The ongoing conflict in Ukraine has been funded by Russia’s oil and gas industry, which has allowed the Kremlin to continue its fight despite the prolonged nature of the conflict. However, the industry is currently facing a shortage of manpower due to full mobilization of the economy for war, which has worsened an existing demographic crunch in the country.
In a nation where high-paying energy companies like Gazprom PJSC have been seen as a top career choice for many citizens, these companies are now finding themselves in competition for workers with the Russian army and weapons manufacturers. Sign-up bonuses for soldiers fighting in Ukraine can be comparable to nearly a year’s salary for an average oil and gas field worker, making it difficult for these companies to attract and retain skilled workers.
This shift in the labor market poses challenges for the oil and gas sector, as they struggle to incentivize workers to choose careers in this industry amidst increasing demand from other sectors involved in the conflict. Despite these challenges, Russia’s oil and gas industry remains crucial for funding the ongoing conflict and supporting the Kremlin’s objectives in Ukraine.