Russia Addresses Labor Shortage with Indian Workers

Russia is experiencing a significant labor shortage, estimated at 2.3 million workers, exacerbated by the war in Ukraine and a decline in migrant workers from Central Asia. To address this, Russia is increasingly turning to India as a new source of labor. In 2023, nearly 72,000 work permits were approved for Indian nationals, a substantial increase from 5,000 in 2021. This move is underpinned by strong defense and economic ties between Russia and India, including India's purchases of discounted Russian oil. President Vladimir Putin and Indian Prime Minister Narendra Modi signed a deal in December to facilitate Indian workers in Russia. Russian officials, like Denis Manturov, have indicated a willingness to accept an 'unlimited number' of Indian workers, with significant demand in manufacturing, service, and construction sectors. Russian companies like Brera Intex and Sergiyevsky Farm are already employing Indian workers, who are motivated by better wages compared to India. However, US pressure on India to halt Russian oil purchases, linked by Donald Trump to a potential trade deal, could complicate this burgeoning labor relationship.