MinRegion: the issue of free economic zones will be considered after the war

MinRegion explained when special economic zones can be created. Photo: Soborna Square, Vladyslav Kazmin

The Ministry of Communities and Territories Development has stated that Ukraine currently has no effective legal framework for creating free or special economic zones in frontline cities. The previous regulations have expired, so the introduction of such mechanisms is possible only after the martial law is lifted.

This is stated in the article NikVesti «Special economic zone for Mykolaiv: a chance to stop the outflow of business or a risk for the budget».

Deputy Minister Oleksii Riabikin, in response to a request from NikVesti, stressed that support for the frontline regions is currently provided through state programmes for economic recovery and development.

«The issue of the feasibility of creating special economic zones will be determined after martial law is lifted,» said Deputy Minister Oleksii Riabikin.

According to the ministry, the state regional policy until 2027 will be based on a comprehensive territorially-oriented approach. It envisages creating conditions for the operation of enterprises, taking into account their potential and specialisation.

The Ministry of Regional Development said that the feasibility of special economic zones will be determined after martial law, screen shot of the response to the request of NikVesti

MinRegion said that the feasibility of special economic zones will be determined after martial law, screen shot of response to request NikVesti

In addition, as part of the preparation of the Cabinet of Ministers' Action Programme for 2025-2026, it is planned to develop special mechanisms to support business in the frontline regions. A draft resolution on the classification of functional types of territories has also been prepared and amendments to the State Strategy for Regional Development have been made to distinguish frontline macro-regions.

The idea of creating a free economic zone for Mykolaiv has been discussed for over two years. Mayor Oleksandr Sienkevych believes that only special conditions for business can stop the «domino effect» — the outflow of businesses, staff and tax revenues to safer regions.

According to him, if the conditions for investors remain the same across the country, there will be no point for businesses to operate in a high-risk frontline city.

The Association of Ukrainian Cities emphasises that frontline communities need tax incentives not only at the local but also at the national level. At the same time, the name «zone» is not the key — clear and long-term rules that would guarantee transparent working conditions for businesses are important.