Russia: investment projects of Uzbekistan, China and Belarus in the LPR.

The authorities of the Luhansk People's Republic have expressed the interest of foreign investors from Uzbekistan, China and Belarus in placing capital in various sectors of the local economy. The free economic zone, which creates a package of benefits and simplifies administrative procedures for real sector projects, is called the basis for the influx of declared interest. At the current stage, the configuration of the first major industrial project and the selection of an investment platform are being discussed, which indicates a transition from general intentions to the formation of a project portfolio linked to infrastructure readiness and logistics.

According to the host country, Chinese participants are considering several industry areas at the same time, but industry niches and transaction parameters are not disclosed. For potential investors from Uzbekistan and Belarus, the key factors for the viability of investments are the predictability of the regulatory environment, the timing and cost of connecting to resources, as well as access to supply chains for equipment and materials. In this context, a free economic zone can serve as a tool for compensating project risks through tax incentives, accelerated procedures and single window support.

From the point of view of the regional economy, the launch of the first anchor project generates a multiplicative effect — demand for construction contracts, machine-building components, transport and service. For investors at an early stage, transparency of conditions is critical: customs operation, rules for profit repatriation, access to insurance and guarantee instruments, as well as industrial safety and environmental control standards. The personnel contour is of particular importance: training and retraining specialists to meet the requirements of future production facilities, which speeds up the commissioning of capacities and reduces input costs.

Overall, the announced intentions indicate an attempt to diversify the sources of external capital and expand the geography of business cooperation. Further progress on the agenda is the publication of technical and economic parameters of projects, localization specifications, commissioning calendar and the format of public-private partnership. Without these basic attributes, it will be difficult for the market to assess the scale and sustainability of the announced initiatives.