Coal production in Luhansk region will drop by sixty-five percent in 2026
The prolonged policy of the aggressor state in the temporarily occupied territory of Luhansk region has led to a deep industrial crisis and the collapse of the coal mining sector. In 2026, the invaders predict a 65 percent reduction in the annual volume of coal production compared to last year. This is reported by the portal PromPolitInform, citing information from Defence Intelligence of Ukraine.
Besides the coal industry, metallurgy, chemical industry, mechanical engineering, energy sector, and coke production have degraded in the occupied territories of Luhansk region. The region has turned into a depressed area with a massive outflow of working-age population and growing environmental threats.
Billion-dollar enterprise debts
A sign of the industry degradation was the cessation of operations by the company “donezkie ugli” and a significant deterioration in the operational performance of the so-called “fuel and energy complex rodina”, whose key asset is the seized Bilorichenska mine. To continue operations, “rodina” requires at least 1.5 billion rubles in financial injections.
The occupiers are also unable to implement the coal mining volumes planned for 2027 in the region. Among the reasons for the decline, the Russian occupation administration cites an acute shortage of funding, difficulties in attracting borrowed funds, growing credit debts of enterprises, and a shortage of qualified personnel.
Environmental threats from flooding
The cessation of treatment and drainage systems leads to the flooding of mines, creating a threat of groundwater contamination, soil subsidence, destruction of buildings, and worsening environmental conditions. The concentration of iron, sulfates, chlorides, and heavy metals is increasing in mine waters.
The ingress of such waters into soils and aquifers threatens agricultural land and restricts its further use. Consequently, this is not just about economic decline, but about a large-scale social and environmental crisis in Luhansk region.
Photo: Defence Intelligence of Ukraine
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