Italy has presented a €105 million TERRA programme aimed at expanding access to financing for Ukrainian businesses, particularly micro and small enterprises in rural areas, Ukraine’s Ministry of Agrarian Policy and Food reported following talks between Ukrainian and Italian officials.
“The Italian side presented the €105 million TERRA programme, designed to expand Ukrainian businesses’ access to financing. Of this amount, €100 million is expected to be directed towards financial instruments aimed at reducing lending risks and facilitating access to funding for micro and small enterprises, particularly in rural areas. The programme also provides for technical assistance,” the ministry said.
Support for small and medium-sized agricultural producers, development of agricultural cooperatives and preparation of farmers to operate under EU standards were among the key topics discussed during a meeting between Deputy Economy Minister Denys Bashlyk and Davide La Cecilia, Special Envoy of the Italian Foreign Minister for the Reconstruction of Ukraine.
According to Bashlyk, developing agricultural cooperatives is one of the priorities of bilateral cooperation. Ukraine is interested in applying Italy’s practical experience to create effective models for bringing small producers together.
“It is important for us not simply to teach farmers to work together, but to create a practical model that will allow them to pool resources, produce larger volumes and enter new markets. If this approach proves successful, it could be scaled up across all regions of Ukraine,” Bashlyk said.
The parties also discussed preparing Ukraine’s agricultural sector for future EU membership. According to the deputy minister, adapting to new requirements could be particularly challenging for small and medium-sized farms.
Ukraine is therefore discussing with its European partners a support model focused primarily on helping farms adapt to EU standards and improve their competitiveness.
Another area of cooperation is irrigation and water resource management. Italy is already supporting relevant projects in Ukraine, including in the Odessa region. The Ukrainian side stressed the importance of accelerating these initiatives and moving towards practical implementation.
Agricultural land demining was also discussed. The Italian side said it had allocated €20 million for this purpose since 2022.
During his visit, La Cecilia also met with Ukrainian Finance Minister Sergii Marchenko. The parties discussed progress on a bilateral intergovernmental grant agreement worth €50 million.
The agreement provides for non-repayable assistance to purchase essential equipment for Ukraine’s healthcare and infrastructure sectors, helping strengthen the resilience of Ukrainian regions.
