Determining risks and threads in the conditions of factual loss of part of territory and economic potential of old industrial regions

Olena Yu. Snigova


The article argues that escalation of the conflict at Donbas region has the primordial influence on the situation in Ukrainian economy. The statistical analysis of economic situation in Donetsk and Lugansk regions has been conducted. The financial and economic consequences of control loss over parts of Donetsk and Lugansk regions have been studied. It has been determined that Ukraine is subject to credit risks, despite restructuring and plans of reforms. It has been revealed that the most negative influence on the economy of Ukraine goes from the instability and uncertainty of situation at the East of Ukraine, loss of a prevalent part of industrial and natural potential of old industrial regions, investment attractiveness reduction and loss of confidence for banking sector. It has been argued that natural potential losses roughly deteriorate the energy security of a country based on coal share enlargement in energy balance and shell gas role increase in the fight for gas independence and natural gas price reduction. It has been determined that the loss of a part of industrial and natural potential, based at the territory uncontrolled by Ukraine, has been added by the increased risks for industrial enterprises‟ functioning practically at all territory of those and frontier regions due to diversions and terrorist acts threats. The factors deteriorating investment attractiveness of Donetsk and Lugansk regions have been found out. The possible losses of banking sector have been estimated connected with cancelling of clients‟ service at the territory, uncontrolled by Ukrainian authority. The influence of banking sector crisis on business activity shortening in Ukraine, and, in particular, on the industrial enterprises, forming basic branches of old-industrial regions, has been revealed. Risks and threats for Ukraine caused by the conflict at the East of Ukraine, have been determined. Recommendations as to stabilize macroeconomic processes and ease consequences for Ukraine have been given.


national economy; old industrial regions; loss of territory and economic potential; risks and threats; mitigating / overcoming risks and threats

Full Text:



Zaloznova, Yu. S. (2014). Socio-economic development of Ukraine in the context of global and national challenges. Kyiv, Institute of Industrial Economics of NAS of Ukraine [in Ukrainian].

Zakharchenko, A. & Bukreeva, E. (2015). 30 key enterprises of Donbass, which we lose. Infographics. Retrieved from [in Russian].

Ilyin, A. (2015). Steel stop: the condition of the steel plant in the zone of the antiterrorist operation. Retrieved from [in Russian].

European Business Association (2015). Investment Attractiveness Index in the first quarter of 2015. Retrieved from [in Ukrainian].

Yermolaev, A., Markeyeva, O., Polyakov, L. & Denysenko, S. (2015). Future areas of conflict in the Donbass after Minsk-2 agreements: space options. Kyiv, NISS «Nova Ukraina» [in Ukrainian].

Zakharchenko, A. (2015). Feed the Donbass. How to rebuild a region if the world does come. Retrieved from [in Russian].

The State Emergency Service of Ukraine (2015). Official report of the Interdepartmental coordination headquarters on social security of citizens of Ukraine who move from areas of the antiterrorist operation and temporarily occupied territory. Retrieved from [in Ukrainian].

Message Main Statistical office in Lugansk region (2014). Retrieved from [in Ukrainian].

DN (2014). Project Donbass: how to attract investment. Retrieved from [in Russian].

Rating of the privatization of Ukraine in 2014 (2014). Retrieved from 93-2014 [in Ukrainian].

Sidenko, V. (2014). War is always high political risks, financial overstrain of the economy, loss of part of production. Retrieved from [in Russian].

Main Statistical office in Lugansk region (2015). Socio-economic situation of the Donetsk region in January-February 2015. Retrieved from [in Ukrainian].

Verkhovna Rada of Ukraine (2015). National Security Strategy of Ukraine. Retrieved from [in Ukrainian].

Tigai, K. (2014). Map: industry in the area ATO. Retrieved from [in Ukrainian].

Lyashenko, V. I. & Kotov, Ye. V. (2015). Ukraine XXI: neoindustrial state or “crash project”? Kyiv, Institute of Industrial Economics of NAS of Ukraine, Poltava University of Economics and Trade [in Ukrainian].

Kharko, O. (2014). The financial “blockade” Donbass strikes across Ukraine. Retrieved from [in Ukrainian].

Information Analysis Center (2014). Price war: economic and social consequences of the conflict in Donbas. Retrieved from [in Ukrainian].



  • There are currently no refbacks.