Pro-Russians cheer and clap as miners in hard hats march into the heavily fortified zone around the occupied state building in Donetsk: here they are heroes, the soul of an economically depressed coal region fighting for survival.
As the protesters rally in support of separatists holed up inside the building, virulent anger against the new pro-Western government in Kiev and their plans to shift out of Russia's orbit is stoked by a real and visceral fear for their future.
From the coal and steelmaking industries of Donetsk to factories in Kharkiv pumping out military tanks and turbines, the industrial heartland of eastern Ukraine has always relied on one main client: Russia.
"In our region we have a lot of machine-building plants. Russia buys our products. Our factories will be closed because... nobody will need it in Europe," said Liliya, a 27-year-old housewife.
"Our products are not competitive, half our citizens will lose their jobs."
Jobs lost, factories and mines closed and industries swallowed up by "German businessmen" -- these are the fears on everyone's lips at the barricades of tyres and barbed wire surrounding the "Donetsk People's Republic", declared independent by a handful of separatists willing to go to extremes to protect their ties with Russia.
Katerina, 50, a kindergarten teacher, thinks closer ties to the European Union will be "very, very bad" for eastern Ukraine. She is most worried about her kitchen garden, which allows her to earn money on the side selling flowers and vegetables.
"I saw on the Internet and TV that it is forbidden to do this in Europe. Our goods will not be competitive," she told AFP.
Like the majority of the crowd, she aches with nostalgia for the days when this part of Ukraine was the industrial pride of the Soviet Union, a sentiment strummed daily by old Soviet songs played to the crowd, and constant references to the glories of World War II.
- 'Corruption everywhere' -
The eastern industrial powerhouse was hard hit when the USSR collapsed and Ukraine won independence in 1991. Many factories were shut and jobs lost as the region struggled to adapt to a capitalist system.
Two decades on, the outlook in the economically depressed region, bled dry by corruption and blinded by the wealth of a handful of oligarchs, feels bleak.
"Life was better in the USSR, there was equality, there was free education and medicine. Now there is corruption everywhere," said Katerina.
The trade wars with Russia that have erupted since Kiev turned toward the EU following protests that ousted a Kremlin-friendly government have only heightened fears in the region which borders Russia.
Russian President Vladimir Putin this week threatened to cut off gas supplies to a heavily-indebted Ukraine, and Moscow has threatened to cut off imports from Ukraine.
In January Ukraine exports to Russia totalled $746 million, and imports $1.46 billion, according to government statistics.
"Our country has no serious dependence on goods from Ukraine. If any restrictive measures are taken by the Ukrainian side, our companies will be able to fully replace their goods," said Russian Trade and Industry Minister Denis Manturov.
However analysts say this is not entirely true.
- Frozen military ties -
In what experts say is a potentially devastating blow to Russia, Ukraine cut all military exports to Russia after it seized control of Crimea and parked an estimated 40,000 troops on Ukraine's eastern border.
"Our relations will remain frozen until a deescalation of the conflict," Yuriy Tereshchenko, newly-appointed head of state defence giant Ukroboronprom, told AFP.
"Yes, we will incur economic losses, but is it reasonable to equip the army of the enemy?"
Ukraine's military exports include the engines used in most Russian combat helicopters, transport aircraft and medium range air-to-air missiles, says Russian arms control and nuclear weapons specialist Igor Sutyagin.
"It is vital for Ukraine but also has a very serious impact on Russia, it undermines (Moscow's) ambitious rearmament programme and severely undermines Russia's arms exports," he told AFP of the breakdown in military relations.
- 'Work while you can' -
It is not clear how many industries have halted ties with Russia, but fear is palpable in Ukraine's plants.
Alexander, 32, an avionics technician working at a factory in Kharkiv, is among those demanding more autonomy for the region, which many hope will preserve ties with Russia.
"In our factory, maybe 70 or even 80 percent of the orders are for Russia so how can we ignore them -- who will buy our production?
"Officially, no one has said anything, but our bosses at the factory have said do as much work as you can now because in the future there might be no such orders."
As Kiev's new authorities struggle to keep the nation of 46 million people from fragmenting and to shore up an economy in freefall, they have given little reassurance to the east which has looked on in horror as the currency's value plummets and Russia's economic threats rise.
"The real battleground with Russia is the economy," said Oleksiy Ryabchyn, a developmental economist at Donetsk National University. "The gas price, trade wars and further escalation with Russia can lead to economic disaster in this region."
He said the protesters had some valid points, that much of the technology Ukraine supplies to Russia was of little interest to the West, but that the region could draw lessons from other old industrial hubs in Germany and Britain which have successfully reformed.
This would include painful moves such as dramatic changes to a heavily subsidised and "amazingly" corrupt coal industry.
"We need to re-educate people how to be more entrepreneurial and innovative and improve the legislation framework," Ryabchyn said.
Meanwhile Pavlo Sheremeta, Ukraine's minister for economic development, told AFP that trade could only return to normal "on the principal of respect for the independence and territorial integrity of each other."
"While we are pointing guns at each other, it's probably not the best time for trade."
Pro-Russians cheer and clap as miners in hard hats march into the heavily fortified zone around the occupied state building in Donetsk: here they are heroes, the soul of an economically depressed coal region fighting for survival.
As the protesters rally in support of separatists holed up inside the building, virulent anger against the new pro-Western government in Kiev and their plans to shift out of Russia’s orbit is stoked by a real and visceral fear for their future.
From the coal and steelmaking industries of Donetsk to factories in Kharkiv pumping out military tanks and turbines, the industrial heartland of eastern Ukraine has always relied on one main client: Russia.
“In our region we have a lot of machine-building plants. Russia buys our products. Our factories will be closed because… nobody will need it in Europe,” said Liliya, a 27-year-old housewife.
“Our products are not competitive, half our citizens will lose their jobs.”
Jobs lost, factories and mines closed and industries swallowed up by “German businessmen” — these are the fears on everyone’s lips at the barricades of tyres and barbed wire surrounding the “Donetsk People’s Republic”, declared independent by a handful of separatists willing to go to extremes to protect their ties with Russia.
Katerina, 50, a kindergarten teacher, thinks closer ties to the European Union will be “very, very bad” for eastern Ukraine. She is most worried about her kitchen garden, which allows her to earn money on the side selling flowers and vegetables.
“I saw on the Internet and TV that it is forbidden to do this in Europe. Our goods will not be competitive,” she told AFP.
Like the majority of the crowd, she aches with nostalgia for the days when this part of Ukraine was the industrial pride of the Soviet Union, a sentiment strummed daily by old Soviet songs played to the crowd, and constant references to the glories of World War II.
– ‘Corruption everywhere’ –
The eastern industrial powerhouse was hard hit when the USSR collapsed and Ukraine won independence in 1991. Many factories were shut and jobs lost as the region struggled to adapt to a capitalist system.
Two decades on, the outlook in the economically depressed region, bled dry by corruption and blinded by the wealth of a handful of oligarchs, feels bleak.
“Life was better in the USSR, there was equality, there was free education and medicine. Now there is corruption everywhere,” said Katerina.
The trade wars with Russia that have erupted since Kiev turned toward the EU following protests that ousted a Kremlin-friendly government have only heightened fears in the region which borders Russia.
Russian President Vladimir Putin this week threatened to cut off gas supplies to a heavily-indebted Ukraine, and Moscow has threatened to cut off imports from Ukraine.
In January Ukraine exports to Russia totalled $746 million, and imports $1.46 billion, according to government statistics.
“Our country has no serious dependence on goods from Ukraine. If any restrictive measures are taken by the Ukrainian side, our companies will be able to fully replace their goods,” said Russian Trade and Industry Minister Denis Manturov.
However analysts say this is not entirely true.
– Frozen military ties –
In what experts say is a potentially devastating blow to Russia, Ukraine cut all military exports to Russia after it seized control of Crimea and parked an estimated 40,000 troops on Ukraine’s eastern border.
“Our relations will remain frozen until a deescalation of the conflict,” Yuriy Tereshchenko, newly-appointed head of state defence giant Ukroboronprom, told AFP.
“Yes, we will incur economic losses, but is it reasonable to equip the army of the enemy?”
Ukraine’s military exports include the engines used in most Russian combat helicopters, transport aircraft and medium range air-to-air missiles, says Russian arms control and nuclear weapons specialist Igor Sutyagin.
“It is vital for Ukraine but also has a very serious impact on Russia, it undermines (Moscow’s) ambitious rearmament programme and severely undermines Russia’s arms exports,” he told AFP of the breakdown in military relations.
– ‘Work while you can’ –
It is not clear how many industries have halted ties with Russia, but fear is palpable in Ukraine’s plants.
Alexander, 32, an avionics technician working at a factory in Kharkiv, is among those demanding more autonomy for the region, which many hope will preserve ties with Russia.
“In our factory, maybe 70 or even 80 percent of the orders are for Russia so how can we ignore them — who will buy our production?
“Officially, no one has said anything, but our bosses at the factory have said do as much work as you can now because in the future there might be no such orders.”
As Kiev’s new authorities struggle to keep the nation of 46 million people from fragmenting and to shore up an economy in freefall, they have given little reassurance to the east which has looked on in horror as the currency’s value plummets and Russia’s economic threats rise.
“The real battleground with Russia is the economy,” said Oleksiy Ryabchyn, a developmental economist at Donetsk National University. “The gas price, trade wars and further escalation with Russia can lead to economic disaster in this region.”
He said the protesters had some valid points, that much of the technology Ukraine supplies to Russia was of little interest to the West, but that the region could draw lessons from other old industrial hubs in Germany and Britain which have successfully reformed.
This would include painful moves such as dramatic changes to a heavily subsidised and “amazingly” corrupt coal industry.
“We need to re-educate people how to be more entrepreneurial and innovative and improve the legislation framework,” Ryabchyn said.
Meanwhile Pavlo Sheremeta, Ukraine’s minister for economic development, told AFP that trade could only return to normal “on the principal of respect for the independence and territorial integrity of each other.”
“While we are pointing guns at each other, it’s probably not the best time for trade.”
