The article is devoted to the European program «The European Capital of Culture», which has been implemented since 1985 and aims to reflect the richness and diversity of cultures in the European Union. The general characteristic of this cultural initiative, in which various European cities take part, is given. The question is raised as how successful experience in implementing such a project can affect the formation of a sustainable city brand. The article reveals the concept of city brand and how the program «European Capital of Culture» can change the investment climate or the tourist attractiveness of the city.