Regulatory Policy of The Agricultural Sector In The De-Occupied Territories of Southern Ukraine: Challenges and Measures To Restore The Irrigation System

Abstract

Irrigation system restoration is crucial for enhancing agricultural productivity and ensuring food security. The study aims to analyze the regulatory framework and financial mechanisms for restoring irrigation systems in the de-occupied territories of southern Ukraine while addressing key challenges related to land use, water resource management, and economic recovery. The study employs a mixed-methods approach, including policy analysis, stakeholder interviews, and financial modeling. Policy documents and legislative acts are examined to assess the effectiveness of regulatory measures. Interviews with local agricultural stakeholders provide qualitative insights, while financial modeling evaluates the impact of EU financial instruments. Groundwater over-extraction, biodiversity losses, low species resilience, and finance shortages are distinguished as the critical issues preventing from restoration of de-occupied lands in Ukraine. It is defined that groundwater over-extraction leads to aquifer depletion and land degradation. The study develops policy recommendations to govern groundwater use, emphasizing the need for modern monitoring technologies, efficient irrigation techniques, and coordinated water resource management to ensure the long-term viability and resilience of irrigation infrastructure in de-occupied territories. Communitybased initiatives and policy interventions are explored as essential conservation components to increase species resilience. The creation of wildlife corridors and the implementation of protected areas are defined as other key measures to mitigate biodiversity loss. The findings show that the restoration of de-occupied Southern Ukraine depends on such types of EU financial support as subsidies, grants, and low-interest loans. These funds are mainly delivered through the following mechanisms: direct government allocations, partnerships with international financial institutions like the European Investment Bank (EIB), and targeted agricultural recovery programs. The EIB as the EU lending arm is examined in the context of its role in the post-war recovery and economic resilience of Ukraine’s agricultural sector, with a particular focus on Trésorerie Sociale de l’État (TSE). It is defined that TSE facilitates financial mechanisms to support agricultural enterprises, stabilizing local economies and fostering sustainable development in war-affected regions. The research highlights the interplay between European financial institutions and national regulatory policies in rebuilding Ukraine’s agricultural sector.