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Uncontrolled territory of Donbas has no prospects of economic development - experts say

Uncontrolled territory of Donbas has no prospects of economic development - experts say

For last 2 years the industry and economy levels continue to fall in parts of Donetsk and Luhansk regions uncontrolled by Ukraine. And the reason is not only in the war, breaking relations and outflow of personnel. Almost the greatest damage is caused by political decisions of separatists.

Statistics is now kept separately for the territory in Donetsk and Luhansk regions controlled by Ukraine, and separately for the uncontrolled territory. In general, today there is a downfall of industrial production in the amount of 25-30%. This was told in the radio program "Donbas. Realities" by the Doctor of Economics, professor, head of department in the Economy and Industry Institute, the National Academy of Sciences of Ukraine Vyacheslav Lyashenko.
 
Economic and human contacts are saved
 
"Always a war, separation, rupture of economic ties lead to a rapid fall. On the other hand, we can note that contacts, both economic and human, between controlled and uncontrolled territories are saved. The economy can not live in a closed space, it still grows like a grass through asphalt. Anyway, cash goes through the demarcation line. The only thing that the economic effect obtained is only negative",- says Lyashenko.

According to him, companies that are registered on both sides of the demarcation line can maintain their operations and keep jobs for people who live there. This also applies to small and medium-sized businesses.

"When taxes are paid in two budgets, the economy reveals all the artificiality and unnaturalness of the situation that now exists in the region. Donbas is historically a region where industrial ties exist, especially in the sectors of traditional specialization. Therefore, the processes that we have seen take place with such a huge damage to people and the economy ", - the scientist comments.

According to the deputy chairman of the "Eastern Partnership" Association Sergey Davydov, a huge part of small and medium-sized businesses left the uncontrolled part of Donbas.
 
I talked with the guys. There is no optimism absolutely

"Of course, a certain part of them remained in the uncontrolled part of Donbas. They continue to integrate into the life that is there. Why they do not have left out? Everyone has his or her own problems. Someone has a family there, someone has elderly parents. There are many problems. And so they are given their pro-active attitude and ability to build relationships, build them in a certain way. Recently I visited this territory. I talked with the guys. There is no optimism at all. I asked how much the sales volume decreased. They say it is much less then previously. We survive as could", - Davydov describes the situation.

According to him, closeness of the territory uncontrolled by Ukraine, a banal lack of money and, as a consequence, the lack of prospects deprive the territory of any possibility of economic development.

New service "Explain Ukraine". This is a daily mailout of five articles which were written about the situation in the Donbas by Donbas journalists and translated into English. Honest vision of people who work in the field is unbiased and fresh which is crucial in the world which is full of desinformation and propaganda. We try to share this vision in out daily mailout.  You can subscribe here.
 

For material : "Новости Донбасса "

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