Eastern Ukraine needs $20 B for economic development – expert

"We see the mining and metalworking industry in Donetsk region. This is about 2,000 enterprises, about 300 deposits being developed in Donetsk region. This is the access to natural resources, production facilities, and logistics corridors that can attract domestic and foreign investors," UkraineInvest Executive Director Serhiy Tsivkach said on the air of Dom TV channel.

Donetsk and Luhansk regions are traditionally an industrial region of Ukraine, he stressed.

According to him, a working group on economic development and investment attractiveness of Donetsk and Luhansk regions has already been established.

"We held our first meeting and now develop mechanisms to attract investment, stabilize the economy in the region. As estimated by the program developed by the ministry and experts, the region needs about $20 billion to develop its economy. We understand that there are certain social and economic issues, the zone has been affected by the conflict. And that is why the concept and special economic incentives for the region are being drafted now," the expert said.

According to him, one of the effective tools is the State Private Investment Fund, the concept of which is currently being worked on by UkraineInvest. It will provide an opportunity to unite the efforts of international financial organizations in one structure.

"We are currently developing a concept. It is difficult for me to say what the final version will look like. We are now actively looking for certain investment projects. Since we first need to understand where we can invest, which projects are available, in order to adjust the instrument. In this way we will provide a more targeted approach, an effective approach towards the development of the region and entrepreneurship in it," Tsivkach explained.

ol