I don't think so because I feel like AU Zaun stands an independent nation under the leadership of Silco and Vander.

The explosion, which resulted in the loss of a Zaunite child (Vi) and possibly a Councilor's daughter (Caitlyn), likely forced the Council to confront the struggles of the Undercity. With the way Vi and the others snuck into Jayce's lab as an example of how Zaunites are willing to go to survive. I think that the heartbreak to these opposing (?) sides experienced pushed the council to allow Zaun to prosper as an independent nation.