In 2022, Russian caravans of weapons and armored vehicles drove into Southern Ukraine, occupied by Russia. Russian railroad cars and trucks with stolen assets and ore went in the opposite direction – to Russia. These trucks carried valuable agglomeration ore from Pivdenno-Bilozerske ore deposit in Zaporizhzhya oblast. They contain high share of iron and do not need enrichment.
Zaporizhzhya Iron Ore Plant (ZZRK) became the most precious stolen asset of Russian occupants in the region. It is very profitable in supplying iron ore to metallurgical plants in occupied Donbas and Russia. After the Russian occupation, it has been controlled by businesses of Viktor Medvedchuk and Ramzan Kadyrov, very close to Kremlin authorities.
Legitimate owners and largest shareholders of ZZRK are Ukrainian steel plant «Zaporizhstal», Slovak «Minerfin» and Czech KSK Consulting. In 2022, its final beneficiary owner Ukrainian oligarch Rinat Akhmetov submitted the lawsuit to the European Court on Human Rights against Russia, claiming compensation of his losses and violation of his ownership rights. Information request of the CJI for interview with the head of ZZRK or other authorized person was left without answer.
44 years old Anton Kozyrev, Head of Dniprorudne City Military Administration, has managed objects of social sphere of Zaporizhzhya Iron Ore Plant before the Russian occupation. His story about occupation, expropriation and looting of the plant is both a part of his personal story and an evidence of Russian crimes and crimes of their collaborators.
The CJI exposes chronology and beneficiaries of this international crime on the basis of evidence provided by Kozyrev and other former employees of ZZRK as well as data of registers, previous investigations and expert conclusions.
ZZRK has been key enterprise for the majority of city residents. In 2021, the plant employed almost 5 thousand people. Its production reached 4,62 million tons of ore whereas its profit – 5,2 billion UAH. Its taxes to the local budget supported hospitals, schools and other objects of social sphere in Mala Bilozerka as well as in the district area.
Several months before the Russian invasion, investors of Joint Stock Company announced the start of new project – construction of Pivdenny mine # 2. It would increase the volume of ore production at Pereverzevske ore deposit from 0,5 million tons to 2 million tons. It would also create over 1,5 thousand new working vacancies at the plant. These plans were not implemented.
Anton Kozyrev, Head of Dniprorudne City Military Administration. Photo provided by A.Kozyrev
According to Anton Kozyrev, immediately after the occupation of district, Russian troops passed through the plant in transit and the plant functioned under the Ukrainian management. Russian occupants understood that if the water pumping in mines would stop, it would cause environmental disaster:
«There is always water in mines; the continuous work of pumps is necessary. If the water pumping stops, it will cause serious catastrophe. That is why the plant did not stop its work. At the very beginning of occupation, Russian soldiers only checked at checkpoints buses taking workers to the plant and back», as recalls Anton Kozyrev.
Russian occupants set up checkpoint on the road Dniprorudne – Vesele, leading to the plant. On March 13, 2022, Mayor of Dniprorudne Yevhen Matveev was abducted at this checkpoint. He was told that bus with workers was delayed and he went to find out what was going on. Russian soldiers let workers go but arrested the Mayor. His destiny has been unknown for more than two years. The body of Matveev with signs of torturing was returned to Ukraine in December 2024. He died in an investigation chamber # 3 in Kizel City of Permsky krai of the Russian Federation.
In March 2022, ZZRK has worked several weeks in usual way but then Russian troops entered its territory and brought military equipment and soldiers. They started taking out assets of the plant.
Iron ore at Zaporizhzhya Iron Ore Plant. Photo: social media
Anton Kozyrev tells that personnel of the Russian Federal Security Service (FSB) came to the plant by the end of March – beginning of April 2022. They took control over the plant and launched filtration measures: they checked employees, looked for senior managers and forced them to collaborate.
«FSB people started «filtering» employees and forced remaining managers to collaborate. Pastushenko, head of trade unions of the mine, persuaded people to stay: «Come back, stay here, we will work, everything will be ok», as recalls Kozyrev.
In May 2022, Mykola Pastushenko, member of Zaporizhzhya Oblast Council from pro-Russian «Opposition Block», accepted Russian proposal and was appointed as the head of occupation administration of Dniprorudne.
On June 15, 2022, legitimate owners of ZZRK announced that they lost control over the plant. It was reported that Russian occupants stole and took out iron ore – stored at the plant as well as in the mine. In June 2022, 54 freight cars with agglomeration ore, extracted before the Russian occupation, were stolen (over 3 thousand tons). This case has been among the first documented facts of Russian looting of the plant.
Russian looters and their Ukrainian assistants
In the beginning of July 2022, ZZRK has been seized by Russian management headed by Russian citizen Gleb Terskikh. Before this appointment, he supervised construction of several Russian ore extraction plants and over 300 objects of the Ministry of Defence of Russian Federation.
Gleb Terskikh, occupation head of seized Zaporizhzhya Iron Ore Plant in 2022-2023. Photo: social networks
Russians created their own clone of Ukrainian legal entity and introduced it into the Russian State Register of Legal Entities under the name LLC «Dniprorudne Iron Ore Plant» (LLC «DZZRK»). Russian city of Krasnodar has been indicated as its first legal address because offices of Russian Ministry of Justice and other registration authorities have not been yet set up on the occupied territory of Southern Ukraine. Later, in 2023, legal address has been changed to Dniprorudne.
Newly created Russian legal entity has been founded by LLC «Industrial Innovations» based in Donetsk. Its head is Oleksandr Mykolayovych Nenych. He was known as paramilitary of Russian «Donetsk People’s Republic» and member of «Association of Volunteers of Donbas». Since 2022, Russian occupants have registered him as owner of coal enrichment plant in Torez, occupied by Russia, two agricultural companies and a company processing scrap metal. In 2023, Nenych replaced Terskikh as the director of occupied ZZRK but managed the plant only four months.
Oleksandr Nenych, Head of LLC «Industrial Innovations» and «Dniprorudne Iron Ore Plant» (June-July 2023). Photo: screen of Russian propaganda video
In 2023, Aleksandr Yevhenievich Barymov became the owner of 50% shares of LLC «Industrial Innovations». As journalist investigations uncovered, lawyer Barymov has been long term partner and a confident of Ukrainian traitor Viktor Medvedchuk and his wife Oksana Marchenko. She has been de jure owner of Medvedchuk’s energy and construction assets in Russia. Barymov’s partner in Donetsk company has been Sergii Merkulov, professor of criminal law in local university (he has been de jure owner of other two companies). He might be also «fake person», acting for the benefit of Medvedchuk.
In September 2024, the Federal Tax Service of Russian Federation (FNS) closed open access to the data about founders of «Industrial Innovations». But it seems that this company still has two owners
Aleksandr Barymov (center), co-founder of LLC «Industrial Innovations». Photo: Сибирь.Реалии
According to Russian business media, extraction of iron ore at «DZRK» has been re-launched in the middle of July 2022. In August 2022, first reports appeared about delivery of iron ore from stolen plant.
«Iron ore from Zaporizhzhya Iron Ore Plant has been supplied to Yenakievo Metallurgical Plant and Alchevsk Metallurgical Plant», as reported Russian State Information Agency TASS.
Both plants are located in Donbas, occupied by Russian Federation since 2014. Now they are branches of Russian «Southern Ore-Metallurgical Complex» («Complex»). This Complex supplies steel to Russian industrial giant «Uralvagonzavod», leading manufacturer of tanks and armored vehicles for the Russian Armed Forces.
The «Complex», as well as its branch in Donetsk, has been managed by Russian LLC «Soyuzmetalservis». Federal Tax Service closed an open access to the data about founders of these three companies. What we know is that founders include one physical person and one legal entity.
However, these founders can be also «fake or front persons». For example, there is Russian LLC »Florans», the main logistical operator in Donbas, transporting coal, coke, cast iron and steel in occupied Donbas. According to the Russian Register of Legal Entities, this regional monopolist is owned by former transport policeman Timofei Kostin from Gukove in Russian Rostov oblast. As journalists of «Nastoyaschee vremya» uncovered, Kostin has joint business with another resident of Gukove – taxi driver Vitalii Donchenko. The latter has been registered as a co-owner of Trade House «Don Coals». Presumably, Medvedchuk is the real owner and beneficiary of this trade house.
«This small Russian city is the point of transit of Donetsk coal. Here is another interesting fact about Gukove: its former mayor Viktor Gorenko works for Aleksandr Barymov, closely connected with business of Medvedhcuk. There is revealing coincidence: «Florans» employs son of Gorenko – Stanislav whereas legal services to «Florans» have been provided by company, earlier owned by Barymov. In other words, «Florans» is closely connected with people from Medvedchuk’s team», as wrote «Nastoyaschee vremya» in December 2023.
The largest client of «Florans» is company «Soyuzmetalservis» which has been branch office of UK «Financial Assets» [Finansovye aktivy] at that time, according to «Nastoyaschee vremya». In its turn, «Financial Assets» has been financial donor for intermediary LLC «New Projects» [Novye proekty] (please, recall our investigation «Deep Trap in Medvedchuk’s Affair»), used to channel funds for Medvedchuk’s businesses.
Since April 2025, Ukrainian citizen Murai Yury Oleksandrovych has been General Director of «DZRK». He has been ordinary Ukrainian entrepreneur in Donetsk oblast before its Russian occupation in 2014. He has been also co-owner of Russian legal clone of «Mariupol Steel Plant named after Illich». He and Russian citizen from Chechnya Dadashov Alash Islambekovich are owners of equal shares of this Mariupol plant.
From left to right: Alash Dadashov, Suleiman Geremeev, Senator of the Russian Federation, Aslambek Dadashov. Photo www.bbc.com
Alash Dadashov is the head of Moscow branch of fighter club «Akhmat», founded by Ramzan Kadyrov, the infamous dictator of Chechen Republic. His son Aslambek Dadashov has been an assistant of Adam Delimkhanov, member of Russian State Duma and close comrade of Kadyrov. He has been de jure owner of another two metallurgical plants in occupied Donbas. Dadashov-junior has not demonstrated any achievements as the manager of steel assets.
We believe that he is «fake owner» of metallurgical plants in Donbas. The real beneficiary is Kadyrov’s clan. Yury Murai can be representative of Medvedchuk in Donbas steel businesses.
It should be noted that promises of Russian occupation authorities to re-launch «Mariupol Steel Plant» or create its analogue have not come true. On the opposite, its equipment and machinery were dismantled and brought to Russia, according to Petro Andruschenko, Head of Ukrainian non-profit «Center for the Study of Occupation».
ZZRK today: immigrants, logistical problems, impact of sanctions
According to analysts of Russian center «Sonar-2050» (full name «Soyuznye narrativy-2050», chief editor is Russian political expert Semyon Uralov), only 85 people worked at ZZRK when Russian occupants re-launched its work. To prevent the flooding of mines, they brought in two teams from Russian city of Rostov-na-Donu. They claim that today three thousand people work at ZZRK.
As Anton Kozyrev says, after Russian occupants opened evacuation corridor near Vasylivka, the majority of residents of Dniprorudne, including employees of ZZRK, left the occupied territory.
«Many people used this «road of life» to go to free Ukraine during three months. As of the moment of Russian occupation, there were 4800 employees at the plant. As far as I remember, there were around 1,5 thousand employees in June 2022. At the very beginning, Russian managers tried to recruit anybody – those who were fired for drinking or lack of discipline, drug addicted, criminals… Because those people knew how the plant worked, what equipment you could find where… Since 2023, Russians brought in people from Russian regions. They built «module city» for immigrants. But now it is empty. Russian managers did not pay wages to immigrants and they left», as told Anton Kozyrev.
Illegal owners of occupied plant failed to solve the problem of working personnel. Salaries, higher than Ukrainian, or «social guarantees» did not help. As Kozyrev says, Russian managers had to introduce 12 hour working shifts or employ teenagers. At the same time, local employees were forced to register as potential soldiers of the Russian Armed Forces. Now they can be mobilized into the Russian Army and sent to the Russian-Ukrainian war.
«Road of life». Line of cars at checkpoint in Vasylivka. 2022. Photo: brd24.com
Analyst of «Sonar-2025» also writes about lack of working personnel. Two thirds of residents of Dniprorudne left the city…
Russian managers of occupied plant face another serious problem. It is about increasing the volume of iron ore extraction. Since 2022, managers of «DZRK» have repeatedly announced their plans to increase the volume to three million tons per year. But they reached only 1,5 million tons. Lack of employees is one negative factor. There are also serious problems with supplies of Western mining equipment. As an outcome of international sanctions imposed on Russia, it is almost impossible to service and repair this equipment. As Anton Kozyrev says, the largest shareholder of ZZRK, Slovak company Minerfin a.s,. made large investments into the procurement of Western equipment:
«Equipment is Western – drills, tunneling machines etc. It is not Soviet equipment. It is Slovak, French, American and Swiss equipment. It is very complicated machines. They require timely servicing. It is not an issue like if rubber thing will be erased, then, you have to replace it. No. If it works 10 thousand hours, it must be replaced. If you do not do it, then, your entire machine will fail. Repairing the machine will be far more expensive than replacing that rubber thing.
Russian occupants tried to get some equipment from Donetsk coal mines. But equipment for extraction of coal does not suit the extraction of iron ore. Today they kill the remaining equipment of ZZRK. God knows how much time it will continue to work… When it will be exhausted, the plant will fail», as foresees Kozyrev.
If Russian managers will somehow succeed in increasing production of iron ore, then, they will face problems of logistics and sale of produced iron ore.
Before the Russian occupation, iron ore from ZZRK has been supplied to steel plants of «Metinvest» and exported abroad. It was transported by railways to Zaporizhzhya. Today iron ore is supplied to metallurgical plants of the Complex in Donbas. But temporary occupied territories of Zaporizhzhya region do not have direct railway connection with Donbas! According to Russian media, the iron ore from Dniprorudne to Alchevsk metallurgical plant is transported by railways through Crimea, the Kerch Bridge and a couple of Russian regions. It is very long distance!
New drilling rig Boomer S1 for underground mining and tunnels in «Prokhidnytska» mine of Zaporizhzhya Iron Ore Plant, 2020. Photo: Metalurgprom
According to Anton Kozyrev, the iron ore is also transported by freight trucks. Russian trucks bring coal from Donbas to thermal power plant in Energodar. When they go back, they bring iron ore.
However, logistical problem has been partially solved as Russian occupants renewed railways between Rostov and Crimean city of Djankoi. But here senior managers of Medvedchuk and Kadyrov will have to compete with the needs of the Russian Ministry of Defense. They will also face a risk of being bombed by the Armed Forces of Ukraine as the railway line is very close to the front line.
It is remarkable that analysts of «Sonar-2050» very cautiously state the conclusion that Russia does not understand what to do with the steel from occupied «Novorussia», given international sanctions and competition with Chinese steel. To supply it to Russian internal market or export to «friendly countries»? It is obvious that nobody will let it compete with Russian steel plants!
Despite all difficulties, financial reports of «DZRK» demonstrate improvement of its status in 2024: the plant received revenues of 11,9 billion Rubles (it is unprecedented growth since Russian expropriation of the plant) with 1,5 billion Rubles of net profit. Half a billion Rubles of losses were reported in 2023.
In comparison with pre-occupation years, indicators of plant’s work do not influence the well being of residents of local communities around the plant. Dniprorudne and neighboring villages are in decay. Health care assistance has almost disappeared. There is an acute shortage of medical equipment and basic drugs. The lack of medical services forces many remaining aged people to leave their houses.
Before the Russian full scale invasion, there were four schools, five kindergartens, one lyceum and one college in the local community. Russian occupation authorities renewed the work of one school, one kindergarten, lyceum and college. 90% of teachers left the community and went to territories controlled by the Ukrainian government.
Russian propaganda completely covered the education system: so-called «Conversations about Important Things» and ideology loaded lessons are regularly conducted and «desks of Russian heroes» are set up in schools. Occupants are looking for children who are distantly trained by Ukrainian schools. It is officially forbidden.
Instead of education – Russian propaganda: «Conversations about Important Things» in a school of Dniprorudne. Photo provided by Anton Kozyrev
Outcomes of Russian explosion of the Dam of Kakhovka Hydro Power Plant and destruction of Kakhovka water reservoir are devastating. City heat supply system depended heavily on the reservoir. Today the water from the well is pumped into the system. But it is not suitable for heating at all. It poses direct threats of total destruction of heat supply infrastructure.
Declining well being of local residents is worsened by increasing pressure on civilian population. According to people, who recently fled from occupied territories, they went outdoors only under extreme need because Russian occupation patrols could stop anyone, check the phone and arrest if they found «suspicious» content.
As it has been mentioned above, children are in danger. Distant training in Ukrainian schools is forbidden. Occupation officials are looking for disloyal teenagers.
River Utluk, polluted by mine waters from Zaporizhzhya Iron Ore Plant, seized by the Russian Federation, July 2025. Photo: social media
There are clear risks of explosions, flooding and chemical pollution of the region under uncontrolled extraction of iron ore by non-qualified employees who ignore safety rules. According to analysts’ evaluation, potential yearly losses from illegal expropriation of the plant exceed 150 million USD (without environmental losses).
In June 2022, Rinat Akhmetov, beneficiary of JSC «Zaporizhzhya Iron Ore Plant» and SCM Group, submitted the lawsuit to the European Court on Human Rights about compensation for violation of his ownership rights under unprovoked military aggression of Russian Federation against Ukraine. It is about all his lost assets after 2022. The amount of compensation is not disclosed.
In his interview, Akhmetov reported that evaluation of losses caused only by destruction of Mariupol Metallurgical Plant named after Illich and «Azovstal» ranges from 17 to 20 billion USD. His interests are represented by international law company Covington & Burling. It delivered its services to the Ukrainian government in cases related to the Russian aggression.
Investigation was conducted within assistance program «Stronger Together: Media and Democracy», implemented by WAN-IFRA in partnership with Association «Independent Regional Publishers of Ukraine» and MBL under the support of Norway. The views expressed by the authors do not necessarily reflect the official position of the program partners.
