In the shadow of the Sikorski–Lviv mayor dispute, Poland signs a new agreement with Ukraine
In the shadow of a diplomatic dispute between Poland’s Foreign Minister Radosław Sikorski and the Mayor of Lviv Andriy Sadovyi, an important agreement between Poland and Ukraine was signed. The National Fund for Environmental Protection and Water Management (NFOŚiGW) and Ukraine’s Ministry of Economy, Environment and Agriculture will begin cooperation on building a modern system for financing environmental protection and the energy transition.
The letter of intent was signed during the Ukraine Recovery Conference 2026 (URC 2026) in Gdańsk. The signatories were Dorota Zawadzka‑Stępniak, President of NFOŚiGW, and Oleksiy Sobolev, Ukraine’s Minister of Economy, Environment and Agriculture.
The agreement aims to establish a foundation for expert cooperation and the exchange of experience related to financing environmental investments. Ukraine intends to draw on Polish solutions when creating its own system to support the country’s green reconstruction.
Poland to share its proven model
One of the most important elements of the cooperation will be transferring Poland’s experience with the functioning of the National Fund for Environmental Protection and Water Management. This includes the “polluter pays” model, which for years has been the cornerstone of environmental financing in Poland.
Experts from both countries will analyze legal, financial, and institutional solutions that enable effective financing of ecological investments. Plans also include supporting Ukraine in building or strengthening an independent institution responsible for collecting funds from environmental fees and combining them with EU resources and international financing.
–For 37 years, the National Fund has been the foundation of Poland’s environmental financing system, combining the stability of a public institution with efficient financial management. The NFOŚiGW model is relatively simple yet very strong and effective — it integrates diverse funding streams: national resources, EU funds, and financial instruments, transforming them into programs for a wide range of beneficiaries, including local governments, businesses, and households. This allows us to support real investments that bring tangible benefits to residents and the entire economy,- emphasized Dorota Zawadzka‑Stępniak, President of NFOŚiGW.
Ukraine’s green reconstruction
The cooperation will also include sharing knowledge on transparent management of public funds, monitoring environmental outcomes, and designing support instruments for investments related to environmental protection and the energy transition.
The signed document does not create financial obligations for either party. It is a declaration of cooperation and a starting point for further knowledge transfer and the preparation of joint projects supporting Ukraine’s reconstruction in line with sustainable development principles.
Background: the Sikorski–Sadovyi dispute
The signing of the agreement took place on a day when public attention was drawn to a dispute between Foreign Minister Radosław Sikorski and Lviv Mayor Andriy Sadovyi.
The exchange followed an event organized in Gdańsk — “Lviv Resilience Day” — during which Lviv authorities signed six cooperation agreements with partners from Lithuania, Sweden, the Czech Republic, Germany, and France. Polish companies were notably absent from the list of new partners.
Sikorski commented on the situation, referring to the long‑running dispute between the Polish company Control Process and the Lviv authorities.
–Maybe that’s for the best, because the Polish company that built a waste incineration plant in Lviv has been waiting a long time to be paid, – the minister wrote on X.
The case concerns an investment worth nearly €40 million. The Polish company claims it won arbitration proceedings and has been unsuccessfully seeking payment for years. Lviv authorities reject the accusations, maintaining that the contractor failed to meet the terms of the contract.
Additional controversy arose from the fact that the Lviv‑organized event took place in parallel with the Ukraine Recovery Conference 2026. However, Foreign Ministry spokesperson Maciej Wewiór stressed that the mayor’s initiative was not part of the official conference program but an independent accompanying event.