Moscow integrates occupied territories of Donbas in its economic space

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Despite of the economic sanctions impact and commitments to facilitate the peaceful process within Minsk contact group Russian government still attempts to separate Donbas from Ukraine integrating it step-by-step in its economic space. Kremlin is establishing the unified structure of management at occupied enterprises in Donetsk and Lugansk regions looking forward to organize product exportation to the territory of the Russian Federation. Kremlin reckons to raise self-sufficiency of the “republics” and reduce significantly their financing from the state budget. Russia intends to re-export products and raw materials supplied from the occupied territories of Ukraine as its own.

Russia plans to establish a powerful metallurgical and energy holding totally focused on the Russian market, using occupied Ukrainian enterprises as a base. To avoid accusations of property seizure it deliberately bankrupts enterprises in Donetsk and Lugansk regions subsequently placing them under the control of Russian concerns. About 70% of enterprises have ceased their operation while wholesale dismissal is being observed.

To speed up this process Kremlin sends Russian representatives to the Ukrainian enterprises located in the uncontrolled territories of Ukraine, setting the task to organize products supplies to the Russian Federation as soon as possible. Currently some of the “nationalised” enterprises have already entered into cooperation agreements with Russian counteragents and others are at the stage of “preparation of legal framework”.

That is a well-known fact that Russian “Vneshtorgservis” has become “temporary administrator” of Ukrainian plants in the occupied territories, and ex-vice-governor of Irkutsk region of the Russian Federation Vladimir Pashkov – its CEO. He is also a president of the Fund of support for international humanitarian projects which funds are transferred via the accounts of NCI “Centre for International Settlements” to support unrecognized “republics”. The list of enterprises controlled by “Vneshtorgservis” includes metallurgical plant “Donetsksteel”, Enakievo and Makeyevka metallurgical plants, Enakievo coking plant, Yasinevki coking plant, Makeyevka coking plant, Khartsizsk pipe manufacturer plant.

The so-called ministries of economic development of LPR and DPR are seeking Moscow’s approval in the issues of benefits for “nationalized” enterprises for duty-free importation of goods in Russia in order to minimize expenses and reduce production price thereby increasing its competitive ability on the Russian market.

It is obvious that takeover of enterprises, export of goods from the territory of LPR and DPR, raw material supply to cover the needs of “alienated” enterprises carried out without relevant documents and permits issued by tax and customs bodies of Ukraine shall be deemed as direct violation of not only Ukrainian legislation, but also international law. Persons involved in alienation of Ukraine’s property in the uncontrolled territory are perpetrators of such violations.

Cooperation of foreign counteragents with “nationalised” Ukrainian enterprises located in Donbas in trade, financial and other economic fields is covered by the jurisdiction of international law. Therefore, naturally, that Ukraine will interpret such activity as unfriendly on the part of the states which in such a manner not only support the violation of territorial integrity of other state by Russia, but encourage Moscow to further aggressive actions destroying international law and international security system.

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