ENSURING SUSTAINABLE DEVELOPMENT OF THE DONETSK REGION ON THE BASIS OF THE CIRCULAR ECONOMY

Abstract

The ecological problems of Donbas, aggravated by the crisis, have a negative impact on all spheres of public life. In the area, pollution of soils, surface waters, harmful emissions of industrial enterprises and flooding of mines, deteriorating condition of forest resources, nature reserves and biodiversity occur. The issue of environmental safety in the region is critical and needs immediate response from all stakeholders and the public. The development strategy of the region should be aimed not only at the sustainable operation of enterprises and organizations of Donbas, but also at solving environmental problems by applying the concept of circular economy development. The article considers the experience of SMEs (small and medium enterprises) of the Donetsk region, which are engaged in secondary processing of raw materials and use of old products in the production. As well, attention is paid to the formation and functioning of the industrial clusters. An important effect of the action of almost all existing clusters in the Donbas is the reduction of environmental pressure on the environment due to human activities. The influence of clusters on the formation of a circular economy in the region is considered. The economic activity of the created clusters involves obtaining results from improving the efficiency of natural resources and reducing harmful emissions. Associations of producers of goods and services improve the economic and environmental situation through joint management of natural resources. In this case, production is carried out in a closed system, i.e., waste and by-products in this production chain are raw materials for another production chain. Ensuring sustainable development of the Donetsk region on the strategic principles of the circular economy depends on many factors: increasing the environmental awareness of residents; development of SMEs through the creation of cluster initiatives; creation of favorable conditions for the development of the circular economy by the government. The process of creating universal recommendations and development models for SMEs and their associations, taking into account regional specifics and simultaneous growth of economic and environmental efficiency, is promising in solving the problems of sustainable development of the Donetsk region on the strategic principles of the circular economy.