The aim of the article is to substantiate the essence and financial instruments for the development of cross-border cooperation in the context of Ukraine’s European integration. It is proposed to consider cross-border cooperation as joint, coordinated actions aimed at convergence, synergy, multiplicative effect in solving problems by subjects and participants of cross-border cooperation through the implementation of programs and projects using traditional and new financial instruments. It is specified that cross-border cooperation has three main goals. First, it contributes to the economic and social development of border areas, which can lead to the growth in terms of new enterprises and industries. Secondly, it addresses common challenges related to the environment, public health, safety and security and aims to create better conditions for the mobility of people, goods and capital across borders. Ukraine’s position on future membership in the EU and the possibility of participation in cross-border cooperation programs is substantiated, for which structural funds for 2021–2027 are allocated from the EU through the European Regional Development Fund and the Neighbourhood, Development and International Cooperation Instrument. The thematic priorities of funding for the new program period are as follows: a sustainable, green border region; a healthy and attractive border region; joint border region. The possibilities of using IPA, the latest instrument of assistance at the stage of preparation for accession to the EU, which is aimed at supporting reforms through the provision of financial and technical assistance, are substantiated. It can be used by both existing and potential candidates for the EU membership. The author’s own calculations showed that out of the total volume of the operating budget for 2021-2027 under the assistance of the IPA III instrument in the pre-accession phase of the EU, the largest amount of funding will be directed to the the goal that is a «green» agenda, sustainable connectivity (transport and communication links); the thematic objective «Competitiveness and Inclusive Growth»; good governance, alignment with the EU acquis criterion, good neighbourly relations and strategic communication; the rule of law, fundamental rights and democracy; territorial and cross-border cooperation. Further research will be aimed at developing the conceptual foundations and strategic directions for the development of cross-border cooperation.