At the beginning of each month, the Decentralisation Portal summarises the decisions of the Government and Parliament concerning regional policy, local self-government and community development.

February 2026 was a month of systemic changes for local self-government and regional policy in Ukraine. The Government, Parliament and Ministry for Development of Communities and Territories focused on the practical implementation of a territory-oriented approach, strengthening European integration processes, and expanding financial instruments to support communities. The key messages of the month were: the transition from ad hoc decisions to systematic planning, targeted support for frontline territories, and the creation of conditions for communities to attract international resources directly. Below is an overview of the most important decisions and initiatives.

Verkhovna Rada of Ukraine

• Harmonisation of legislation with the new administrative structure
  The Parliamentary Committee on State Power and Local Self-Government supported Draft Law No. 14318 in its first reading. It aims to remove outdated terms (‘cities of regional significance,’ ‘urban-type settlements,’ ‘village councils’) from six codes and 64 laws, which create conflicts and complicate the work of local governments after the 2020 reform (decentralization.ua/news/20443).
• Recommendation to adopt a framework draft law on powers
  The committee recommended that the Verkhovna Rada adopt Draft Law No. 14412 ‘On the Principles of Delineation and Distribution of Powers’ as a basis. The document aims to clearly define the ‘rules of the game’ for each level of authority, eliminate duplication of functions and enshrine the principle of subsidiarity (https://decentralization.gov.ua/en/news/20470).
• Expansion of international financial tools for communities
  The Verkhovna Rada ratified three international agreements in one go, which open up new opportunities for local development:
  • The Agreement with Poland allows the state-owned BGK bank to provide direct financing (loans, grants, guarantees) to Ukrainian communities for infrastructure projects (https://decentralization.gov.ua/en/news/20466).
  • The Agreement on Ukraine’s participation in the EU’s EaSI Programme provides communities with direct access to grants for social innovation, employment support, and the integration of vulnerable groups (https://decentralization.gov.ua/en/news/20465).
  • The Agreement with Slovenia creates a legal basis to attract Slovenian assistance in infrastructure restoration, energy efficiency, housing and utility services, and the social sphere at the local level (https://decentralization.gov.ua/en/news/20467).

Cabinet of Ministers of Ukraine

• Launch of public investment management reform
  The Cabinet of Ministers approved the Procedure for evaluating the effectiveness of public investment projects after their completion. This introduces a single standard for analysing the effectiveness of fund use and social and economic impact, which increases accountability and the quality of local planning (https://decentralization.ua/en/news/20427).
• Funding for educational infrastructure
  The Government allocated UAH 3 billion to renovate educational spaces within the framework of the NUS reform. The funds were distributed for equipment for gymnasiums, pilot lyceums (taking into account the needs of frontline remote institutions) and the creation of ‘Defence of Ukraine’ centres (https://decentralization.ua/en/news/20428).
• Support for safe nutrition and veterans
  • An updated procedure for providing UAH 1 billion in subsidies for the modernisation of school canteens and kitchen units in 2026 was approved (https://decentralization.ua/en/news/20429).
  • The procedure for providing subsidies for the creation of veteran spaces was approved. The funds will be directed towards new construction based on standard projects, subject to co-financing from local budgets (at least 40%) (https://decentralization.ua/en/news/20438).
• Settlement of land issues
  The Government updated the procedure for inspecting agricultural land potentially contaminated with explosive objects. From now on, local governments have a clear mechanism for checking the intended use of such land plots (https://decentralization.ua/en/news/20426).

Ministry for Development of Communities and Territories

• Resumption of the work of the Interdepartmental Coordination Commission on Regional Development
  The first meeting of the commission, chaired by Oleksii Kuleba, Deputy Prime Minister, was a practical step towards fulfilling European integration commitments. The focus was on the introduction of special economic zones in frontline regions (https://decentralization.ua/en/news/20406).
• Selection of projects for frontline communities within the framework of cooperation with the EIB
  An expert working group chaired by Oleksii Riabykin, Deputy Minister, accelerated the selection of projects under the Ukraine Recovery Programme III. A total of 76 projects from nine frontline regions relating to bomb shelters, medical facilities, water supply and security centres were recommended for funding (https://decentralization.ua/en/news/20407 and https://decentralization.ua/en/news/20440).
• Introduction of a territorial approach
  The Commission for the Determination of Functional Types of Territories commenced its work. This will allow for the application of differentiated support tools for communities. Preliminary, 123 communities were identified as potential recovery territories (https://decentralization.ua/en/news/20442). The Ministry, in cooperation with EU4Reconstruction, is also developing a pilot programme model for such territories based on the EU model (https://decentralization.ua/en/news/20445).
• Preparation for the implementation of the European LEADER approach
  The process of systematic implementation of the LEADER methodology for rural development based on the bottom-up principle was launched. A Coordination Council was established to develop a regulatory framework and financial mechanisms (Source: https://decentralization.ua/en/news/20458).

Other government bodies

• The Ministry of Finance started working on the Budget Declaration for 2027–2029. This kicks off a new cycle of medium-term planning, which will set the parameters for inter-budgetary relations for communities (https://decentralization.ua/en/news/20420).

February 2026 demonstrated Ukraine's consistent movement towards a European model of regional policy based on data, territorial justice, and strategic planning. The key trend of the month was the transition from situational responses to systemic solutions: the resumption of interdepartmental commissions, the launch of investment performance assessments, the definition of functional types of territories, and the ratification of agreements that open up direct opportunities for communities to access international financial tools. For local governments, this means not only expanding access to resources, but also raising the standards for the quality of project management, transparency, and strategic vision for their own development.

To stay informed about important news, follow updates on the Decentralisation portal, our online calendar, and social media accounts on Facebook and Telegram.

Read all the most important news from the previous months in our newsletters.