Decline in production and flooding of mines: Russians have brought coal industry in Luhansk region to brink of collapse, - DIU
Russia’s predatory policies in the temporarily occupied territory of the Luhansk region have caused a deep crisis in the industrial sector; in particular, they have led to the collapse of the coal mining industry, which is vital to the region.
According to Censor.NET, this was reported by the Defence Intelligence of the Ministry of Defence.
Details
"A decline in production volumes, the deteriorating technical condition of enterprises, mine closures and mounting arrears in wages – this is the reality in the occupied Luhansk region. Alongside the coal industry, the metallurgical, chemical, engineering, energy and coke production sectors in the temporarily occupied territories of the Luhansk region have also deteriorated," the Defence Intelligence reported.
The Russians have turned what was once a developed region into a depressed area with a declining industrial sector, flooded and closed mines, a ruined economy, a mass exodus of the working-age population and growing environmental threats.
Overall, in 2026, the invaders in the Luhansk region are forecasting a 65 per cent reduction in annual coal production compared with last year. The occupiers are also unable to meet the coal production targets set for 2027 in the region.
The Russian occupation administration itself attributes the decline of the sector to an acute shortage of funding, difficulties in securing loans, a rise in corporate debt, a shortage of skilled labour, mine closures and problems with working faces.
The decline of the coal industry in the temporarily occupied territories of the Luhansk region is leading to the deterioration of other sectors of the region’s economy. Processing and chemical plants are shutting down; the situation in the energy sector is worsening. However, it is the population living under occupation that is suffering the most – job losses or prolonged delays in wage payments are leading to a further decline in living standards.
The environmental consequences of the decline of the coal industry, caused by the Russians, also pose a significant threat. The cessation of operations at water treatment and drainage systems leads to the flooding of mines, which poses a risk of groundwater contamination, ground subsidence, the destruction of buildings and a deterioration of the environmental situation across large areas.
As a result of this process, the concentration of iron, sulphates, chlorides and heavy metals in mine water is increasing. The seepage of such water into the soil and aquifers poses a risk of contamination to agricultural land and limits its future use.
