The ongoing conflict in Ukraine has been made possible, in part, by Russia’s oil and gas industry. Despite the prolonged nature of the conflict, the Kremlin has been able to continue fighting thanks to the revenue generated from these industries. However, the current situation is putting a strain on manpower within the sector.
As a result of the full mobilization of the economy for war, there is now a shortage of workers in Russia’s oil and gas industry. This issue is exacerbated by an existing demographic crunch in the country. In recent years, high-paying energy companies like Gazprom PJSC have been seen as a top career choice for many citizens. But now, these companies are facing intense 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. This shift in the labor market presents challenges for the oil and gas sector, as they struggle to attract and retain skilled workers amidst increasing demand from other sectors involved in the conflict. To remain competitive, industry leaders must find innovative ways to incentivize workers to choose careers in oil and gas.
Despite these challenges, Russia’s oil and gas industry remains crucial for funding the ongoing conflict and supporting Kremlin objectives in Ukraine.