250 billion UAH and a new ministry: why the return of the Ministry of Agrarian Policy is more than just a personnel reshuffle

The division of Ukraine's largest ministry in its history creates a separate center for managing agricultural finances — state subsidies and EU funds. Who controls this center will determine how exactly 480 million euros from the European Commission will reach farmers.

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Фото: МінАПК

A government reshuffle under new Prime Minister Sergiy Koretsky may restore a separate Ministry of Agrarian Policy to Ukraine — for the first time since its liquidation by a Cabinet resolution in July 2025. According to sources from LIGA.net and RBC-Ukraine, two candidates are being considered for the ministerial position. The main candidate is Taras Vysotsky, the current deputy minister of economy, environment and agriculture. The second has not been publicly named by either publication: sources limit themselves to the formulation "there is an alternative candidate."

Why split the largest ministry

The Ministry of Economy, Environment and Agriculture — the largest in scope in the country's history — is planned to be divided into two separate agencies: the Ministry of Economy and Ecology (to remain under Oleksiy Sobolev) and the new Ministry of Agrarian Policy. The formal reason is EU integration architecture: the EU requires candidate countries to have a separate government body that administers agricultural support.

The practical reason is money. According to Taras Vysotsky, the newly created Payment Agency will distribute approximately 250 billion hryvnias annually — a combination of state subsidies and European Commission funds. In 2026 alone, the EU is expected to provide 480 million euros to launch the agency — provided it passes accreditation by the European Commission, which confirms the reliability of control and accounting systems.

"The appointment of the Payment Agency opens a practical stage in implementing the European model of state support for agriculture in Ukraine"

Denys Bashlyk, deputy minister for digital development of the Ministry of Agrarian Policy

What reorganization will change for farmers

The functions of the Payment Agency from July 1 are performed by the Ukrainian State Fund for Support of Farms — a budgetary institution defined by Cabinet resolution No. 1526-р of December 31, 2025. Both state support and funds from the European Commission and other donors will flow through it. For a small farmer, this means a single window instead of scattered programs — but only when the agency actually starts operating and receives EU accreditation.

The agricultural sector generates approximately 20% of Ukraine's GDP and is the main source of foreign currency earnings. Therefore, the question is not only who will lead the new ministry, but what model of support distribution the future minister will implement: direct assistance to farmers following the CAP (Common Agricultural Policy) model or primarily to large agricultural holdings, as has been the case so far.

Why Vysotsky is the favorite, but not the only option

Vysotsky is the architect of the current reform: he oversaw negotiations on the Payment Agency and publicly advocated for the 250 billion hryvnias figure. His appointment would ensure institutional continuity. At the same time, the presence of a second candidate signals that within the coalition there are different views on what the new center of agricultural power should be — technocratic or more loyal to big business.

The Verkhovna Rada is to vote on the updated Cabinet composition in the coming days. If the European Commission confirms accreditation of the Payment Agency by the end of 2026 — the first real test for the new minister: whether the 480 million euros will reach farmers through a transparent scheme or will be retained by large structures with indirect connections to Bankova.

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