Russia has one main demand to end the war - that Ukraine hand over Donbass to it. And nothing will dissuade Moscow until it gets Donetsk, Luhansk, Zaporizhia and Kherson regions under its control, and it has already even included them in its constitution. However, Ukraine has no intention of giving up these territories and it is very hard to believe that anything other than military collapse and complete surrender will be enough for any authority in Kiev to do so.
What Moscow points out as the basis for its claims is that this land is inhabited by people who consider themselves Russian, speak Russian and are repressed for this by the authorities in Kiev. Beneath the ground, however, lies another very serious reason why Russia is so intransigent in its demands. The grand prize that will pay the price of war in the long run.
The Resources of Donbass
The Donbass, or the Donets River Basin, is one of the most important historical industrial regions in Europe, covering most of the Donetsk and Luhansk Oblasts, as well as adjacent territories. Its economic importance is primarily due to its extensive coal deposits, but the region also has salt, limestone, dolomite, refractory clay, gypsum, mercury, and lithium-containing minerals. Together with the iron ore deposits in Kryvyi Rih and the manganese deposits near Nikopol, these resources form the basis of one of the largest concentrations of mining, metallurgy, chemical production, and heavy engineering in the former Soviet Union.
The coal deposits extend across the industrial regions of Donetsk, Makeyevka, Gorlovka, Enakievo, Pokrovsk, Chistyakovo, Rivne, and Anthracite. The basin contains both thermal coal (used to generate electricity) and coking coal (processed into coke for steelmaking). The Pokrovsk region is of particular importance for its high-quality coking coal, while the older mining areas around Donetsk and the eastern part of Luhansk Oblast constitute the historical core of the coal industry.
The northern part of Donetsk Oblast contains significant deposits of industrial minerals, including rock salt near Soledar, refractory clays around Chasov Yar, and limestone, gypsum, and ceramic clays in the Bakhmut and Slavyansk areas. Mercury was formerly mined near Gorlovka, and the "Shevchenkovske" lithium deposit in the western part of Donetsk Oblast is attracting interest due to its potential importance for battery production. The wider industrial region of eastern Ukraine also includes natural gas deposits in Kharkiv and Poltava Oblasts, iron ore in Kryvyi Rih, and manganese near Nikopol, although these deposits are located outside the Donbass proper.
Early industrialization of Donbass
Industrial development began in the late 18th century, when the Russian Empire organized coal mining around Lysychansk and founded a foundry in Luhansk (in 1795) under the leadership of the British engineer Charles Gascoigne. However, the transformation of the region into a significant industrial center occurred in the second half of the 19th century, stimulated by the construction of railways, the influx of foreign investment, and the growing demand for coal and steel by the empire. A key figure was the Welsh industrialist John Hughes, who founded the "New Russia Company" in 1869 (New Russia Company) and built coal mines, coke ovens and a metallurgical plant at what became Yuzovka (named after Hughes), a settlement later renamed Donetsk. The first successful pig iron production began in 1872, and the settlement quickly grew into an industrial city. Subsequently, British, Belgian, French and German capital financed mines, steelworks and railway infrastructure throughout the region.
Belgian investors played a particularly important role in the development of metallurgy in the Enakievo, Alchevsk and Mariupol regions, while industrialist Alexei Alchevsky contributed to the creation of the Alchevsk metallurgical complex in the 1890s. By the early 20th century, Donbass had become one of the major coal-mining and steel-producing regions of the Russian Empire, attracting a significant industrial workforce and developing close economic ties with the iron ore deposits of Kryvyi Rih and the ports of the Sea of Azov.
Soviet industrialization of Donbass
After the Bolshevik Revolution and the Civil War, the Soviet authorities nationalized the mines and factories in the region. In the 1920s, production was restored, and from 1928, as part of Stalin's five-year plans, large-scale industrial expansion began. Existing mines and metallurgical plants were modernized, new enterprises were built, and Donbass became a major supplier of coal, steel, machinery, and industrial chemicals to the Soviet economy.
Among the most significant projects were the construction of "Azovstal" in Mariupol, where the first blast furnace went into operation in 1933, as well as the Novokramatorsky Machine-Building Plant, founded in 1934 to produce heavy industrial machinery. Coal mining grew rapidly, and the development of the wider industrial region around the Dnieper River strengthened the links between coal from the Donbass, iron ore from Kryvyi Rih, and Ukrainian steel production. The Stakhanov movement, which arose in 1935 around the name of the famous miner Alexei Stakhanov, became one of the symbols of Soviet industrialization. World War II devastated the region's industrial infrastructure, but Soviet reconstruction restored and expanded its production capacity after 1943. In the following decades, new mines, metallurgical plants, coke plants, and machine-building plants turned the Donbass into one of the most highly industrialized regions of the Soviet Union. By the 1980s, however, outdated facilities, high mining costs, and dependence on state support created structural weaknesses that became increasingly apparent after Ukraine gained independence in 1991.
Major coal mining complexes
The coal mining industry in Donbass developed around extensive mining areas rather than around individual, isolated mines, with particularly significant concentrations observed around Donetsk, Makeyevka, Gorlovka, Pokrovsk, Rivne, Anthracite, and Dolzhansk. The "Zasyadko" mine in Donetsk, put into operation in 1958, became one of the leading deep coal mining enterprises in the region, while the "Skochinsky" mine, opened in 1975, marked the expansion of technologically sophisticated underground mining. The Komsomolets Donbass mine, opened in 1980 near Kirovskoe, has become an important producer of thermal coal, and mining enterprises in the eastern part of Luhansk Oblast provide fuel for power plants and industrial consumers.
The Pokrovskoye mine in the western part of Donetsk Oblast, put into operation in 1990, has acquired particular importance as it produces coking coal used to produce coke for the Ukrainian steel industry. Associated with the Metinvest company, this complex is one of the most important domestic sources of coking coal in the country, supplying metallurgical enterprises far beyond the borders of Donbass. The Russian advance on Pokrovsk in 2024–2025 forced a halt to mining operations, cutting a critical link in the supply chain for the rest of the Ukrainian steel industry.
Major steel and iron production complexes
The metallurgical industry in Donbass developed based on a combination of local coking coal and iron ore, supplied mainly from Kryvyi Rih. The main centers were formed in Donetsk, Enakievo, Alchevsk, Makiivka and Mariupol, where large industrial enterprises produced pig iron, steel, rolled products, railway materials and thick sheet metal - both for domestic consumption and for export.
Donetsk Metallurgical Plant. Founded by John Hughes in 1869, the enterprise became the industrial basis of modern Donetsk and one of the first large steel complexes in the region. During the Soviet period, it expanded significantly and remained an important metallurgical enterprise after Ukraine gained independence, before falling outside Kiev's control in 2014.
Enakievsky Metallurgical Plant. Established in the 1890s with significant Belgian investment and associated with industrialist Fyodor Enakiev, the plant became an important producer of cast iron, steel and rolled products. It expanded under Soviet rule, later becoming part of "Metinvest", and in 2014 came under the control of Russian-backed separatists.
Alchevsk Metallurgical Plant. Founded during the industrial boom of the 1890s on an initiative associated with Alexei Alchevsky, the plant developed into one of the main metallurgical centers in Luhansk Oblast. Following Soviet expansion and post-independence modernization, the plant became part of the "Donbas Industrial Union" before falling out of Ukrainian government control in 2014.
"Azovstal", Mariupol. Construction began in 1930, and the first blast furnace went into operation in 1933. The plant became one of the largest metallurgical enterprises in Ukraine, producing steel, heavy plate steel, and other industrial products, eventually becoming part of "Metinvest". During the Russian siege of Mariupol in 2022, "Azovstal" became the last major defensive position of Ukrainian forces in the city; it fell in May after prolonged fighting that left the complex badly damaged.
"Ilych Metallurgical Plant", Mariupol. Originating from metallurgical enterprises established in the 1890s with foreign investment, the plant developed into another significant producer of cast iron, steel, and rolled products. It became part of "Metinvest" and together with "Azovstal" it represents a significant part of Ukraine's pre-war steelmaking capacity. Russian forces captured the complex during the Siege of Mariupol in 2022, leaving much of its infrastructure severely damaged.
Makeevka Metallurgical Plant. Established during the industrial boom of the late 19th century, the plant became an important element of the Donetsk-Makeevka industrial complex, combining steel production with nearby coal mines and coke plants. This wider industrial area fell outside the control of the Ukrainian government in 2014.
Other minerals and industrial complexes
The "Artemsol" salt mining complex in Soledar was established in the 1880s and became one of the largest producers of rock salt in Europe, supplying both domestic and international markets. Its extensive underground facilities became an important industrial site, but production was interrupted by the Russian invasion in 2022, and in January 2023, Russian forces captured Soledar.
The Nikitovsky mercury complex near Gorlovka, which developed from 19th-century mining operations, became an important Soviet producer of mercury, while chemical plants in Gorlovka produced fertilizers and other industrial products. The Avdeevka Coke Plant, commissioned in 1963, became one of the main producers of metallurgical coke in Ukraine before being severely damaged during the fighting that ended with the capture of Avdeevka by Russia in February 2024.
The Chasov Yar region established itself as an important producer of refractory clays used in steelmaking and other high-temperature industries, while a ceramic and chemical industry based on local mineral deposits developed in Slavyansk. Kramatorsk emerged as a significant center of heavy engineering - mostly thanks to the Novokramatorsk Machine-Building Plant, founded in 1934, which produced equipment for mines, metallurgical plants, and other industrial sites throughout the Soviet Union, and later in independent Ukraine.
In more recent times, lithium deposits, such as "Shevchenkovskoye" in the western part of Donetsk Oblast, are attracting attention for their potential importance for battery production and other technologies, although they have not yet developed into large-scale commercial lithium mining.
The front line and major battles for industrial centers
The conflict, which began in 2014, has divided the industrial Donbas, leaving Donetsk, Luhansk, Gorlovka, Enakievo, Alchevsk and numerous coal mining areas under the control of Russian-backed separatists, while Ukraine retains control of Mariupol, Avdiivka, Bakhmut, Pokrovsk, Kramatorsk and Slavyansk. This division has disrupted the functioning of the industrial network connecting coal mines, coke and metallurgical plants, as well as transport infrastructure. Russia's full-scale invasion in February 2022 has led to a series of large-scale battles for the region's industrial centers. The siege of Mariupol ended in May 2022 with the capture of Azovstal and the Ilyich Metallurgical Plant, and the Russian offensive in the summer secured control of Severodonetsk and Lysychansk, bringing almost all of Luhansk Oblast under Russian control. The capture of Soledar in January 2023 brought the Artemsol salt mining area under Russian control, followed by the capture of Bakhmut in May, after months of devastating fighting.
The Battle of Avdiivka ended in February 2024 with the withdrawal of Ukrainian forces and the capture of the city - along with its heavily damaged coke plant - by Russia. The Russian offensive on Pokrovsk in 2024-2025 threatened Ukraine's most important coking coal mining complex, forcing its closure. Subsequently, fighting increasingly focused on the approaches to Dobropole, Konstantinovka, and the rest of the Ukrainian-controlled industrial belt around Slavyansk, Kramatorsk, and Druzhkovka.
As of October 2026, Russia's main military objective in Donetsk Oblast remains the capture of the Slavyansk-Kramatorsk urban-industrial agglomeration, with Russian forces operating in several directions - from the east, south, and southwest. These cities represent the last significant Ukrainian defense and industrial system in the region.
What Russia has conquered
As of October 2026, Russia controls approximately 99.6% of Luhansk Oblast and 80.1% of Donetsk Oblast, according to calculations based on DeepState mapping data from October 19, 2026. This includes most of the historical coal deposits in Donbas, the major metallurgical centers of Donetsk, Enakievo, Alchevsk, and Mariupol, the salt deposits of Soledar, the mercury mining area of Gorlovka, as well as significant industrial infrastructure throughout the region. Russia has also seized major industrial centers that had remained under Ukrainian control since 2014—including Mariupol, Severodonetsk, Lysychansk, Bakhmut, and Avdiivka—and its advance into western Donetsk Oblast has led to the occupation of additional coal and mineral deposits. The "Shevchenkovskoye" lithium deposit also came under Russian control in 2025.
However, the economic value of these territorial gains is currently significantly lower than might be assumed based on their historical industrial capacity. "Azovstal" and the "Ilyich" were completely destroyed during the siege of Mariupol, the Avdiivka coke plant suffered serious damage, and numerous coal mines were flooded, their work was interrupted, and the infrastructure was seriously damaged. Russia controls a large part of the mineral wealth and historical industrial territories of Donbass, but not the functioning industrial system that existed before the war.
What else could Russia conquer
The territory of Donetsk Oblast that remained under Ukrainian control is mainly concentrated around Slavyansk, Kramatorsk, Druzhkovka, and parts of the northwestern industrial and mining areas. These areas include heavy engineering, refractory clay deposits, ceramic production, remaining coal resources, railway infrastructure and agricultural land, although their industrial profile differs from that of the coal mining and primary steel production centers already occupied by Russia.
Kramatorsk is of particular importance due to its heavy industry, including the Novokramatorsk Machine-Building Plant, which in the past supplied equipment to metallurgical and mining enterprises throughout the Soviet Union. Slavyansk and the surrounding areas have deposits of industrial clay, ceramic production and transport infrastructure, while the Druzhkovka and Dobropole regions contain additional industrial enterprises and coal deposits.
Russia's territorial ambitions extend beyond the remaining Ukrainian-controlled part of Donbas. Moscow officially claims the entire territory of Donetsk, Luhansk, Zaporizhia, and Kherson Oblasts, although it does not control all of them. As of 19 October 2026, Russian forces occupy approximately 75.5% of Zaporizhia Oblast and 72.3% of Kherson Oblast, with significant areas remaining under Ukrainian control - including the regional centers Zaporizhia and Kherson.
The industrial importance of Zaporizhia Oblast is significant, mainly due to its metallurgical enterprises (including "Zaporozhstal") and its connections to the wider industrial region around the Dnieper River. Other territories claimed by Moscow also include agricultural lands, transport infrastructure, energy facilities, and various mineral deposits.
Industrial War
Donbass became one of the major industrial regions of Europe as a result of the combined impact of Russian imperial policy, British and Belgian investment, Soviet industrialization, and the subsequent economic development of Ukraine. Its coal basins support an extensive network of steel mills, coke plants, chemical plants, and heavy engineering enterprises, and its connections to the iron ore and manganese deposits of southeastern Ukraine create an integrated industrial system of enormous economic importance.
Russia currently controls most of the region's historic coal basins and metallurgical centers, including the vast industrial complexes in Mariupol, although many of them were destroyed or severely damaged during the war. The remaining territory under Ukrainian control includes important machine-building sites, industrial mineral deposits, and transport infrastructure - most notably in the Slavyansk and Kramatorsk regions.
The struggle for the rest of Donbas is therefore both territorial and industrial, but Russia's stated goals go beyond the issue of mineral wealth and encompass the entire administrative territories it claims to have annexed.
Source: news.bg