Occupied Donbas Economy: Rising Prices, Salaries, and Industrial Devastation
The temporary occupation of parts of Donbas has radically altered the region’s economic landscape.
Food prices in these territories are more than 50% higher than in Russia, with the cost of essential products like sausages, fish, and meat soaring by 50–60%.
Meanwhile, salaries for certain categories of residents have increased, as Russian occupiers attempt to maintain a ‘golden mean’ and bolster incomes to keep the population subdued.
Daily life in the captured areas becomes increasingly difficult amid industrial decline: most of the mines have shut down, leaving only a handful operational, and the industrial potential of Donbas has been virtually destroyed, significantly impacting employment levels.
The lack of water supply and the destruction of infrastructure hamper business activities; rental properties and hotels are often filled with military officers and officials, while private sector enterprises are almost non-existent.
According to Ukrainian intelligence, over three thousand small and medium-sized businesses in the region have completely ceased operations, leaving fewer than 30% of residents employed.
Food prices remain unjustifiably high, deepening the crises faced by local communities already battered by military conflicts and infrastructural devastation.