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US Proposes Special Economic Zone in Ukraine's War-Torn Zaporizhzhia

President Zelensky reveals US plans for economic reconstruction zone in frontline Zaporizhzhia region, while nuclear plant control remains disputed in peace negotiations.

December 13, 2025
1 month ago
BBC
US Proposes Special Economic Zone in Ukraine's War-Torn Zaporizhzhia

Ukrainian President Volodymyr Zelensky has disclosed that the United States is proposing the establishment of a 'special economic zone' in the war-ravaged Zaporizhzhia region, highlighting Washington's long-term reconstruction strategy for Ukraine even as the conflict continues to rage.

The revelation comes amid ongoing discussions about potential peace frameworks, with Zelensky emphasizing that critical issues including territorial control and the fate of the Zaporizhzhia Nuclear Power Plant remain unresolved sticking points in any future settlement.

Strategic Economic Reconstruction

The proposed special economic zone represents a significant shift in US policy thinking, moving beyond immediate military aid to consider post-conflict economic rehabilitation. Such zones typically offer favorable business conditions, tax incentives, and streamlined regulations to attract international investment and accelerate economic recovery in devastated regions.

Zaporizhzhia, a key industrial hub in southeastern Ukraine, has been on the frontlines since Russia's invasion began in February 2022. The region's strategic importance stems not only from its economic potential but also its proximity to the Zaporizhzhia Nuclear Power Plant, Europe's largest nuclear facility, which has been under Russian control since early in the conflict.

Nuclear Facility Remains Flashpoint

Zelensky's comments underscore the complex nature of peace negotiations, where economic reconstruction plans must be balanced against unresolved territorial disputes. The Zaporizhzhia plant has become a symbol of the broader struggle, with both sides accusing each other of shelling the facility and creating risks of nuclear catastrophe.

International Atomic Energy Agency inspectors have maintained a presence at the plant, but questions over long-term control and security arrangements remain contentious. Any special economic zone would need to address the nuclear facility's status and ensure its safe operation under international oversight.

Geopolitical Implications

The US proposal signals a broader Western commitment to Ukraine's post-war reconstruction, potentially serving multiple strategic objectives. Beyond economic recovery, such zones could help integrate Ukraine more deeply into Western economic structures and reduce its historical dependence on Russian markets.

However, the timing of these discussions also raises questions about the current state of peace negotiations. While public diplomatic efforts appear stalled, Zelensky's disclosure suggests behind-the-scenes planning for various conflict resolution scenarios continues among Ukraine's Western allies.

The success of any special economic zone would ultimately depend on achieving sustainable peace and security in the region, making resolution of territorial disputes and nuclear facility control essential preconditions for meaningful economic reconstruction efforts.

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