Over 1,200 Miners Left Jobless as Russian-Owned 'Donskoye Coal' Exits Luhansk Region

Economic Turmoil in Temporarily Occupied Territories

According to Главком: In the temporarily occupied areas of Ukraine's Luhansk region, the company 'Donskoye Coal' has launched a self-liquidation process, triggering mass layoffs and piling up billions in debt. More than 1,200 miners have lost their jobs as the firm accumulated losses exceeding 11 billion rubles (roughly $146 million) and debts totaling 25 billion rubles (about $332 million). This marks a significant collapse for a company that once managed key mining operations in the area.

Mine and Enterprise Crisis Deepens

In 2024, 'Donskoye Coal' took control of mines including 'Krasny Partizan,' 'Dovzhanskaya-Kapitalnaya,' and the Sverdlov mine, initially presenting this as a sign of prosperity. However, the outcome was the opposite. Of the ten leased enterprises, seven were returned to the so-called 'LNR government' as unprofitable. This demonstrates that Russian investors exploited the existing resource base without making any capital investments, and once the resources were depleted, the company filed for self-liquidation in court.

Russia's government is now considering closing these mines and purchasing coal from the Kuzbass region instead, signaling a strategic shift in the coal industry within the occupied territories. The Russian approach has been to extract resources without capital spending.

“The Kremlin has no interest in Donbas's economy. The occupied regions are used solely as a source of cheap raw materials and mobilization manpower, while promises of stable work are just part of a propaganda facade,”

notes the Center for Countering Disinformation.

Conditions at the Dneprorudny Iron Ore Plant (DZHRK) in Zaporizhzhia region are also alarming. Workers there are forced to labor on weekends and holidays, while wage arrears accumulate over several months. Bonuses and advance payments have been eliminated, further worsening workers' plight in the region. Consequently, the economic situation in the occupied territories continues to deteriorate, fueling public anxiety.

The worsening economic climate in the temporarily occupied territories underscores the fallout from Russian policies in these areas, leading to severe social problems. Mass layoffs and mounting corporate debts highlight a lack of investment and strategic development, which in turn negatively impacts local residents' lives. Given these circumstances, further actions by the occupation authorities could trigger even greater social tension and economic destabilization.

The economic situation in the temporarily occupied regions of Ukraine is deteriorating further, as evidenced by the alarming reports from the Dneprorudny Iron Ore Plant. Workers there face significant challenges, including prolonged salary delays and mandatory weekend shifts. Such conditions highlight the broader systemic issues affecting labor rights and economic stability in these areas. For more details on the struggles faced by workers at the DZhRK, see our coverage regarding salary delays and forced labor.