Frontline regions should be granted economic preferences – Mayor of Mykolaiv

Mykolaiv Mayor Oleksandr Sienkevych stated this in an interview to Ukrinform.

"Mykolaiv's economy has been severely damaged during the war; all major enterprises and ports have halted operations, leaving only small businesses active. We need additional financial tools to become more attractive compared to regions in Central and Western Ukraine," Sienkevych explained.

Businesses in Mykolaiv, located close to the frontline, face significantly higher risks compared to cities like Lviv, Vinnytsia, or Uzhhorod. "Businesses won’t take those risks if they can achieve the same profits in safer areas," he noted.

Sienkevych emphasized the need for financial incentives to offset these risks: "Even if the war ends tomorrow, the situation won’t change quickly. That’s why we need preferences to ensure businesses are rewarded for their risks. Mykolaiv is ready to pilot a free economic zone. If successful, it could be expanded to other territories."

The Mayor suggested measures such as special tax breaks, reduced business taxes, and deferred payments to attract foreign investors. These financial incentives could make the most at-risk regions economically viable.

"We are collaborating with our international partners on this idea to have it originate from them, as the central government remains somewhat skeptical. We are already working on detailed figures with Danish partners, who will study and propose them at the national level," Sienkevych stated.

Sienkevych pointed out that providing special economic preferences for underdeveloped regions is a common global practice to encourage investments.

As reported earlier, Mykolaiv is developing an "energy island" project to ensure a stable electricity supply during prolonged outages.