In April 1942, there were some 3,600 Jews in Nadwórna. During this period, preparations were made to establish a ghetto in the city. The Jews were ordered to supply planks of wood and barbed wire in order to erect a fence around the area allocated for the ghetto. On 30 April 1942, the Jews were sealed off in two ghettos. Those able to work and those laboring in essential factories were taken to Ghetto A; a few of these managed to make contact with farmers in the area and thus smuggle a little food into the ghetto. Ghetto B was for Jews deemed unfit for work. Here, hunger, typhus and dysentery spread rapidly, causing many deaths. A hospital was set up in Ghetto B, but the German and Ukrainian police would periodically take out the patients and murder them in the Jewish cemetery. An orphanage was also established in Ghetto B for children whose parents had been murdered in the Aktion of October 1941, but most of the children in the orphanage died of hunger due to insufficient food allocation. The Judenrat endeavored to organize help for those in need, but its resources were extremely scarce. In May and June 1942, more Jews from settlements in the area were brought to Nadwórna's two ghettos.
In August 1942, some of the members of the Judenrat, headed by Maksymiljan Schell, were taken to the Gestapo in Stanisławów, where they were tortured for enabling groups of Jews to work in the city of Stryj without the Gestapo's permission. The background for the event was a conflict between different German authorities. The interrogated Jews were returned to Nadwórna, and the ghetto residents were forced to pay a hefty fine.
In the summer of 1942, murderous Aktionen were carried out in the Jewish communities surrounding Nadwórna. The surviving Jews from these communities were brought to the Nadwórna ghettos. At the same time, the Germans and Ukrainians would enter the Nadwórna ghettos and murder Jews at will. In September 1942, hundreds of Jews were taken out from the Nadwórna ghettos and murdered in Aktionen in Stanisławów. Some of the workers in the Nadwórna ghettos were brought to a labor camp established in the city.
In the summer and fall of 1942, the Jews in the ghetto stepped up their attempts to escape. The Milbauer brothers falsified and sold "Aryan" documents in order to help Jews escape the ghetto and the city. Groups of Jews fled to Hungary, and some to the surrounding forests, but most were turned over to the Germans, or murdered by local residents or gangs of supporters of the Ukrainian nationalist Stepan Bandera.
The Nadwórna ghettos were liquidated on 24 October 1942. The Jews were forced into the synagogue in one of the two ghettos, their belongings were plundered and then they were murdered. Other Jews were taken to Stanisławów, where they were executed. During this Aktion, the last survivors of the surrounding Jewish communities were also murdered. A few dozen craftsmen remained in Ghetto A in Nadwórna, but in November 1942 they were executed in the nearby forest. The Jewish community of Nadwórna ceased to exist.
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