The systematic work began with a partnership with U-LEAD with Europe. In 2019, experts helped the municipality draw up a development strategy, and it subsequently took part in training programmes focused on assessing the business environment and tools for improving it. Rather than providing the municipality with isolated solutions, these steps have given it a comprehensive vision of how to engage with local development, businesses and potential investors.
Yuliia Mazur, the Head of the Regional Office of U-LEAD with Europe in Khmelnytskyi Oblast, stresses the long-standing and fruitful cooperation with Stara Ushytsia municipality and praises its promising development trajectory:
“We have been working with Stara Ushytsia municipality for many years and can see tangible changes taking place. Notably, U-LEAD supported the municipality in drawing up its development strategy in 2019, which laid the groundwork for future decisions. The municipality is actively learning, adopting new approaches and making steady progress.”
Oleh Demchuk, an Adviser on Municipal Governance and Development at U-LEAD with Europe, says:
“Initially, the municipality ranked second from last in Khmelnytskyi Oblast in terms of economic performance, ranking 59th out of 60. It has now climbed 14 positions and continues to improve its performance. While others stay still, this municipality is moving forward.”
The investment forum has been among the key drivers of these changes. It was first held in 2021 as an experiment. Ihor Vyshemirskyi, the Chief Specialist at the General Department of Stara Ushytsia Settlement Council, recalls that at the time the team viewed the event as a trial run and, at the same time, as an opportunity to showcase the municipality to potential partners. According to him, following the first forum, they carefully analysed the mistakes, learned from them and refined their approach in the years that followed.
From the outset, the municipality clearly understood the benefits of an investment forum as a tool for development. As Ihor Vyshemirskyi explains, back in 2021 the team realised that in order to attract investors, they needed to showcase the municipality’s resources and provide a holistic picture of the area’s potential. That is why we have launched an investment website featuring real estate opportunities for businesses. This approach is backed up by an investment passport, a willingness to make decisions quickly, and a team that supports the investor at every stage.
With each subsequent forum, the format has been refined. Whilst around 70 people took part in the first event, attendance at the next one rose to a hundred. The event was attended by investors, municipal officials and the media. Crucially, the forum began to yield tangible results for the municipality. Igor Vyshemirskyi illustrates this point using the tourism sector as an example. According to him, it was the first investment forum in 2021 that attracted the initial investors to the municipality and gave a boost to its tourism industry:
“Following this, we saw the emergence of cosy glamping sites welcoming tourists and helping to develop a more modern tourism infrastructure. In the past, vacationers would leave behind mountains of rubbish, causing problems for the national park. Glamping has made vacationing more organised and responsible. We are currently planning to expand our hospitality offering, although we will be mindful of environmental restrictions — everything must be in harmony with nature. We can see the demand and realise that the municipality can accommodate more tourists.”
Stara Ushytsia Forum has another key strength: it combines the presentation of ideas with monitoring their outcomes. Here, they revisit initiatives from previous years and show how they have changed over time. Which is why, at the 2025 event, the municipality presented case studies of investors who came in 2021 and 2023: eco-friendly “sadyba” farmsteads, glamping sites, viticulture and hazelnut cultivation. This approach lends the forum credibility, as participants see not just intentions, but the progress of initiatives already underway, their growth, new jobs and plans for the next stage. These actions are a clear sign that the municipality is thinking long-term and is able to focus on the big picture rather than on one-off events.
All the while, the municipality has been learning how to work with local businesses. Training programmes organised by U-LEAD helped them with this. Ihor Vyshemirskyi shares that one of the main takeaways from the training was the need for ongoing communication with entrepreneurs. The local officials started holding more frequent meetings with the business community, advising local individual entrepreneurs and working specifically with the tourism sector at the start and end of the season to jointly identify areas for improvement and determine the way forward.
These efforts have gradually attracted more people who see their personal development as being closely linked to the municipality. In 2025, Bakota Craft fair was held alongside the investment forum. According to Ihor Vyshemirskyi, the municipality had never before hosted a fair of this calibre: it brought together over 30 craft producers, who showcased their products, got to know one another and forged new connections. For the municipality, this was further proof that the business environment here is coming to life and gaining momentum.
Today, Stara Ushytsia municipality is setting an example of sustainable growth, in which the investment forum has become part of a broader strategy. Here, they combine learning, engagement with the business community, working with municipal resources and an openness to new ideas.
“Investments can take many forms, including technology, expertise and capital,” says Oleh Demchuk, an Adviser on Municipal Management and Development of U-LEAD with Europe in Lugansk oblast. In Stara Ushytsia, this approach is already being put into practice. What they value here is not just financial investment; it is also experience, partnerships, new approaches and ideas for development. This kind of big-picture thinking is what gradually shapes an environment that attracts businesses, investors and people who are keen to develop the area alongside the municipality.
