NewsRussia's resource grab leaves Ukrainian mines in ruins

Russia's resource grab leaves Ukrainian mines in ruins

The Russians have seized over 80 per cent of Ukraine's coal resources and 25 per cent of oil deposits, although they cannot utilise most of these. If they conduct mining and production, it is only on territories occupied since 2014. The scorched earth tactic has backfired on them.

Vladimir Putin
Vladimir Putin
Images source: © kremlin.ru

The military actions that have been ongoing since 2014 have almost entirely devastated the Donbas region, one of the richest in natural resources in Europe. The mining towns now resemble eastern cities in 1945, where only a few residential were left standing. The region is now a sea of ruins.

The same situation applies to industrial plants, around 60 per cent of which have been destroyed to varying degrees.

The Russians have taken almost 100 per cent of Ukraine's dolomite reserves for metallurgy and carbonate raw materials for soda ash production. They have also grabbed over 80 per cent of resources like bismuth, cadmium, and tin.

Most significantly, they have taken control of coal resources, which Ukraine has felt greatly. It's no wonder that by September 2022, the government in Kyiv had completely banned their exports. By mid-last year, Energy Minister Herman Halushchenko announced that the Russians had seized 80 per cent of deposits since the onset of the war, leading to a drop in coal production of about 45 per cent.

Profitable unprofitability

Due to the scale of destruction, the Russians cannot benefit from these assets. They mainly "nourish" themselves propaganda-wise, as they can portray Ukraine as a failed state from which they have taken industry.

After 2017, industrial plants were handed over to Russian oligarchs. However, they did not plan to invest in reconstructing these facilities. Thus, in many cases, they transported the majority of usable machinery to Russia. At the beginning of this year, the Russian State Duma approved a development strategy, but contrary to its name, it envisages the closure of unprofitable mines in the occupied territory of the Luhansk region.

Representatives of the occupational administration stated that "inefficient and unsafe enterprises with difficult mining-geological conditions and a high risk of accidents" are due to be shut down.

Investors who received Ukrainian mines at a reduced price now must inform the authorities of the enterprises' unprofitability. They are to receive compensation for the dismantled plants. The regulations also cover companies acquired after 2022. In this case, none of the factories or mines are usable.

Ruins for sale or as a gift

At the beginning of 2023, the Russians captured the salt-rich Soledar deposits, leaving Ukraine with only one of the fifteen deposits. However, over the past decade, the Artemivske deposit in Soledar has met nearly 90 per cent of Ukraine's needs. None of the six salt mines there are operational today, and 30 to 60 per cent of the buildings have been destroyed.

The next city on the Russian path was Bakhmut, where all industrial buildings and about 90 per cent of residential buildings were destroyed. Three large mechanical industry plants and two mines were annihilated.

In Soviet tradition, adopted by the Russian Federation, it has been ingrained that field commanders wish to give "birthday presents" to their leaders. 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 manoeuvre, artillery, including the heaviest 203 mm calibre, was brought in, reducing Bakhmut to rubble. Although several months late, the "gift" turned out to be ruins.

The same happened in Pokrovsk, Avdiivka, and Toretsk. The situation was worst in Vuhledar, which was destroyed almost 100 percent. All three mines in the vicinity are also 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 thanks for their capture.

Today, there's not a trace left of Prigozhin or the facilities.

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