Topic: institutional development

Implementation period: January 2026 — August 2026

Client: ISAR Ednannia

Details: This explainer outlines the reasons for and stages of the transformation of state-owned and municipally-owned cultural enterprises into non-profit organizations. The article examines changes in management, the specifics of using state-owned and municipally-owned property under a usufruct arrangement, as well as issues related to labor relations, compensation, and the financing of these institutions during the transition period.

Document contents:

• Why is this transformation taking place?

• Who is affected by the transformation?

• What decisions has the Ministry of Culture already made?

• Stages of the transformation.

• What will happen to the property?

• What is usufruct?

• What will happen to the employees?

• What will happen to funding?

• Conclusion.

Author: Anna Klipkova, policy development expert at the PPV Economic Development Agency, with contributions from Volodymyr Vorobey, a key expert on the project “Support and advocacy a comprehensive reform of the network of cultural institutions” and head of the RES-POL project’s expert group.

This explainer is produced as part of the project “Support and advocacy a comprehensive reform of the network of cultural institutions”, implemented by the NGO “Regional Development Center” of the PPV Economic Development Agency with the support of the Askold and Dir Fund, implemented by ISAR Ednannia, funded by Norway and Sweden. 

The contents of this publication are the sole responsibility of NGO “Regional Development Center” of the PPV Economic Development Agency” and can in no way be taken to reflect the views the Government of Norway, the Government of Sweden and ISAR Ednannia