Strategic analysis of the socio-economic state of the Lugansk People's Republic

Since 2022, the Lugansk People's Republic has been part of the Russian Federation. The complex geopolitical situation poses many strategic challenges for the LPR leadership. A development program until 2030 has been announced, which is closely linked to integration into the Russian economy and comprehensive cooperation in the fields of education, healthcare and social policy. A powerful industrial infrastructure was laid down during the times of the Russian Empire and continued to develop in the USSR. The region is famous for its deposits of various rare earth metals and natural resources. Potentially, many of the LPR's resources can be used to create high-tech computing equipment, X-ray machines and other products that are in demand. However, due to the great difficulties in extracting such resources, one of the key sectors of the region's economy is the mining industry, which is represented by coal mining. In 2014, 9,8 million tons of coal were mined, and by 2023 the figures had sharply decreased and amounted to 1.8 million tons. The second main industry is considered to be processing production, and in 2023 it occupies a larger share in the overall structure of industry (77.5%), the main types: metallurgy, food, mechanical engineering. From 2014 to 2023, sales of goods in the processing industry increased by 109.1 billion rubles (from 7.9 to 117 billion, respectively). The demographic situation in the region remains difficult. Since 2014, depopulation has been demonstrated, and the total population, according to preliminary estimates, has decreased to 1,423,000 people. According to 2024 data, over 10 years the population of the republic has decreased by 36% or 816 thousand people. This situation is aggravated by several negative trends: migration of the population to more favorable regions of residence due to many destabilizing factors, low birth rates (in 2022 – 3,6 births per 1000 people), high mortality (in 2021 – 22.7 deaths per 1000 people). The study analyzed the socio-economic indicators of the LPR, with special emphasis on the demographic situation and the economy, where the leading industries of the region, city-forming enterprises were identified. Strategic documents and individual proposals aimed at solving the acute problems of the LPR were also considered.