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Kremlin builds 'New Russia' in occupied Ukraine

Source: reuters.com

TL;DR

Russia is building railways, highways, and ports in occupied Donetsk, Luhansk, Zaporizhzhia, and Kherson to integrate them as "Novorossiya."
Moscow allocated $11.8 billion for 2024-2026, nearly three times funding for 20 other Russian regions combined.[[1]](https://www.reuters.com/investigations/welcome-new-russia-how-kremlin-is-remaking-occupied-ukraine-2026-03-26/)[[2]](https://www.reuters.com/investigations/welcome-new-russia-how-kremlin-is-remaking-occupied-ukraine-2026-03-26)
These projects signal no plan to return the land, profiting Russia from resources while complicating any peace deal.[[1]](https://www.reuters.com/investigations/welcome-new-russia-how-kremlin-is-remaking-occupied-ukraine-2026-03-26/)

The story at a glance

A Reuters investigation details Russia's heavy infrastructure push in four occupied Ukrainian regions, using satellite images, tenders, trade data, and interviews to show economic integration into Russia. Key players include Kremlin officials like Dmitry Peskov, Ukrainian experts, and local fighters; reporters analyzed over 2,500 km of new roads and rails. The report comes amid stalled peace talks and ongoing fighting, four years into the invasion. Russia controls about a fifth of Ukraine.[[1]](https://www.reuters.com/investigations/welcome-new-russia-how-kremlin-is-remaking-occupied-ukraine-2026-03-26/)

Key points

Novorossiya Railways spent $425 million on a 525 km line across the four regions since 2023, bypassing the vulnerable Crimean Bridge; satellite images confirm a 60 km section built north of Mariupol.[[1]](https://www.reuters.com/investigations/welcome-new-russia-how-kremlin-is-remaking-occupied-ukraine-2026-03-26/)
Azov Ring highway (1,400 km total) includes 630 km in occupied areas, with over $214 million in tenders awarded and $123 million more planned for 2026; much of a 100 km section from Taganrog to Manhush is done.[[1]](https://www.reuters.com/investigations/welcome-new-russia-how-kremlin-is-remaking-occupied-ukraine-2026-03-26/)
Mariupol and Berdiansk ports added to Russia's list, with dredging and new facilities; 18 vessels shipped grain and coal to Turkey from July-November 2025, per shipping data.[[1]](https://www.reuters.com/investigations/welcome-new-russia-how-kremlin-is-remaking-occupied-ukraine-2026-03-26/)
Resource sales include Bobrykivske gold mine auctioned for $9.7 million in 2025; coal exports totaled 508,500 tons worth $13.2 million from 2022-2025.[[1]](https://www.reuters.com/investigations/welcome-new-russia-how-kremlin-is-remaking-occupied-ukraine-2026-03-26/)
Buildout outpaces Crimea: three years here matches a decade there, per Ukrainian official Olha Kuryshko; Ukrainian sabotage hits some targets but not the full scale.[[1]](https://www.reuters.com/investigations/welcome-new-russia-how-kremlin-is-remaking-occupied-ukraine-2026-03-26/)

Details and context

Russia created state enterprises like Novorossiya Railways in 2023 to manage this, funding it far beyond other regions despite war costs and sanctions. The work aids troop moves east-west, resource exports like grain and coal, and ties the economy to Moscow—making reversal costly. Satellite analysis by Reuters shows over 2,500 km of transport upgrades since 2022.

Experts like Karolina Hird of the Institute for the Study of War say this "financially entangles" the areas, turning occupation profitable. Ukraine's Zelenskiy calls it a militarized "facade" like Crimea; intelligence stresses transport as Russia's priority. Fighters admit limits: one rail section alone spans hundreds of km.

Key quotes

“The way Russia’s investing very heavily in industry and the economy in occupied Ukraine, so it can reap profits off the occupation, also financially entangles Ukraine into Russia.” — Karolina Hird, Institute for the Study of War.[[1]](https://www.reuters.com/investigations/welcome-new-russia-how-kremlin-is-remaking-occupied-ukraine-2026-03-26/)
“The Russians have accomplished as much in three years of occupation of the new territories as they have in 10 years in Crimea... They’ve carried it out so rapidly, spent so much money.” — Olha Kuryshko, Ukraine’s presidential representative for Crimea.[[1]](https://www.reuters.com/investigations/welcome-new-russia-how-kremlin-is-remaking-occupied-ukraine-2026-03-26/)

Why it matters

These projects harden Russia's hold on a fifth of Ukraine, undercutting Kyiv's territorial claims in any talks. For global leaders and investors, they show Moscow extracting value from seizures despite sanctions, shifting war economics. Watch for more funding announcements or Ukrainian strikes on key links, though full disruption remains unlikely.[[1]](https://www.reuters.com/investigations/welcome-new-russia-how-kremlin-is-remaking-occupied-ukraine-2026-03-26/)