Russia Faces Severe Labor Crisis, Turns to India and Sri Lanka for Workers

• Russia is experiencing its most severe labor crisis in decades, exacerbated by demographic shifts and the war in Ukraine, leading it to seek workers from India, Sri Lanka, and other populous nations.
• The country estimates it needs an additional 11 million laborers by the end of the decade; President Putin discussed this during his December visit to New Delhi.
• Employment permits issued to Indians surged from 5,000 in 2021 to over 56,000 last year, with foreign workers now filling municipal jobs, construction, and urban services.
• Moscow-based recruitment agency Intrud, established two years ago, is actively recruiting in India, Sri Lanka, and Myanmar, noting a "tectonic shift" in the Russian labor market.
• The labor shortage is impacting major Russian companies like MMC Norilsk Nickel PJSC and JSC Shipbuilding Corporation Ak Bars, with hiring from Asia often being more cost-effective.