The Cabinet of Ministers of Ukraine adopted Resolution No. 963 dated 17 July 2026 “Certain Issues Concerning the Optimisation of the System of Central Executive Bodies”, thereby introducing an institutional delineation between the development of communities and territories, and recovery, infrastructure and transport.

In accordance with the Resolution, the Ministry for Development of Communities and Territories of Ukraine has been renamed as the Ministry for Recovery, Infrastructure and Transport of Ukraine.

At the same time, the Government has established a new Ministry for Communities, Territories and Internally Displaced Persons of Ukraine.

This means that matters of the development of communities and territories are to be concentrated within a separate central executive body, whilst the existing Ministry for Development of Communities and Territories will continue to operate under a new name and with a different functional focus.

However, the final delineation of powers between the two ministries is yet to be determined by separate government resolutions.

The Resolution instructs the Ministry for Communities, Territories and Internally Displaced Persons and the Ministry for Recovery, Infrastructure and Transport to prepare and submit to the Cabinet of Ministers, within two weeks:

• draft regulations on the respective ministries;
• proposals for amendments to legislation required in relation to the reorganisation of the system of central executive bodies.

The regulations governing the ministries will define their tasks, areas of responsibility, and powers, in particular those relating to state regional policy, the development of local self-government, the administrative-territorial structure, the reconstruction of territories, and support for internally displaced persons.

Funding for the activities of both ministries in 2026 will be provided within the expenditure allocated for the activities of the Ministry for Development of Communities and Territories of Ukraine.

Thus, the adopted Resolution creates the organisational framework for the establishment of a separate ministry responsible for the policy on the development of communities and territories. The next key step will be the approval of the regulations governing the new ministry and a clear definition of its competences.