2015-12-09

DONETSK - Russian-backed separatists have plundered the rebel-held regions in Ukraine's industrial heartland, creating an economy characterised by fear, hypocrisy and contradiction. How has business transformed since the rebels took control of Ukraine's east?

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).

Team members

Michael Bird

Michael Bird is an award-winning journalist and writer based in Bucharest, Romania.

Michael Bird

Lina Vdovîi

Lina Vdovîi is a writer, journalist, and producer from the Republic of Moldova, now based in Romania.

Lina Vdovîi

Yana Tkachenko

Donetsk-based Yana Tkachenko has been working in various print and online publications in Ukraine.

Yana Tkachenko
Supported
€9,400 allocated on 29/06/2015
ID
ECB/2015/278

ONLINE

need resources for your own investigative story?

Journalismfund Europe's flexible grants programmes enable journalists to produce relevant public interest stories with a European mind-set from international, national, and regional perspectives.

Apply

support independent cross-border investigative journalism

We rely on your support to continue the work that we do. Make a gift of any amount today.

Donate