Ukraine Considers Establishing a Free Economic Zone in Donbas

Ukrainian President Volodymyr Zelensky announced the exploration of an initiative to establish a free economic zone (FEZ) in Donbas, which involves the implementation of a special legal and tax regime. According to the plan, after the withdrawal of troops from both sides, civilian life and economic activity will be restored in the FEZ area.

This is reported by AgroReview

Purpose of Establishing a Free Economic Zone

A free economic zone may be organized in certain areas of eastern Ukraine. This approach is viewed as a compromise that will ensure the safety of residents and facilitate the return of civilians and the revival of business activity. A key condition is the withdrawal of military formations from both sides to a safe distance.

“The format is complex, but fair,” he believes.

Discussion of the Plan and Russia’s Reaction

Zelensky emphasized that the implementation of such an initiative will require “mirror” steps in response from Russia, as well as comprehensive discussion within Ukrainian society. The President noted that Ukraine is awaiting an official response from the Russian Federation regarding the proposed peace plan before finally agreeing with the United States on security guarantees and state recovery programs.

At the same time, according to the head of state, Russia’s actions indicate a reluctance to engage in genuine diplomatic dialogue. The Ukrainian side continues to maintain its position of non-recognition of temporarily occupied territories as Russian and strives for the full restoration of sovereignty over the entire national territory.