Economic Zones in Ukraine

by Roman Cheplyk
Thursday, December 9, 2021
Economic Zones in Ukraine

Ukraine will create territories with priority development in Luhansk and Donetsk regions

These financial zones will get more attention to the economic sector, infrastructure development issues, and investment. This should improve the economic situation in regions.

In particular, the settlements of these regions controlled by Ukraine are exempt from property tax, income tax, value-added tax on imported equipment, and royalties for water and forest resources for 10 years.

In general, creating such a zone of financial development in Ukraine should promote the creation of new jobs, the environment for Ukrainian and foreign investment, and the long-term formation of local society. These zones will create a modern production and transport infrastructure market, plus strengthen socio-economic ties.

Ukraine signed three loan agreements worth €640 million on December 9, 2019. Of this amount, €340 million will be spent on reconstructing and improving infrastructure in the Eastern part of Ukraine, i.e., improving schools’ conditions, hospitals, etc.


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