Russia’s recent announcement of its intention to fully occupy the Donetsk, Luhansk, Kherson and Zaporizhzhia regions by 2025 underscores the strategic importance of these territories. These four regions amount to more than 90,000 square kilometers (34,749 square miles) or nearly 15 percent of Ukraine’s total area. While the Kremlin’s motivations are steeped in geopolitics, historical claims and military strategy, these regions also represent significant opportunities for Ukraine’s economic recovery and foreign investment. In this article, we explore why these territories are vital and highlight the potential opportunities for Western investors.

Crimea: The starting point of Russia’s expansionist plans

Annexed by Russia in 2014, Crimea’s strategic importance stems from its location, granting control over the Black Sea and access to Mediterranean trade routes. Sevastopol is home to Russia’s Black Sea Fleet, making it a critical military hub.

Economically, Crimea’s agricultural potential, tourism industry and untapped offshore energy reserves make it an attractive asset for both Russia and Ukraine. Crimea’s offshore areas in the Black Sea are estimated to contain between 4 trillion to 13 trillion cubic meters of natural gas. These reserves are crucial for energy security and have the potential to reduce dependence on imported energy. For Ukraine, regaining Crimea would not only restore territorial integrity but also open up opportunities to reintegrate these assets into its post-war economy. Western investors could play a key role in rebuilding its tourism infrastructure to take advantage of its scenic coastline and historic sites and developing energy projects.

Donetsk and Luhansk: Industrial powerhouses

The Donetsk and Luhansk regions, collectively known as the Donbas, are Ukraine’s traditional industrial heartland. Rich in coal reserves as well as mineral resources and home to heavy industry, including metallurgy, machinery and chemical production, these regions have long been economic drivers for Ukraine. Donetsk, prior to 2014, accounted for 20 percent of the country’s industrial production. Luhansk is an important transport hub.

The Donbas symbolizes the Kremlin’s narrative of protecting Russian-speaking populations and historical ties to the region. Control over these regions consolidates Russia’s access to critical industrial resources and disrupts Ukraine’s economic base.

For Ukraine, fully reintegrating Donetsk and Luhansk would provide a significant boost to Ukraine’s industrial output and energy independence. These regions offer opportunities for modernization and green transformation. For example, the coal-dependent economy of the Donbas could pivot toward renewable energy projects with the help of Western technology and investment. Infrastructure rebuilding, such as railways, highways, and industrial facilities, represents a multi-billion-dollar opportunity for construction and engineering firms.

Zaporizhzhia: Energy hub and industrial giant

The Zaporizhzhia region is crucial for its energy infrastructure and industrial capacity and produced up to 25 percent of Ukraine’s electricity. It is home to the Zaporizhzhia Nuclear Power Plant, the largest in Europe, which remains under Russian occupation. The nuclear plant is a strategic asset, providing electricity to much of southern Ukraine and symbolic leverage in any conflict. Zaporizhzhia’s industries, including machine building and metallurgy, are vital to Russia’s war economy.

Securing Zaporizhzhia is essential for Ukraine’s energy security and its ability to maintain stable electricity supplies to millions of citizens. Western investors could partner with Ukraine to modernize its energy infrastructure, including nuclear safety upgrades, renewable energy projects and grid integration with the EU. The region’s manufacturing base could be revitalized with foreign capital, creating jobs and boosting exports.

Kherson: Agriculture and logistics gateway

Kherson’s fertile land and strategic location along the Dnipro River and Black Sea make it a vital agricultural and logistical hub. Control over Kherson solidifies Russia’s land bridge to Crimea and access to the Dnipro River. The region’s agricultural output bolsters Russia’s food security, while denying it to Ukraine.

Kherson’s agricultural potential is unparalleled, with the region producing significant quantities of grain, vegetables and fruit. Restoring Ukraine’s access to these farmlands would strengthen its role as a global agricultural powerhouse, ensuring food security for millions worldwide. Western agribusiness companies could invest in modernizing farming techniques, irrigation systems, and export logistics. Kherson’s ports, including those on the Black Sea, are crucial for Ukraine’s grain exports and broader trade.

The stakes for Ukraine and the West

These four regions, along with Crimea, are critical to Ukraine’s sovereignty, economic viability and future development. Their loss would not only undermine Ukraine’s territorial integrity but also negatively impact its ability to rebuild and limit opportunities to attract foreign investment into promising sectors.

For the West, the stakes are equally high. Supporting Ukraine in reclaiming and securing control over these territories presents opportunities to:

• Secure strategic resources: From energy infrastructure to fertile farmland, these territories offer significant economic potential.
• Strengthen supply chains: Investments in logistics and infrastructure can bolster regional and global trade.
• Promote sustainable development: Rebuilding efforts can prioritize green energy, advanced technology and modern infrastructure.

Opportunities for Western investors

Western businesses have already demonstrated interest in Ukraine’s reconstruction, particularly in sectors such as agriculture, energy and technology. These regions—as part of a sovereign and whole Ukraine—offer specific opportunities for investors:

• Energy: In addition to modernizing nuclear facilities in Zaporizhzhia, there are opportunities in developing renewable energy projects such as wind and solar farms in these regions. The region’s existing infrastructure can be leveraged to integrate these new energy sources into the grid, enhancing energy security and sustainability. Western companies could also consider opportunities to invest in the exploration and development of Crimea’s offshore gas fields, particularly those with expertise in deep-water drilling. Investments in infrastructure, such as pipelines, storage facilities and processing plants, would be essential to fully exploit these reserves.
• Agriculture: Enhancing production and export capacity in Kherson’s fertile farmlands, including by investment in precision agriculture technologies to optimize crop yields and resource use. Potential exists for developing agro-processing facilities to add value to raw agricultural products, creating new export opportunities.
• Industry: Revitalizing heavy industry in the Donbas with advanced technologies, in particular, by modernizing existing industrial facilities with green technologies can reduce environmental impact and improve efficiency. The region also presents opportunities for developing new industries, such as high-tech manufacturing and clean energy production, to diversify the economic base.
• Logistics: Developing efficient transport corridors, in particular by developing multimodal transport hubs that integrate road, rail and port facilities to enhance connectivity, can help to integrate these regions into EU supply chains. Investments in digital logistics platforms can streamline supply chain management, making it easier to move goods within Ukraine and to international markets.
• Technology and innovation: Establishing technology parks and innovation hubs can attract startups and tech companies. These hubs can focus on areas such as agriTech, clean energy, and industrial automation, amongst other key sectors in these regions.
• Tourism and hospitality: With its rich cultural heritage and natural beauty, Crimea has significant potential for developing its tourism and hospitality sector. Investments in infrastructure, such as hotels, resorts and transport links, can boost the region’s appeal to international tourists.
• Infrastructure development: Rebuilding and modernizing infrastructure, including roads, bridges and public utilities, is crucial for economic recovery. Public-private partnerships can play a key role in financing and executing these projects.

Russia’s stated goal of occupying Donetsk, Luhansk, Kherson and Zaporizhzhia—as well as its annexation of Crimea—underscores the strategic importance of these regions. For Ukraine, reclaiming and reintegrating these territories will not only help to ensure its sovereignty but can also unlock immense potential for economic recovery and global investment. These regions hold the keys to energy security, agricultural strength and industrial resilience—not just for Ukraine, but for the broader region and global markets. While restoring these war-ravaged territories will require significant investment, the returns could far outweigh the costs. With their rich natural resources, fertile land and critical infrastructure, these regions offer the foundation for a modernized, thriving Ukraine. By focusing on rebuilding and attracting international investment, Ukraine can transform its most contested regions into engines of growth and stability—offering investors a unique opportunity to partner in this transformation and secure a foothold in one of the world’s most resource-rich nations.