Pavlo Gorbenko together with a group of students under the auspices of the ARMU (Association of Revolutionary Art of Ukraine) begins experiments on the creation of a puppet theater, which was to continue the Mezhyhirya traditions, combine different forms - vertep, glove`s and shadow's theater and become a research experimental center. The theater was established in 1930 as a result of the reorganization of the puppet theater at the Kharkiv Theater of Young spectaculars. Ivan Shakhivets, an actor and a director became the director. He improves directing, puppetry technique, experiments with drama, creates the foundations of the Kharkiv puppet school. In 1931 the theater was renamed the All-Ukrainian Demonstration Puppet Theater. Nepmans were a private entrepreneurs, traders of the NEP period (New Economic Policy 1921 - 1931) in the USSR. They were recognized as non-labor elements and subjected to repression.