The article highlights the problems of the structural and technological backwardness of the Donbas economy because of the large-scale military conflict, which is especially acute in the east of Ukraine. Proposals for the creation of a modern system of local self-government in the Donbas, taking into account territorial features and solutions to these problems by overcoming important contradictions in the regulatory and legislative framewok; stabilization of sources of revenue generation of local budgets al and development of an effective mechanism for interregional redistribution of state revenues; improvement of intergovernmental fiscal relations, which are due to their inconsistency with rapid changes in the east of the country.
Smyrnova et al. (2018) studied this question.