Amidst the ongoing conflict in Ukraine, Russia’s oil and gas industry has played a significant role in funding the war effort. However, this has come at a cost for the industry, as it is now facing a shortage of manpower due to the full mobilization of the economy for war. This has worsened an existing demographic crunch in the country.

As high-paying energy companies like Gazprom PJSC struggle to attract and retain skilled workers amidst increasing demand from other sectors involved in the conflict, they are finding themselves in competition with both the Russian army and weapons manufacturers. In fact, analysts and recruiters 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, which must now find innovative ways to incentivize workers to choose careers in this field. Despite these challenges, however, the industry remains crucial for funding the ongoing conflict and supporting the Kremlin’s objectives in Ukraine.