The Cabinet approves a concept for Donbas' development / Photo from UNIAN
It will lay the groundwork for a future strategy for the development of Donetsk and Luhansk regions.
Ukraine's Cabinet of Ministers has approved the concept of economic development in Donetsk and Luhansk regions.
This is reported on the government's portal.
Read alsoSBU exposes illegal coal supplies from occupied Donbas, including to EU
As Deputy Prime Minister and Minister for Reintegration of Temporarily Occupied Territories Oleksiy Reznikov says the document is designed to address social and economic issues in the government-controlled territory of Donetsk and Luhansk regions.
"This concept will form the basis for a strategy for economic development of Donetsk and Luhansk regions. So, at first it is about the territory controlled by the government. Now we have room for experiment and creation of grounds for the international community to start considering the future strategy for economic development for this region first and other regions of Ukraine then as a component of their own economic policy," Reznikov said.
According to him, before 2014, Donetsk and Luhansk regions were extremely strong industrial and agricultural parts of Ukraine, but they were destroyed by Russia's armed aggression.
"Let me reiterate – the economic losses are huge. Experts estimate that the minimum economic recovery of Donetsk and Luhansk regions will require about US$20 billion. These figures are approximate, but the only thing that is clear right now is that they are exorbitant and to solve these problems at the expense of the national budget, donors or new loans are impossible. Only investors are capable of this," Reznikov said.
He explained that an approach to the concept of the future strategy is based on creating opportunities and incentives for investment through: identifying territories and clusters of priority development; introducing tax incentives by channeling part of enterprises' profits into reinvestment in their own development; using international commercial arbitration standards; insuring against military and political risks; as well as developing infrastructure.
It is noted that the concept was supported taking into account the completion within one day of technical and legal amendments together with the Finance and Economy Ministries.
"I will share some details. NJSC Naftogaz of Ukraine is about to launch a project to develop the Yuzivska gas field. The site is located in Donetsk region mainly. This is a large investment project that fits perfectly into the key principles of our concept. After all, these are Ukrainian investments and additional taxes, and jobs, community development, and, in the long term, international investment," he added.
In pursuance of the government's decision on the adoption of the concept, the Ministry of Reintegration plans to develop a strategy for the economic development in Donetsk and Luhansk regions based on 42 international cases and submit it for approval to the Cabinet of Ministers by April 2021.