This thesis adds to the existing scholarship on de facto statehood by testing supposedly unique characteristics attributed to de facto states to see if and how they can be causally linked to differences in non-recognized states vis-à-vis recognized states. To test this, the research first compares state-building in the non-recognized Donbas “People’s Republics” to Ukrainian state- rebuilding in government-controlled Donbas territory from 2014-2021. The shortcomings in state-building in the de facto states are contextualized and, using process-tracing, linked to their lack of recognition. The starkest differences revealed in the comparative analysis relate to poor economic rebuilding, weak institution building, weak independence due to excessive meddling of a foreign power, and violent and authoritarian control in the Donbas de facto states. Overall, by testing definitions of ‘de facto stateness,’ this thesis strengthens scholarship on de facto states and identifies gaps in existing research that need bridging and further development.