Russia finds new source of cheap labor - Media reveal country
Photo: Russia has found a new source of cheap labor (Getty Images)
Russia is facing a severe labor shortage, which has worsened due to the war against Ukraine. To cover the gap, Moscow has turned to a new source of workers — India, according to Reuters.
Read also: India's biggest importer halts Russian oil purchases, Reuters says
The outlet reports that Russia’s labor deficit has reached at least 2.3 million people, and the situation continues to worsen because of the ongoing conflict.
Traditional sources of labor — migrants from Central Asia — are no longer enough to meet demand, so Russia is actively recruiting workers from India.
Russia sharply increases the recruitment of workers from India
In 2021, around 5,000 work permits were issued to Indian citizens. Last year, that number jumped to nearly 72,000 — almost a third of Russia’s annual quota for foreign labor visas.
"Currently, expatriate employees from India are the most popular," said the director of a recruitment company. He added that migrants from former Central Asian countries have stopped coming in sufficient numbers.
At the same time, a weaker ruble, stricter migration laws, and anti-immigrant rhetoric have reduced the flow from Central Asia, prompting Russia to expand quotas for foreign workers.
India was chosen as a labor source partly because of the strong economic and defense ties between Moscow and New Delhi.
In December, Russian President Vladimir Putin and Indian Prime Minister Narendra Modi signed an agreement to simplify employment for Indian workers in Russia. First Deputy Prime Minister Denis Manturov said the country is ready to accept an unlimited number of such workers.
The government estimates that Russia needs at least 800,000 workers in manufacturing and another 1.5 million in services and construction.
Indian workers are already working at Russian factories
Indian workers are already working at Russian factories. Moscow-based textile company Brera Intex has recruited more than 10 South Asian employees to produce curtains and bedding.
The Sergiyevsky farm also employs Indian workers to process and package vegetables, paying an average monthly wage of about 50,000 rubles ($660), which local residents refuse to work for.
India-Russia cooperation
India has faced economic and trade losses due to its cooperation with Russia, especially amid the war against Ukraine and US and EU sanctions.
In 2025, the US raised tariffs on most Indian goods to 50%, including additional duties linked to India’s purchases of Russian energy and weapons.
After 2022, India also became the main buyer of Russian marine oil, as Russia sought new markets after a drop in European demand.
In January 2026, US President Donald Trump threatened India with new tariffs over its trade with Russia.
Currently, India is significantly reducing its purchases of Russian oil. By March, imports are expected to fall below 1 million barrels per day, potentially dropping further to 400–500 thousand barrels per day.
