The Russian army announced today that it had captured the mining village of Peschanoe near the eastern Ukrainian city of Pokrovsk, Agence France-Presse reported.
The Russian Defense Ministry said it had "liberated" the village, located less than 10 kilometers southwest of Pokrovsk, where a large coal mining site is located.
According to the steel company "Metinvest", which owns the site, production at Peschanoe was supposed to be suspended on December 12. In early December, a total of 3,500 people still worked there, compared with 10,000 workers before the Russian invasion, AFP noted.
Two other coal mining sites are located further west of Peschanoe and are under the control of Ukrainian forces.
In recent weeks, Russian forces have intensified their offensive against Pokrovsk, a city that is crucial for the logistics of the Ukrainian army, which is experiencing difficulties in the area. The capture of Pokrovsk by Russian troops would be a serious blow to Kiev not only militarily but also economically, as it is the only mine still under Ukrainian control, which produces material needed for steel production, AFP also noted.
Ukrainian steel industry is the second largest export sector after agriculture and continues to play a vital role in the country. Before the war, the steel industry accounted for 10% of Ukraine's national gross domestic product (GDP) and over 30% of exports. After a catastrophic decline in 2022, the industry recovered in 2023 and accounted for almost 15% of exports.