Farmers to Gain Direct Access to EU Assistance Programs

On 8 Oct. 2025, the Verkhovna Rada of Ukraine adopted Draft Law of Ukraine 13202-1 “On Amendments to Certain Laws of Ukraine Concerning the Organizational Framework for Providing Support in the Agricultural Sector”.

The Draft Law aims to improve the mechanisms for providing state support to agricultural producers, enhance the efficiency of budget spending, and align Ukraine’s agricultural support system with the principles of the EU Common Agricultural Policy.

The key innovation is the establishment of a Paying Agency — a specialized state body responsible for administering, distributing, and monitoring financial support in the agricultural sector

The new institution will become a central element of a transparent financial management system, ensuring that every hryvnia of state aid can be digitally tracked — from application submission to final payment.

In addition, the Law provides for the implementation of an Integrated Administration and Control System (IACS), similar to that applied under the EU CAP framework. The launch of IACS is scheduled for 2027. This system will automate verification and monitoring of aid recipients and will be integrated with the Agricultural Data System (ADS), which will contain comprehensive information about land, production, and farm conditions.

The Draft Law also establishes a multi-level control mechanism over the distribution of state and international funds — including automated, documentary, and physical control. This approach minimizes corruption risks, enhances transparency, and enables the detection of violations during the disbursement process.

In cases of violations, beneficiaries will be required to return the received funds and will temporarily lose eligibility to participate in support programs for the next three budget periods. Moreover, the Law introduces liability for fraud and manipulation related to the use of public or international agricultural funds.

We will closely monitor further developments in this area and will report on them in future Legal News.