The issue of legal regulation and support for territories located in immediate proximity to the contact line became central at the forum "Rebuilding Ukraine: European Integration and Institutional Reforms". Head of the Verkhovna Rada Committee on State Power Organization and Local Self-Government, Elena Shulyak, stated that parliament expects the Cabinet of Ministers to immediately create an interdepartmental working group to draft the relevant laws.

The initiative to form such a group was voiced back in mid-June at a meeting chaired by the Head of the President's Office, Kyrylo Budanov. However, according to the deputy, the Prime Minister has not yet fulfilled this instruction.

"Ukrainian Security Belt"

According to Shulyak, today 10 oblasts are considered frontline areas, comprising 240 communities. The deputy emphasized that these territories effectively form a "Ukrainian security belt," but the current legislation still lacks clear definitions of the concepts of "frontline territories" and "reconstruction".

"Our legislation has not yet defined what reconstruction is, what frontline territories are, or what preferences they should have," Shulyak noted.

The goal of the future group's work will be to develop a separate legal regime for these communities. It is assumed that the new status may include specific mechanisms of state support, economic incentives for business, specifics of urban renewal, and additional security guarantees for the population.

Three Key Directions from Business

The parliamentary committee on local self-government issues has already begun collecting proposals from entrepreneurs regarding what future legislation should look like. According to Shulyak, business sees the development of frontline territories through three main aspects:

  • Security: creating conditions that minimize risks to life and property.
  • Social issues: supporting the population working and living in the risk zone.
  • Economic and investment block: in particular, the issue of preferential taxation to attract investment.

Earlier, in May, the government announced the preparation of a comprehensive support package for frontline territories. It was supposed to include tax and credit incentives, compensation for affected businesses, increased grants for entrepreneurs, and additional incentives for investors. Later, the Minister of Communities and Territories Development, Olha Sviridenko, confirmed that together with Kyrylo Budanov, the possibility of expanding financial support for such communities and preparing new solutions for their development was discussed.