Olga Zykova discussed with the representatives of the State Secretariat for Economic Affairs of Switzerland a new international technical assistance project on local public finance management

Deputy Minister of Finance of Ukraine Olga Zykova met with representatives of the State Secretariat for Economic Affairs of Switzerland (SECO).

The meeting was attended by Deputy Head of Cooperation at the Embassy of Switzerland in Ukraine Silvan Hungerbühler, Program Manager at SECO’s Macroeconomic Support Division Philippe Brügger, and National Program Coordinator for Public Finance and Infrastructure Mariia Koval-Honchar.

The parties discussed bilateral cooperation between Ukraine and Switzerland, including plans to implement a four-year international technical assistance project on local public finance management, as well as opportunities to engage Swiss businesses and expertise in Ukraine’s recovery efforts.

Starting from November this year, SECO will launch the project “Fiscal Governance for Local Reconstruction and Recovery”, aimed at strengthening the financial capacity of Ukrainian municipalities – both in terms of revenue generation and expenditure management.

The initiative will help local communities make better use of available resources, stimulate economic activity, enhance investment attractiveness, and attract external investments, including from Swiss companies. The pilot phase will cover five cities –  Lviv, Chernivtsi, Vinnytsia, Zhytomyr, and Khmelnytskyi. The project’s total budget amounts to CHF 7.5 million (over USD 9.3 million), the implementation will continue until October 2029. In the future, additional cities, including those in eastern Ukraine, are expected to join the program.

“The decentralization reform has already proven its effectiveness and become one of Ukraine’s key strengths, especially in wartime. The Government is committed to empowering local communities, ensuring they can use resources efficiently, and effectively attract donor assistance and investment for recovery and development. That is why the Ministry of Finance fully supports the local public finance management project and will contribute to its successful implementation,” said Olga Zykova.

The Ministry of Finance of Ukraine and SECO agreed to sign a Memorandum of Cooperation in the near future to officially launch the project.

Within the Swiss PPF (Project Preparation Facility) initiative, Switzerland also plans to involve Swiss companies and introduce innovative technical solutions to enhance the effectiveness and quality of project implementation. The Swiss side intends to focus on supporting local-level initiatives, particularly in urban planning, water resource management, and digitalization.

The parties also exchanged views on the participation of Ministry of Finance experts in technical assistance programs, particularly in the areas of financial monitoring, anti-money laundering (AML/CFT), and state-owned bank management, within the Ukraine Capacity Development Fund project implemented by the International Monetary Fund. In 2025, Switzerland serves as the coordinator of this project.

Over the next 10 years, the Swiss Government plans to allocate CHF 5 billion (approximately USD 5.5 billion) to support Ukraine’s reconstruction and recovery, as well as to strengthen cooperation with the private sector. Of this amount, CHF 1.5 billion (around USD 1.7 billion) are earmarked directly for Ukraine under the Swiss International Cooperation Strategy for 2025-2028.

The State Secretariat for Economic Affairs (SECO) is the Swiss federal government’s center of expertise on all major economic policy issues. Its mission is to promote sustainable economic growth through the development of necessary legislative and economic policy frameworks. Currently, SECO is involved in approximately 45 projects in Ukraine.