Economy 2023-11-15T06:42:09+02:00
Ukrainian news
Cabinet Approves Concept Of Economic Development Of Donbas Until 2030

Cabinet Approves Concept Of Economic Development Of Donbas Until 2030

Donbas, Cabinet, Cabinet of Ministers, Donetsk region, Luhansk region, Oleksii Reznikov, Economic development

The Cabinet of Ministers approved the concept of economic development of Donetsk and Luhansk regions estimated until 2030.

The corresponding order was adopted at a meeting of the Cabinet of Ministers on Wednesday, Ukrainian News Agency reports.

Vice Prime Minister, Minister for the Reintegration of the Temporarily Occupied Territories Oleksii Reznikov, commenting on the document, stressed that it is about the territory of Donbas controlled by the Ukrainian authorities.

He noted that experts estimate the economic losses of Ukraine due to the armed aggression of Russia and the funds needed to restore Donbas at more than USD 20 billion.

According to Reznikov, the concept provides for the creation in Donbas of conditions for attracting international investment, in particular, the identification of clusters and territories of priority development, the introduction of tax incentives in the form of channeling part of the profits of enterprises for reinvestment in their own development, the dissemination of international commercial arbitration standards, insurance of military-political risks.

The Ministry for the Reintegration of the Temporarily Occupied Territories was instructed to submit a draft strategy for the economic development of Donbas and a plan of measures for its implementation in order to implement the approved concept within six months.

The concept also provides for the possibility of developing the temporarily occupied territories of Donbas after their reintegration into Ukraine.

It is planned to form a new structure of the economy of Donetsk and Luhansk regions on the basis of an inclusive competitive economic system, increasing the resource efficiency of industrial sectors and their integration into production networks with high added value, increasing export potential due to an increase in the share of highly processed products manufactured in innovative business incubators at territories of priority development.

It is also envisaged to overcome logistical restrictions on the utilization of production capacities of the basic industries and to ensure a gradual increase in the transit potential of the region.

The concept will be financed at the expense of state and local budgets, as well as funds that will be recovered from Russia for damage caused to Ukraine as a result of armed aggression, in accordance with the principles and norms of international law, as well as funds from international partners, the banking sector and attracted capital.

As Ukrainian News Agency earlier reported, in early December, the Cabinet of Ministers approved the attraction of EUR 100 million from the European Investment Bank (EIB) for the implementation of the project "Eastern Ukraine: Reunification, Recovery and Revival".