Updated co-financing rules
The Ukrainian government has revised how regional and municipal resilience projects are funded, making it easier for frontline areas to participate. While the standard co-financing rate remains at least 20%, Dnipropetrovsk Oblast now only needs to cover 15%. For seven other regions—Donetsk, Zaporizhzhia, Mykolaiv, Sumy, Kharkiv, Kherson, and Chernihiv—the requirement has been cut to 10%.
Why this matters
These changes apply exclusively to publicly owned facilities managed by local communities. Oleksii Kuleba explained that
“lowering the co-financing threshold allows communities to carry out their resilience plans, since under martial law, local budgets are primarily directed toward defense, security, and keeping critical infrastructure running.”The goal is to support frontline communities and ensure projects are completed on schedule.
This reform is a key step in backing regions hit hardest by the war. By reducing co-financing levels for frontline areas, the government enables communities to push forward with infrastructure restoration and development despite tight budgets. It also reflects the administration’s efforts to adapt to the unprecedented challenges posed by the ongoing conflict.
In addition to the revised co-financing requirements, the government has also unveiled a comprehensive support initiative aimed at enhancing the resilience of frontline communities. This new aid package is designed to further bolster infrastructure and provide essential resources, ensuring that affected regions can recover and thrive despite the ongoing challenges posed by the conflict.