Ukraine's resources in ruins: Russia's costly occupation
The Russians have seized over 80 percent of Ukraine's coal resources and 25 percent of its oil deposits, although they are unable to utilize most of these. Any mining and production occur only in territories occupied since 2014. The scorched earth tactic has backfired on them.
Military actions, ongoing since 2014, have devastated the Donbas region, one of the richest in natural resources in Europe. The mining towns now resemble European cities in 1945, where only three residential buildings were left standing. The region is now a sea of ruins.
The same situation applies to industrial plants, around 60 percent of which have been destroyed to varying degrees.
The Russians have taken almost all Ukraine's dolomite reserves for metallurgy and carbonate raw materials for soda ash production. They have seized over 80 percent of resources like bismuth, cadmium, and tin.
Most significantly, they have taken control of coal resources, greatly affecting Ukraine. It's no wonder that by September 2022, the government in Kyiv completely banned its exports. By mid-last year, Energy Minister Herman Halushchenko announced that the Russians had seized 80 percent of deposits since the onset of the conflict, leading to a drop in coal production of about 45 percent.
Profitable unprofitability
Due to the scale of destruction, the Russians cannot benefit from these assets. Their primary gain is propaganda, as they can portray Ukraine as a failed state whose industry they have seized.
After 2017, industrial plants were handed over to Russian oligarchs, who did not plan to invest in the reconstruction of these facilities. Consequently, much of the usable machinery was transported to Russia. Early this year, the Russian State Duma approved a development strategy that, contrary to its name, envisages the closure of unprofitable mines in the occupied Luhansk region.
Representatives of the occupational administration stated that "inefficient and unsafe enterprises with challenging mining-geological conditions and a high risk of accidents" are set for shutdown.
Investors who received Ukrainian mines at a reduced price now must notify the authorities of the enterprise's unprofitability. They are to receive compensation for dismantling plants. The regulations also apply to companies acquired after 2022. In this case, none of the factories or mines are usable.
Ruins for sale or as a gift
At the start of 2023, the Russians captured the salt-rich Soledar deposits, leaving Ukraine with only one of the fifteen deposits. However, over the past decade, nearly 90 percent of Ukraine’s needs were met by the Artemivske deposit in Soledar. None of the six salt mines there are operational today, with buildings 30 to 60 percent destroyed.
The next city on the Russian path was Bakhmut, where all industrial buildings and about 90 percent of residential buildings were destroyed. Three large mechanical industry plants and two mines were annihilated.
In Soviet tradition, adopted by the Russian Federation, field commanders wish to give their leaders "birthday presents." For example, in November 1942, the Soviet counteroffensive at Rzhev was meant as a birthday gift for Stalin but turned into Zhukov's greatest defeat.
Eighty years later, capturing Bakhmut was intended as a gift for Putin. Since the city wasn’t captured by the targeted deadline through the maneuver, heavy artillery, including the largest 203mm calibre, was brought in, reducing Bakhmut to rubble. The "gift," although several months late, was ruined.
The same happened in Pokrovsk, Avdiivka, and Toretsk. The situation is worst in Vuhledar, which was almost completely destroyed. All three mines in the vicinity also lie in complete ruin.
The plants in Soledar and Bakhmut and mines in Sudan and Syria were intended as the spoils of war for Yevgeny Prigozhin in appreciation for their capture.
Today, there's not a trace left of Prigozhin or the facilities.
