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War in Ukraine

Russia Moves to Exploit Ukraine’s Resources in Temporarily Occupied Territories

2 min read
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Bucket-wheel excavators mine rare earth materials on Ukrainian soil on February 25, 2025 in the Zhytomyr region of Ukraine. Illustrative photo. (Source: Getty Images)
Bucket-wheel excavators mine rare earth materials on Ukrainian soil on February 25, 2025 in the Zhytomyr region of Ukraine. Illustrative photo. (Source: Getty Images)

Russia is preparing to conduct geological exploration and begin extracting raw materials from at least 18 deposits in temporarily occupied areas of Ukraine.

This was confirmed by Ukrainian President Volodymyr Zelenskyy on May 6, referencing a report delivered by the head of Ukraine’s military intelligence Oleh Ivashchenko.

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“On the southern Ukrainian lands currently under occupation, Russia is effectively planning the same processes of plunder and deindustrialization that it carried out in the occupied Donbas,” Zelenskyy said.

The president stated that Russian authorities intend to carry out geological surveys, followed by the extraction and removal of valuable resources from multiple sites. The materials in question include titanium, lithium, tantalum, niobium, zirconium, molybdenum, and graphite.

Zelenskyy also warned that Russian forces are planning further efforts to seize and export this year’s grain harvest from occupied areas, adding that Ukraine is preparing countermeasures.

The development comes, as China is increasing its economic and infrastructure presence in Ukraine’s Russian-occupied territories through indirect and largely discreet initiatives.

In the Donbas region, approximately 80 bank branches have started accepting and trading in Chinese yuan. The cooperation reportedly includes exchanges of local delegations and initiatives linked to “import substitution,” despite Beijing’s official stance of not recognizing Russia’s occupation of Crimea and other annexed areas.

Chinese involvement in the region dates back to before Russia’s full-scale invasion of Ukraine. In late 2013, Ukraine signed a memorandum with a private Chinese company to construct a deep-water port in Crimea and rebuild infrastructure in Sevastopol. The project was envisioned as part of the “Maritime Silk Road” strategy.

However, after Russia’s annexation of Crimea in 2014 and the introduction of international sanctions, the plans were suspended. By June 2014, the Chinese firm declared it was no longer advancing its activities in Crimea.

The situation shifted again after 2022, as Moscow and Beijing deepened their political and economic ties. In 2023, reports surfaced about confidential discussions on constructing a transport tunnel beneath the Kerch Strait, following Ukrainian strikes on the bridge connecting Crimea with mainland Russia.

Meanwhile, a Russian company, Reale Engineering Invest, has begun development of the Bolshoy Tokmak manganese deposit in the temporarily occupied part of Ukraine’s Zaporizhzhia region.

The company was granted a mining license in February 2026 and started geological exploration work in April. Corporate filings show that a subsidiary of Russia’s state-owned defense conglomerate Rostec holds a 25.1% stake in the firm.

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