One of the most complex topics in Zelensky's peace plan concerns territorial arrangements. In Donetsk, Luhansk, Zaporizhzhia, and Kherson regions, the current military lines are to become the de facto line of contact. Russia is required to withdraw its troops from Dnipropetrovsk, Mykolaiv, Sumy, and Kharkiv regions for the agreement to take effect.
According to Zelensky, Russia wants Ukraine to leave Donetsk region. The US proposes a compromise—a free economic zone. This solution could only be implemented via a referendum, which requires at least 60 days and a real ceasefire for this period. The referendum would cover the entire document, not just an isolated issue.
Experts are skeptical about the feasibility of such a zone. There are outstanding questions regarding jurisdiction, law enforcement, judicial systems, and economic rationale. It is unclear who would manage the area and under what legal framework.
A free economic zone typically enables industrial and service activity with tax incentives to stimulate regional recovery. However, in many areas—such as Pokrovsk or Chasiv Yar—there is little or no population, meaning restoration would require substantial investment. There are also concerns that this could serve as a legal basis for transferring these territories to Russia.
Russia's economic situation remains difficult due to war expenses and low oil prices. Lifting sanctions from the oil sector could provide resources, but this is a controversial issue for Ukraine and its partners. Peace negotiations thus remain complex and involve major international stakeholders.
