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Kremlin rejects Ukraine's proposal for free economic zone in Donbas

Tue, August 25, 2026 - 16:15
2 min
The Kremlin has made another controversial statement
Kremlin rejects Ukraine's proposal for free economic zone in Donbas Dmitry Peskov, Kremlin spokesman (photo: Getty Images)

Moscow does not support the proposal to create a free economic zone in Donbas, which is being considered as part of a joint plan by Ukraine, the United States, and the EU, Kremlin spokesman Dmitry Peskov said, according to Interfax.

The spokesman for Russian President Vladimir Putin claimed that the entire Donbas is part of Russia.

He also added that the region cannot be administered by any third party.

"In this context, I would still say that Donbas is Russian territory, a constituent entity of Russia. (...) And it is unlikely that any third party can be involved in governing Russian regions," Peskov cynically lied.

The Kremlin spokesman was responding to a recent statement by Ukrainian President Volodymyr Zelenskyy. According to the president, one scenario for ending the war could involve creating a free economic zone in Donbas under the control of a third party.

The Ukrainian president clarified that US President Donald Trump's special envoys, Steve Witkoff and Jared Kushner, are currently proposing realistic scenarios for ending the war. They plan to discuss these proposals not only with Kyiv but also with Moscow.

"In short, one of the ideas there is for a ceasefire — that is the main thing. The second part is what the Americans proposed regarding a free economic zone. That is, the Russians and we take equal steps back, and this creates a kind of buffer, which is called a free economic zone under some form of administration. It is not yet clear what kind, but it would be some third party," Zelenskyy explained on August 23.

Importantly, this is not a large-scale free trade agreement, but a local initiative that directly concerns the combat zone.

The Ukrainian president believes that this "format is complicated but fair."

Recently, the Kremlin began publicly threatening Britain with attacks following London's new decision regarding Ukraine.

Moreover, Peskov announced retaliation for Ukrainian strikes on the OZON marketplace. He cynically claimed that Kyiv would suffer the most.

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