The paper is devoted to the problems of rural territorial communities’ development in Ukraine in conditions of modern economic reforms, in particular in terms of priorities of decentralization policy and European integration. The nature of «rural territorial community» scientific category in its theoretical-methodological, historical and institutional-legislative senses is examined. Special attention is paid to legal controversies that create the field for emergence of institutional barriers for rural territorial communities’ development in Ukraine. The paper draws parallels between the principles of rural territorial communities’ development in the EU Member States and Ukraine, contributing to finding major factors of preventing the development of rural territorial communities’ development in our country in current conditions of conducting the administrative and territorial reform. In particular, the destructive impact of excessive decentralization in terms of making management decisions related to the forming of consolidated territorial communities is emphasized. It brings the institutional dysfunctions, in particular the institutional traps, and reduces the efficiency of the use of human and social capital in many rural settlements of Ukraine. Conceptual foundations and mechanisms of rural territorial communities’ development stimulation in the EU Member States are analyzed from the viewpoint of the perspective of their adaptation in Ukraine. The priority of principles of subsidiary, balanced development and multifunctional rural economy is emphasized in the context of enhancing the exploitation efficiency of rural human, financial and natural resources and improvement of the level of life of rural residents and social and economic development of rural territorial communities. The decisive role of institutional, financial, social and informational mechanisms in stimulation of rural territorial communities’ development and adaptation of EU conceptual foundations and social and economic priorities is revealed. On this basis the recommendations for state authorities and local governments of Ukraine on the use of EU experience in rural territorial communities’ development in current Ukrainian realities are suggested. In particular, we recommend securing the transfer to local governments of the sufficient amount of administrative and management liabilities and financial resources in the course of authorities’ decentralization policy, providing the improvement of financial, institutional, transport and informational infrastructure of rural territories’ development and guaranteeing the sustainability of rural development policy. 

rural territorial communities, European integration, spatial development, EU regional policy, decentralization of authorities