The planned agency could reshape how agricultural support reaches producers. Its digital tools are designed to make funding decisions more transparent.
The World Bank has positively assessed Ukraine’s preparations to establish a Paying Agency that will ensure the transparent, digitalized distribution of state support to producers. The matter was discussed during a meeting between Denys Bashlyk, Deputy Minister of Economy and Environment of Ukraine, and a Bank delegation led by Lead Economist Yue Man Li.
The Ministry of Agrarian Policy noted that the agency is being established in line with European Union standards. The future system will provide for satellite monitoring, the use of digital cadastres, and reduced human influence on decisions regarding the provision of support.
Regulatory Framework for the Paying Agency
World Bank representatives noted progress in drafting the documents required to launch the Paying Agency in Ukraine. In particular, preparations are underway for the following decisions:
three Cabinet of Ministers resolutions regulating the coordination of the Paying Agency’s activities, payment monitoring, and requirements for the certification body;
Ministry of Agrarian Policy orders concerning the establishment of a Monitoring Committee;
documents for training employees of the future agency in accordance with international standards.
Cooperation with the World Bank and the DPO2 Program
During the talks, the parties separately reviewed compliance with the conditions of the DPO2 (Development Policy Operation) policy lending program. Establishing the Paying Agency on the basis of the Ukrainian State Fund for Support of Farms is one of the financing conditions under this World Bank instrument.
Following the meeting, the participants agreed to continue technical cooperation. World Bank experts are expected to be involved in developing the agency’s institutional capacity and building its IT infrastructure.
The launch of the Paying Agency is expected to become an important step toward introducing modern producer support mechanisms in Ukraine that are compatible with European Union approaches.