The Verkhovna Rada of Ukraine in the second reading and as a whole adopted draft law No. 13202-1 “ On Amendments to Some Laws of Ukraine Regarding the Organizational Basis of Implementation of Support in the Agrarian Sector”. The document provides creation of basic institutions based on the principles of the Common Agricultural Policy of the EU. One of the key ones will be the Payment Agency, which will be responsible for the timely and transparent payment of state support to agricultural producers.
The agency will administer financial support in the field of agriculture in accordance with European standards and will open opportunities for the full use of funds that will be provided by the EU within the framework of the implementation of the Common Agricultural Policy in Ukraine.
“The payment agency will become a structure that will provide state support to agricultural producers, in accordance with European standards. The adopted law will contribute to strengthening the sustainability of agricultural production, the development of rural areas, guaranteeing food security, ensuring transparent and effective financial management, – said Deputy Minister of Economy, Environment and Agriculture of Ukraine Denys Bashlyk.
The main tasks of the agency will be effective financial control, verification of the legality of expenses, compliance with the requirements of Ukrainian and EU legislation, as well as ensuring transparency in the use of budgetary and international resources. Its activities will be based on the principles of accountability, reasonableness of expenses, minimization of risks of abuse and prevention of inappropriate use of funds.
The law also provides for the implementation of the Integrated Administration and Control System (ISAC) — the Ukrainian analogue of the European IACS system, which is a key element of financial resource management. It will ensure the accuracy of accounting and transparent control over payments. In addition, the Agricultural Data System (ADS) will be created to collect, process and analyze information on the sustainable development of farms, taking into account environmental, social and economic factors. This will contribute to well-founded management decisions, effective planning, monitoring and transparency of agricultural policy.
The law was adopted as part of the adaptation of Ukrainian legislation to EU norms, as well as to fulfill Ukraine’s international obligations within the framework of the European Association. It is aimed at implementing the EU initiative “Ukraine Facility”. The payment agency, as a specialized state body, must undergo accreditation by the European Commission to confirm the reliability and security of its control and accounting systems, which will allow Ukraine to gain access to EU financial instruments for farmers.
