The Project UA2002 “Donbas Economic Transformation Strategy Support” aims to address the absence of a clear, complex, and result-oriented strategy and respective roadmap for the Donbas region’s economic recovery. Without such a strategy, the Government of Ukraine has been unable to make progress on the country’s sustainable economic development and effective reintegration of the temporarily occupied territories. Years of persistent economic and social deterioration in the Donbas region (Donetsk and Luhansk oblasts) has been a significant drain on national resources and created significant risks for the region’s residents, especially vulnerable populations such as IDPs, women, elderly, etc. These challenges cannot be resolved with ad-hoc measures. They require a comprehensive strategic approach.
Since the beginning of the military conflict in the Eastern Ukraine, the Donbas has lost most of its economy (businesses and jobs) and created a serious challenge for the whole country in dealing with restoration of key industrial and other value chains, addressing IDPs and creating a more attractive image for foreign investors.
Therefore, this TA responds to an Ministry’s for Reintegration of the Temporary Occupied Territories of Ukraine (MTOT) request for support in drafting a Donbas Economic Transformation Strategy. It will include diagnostics of the current state of Donbas, defining gaps and challenges that the strategy should address, assessing various policy options, modelling results of policy implementation, defining required legislative and regulatory changes for implementation and preparing a draft strategy document.
The immediate outcome of the project is providing required support to the MTOT in developing the Donbas Economic Transformation Strategy, consisting of relevant, realistic, evidence based and inclusive policies, as well as detailed roadmap for the strategy implementation and outline of necessary legislative and regulatory changes.
The project objectives cut across economic development, peace, and stability – areas prioritised by the British Embassy. Such an intervention will strengthen the MTOT as the policy leader and coordinator in the process of Donbas recovery and help establish it as a driver of stability and inclusive economic growth of the conflict-affected area, providing a foundation for future reintegration of the temporarily occupied territories. The project will contribute to the UK’s standing as the key donor supporting stabilisation and conflict prevention and as a contributor to regional security, particularly in the light of the recently signed UK-Ukraine Strategic Partnership.
This project was funded with UK Aid from the UK Government