Russia’s oil and gas industry has been crucial in funding the ongoing conflict in Ukraine, providing the Kremlin with the necessary resources to sustain the fight. However, the industry is currently facing a shortage of manpower due to the mobilization of Russia’s economy for war, exacerbating an already existing demographic crisis.
In a country where high-paying energy companies like Gazprom PJSC have long been seen as the pinnacle of career success, they now find themselves in competition with the Russian military and weapons manufacturers for workers. Analysts and industry recruiters note that sign-up bonuses for soldiers fighting in Ukraine may surpass the annual salary of an average oil and gas field worker.
As a result of this competition for workers, the oil and gas industry is being pressured to offer competitive wages and incentives to attract and retain employees. With the conflict in Ukraine entering its third year, maintaining a workforce while supporting the war effort has become increasingly challenging for the industry.
The situation highlights the complex relationship between Russia’s energy sector and its military ambitions. While the industry plays a crucial role in funding the conflict, it also faces challenges in meeting its labor needs. The outcome of this dynamic will have significant implications for both the industry and the country as a whole.
