Rada fails to establish EU-required Payment Agency for agriculture

The Verkhovna Rada failed to pass a law establishing a specialized Payment Agency to distribute European agricultural subsidies. Only 204 MPs voted in favor of draft law №13202-1 in the second reading and as a whole, after which the parliament sent the bill for a repeated second reading without the fast-track procedure.

"If there is no Payment Agency, there will be no European subsidies," warned Deputy Economy Minister Denys Bashlyk during a meeting of the specialized agency on September 1.

The draft law aims to implement certain provisions of EU Regulations 2021/2115 and 2021/2116, which set the framework for the Common Agricultural Policy.

Its key provision is the creation of a Payment Agency, a specialized budget institution responsible for administering financial support to the agricultural sector according to European standards. Such a payment agency is required for all EU member states.

Failure to pass the draft law puts part of the funding under the Ukraine Facility financial support plan at risk.

• Earlier in September, the parliament also failed to pass draft law No. 13150 on oversight of local government decisions, which is another component of the Ukraine Facility Reform Plan.