Leonid Pasechnik, the Kremlin-appointed leader of the self-proclaimed Luhansk People’s Republic (LPR), has asked Russian President Vladimir Putin to help secure salary payments for miners in the occupied Luhansk region. According to Ukraine’s Center for Countering Disinformation (CCD), Pasechnik’s appeal reflects the severe deterioration of the mining sector, where most mines have been handed over to Russian companies.
These operators had pledged investment but later declared the mines unprofitable, opting instead to mothball or liquidate production. The CCD reports that the situation has left many miners without pay, creating a desperate social and economic crisis in the region.
The challenges are compounded by Russia’s own coal sector, which is suffering under international sanctions and the loss of export markets. Mines across Russia are shutting down, wages are going unpaid, and layoffs are spreading — leaving little incentive for companies to inject resources into the occupied Donbas territories.
The mining crisis unfolds as Moscow grapples with broader financial troubles. The Russian government projects a $68 billion budget deficit by the end of 2025, nearly double previous forecasts, driven by falling oil and gas revenues and soaring wartime expenditures.
