State-Owned Cultural Enterprises to Be Reorganized
Ukraine's Ministry of Culture has initiated a major overhaul of state-owned cultural enterprises, converting them into state-run non-commercial societies. The final deadline for this transformation is February 28. Decisions have already been made regarding 14 cultural institutions located in various Ukrainian cities. This restructuring is directly linked to the planned abolition of Ukraine's Commercial Code, scheduled for August 28, 2025.
Under the new requirements, all cultural institutions that held state enterprise status must adapt to the new organizational form by the specified deadline. Commissions will be established within theaters and circuses to manage the transformation and conduct property inventories. According to Bohdan Delenka, Deputy General Director for Legal Affairs at the Zankovetska Theater, this reorganization is crucial due to the planned termination of the Commercial Code.
Transition Period and Adaptation to New Standards
The decision to reorganize was made in January 2025, with a three-year transition period provided for legal adaptation. During the first six months of this period, all state enterprises in Ukraine must be converted into new organizational forms. Oleksandr Fomenko, a cultural sector representative, noted that Ukraine has over 3,500 state enterprises, compared to just 160 in Poland. National theaters and other cultural institutions also held this status, necessitating the reform. He assured that the daily operations of theaters would remain unaffected, as they will continue to function in their usual manner.
Fomenko also emphasized the need to align Ukraine's system with European standards, pointing out significant differences in documentation and other aspects. He stressed the importance of communicating with European partners using a common framework and unified tools and processes. All theater employees will retain their positions, and no layoffs are planned.
This move is part of broader post-Soviet institutional reforms aimed at modernizing public administration. The list of institutions subject to reorganization includes:
- National Academic Ukrainian Drama Theater named after Maria Zankovetska
- National Academic Drama Theater named after Ivan Franko
- National Academic Opera and Ballet Theater of Ukraine named after T. G. Shevchenko
- National Circus of Ukraine
- National Odesa Philharmonic Orchestra
- Odesa State Circus
- Zaporizhzhia State Circus
- Directorate of Itinerant Circus Groups of Ukraine
- Dnipro State Circus
- State Circus Company of Ukraine
- Kharkiv State Circus named after F.D. Yashinov
- Kharkiv National Academic Opera and Ballet Theater named after M. V. Lysenko
- Lviv State Circus
- National Academic Drama Theater named after Lesya Ukrainka
In summary, the reorganization of cultural institutions represents a significant step toward adapting to new conditions and standards, which experts believe will facilitate Ukraine's integration into the European cultural space. While the changes related to the abolition of the Commercial Code may substantially impact the management and funding of cultural establishments, sector representatives state that this should not harm their operations or lead to employee dismissals.