In 2027, Ukraine plans to systematise and develop a mechanism for the direct funding of community projects through intergovernmental agreements, or G2G.

This information was reported by Vitalii Bezgin, Minister for Communities, Territories and Internally Displaced Persons of Ukraine, in an interview with the Interfax-Ukraine news agency.

According to the Minister, the aim is not to create an entirely new instrument, but to build on existing experience of intergovernmental cooperation in recovery. Such agreements set out the level of funding, priorities, and conditions for using the funds. Support may be provided in the form of grants or preferential financing for specific projects, including equipment, technology, works, and services.

‘We view the introduction in 2027 of a mechanism for the direct funding of community projects through G2G not as the creation of an entirely new instrument, but as the systematisation and development of existing models of intergovernmental cooperation,’ said Vitalii Bezgin.

The Minister used the French “Ukraine Fund” as an example. France allocated the first tranche of EUR 200 million to the fund in February 2025, followed by a second tranche of EUR 71 million in February 2026. Dozens of projects are already being implemented in communities under this mechanism.

‘The French experience is important to us as a scalable model: the state and the partner country determine the financial resources and the rules for their use, while the regions and communities identify needs and prepare projects. The selected projects then receive funding and move on to implementation,’ the Minister explained.

Vitalii Bezgin noted that other models of international support for recovery are already in place in Ukraine. In particular, Denmark is assisting Mykolaiv region, Estonia – Zhytomyr region, and Belgium – Chernihiv region.

He said that the aim of this approach is to make intergovernmental funding mechanisms more accessible to communities by ensuring high-quality project selection and alignment with the regions’ strategic priorities, as well as adherence to uniform rules for public investment management.

Source: interview with Vitalii Bezgin for Interfax-Ukraine.