step toward Ukraine’s integration into the bloc’s Common Agricultural Policy.
For reference: APayment Agency is a budgetary institution that administers, monitors, and disburses payments under agricultural support programs in accordance with Ukrainian law and European Union requirements. Its operation is a necessary prerequisite for Ukraine’s integration into EU support mechanisms and access to the financial instruments of the Common Agricultural Policy (CAP).
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