The oil and gas industry in Russia has played a major role in funding the ongoing conflict in Ukraine. Despite the prolonged nature of the conflict, the Kremlin has been able to continue fighting thanks to the financial support provided by these industries. However, the sector is currently facing a shortage of manpower due to the full mobilization of the economy for war. This has worsened an already existing demographic crunch in the country.
In a nation where high-paying energy companies like Gazprom PJSC have long 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 companies in this sector to attract and retain skilled workers.
This shift in the labor market poses significant challenges for the oil and gas industry, which must find innovative ways to incentivize workers to choose careers in this sector amidst heightened military activity. Despite these challenges, however, the industry remains crucial for funding the ongoing conflict and supporting Russia’s objectives in Ukraine.
