07.04.2025

How not to miss the opportunity for EU Integration for Ukrainian villages?

From the lecture by Roman Korinets, Director of the National Association of Agricultural Advisory Services of Ukraine, as part of the course “EU Integration: Impact and Opportunities for Communities” by the Сities4Сities initiative and the Swedish-Ukrainian Polaris Programme “Supporting Multilevel Governance in Ukraine.”

The EU Common Agricultural Policy and Ukraine

The EU Common Agricultural Policy (CAP) amounts to €378 billion for 2021–2027, nearly one-third of the total EU budget for this period. These funds are distributed among member states through two structural funds:

  • The European Agricultural Fund for Rural Development (EAFRD) – amounting to €95.5 billion, aimed at developing rural areas as an environment for economic growth;

and

  •  The European Agricultural Guarantee Fund (EAGF) – with a budget of €291 billion, providing direct support to farmers.

Such a focus on rural development is not coincidental, as 2–3% of the EU’s rural population ensures the food security of the entire European Union. Therefore, how comfortable it is for farmers to live and work in rural areas directly affects the competitiveness and climate resilience of EU agriculture.

Thanks to the Common Agricultural Policy, small farms in the EU with just 18 hectares of land are full-fledged players in the European market, implementing innovations and supporting employment in rural areas.

Objectives of the EU CAP:

  • Supporting farmers and improving agricultural productivity to ensure a stable supply of affordable food;
  • Protecting EU farmers so they can earn a decent living;
  • Helping to combat climate change and manage natural resources responsibly;
  • Supporting rural areas and landscapes across the EU;
  • Sustaining rural economies by fostering job creation in agriculture, the agri-food industry, and related sectors.

For Ukraine, where over 30% of the population lives in rural areas, preparing to participate in the CAP is critically important. However, internal surveys by the National Association of Agricultural Advisory Services of Ukraine indicate that only slightly more than 8% of active rural residents (farmers, community activists, and administrators) have any knowledge of the EU CAP. For most of Ukraine’s rural population, EU integration, despite being perceived positively overall, lacks practical meaning.

In Ukraine, rural development is still often seen as a form of subsidies for declining areas. In contrast, the European approach is based on unlocking hidden economic potential by developing farms, preserving local identity and traditional lifestyles, maintaining sustainable biodiversity, and fostering green tourism. Moreover, implementing policies based on reliable data is crucial, meaning Ukraine must establish an operational statistical system for agriculture and environmental conditions.

Advisory institutions

Although it may seem that rural communities are only affected by opportunities under the European Agricultural Fund for Rural Development (EAFRD), communities also play an important role in strengthening the ability of local farmers to receive funds from the European Agricultural Guarantee Fund. 

To this end, both at the national and local levels, advisory institutions must be established to provide farmers with consultations on the opportunities offered by European integration. This is explicitly outlined in the EU-Ukraine Association Agreement. Local government associations play a key role in advocating for necessary decisions at the national level to develop such institutions.

Local authorities can also collaborate to create advisory bodies and platforms for experience-sharing at the local level.

Institutions we need

Although the Common Agricultural Policy accounts for a third of the EU budget, these funds are not distributed directly by Brussels. Instead, EU member states implement EAFRD financing through Rural Development Programmes (RDPs). 

These Rural Development Programme are co-financed from national budgets and can be developed at either the national or regional level. 

While the European Commission approves and monitors these programmes, decisions on project selection and funding are made by national and regional authorities.

To prepare for EU integration, Ukraine should already be considering:

  • Improving the Strategy for Agriculture and Rural Development beyond 2027, incorporating EU CAP principles;
  • Establishing functioning rural development programmes at both national and regional levels;
  • Creating a national rural development fund to effectively manage financing for these programmes.

Just as with the implementation of regional policy, without functioning national-level institutions, communities will not be able to fully benefit from EU integration.

The LEADER Programme and Local Action Groups

The EU Common Agricultural Policy requires that at least 5% of funding from regional development programmes be allocated to initiatives based on the LEADER approach. This approach is implemented through a structured governance mechanism known as a Local Action Group (LAG) – a distinct legal entity, usually a non-profit organisation, that brings together partners from the public, private, and civil society sectors.

A Local Action Group (LAG) must be well-balanced, broadly representing local interests and various socio-economic sectors within the region. No single sector can represent more than 49% of the local partnership members.

If a country joining the EU lacks a network of Local Action Groups at the time of accession, it cannot utilise the 5% of funding allocated for their activities. This funding supports important local development projects, including assistance for farmers, cultural heritage preservation, tourism development, etc.

Notably, other EU candidate countries, including Georgia and Moldova, have already established Local Action Group networks and are already receiving funding from the EU and other donors through various financial instruments. Therefore, creating such a network in Ukraine is not just an EU integration requirement but a practical step to expand financial opportunities for Ukrainian rural communities.

 

About the Course

Register for the Cities4Cities course “EU Integration: Impact and Opportunities for Communities”. This course will enhance your confidence in engaging with European-level initiatives, help you negotiate more effectively with international partners, and enable you to define your development priorities more clearly for the coming years.

The course is supported by Sweden’s flagship programme for Ukraine Polaris “Supporting Multilevel Governance in Ukraine”.

 

Cities4Cities | United4Ukraine are partner initiatives that joined forces in September 2022. Cities4Cities was founded by the city of Sindelfingen (Germany) under the patronage of the Congress of Local and Regional Authorities of the Council of Europe. United4Ukraine was initiated by SALAR International and the city of Lviv, with support from the Swedish International Development Cooperation Agency (Sida). Since 2024, Cities4Cities | United4Ukraine has been part of Sweden’s flagship programme for Ukraine Polaris “Supporting Multilevel Governance in Ukraine”.