THE MINISTRY FOR REINTEGRATION PLANS TO FINALISE DONBAS ECONOMIC DEVELOPMENT CONCEPT IN AUTUMN
Oleksii Reznikov, Deputy Prime Minister of Ukraine, Minister for Reintegration of Temporary Occupied Territories of Ukraine stated the following today at a meeting with representatives of Ukrainian business associations.
In fact, the Deputy Prime Minister and representatives of business associations discussed the basic ideas of the Concept of Development of Donetsk and Luhansk oblasts, which will be the basis of the corresponding Strategy of Economic Development of Donbas with a step-by-step substantiated Action Plan.
Reznikov said that the Ministry for Reintegration is currently working on the concept of development of the eastern regions of the country, which focuses on the Government-controlled areas of Donetsk and Luhansk oblasts of Ukraine.
The Concept aims to develop key areas and principles that will form the basis of a new economic strategy, which, in turn, is aimed at transformation of the investment climate and the implementation of a new economic model at the regional level.
“We have to focus on establishment of a new economy. The renewed Donbas may become the center of new approaches in industrial relations. There is every reason to believe that it is possible to attract large investments into eastern Ukraine. After all, investors work in hot spots all over the world,” noted Reznikov.
Oleksii Reznikov noted that Western investments, together with local ones, can play a crucial role in the transformation of Donbas into an engine of economic development.
“The most important issue for investors is a sustainable judicial system of investor protection, rule of law, risk insurance system. Risk capital can and is ready to come if it is known that the legal field works, that there is a system they trust. And our goal is to establish this special investment climate in the Government-controlled area of Donbas. We consider the extension of international commercial arbitration rules to the region as an integral part of these plans. In addition, the state must assume at least part of the political and military risks that are difficult for investors to foresee. To make this approach sustainable, a permanent and effective governance system must be established, including all necessary institutions such as a trust fund and an investment agency. We understand that the vital thing is to establish conditions and attract, first of all, our Ukrainian investors, which will also attract international ones,” Reznikov said.
Representatives of business associations, in turn, also noted the need to develop not only the economic field, but also the infrastructure vital for residents - social, cultural, humanitarian.
Representatives of economic and business communities supported the Government's initiative to develop a concept of economic development of Donetsk and Luhansk oblasts and will develop and submit to the Ministry their proposals, which they consider appropriate in the future development of the Strategy. Among them, in particular, proposals for the development of infrastructure, electricity supply and economic activity of micro, small and medium businesses.
Let us recall, that in July 2020, an agreement was signed on provision of a soft loan worth EUR 64 million by the Government of France to provide clean drinking water to residents of Mariupol.
Furthermore, an agreement was signed on provision of EUR 25 million by the Government of Germany for the project to provide housing for internally displaced persons.
By the end of the year, Ukraine is also expected to receive a USD 100 million loan from the International Bank for Reconstruction and Development (IBRD) on the implementation of the Project “Eastern Ukraine: Reconnect, Recover, Revitalize (3R)”
The project envisages the repair of transport connectivity of about 183 km of highways in Luhansk oblast, which are the key transport corridors in the region, and enhance agricultural efficiency through the implementation of certain agricultural sub-projects aimed at addressing the consequences of the armed aggression of the Russian Federation against Ukraine.