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Oil and gas sector of RF faces staffing issues due to mobilization - Bloomberg

Oil and gas sector of RF faces staffing issues due to mobilization - Bloomberg File photo: Russia's oil and gas industry is short of workers because of the war (Getty Images)

The Russian oil and gas industry is facing a shortage of labor due to the mobilization of soldiers for the war against Ukraine, reports Bloomberg.

Recent reports from the Central Bank of Russia indicate that the labor shortage is currently affecting enterprises in all sectors of the economy.

According to the material, the oil and gas sector of Russia lacks about 40,000 employees this year. The industry increased the number of online job postings in the first quarter by 24% compared to the previous year, seeking not only skilled personnel but also low-skilled workers.

A representative of a Russian job search service informed the source that the labor shortage has affected even affluent sectors, referring to the oil and gas sector of the Russian Federation. He specified that companies offer high salaries to job seekers, but they compete with the state, which attracts people to military service.

People are also lured by high salaries to defense plants of the Russian defense corporation Rostec, which raised wages by over 17%.

What contributed to the labor shortage

Bloomberg reports that another consequence of Russia's aggression against Ukraine has been the restriction of foreign labor influx.

"International sanctions have weakened the ruble, boosted inflation and complicated international money transfers, making Russia less attractive for migrants from ex-Soviet countries," the material states.

Last year, the official net inflow of foreign migrants to the country amounted to nearly 110,000 individuals, only a quarter of the 2021 level.

Labor shortage may impact the industry

Immediately following the invasion of Ukraine, the Russian oil and gas sector became a target of international sanctions aimed at reducing Kremlin's revenues. However, the industry continues to operate, providing Russia with funds necessary to send soldiers to the front lines and purchase weaponry for shelling Ukrainian cities.

"The labor shortages raise questions about whether Russia’s oil and gas industry can sustain this performance in the longer-term," Bloomberg added.

Russia is seeking soldiers for the war against Ukraine

The Kremlin is constantly exploring new opportunities to recruit individuals to send to war against Ukraine. Despite Vladimir Putin's announcement of a "partial" mobilization in September 2022, and his claim that it was supposedly concluded, many media outlets and Ukrainian intelligence report that this process continues covertly.

Recently, President Volodymyr Zelenskyy announced that the Russian Federation plans to mobilize an additional 300,000 servicemen by June 1st.