War and trade: how the occupation of Donbas affected Ukraine's economic ties with Kenya and Malaysia

Enterprises and the agricultural sector of Donetsk and Luhansk oblasts made a significant contribution to building this export capacity. However, the war which Russia started in 2014, followed by the full-scale invasion, led to the loss of production capacity, the destruction of supply chains, and a shift in Ukraine's foreign trade structure.

This piece examines the role Luhansk and Donetsk oblasts played in Ukraine's economic cooperation with Kenya and Malaysia, how the war affected the region's export potential, and what impact it had on Ukraine's trade relations with these countries.

Trade and economic cooperation between Ukraine, Kenya and Malaysia

Over many years of economic cooperation, Ukraine exported mostly agricultural and metallurgical products to Kenya and Malaysia. Key export items included ferrous metals, grain crops, vegetable fats and oils, and vegetables. At the same time, Ukraine imported coffee, tea, fruit, tobacco, cocoa and cocoa products, electrical machinery, and other goods. The structure and volume of bilateral trade fluctuated depending on the development of specific industries and demand in external markets.

Enterprises and the agricultural sector in Donetsk and Luhansk oblasts played a major role in shaping Ukraine's export potential. In particular, the Azovstal, Illich, and Alchevsk steelworks produced metallurgical goods that formed a vital part of Ukrainian exports, including to Asia and Africa — specifically Kenya and Malaysia.

Donetsk and Luhansk oblasts were also among the leading producers of wheat, maize, sunflower seeds, and sunflower oil. This output accounted for a significant share of Ukraine's total production and was used to supply export shipments to these countries.

However, Russian armed aggression that started in 2014 and the full-scale invasion of 2022 dealt a devastating blow to Ukraine's industrial and agricultural potential, particularly in Luhansk and Donetsk oblasts. As a result of hostilities, enterprises were destroyed or damaged, vast areas of farmland were scorched and mined, and part of the eastern region fell under Russian occupation.

This resulted in the loss of production capacity, disrupted logistics, reduced output, and made it impossible to supply goods that previously formed part of overall Ukrainian exports. Consequently, the structure of Ukraine's economic and trade ties with Kenya and Malaysia shifted.

In 2021, bilateral trade in goods between Ukraine and Kenya stood at $214.78 million, with Ukrainian exports reaching $196.74 million and imports at $18.04 million. By 2024, trade turnover between the two countries had fallen to $159.01 million. Ukrainian exports to Kenya dropped to $4.53 million, while imports from Kenya rose to $154.48 million.

Trade with Malaysia also suffered a sharp drop after the full-scale invasion began, though it later started to recover. By the end of 2024, bilateral trade between Ukraine and Malaysia totalled $383.6 million, comprising $103.82 million in Ukrainian exports and $279.78 million in imports.

What happened to Donbas enterprises and agriculture under occupation

The Azovstal Iron and Steel Works in Mariupol, Donetsk oblast, was one of Europe's largest producers of pig iron and steel. Following the start of the full-scale invasion, the plant became a central stronghold in the defence of the city. During fierce fighting between 18 March and 16 May 2022, the facility suffered massive Russian air, artillery, and missile strikes, which almost entirely destroyed its production and administrative infrastructure.

Following the occupation of Mariupol, the Russian authorities did not rebuild the plant due to the extent of the damage.

Another of Ukraine's largest industrial enterprises was the Illich Iron and Steel Works of Mariupol. Prior to the full-scale invasion, its products were exported to more than 50 countries worldwide.

In 2022, during the occupation of Mariupol by Russian forces, the plant suffered extensive destruction. The occupying forces transported intact equipment to Russia and scrapped damaged steel structures and machinery. Despite this, proxy authorities periodically declare intentions to restart operations.

The Alchevsk Iron and Steel Works was one of Ukraine's largest ferrous metallurgy plants, specialising in pig iron, steel, and rolled metal production. It is located in Alchevsk, Luhansk oblast, which has been under Russian occupation since 2014.

Following the town's occupation, Russia 'nationalised' the plant. Although the facility continues to function, its operations face severe difficulties with raw material supplies, logistics, and product sales. Consequently, output remains far below pre-occupation levels.

The state of the agricultural sector in Luhansk and Donetsk oblasts — which played a major role in overall Ukrainian exports to Asian and African countries prior to Russian armed aggression — remains extremely dire. Due to Russian occupation, Ukraine lost access to a large portion of its farmland, making cultivation, crop growing, and harvesting impossible.

In areas of Donetsk oblast currently under Ukrainian control, farmers continue to cultivate grain and oilseed crops. However, proximity to the front line and constant shelling — which lead to fields being mined and scorched — severely hamper field operations and reduce yields.

Are economic ties between the countries maintained in 2026?

War has significantly altered Ukraine's agricultural and industrial capacity, primarily in Luhansk and Donetsk oblasts. The destruction of steel plants, occupation of territories, and loss of production capacity and farmland have affected the structure of Ukrainian exports, particularly to Kenya and Malaysia.

Before Russian armed aggression, Donbas was a key contributor to steel and agricultural production in Ukraine's overall export shipments. Today, Ukrainian deliveries to these countries consist mainly of agri-food products originating from other regions of Ukraine.

Despite the war and its repercussions, Ukraine continues to maintain trade and economic cooperation with Kenya and Malaysia.

In 2026, as part of the Ukrainian President's 'Food from Ukraine' humanitarian initiative, Ukraine dispatched a food shipment of 2,618.15 tonnes to Kenya. The total volume of humanitarian cargo exceeded 3,600 tonnes. In addition, Ukraine delivered grain to Kenya under the 'Grain from Ukraine' humanitarian programme.