Free economic zones as an instrument of state governance in ensuring energy security: comparative analysis of international practice and implications for Ukraine

Authors

  • Liudmуla Akimova Cyprus University of Technology image/svg+xml , Cyprus University of Technology, Limassol, Cyprus
  • Oleksandr Akimov Interregional Academy of Personnel Management image/svg+xml , Interregional Academy of Personnel Management, Kyiv, Ukraine

DOI:

https://doi.org/10.68081/shvk0650

Keywords:

free economic zones; energy security; renewable energy; post-war reconstruction; institutional design; technology sovereignty

Abstract

The growing vulnerability of national energy systems to geopolitical instability, climate change, and volatile energy markets prompted states to seek non-conventional governance instruments to reinforce energy security. Simultaneously, free economic zones (FEZs) are undergoing a paradigm shift – from trade-logistical enclaves to sophisticated tools of structural industrial and infrastructure policy.

This article aims to identify and systematise mechanisms through which FEZs can purposefully shape national energy security architecture and to develop conceptual approaches to adapting the most effective international models to Ukrainian conditions, particularly in the context of post-war reconstruction.

The study employs comparative public administration analysis, institutional design theory, systems analysis, and case study methodology. Three distinct governance models – the Asian dirigiste model (China, South Korea, UAE), African context case, the North American market-oriented model (USA, Canada), and the European regulated transformation model (Poland, Estonia, Netherlands) – are examined through structured cross-case comparison.

The analysis reveals a key typological feature of effective FEZ solutions in the energy security domain: the principle of "dual asymmetry" – combining asymmetric regulatory conditions (preferential regimes for investment attraction) with asymmetric obligations for residents regarding localisation and technology transfer. A conceptual model of "Energy Special Recovery Zone" (ESRZ) for Ukraine is proposed, incorporating a three-tier governance structure, differentiated incentive packages, and an "energy obligation" mechanism.

Post-war Ukraine possesses a unique "window of opportunity" to create next-generation FEZs simultaneously oriented toward foreign investment attraction, technology transfer, and energy autonomy reinforcement. The ESRZ model bridges EU accession commitments with urgent national energy resilience imperatives.

Author Biographies

  • Liudmуla Akimova, Cyprus University of Technology, Cyprus University of Technology, Limassol, Cyprus

    Akimova Liudmуla Mykolaivna – Doctor of Public Administration, a PhD in Economics, a professor, an Honored Worker of Education of Ukraine, and a professor at the Cyprus University of Technology. Lyudmila Akimova has authored over 400 scientific publications (including Scopus and Web of Science) and 10 patents in the fields of financial services market research, government regulation of the financial services market, financial markets, economic security, public policy on qualifications, public administration, and civil service. According to rankings by Stanford University and the analytical company Elsevier, Lyudmila Akimova was included in the prestigious list of the top 2% of highly cited scientists worldwide for 2025. This ranking is based on a detailed analysis of scientometric indicators from the Scopus database and evaluates the real impact of research on the global scientific community. She is a member of the editorial boards of national and international collections and journals. ORCID: https://orcid.org/0000-0002-2747-2775. Email: l_akimova@ukr.net.

  • Oleksandr Akimov, Interregional Academy of Personnel Management, Interregional Academy of Personnel Management, Kyiv, Ukraine

    Akimov Oleksandr Oleksiyovych – Doctor of Public Administration, Professor, Honored Economist of Ukraine, Professor of the Department of Public Administration at the Interregional Academy of Personnel Management. His research interests include public administration, economic security, European integration, innovative technologies, competency development, national security, sustainable development, and artificial intelligence. Oleksandr Akimov has authored over 350 scientific publications (including Scopus and Web of Science). According to rankings by Stanford University and the analytical company Elsevier, Aleksandr Akimov was included in the prestigious list of the top 2% of the world's most cited scientists by the end of 2025. This ranking is based on a detailed analysis of scientometric indicators from the Scopus database and evaluates the real impact of research on the global scientific community. ORCID: https://orcid.org/0000-0002-9557-2276. E-mail: 1970aaa@ukr.net.

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Published

2026-08-21

Issue

Vol. 1 No. 1 (2026): JGEIA

Section

Original Research Articles

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Copyright (c) 2026 Liudmуla Akimova, Oleksandr Akimov

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This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite

Akimova, L., & Akimov, O. (2026). Free economic zones as an instrument of state governance in ensuring energy security: comparative analysis of international practice and implications for Ukraine. Journal of Governance, Economics, and International Affairs, 1(1), 54-85. https://doi.org/10.68081/shvk0650