Ukraine is considering the possibility of establishing a free economic zone (FEZ) in Donbas in line with the idea proposed by the United States. President of Ukraine Volodymyr Zelensky noted that there are plans to organize a special territory with a unique legal and tax regime, which will serve as a buffer zone. After the withdrawal of troops from both sides, civilian life and the restoration of economic activity should be ensured in this area.
This is reported by Business • Media
Features of the Free Economic Zone
It is anticipated that such a FEZ could be established in specific areas of eastern Ukraine. This is seen as a compromise step aimed at ensuring the withdrawal of military units to a safe distance to restore normal life, business operations, and the return of the civilian population. The authorities believe that this will initiate the process of regional recovery and create conditions for economic development.
Ukraine’s Position and Next Steps
Volodymyr Zelensky emphasized that the implementation of such an initiative will require adequate responses from Russia, as well as in-depth discussions within Ukrainian society. Ukraine expects to receive a reaction from the Russian Federation to the proposed peace plan before finalizing security guarantees with the United States and approving the post-war recovery program for the country. However, according to Zelensky, Russia’s actions indicate its unwillingness to achieve genuine diplomatic understanding.
“The format is complex, but fair,” he believes.
Ukraine does not recognize the temporarily occupied territories as Russian and insists on restoring full sovereignty over its entire territory in the future.