Cabinet of Ministers approves strategy for economic development of Donetsk, Luhansk regions

Cabinet of Ministers approves strategy for economic development of Donetsk, Luhansk regions

Ukrinform
The Cabinet of Ministers has adopted a draft order approving the strategy for the economic development of Donetsk and Luhansk regions until 2030.

This decision was made at a government meeting on Wednesday, August 18, according to an Ukrinform correspondent.

"We are proposing a rather ambitious transformation strategy, which lays down a qualitatively new approach to the development of war-affected territories. Initially, the issue concerns the development of government-controlled territories, but after de-occupation, the strategy can be scaled to the temporarily occupied territories," said Ukraine's Deputy Prime Minister, Minister for Reintegration of Temporarily Occupied Territories Oleksii Reznikov.

The document provides for the implementation of a number of tasks and measures in key areas. In particular, they include the improvement of institutional and financial instruments and regulatory policy, the development of the real sector of the economy, industrialization and innovation, the development of critical infrastructure and logistics, as well as the formation of a regional labour market and communication.

The first area envisages the creation of three types of models of priority development territories, the introduction of new investment protection instruments, the creation of a system of insurance against military and political risks, securing the invariability of conditions for taxation of economic activity of investors, eliminating the excessive regulation of economic activity, and initiating the formation of a consortium financing fund.

The second area includes measures to support the production of high value-added products and the formation of technological chains of processing industries, stimulating the development of new high-tech industries. The issue concerns assistance in attracting investments through the reduction of a share of state and municipal ownership, the development of the agricultural sector, first of all, for the formation of a segment of animal husbandry, irrigated agriculture.

The area of building critical infrastructure and logistics envisages the creation of transport and logistics clusters and basic logistics centres, the modernization of the railway and its infrastructure, the introduction of innovative technologies and information systems, and the restoration of energy and gas infrastructure.

The formation of the regional labour market will be ensured through the implementation of retraining and advanced training programs in accordance with the needs of the labour market, support for relocated higher education institutions, as well as educational and informational activities for small and medium enterprises.

No less important area amid Russia's hybrid war against Ukraine is the establishment of communication. In this area, it is planned to take measures to promote the attractive investment image of Donetsk and Luhansk regions, attract the potential of economic diplomacy to promote goods and services of Donetsk and Luhansk regions in international markets, and expand mechanisms to attract socially responsible business. In the draft order, each measure provides for the implementation of a number of specific tasks, as well as indicators that will assess effectiveness.

The purpose of the document is to properly implement special tools and mechanisms for the economic development of the region in key areas identified in the concept for the economic development of Donetsk and Luhansk regions, which was approved by the government on December 23, 2020.

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