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Discussion on the Idea of a Free Economic and Demilitarized Zone in Donbas: Economist’s Perspective


Valerii Klochok and Oleh Pendzin discussed the prospects of creating a free economic and demilitarized zone in Donbas amid peace talks.

On December 15, the Center for Public Analytics "Vezha" hosted a discussion about the feasibility of establishing a free economic and demilitarized zone in Donbas. Valerii Klochok spoke with economist Oleh Pendzin about the economic, political, and social challenges of such an initiative in the context of ongoing peace negotiations in Berlin.

According to the expert, the prospects for establishing such a zone appear unlikely due to several factors. Public opinion is a major concern—surveys show that 75% of Ukrainians oppose troop withdrawal and the introduction of a demilitarized zone. Technical, financial, and humanitarian hurdles were also discussed: much of Donbas has been devastated by war and would require immense investment for demining, infrastructure restoration, and repopulation.

Another significant obstacle is ensuring legality and law enforcement in the area, along with issues of funding and establishing the legal framework for business. The economist stressed that creating a demilitarized zone could turn the region into a "gray zone" with high risks of lawlessness and crime.

The discussion also noted that Europe’s role in the peace process has increased, with European unity on the Ukrainian issue becoming stronger. One positive development is the proposal to use frozen Russian assets for Ukraine’s benefit.

The experts concluded that, under current conditions, the introduction of a free economic and demilitarized zone is unrealistic and cannot ensure the region's recovery without substantive changes in the political, economic, and security situation.