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Lugansk People's Republic: Freed and Fueling a New Future

© Sputnik / Stringer / Go to the mediabankLugcentrokuz plant in Lugansk
Lugcentrokuz plant in Lugansk - Sputnik International, 1920, 01.07.2025
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Now that the LPR is fully liberated, it's ready to shift back to peaceful economic growth.What's the region's potential?

Powerful Reboot

Russian President Vladimir Putin stated the need for "a powerful reboot" of the Donbass economy on June 30.
"At this new stage, we need to fully unlock and realize the enormous potential... of our historical regions," Putin said.

Coal Mining

LPR, located within the Donetsk coal basin, produces:
coking coal used in metallurgy
thermal coal for power generation
anthracite - the most valuable grade, which is used in the chemical industry
1.34 million tons mined in 2024; in 2025, 3.54 million tons of coal planned.

Rare Earths

Between 50% and 70% of Ukraine’s $14.8 trillion mineral reserves are in new Russian regions — LPR and DPR, according to various estimates. LPR holds coal, iron, and rare earths. DPR is rich in lithium, home to the Shevchenko Lithium Ore Field.
Russian Direct Investment Fund logo - Sputnik International, 1920, 18.06.2025
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Machine Building

About 70 companies in the LPR make machinery products.
"Lugamash" is a key railway enterprise.
Others produce:
metalworking machines
heavy machinery
spare parts
electrical equipment
agricultural machinery

Metallurgy

Top enterprises:
1.
Alchevsk Metallurgical Plant, the region’s largest steel producer
2.
Stakhanov Ferroalloy Plant, making essential ferroalloys for metallurgy
$450 million will be invested in Alchevsk plant by 2030 to expand production.

Housing

By 2030, the Lugansk People’s Republic plans to build 5 million m² of housing.
A major project on Andrey Linev Street in Lugansk will add ~100 high-rises in 5 years.
The first 6,000 families will get keys to new apartments by 2026.
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