As Ukrainian activists continue to blockade coal supplies flowing from the country's east, rebel leaders are moving to take charge of Ukrainian mines and factories in the separatist regions of Donetsk and Luhansk. But influential oligarch Rinat Akhmetov refused on March 2 to shift control of his coal and steel assets to the rebel leaders, despite their declaration on March 1 that all of the territories' Ukrainian enterprises would be placed under "external state management."

Ukraine has been locked in a standoff over eastern Ukraine's coal supplies since late January. Both the government in Kiev and the separatist leadership in Donetsk and Luhansk oppose the blockade that Ukraine's Samopomich opposition party has spearheaded. This explains, at least in part, the rebels' recent statement. Rather than an actual attempt to take over the regions' companies, the March 1 announcement is more of a pressure tactic aimed at persuading the activists to end the blockade. The Ukrainian firms, which comprise several steel plants and 20 or so coal mines, are a significant source of employment in Donetsk and Luhansk. If they are seized by the separatists, their workers may stop getting paid, since Ukraine would no doubt freeze its purchases of the factories’ products while they are controlled by the rebels. (Akhmetov has only been able to continue shipping coal from the separatist territories because his companies are subject to Ukrainian law and pay taxes to Kiev.) Moreover, the firms would have no other obvious buyers to sell their goods to, since Ukraine is the only major consumer of coal nearby.

For Kiev, however, the bigger concern is Russia. Having recently recognized the passports and property ownership rights of the separatist republics, Moscow has paved the way for Russian businesses to build direct relationships with factories in Donetsk and Luhansk. If they do, Russian companies may start to buy the regions' coal before offering to sell it back to Ukraine. Unwilling to risk significant power disruptions in the event of a prolonged cutoff in supplies, Ukraine is eager to find a way to break the impasse.

To that end, Kiev has entered into talks with the right-wing activists heading up the blockade in hopes of reaching a compromise. On March 1, the Ukrainian Cabinet even met one of the activists' biggest demands by passing legislation that will tighten regulations on goods transported from the separatist regions. But it is unclear whether the measure will be enough to satisfy Samopomich, which has listed other demands — including the release of Ukrainian prisoners of war in Donetsk and Luhansk and the official recognition of the regions as "Russian-occupied" territories — that it expects to be met. In all likelihood, it will take additional talks between Kiev and the activists to reach a true agreement, especially as ample coal reserves and warmer weather give the Ukrainian government more room to negotiate. And if the talks do not eventually lead to the resumption of trade, the ongoing stalemate could become more economically and politically complicated for Ukraine as it continues to drag out.