INSTITUTIONAL AND ECONOMIC READINESS OF UKRAINE’S AGRICULTURAL SECTOR FOR INTEGRATION INTO THE EUROPEAN UNION: CURRENT STATE AND STRATEGIC PERSPECTIVES

The article explores the institutional and economic readiness of Ukraine’s agricultural sector for integration into the European Union under the framework of the Common Agricultural Policy (CAP). The relevance of the topic is determined by Ukraine’s status as an EU candidate country and the need for comprehensive modernization of its agricultural system in line with European integration priorities. The research aims to identify strategic directions for institutional transformation, assess sectoral potential, and propose mechanisms that can facilitate a successful adaptation to EU agricultural standards. The urgency of this issue is enhanced by structural inefficiencies within Ukraine’s agro-industrial complex, a significant share of raw material exports, and the current lack of harmonized infrastructure and legal frameworks that meet EU criteria. The study is based on a combination of analytical, comparative, and forecasting methods. The findings reveal a moderate level of alignment with EU acquis in the agricultural domain, accompanied by critical disparities in the implementation of sustainability standards, digital infrastructure, and subsidy administration. While Ukraine’s agricultural sector demonstrates high production potential and export capabilities, its capacity to absorb CAP mechanisms remains constrained by weak institutional coordination, fragmented regulatory oversight, and limited access to investment capital among small and medium-sized farms. The practical significance of the study lies in its policy-oriented recommendations aimed at accelerating CAP-related reforms. These include establishing transparent financial management systems, fostering decentralized rural development strategies, and creating investment incentives for value-added agricultural production. The study also proposes a phased approach to adopting EU environmental and quality standards, allowing Ukrainian farmers to transition without excessive financial or administrative burden. The insights generated can serve as a roadmap for national authorities, agribusiness stakeholders, and international partners engaged in shaping Ukraine’s agricultural integration into the European Union.