ABSTRACT
The article presents the main research results on the peculiarities of the functioning of agricultural cooperatives and the practices of state regulation of their activities in the countries of the European Union. The high importance of agricultural cooperatives is justified, first of all, by their multifunctionality, and, consequently, by their contribution both to the development of the agricultural economy and to the stability of rural areas. The main trends in the development of agricultural cooperation in Europe are: (1) the enlargement of the cooperative business;(2) the development of vertical integration along the technological chain, (3) all kinds of organizational innovations to expand financial opportunities, (4) strengthening competitiveness through the growth of the scale of activities and all kinds of innovations, (5) socialization of cooperative activities in order to improve the living conditions of rural communities. The specificity of state support for European agricultural cooperatives lies in expanding the range of mechanisms and instruments used by the state, providing financial assistance mainly to small regional cooperatives (performing functions important for rural areas), taking into account the possibilities of cooperative activities under extraordinary conditions (such as the COVID-19 pandemic or emerging natural cataclysms).