On December 29, Valerii Kluchuk, head of the Vyazha Center for Public Energy, and economist Oleh Penzyin discussed the proposal to create a free economic zone in Donbas. The initiative emerged in the context of international negotiations, especially after President Volodymyr Zelensky’s meeting with Donald Trump. Zelensky emphasized that control over the free economic zone and a possible demilitarized Donbas is still under discussion.
Oleh Penzyin stressed that ending the fighting—an outcome that depends entirely on Russia—is essential for realizing any economic plans. He noted that proposals for the zone and large-scale investments in rebuilding Ukraine are currently of a political rather than practical nature. Figures as high as $800 billion in potential investments were mentioned, but such numbers are called into question due to verification and loss assessment challenges.
The conversation also addressed legal issues around the jurisdiction for managing a free economic zone and highlighted how infrastructure damage from the war complicates potential recovery. Special attention was given to the Zaporizhzhia Nuclear Power Plant, whose normal operation is impossible without the restoration of hydro-technical facilities.
The experts reviewed the role of the United States, European Union, and Japan in providing Ukraine with financial and military assistance, including loans for the coming years and support for security. However, they noted that the behavior of Russia and Russia’s own economic situation will determine the course of the war and any prospects for international rebuilding initiatives in Ukraine.
Penzyin concluded that achieving peace and economic stability depends on a genuine ceasefire, and that, for now, political declarations, while important, remain largely ceremonial.
