The Donbass Paradox

Since March 2014, the rebels of the Donetsk People's Republic (DPR) and Luhansk People's Republic (LPR) have stolen over 50 state-owned mines, raided military-owned companies and looted foreign and Ukrainian-owned businesses.

It has been claimed that all businesses in the occupied territory are under their control.Initially, the rebels sought to nationalise industry and power generation, bringing them under the jurisdiction of the Republic, severing all ties with Ukraine and creating a self-sufficient state. However, this did not come to fruition.

In the current climate, small and medium-sized businesses are being destroyed, stolen or forced to register in the new Republic. However, the vast majority of the giant factories owned by oligarchs remain unscathed.

Kyiv purchases coal and electricity from the separatist region, and supplies the territory with gas and water. Companies operating in the separatist zone, who pay taxes in Ukraine, can trade between the borders. However, firms must pay taxes to the rebels in order to operate in the separatist zone. While business contributes to financing both Kyiv and Donetsk, many retirees now receive two pensions.

However, gunfire is still being heard on a daily basis, and the number of casualties on both sides continues to rise.

With Russia reducing its financial assistance for the zone since mid-2015, a dual-state has emerged of mutually-dependent adversaries, locked in an abusive marriage, with little sign of divorce or reconciliation.

Through interviews, storytelling, data analysis, pictures and video, The Donbass Paradox investigates how business has transformed since the rebels took control of Ukraine’s east.

Using a cross-border team of journalists from Moldova, Ukraine and the UK, the project showcases a panorama of interviews with international experts, politicians and businesses from the EU, Commonwealth of Independent States and the USA, as well as citizens of the war-torn areas.

Photos © Irina Gorbasyova (Ukraine).