The Russian oil and gas industry has been a significant contributor to funding the ongoing conflict in Ukraine, allowing the Kremlin to continue fighting despite the prolonged nature of the conflict. However, the industry is currently facing a shortage of manpower due to the 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. Analysts and recruiters in the industry have observed that 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.
This shift in the labor market poses challenges for the oil and gas sector, as they struggle to attract and retain skilled workers amidst the increasing demand from other sectors involved in the conflict. The industry must now find innovative ways to incentivize workers to choose careers in oil and gas, as they face stiff competition for talent in a time of heightened military activity. Despite these challenges, Russia’s oil and gas sector remains crucial for funding its ongoing conflict with Ukraine.
