The Power of Partnership: International Supporters of Ukraine’s Local Reconstruction

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With destruction occurring on a daily basis, repairing, rebuilding, and smaller-scale reconstruction within communities and regions is of paramount importance to the local population and the country as a whole. Given the extent of the destruction caused by the full-scale war, resources are scarce, and military expenditures remain a priority. The national budget channels most of its funds—including, since 2024, a portion of local revenues—to military needs. 

Against this backdrop, war-ravaged municipalities and communities receive much-needed financial support from international partners: financial institutions, governments, foundations, regional entities, and “twin” cities. Some of these partnerships are expansive and longer-term, while others are more limited and offer immediate relief. The latter count in the hundreds, and their contributions add up to significant support. 

Decentralization reform was initiated in 2014 and is based on the principle of subsidiarity. The reform has transferred administrative power, resources, and responsibilities from the executive branch of the national government to local authorities. Following decades of centralized decision-making, this reform was enthusiastically embraced at the local level. However, the war has created an administrative paradox: Carrying out a full-scale war requires centralized decision-making in some areas, but this may counteract a popular decentralization reform that is required for the country to join the EU. 

The government of Ukraine is taking steps to stimulate locally driven recovery and reconstruction. It systematically involves local authorities and associations in regional development work. However, local fiscal bases and administrative capacities must be strengthened for a more efficient recovery process to emerge. Recovery will require both grass-roots capacities and the development of a legislative framework at the national, regional, and local levels. 

Local authorities’ ability to attract international partners for local rebuilding projects varies from region to region. To potential funders, the attractiveness of a certain region, municipality, or community also depends on the visibility it achieves, usually through the media. These two elements have led to a discrepancy between local communities’ needs and the funding they attract. 

Local authorities’ efforts to attract funding would be more efficient if more local entities acquired planning, management, and networking skills. Local absorption capacity must also increase in preparation for large-scale reconstruction.