Jens Asbjørn Bøgen
“Without economic growth, there will be nothing,” he says.
Russia will need to bring in millions of qualified foreign workers to keep its economy expanding and achieve at least 3.2% annual growth, a top banking executive and close ally of President Vladimir Putin warned on Thursday.
According to Reuters, German Gref, head of Sberbank, Russia’s largest private bank, told members of the State Council for Demographic and Family Policy that the country’s future depends on either boosting productivity or expanding its workforce.
“Without economic growth, there will be nothing. We will not be able to solve social problems or any other. We need to grow at a pace that is not below the global average. That means at least 3.2% annually until 2030,” Gref said.
Shrinking workforce
Since the start of the war in Ukraine, Russia has faced severe labor shortages across multiple industries. Hundreds of thousands have joined the armed forces, while many skilled professionals have fled abroad to avoid mobilization.
Generous payments to military volunteers have fueled wage inflation, making it harder for civilian employers to hire. Sberbank expects growth to slow to just 0.8% in 2025, compared with 4.3% last year.
The Central Bank of Russia is set to announce its latest interest rate decision on Friday, with analysts saying “any outcome is possible” amid economic uncertainty.
Migration as a solution
Gref argued that attracting qualified migrants is now the only realistic path to sustaining growth. With high interest rates, limited investment, and Western sanctions constraining productivity gains, he said foreign talent could help fill the gap.
However, migration has become an increasingly contentious issue in Russia. Public calls to expand the migrant workforce are rare, despite the country’s long reliance on laborers from Central Asian states.
Sectors such as construction, agriculture, and municipal services have historically depended on workers from countries like Uzbekistan, Kyrgyzstan, and Tajikistan.
Security fears after attack
Migration policy tightened sharply after the March 2024 terrorist attack at Moscow’s Crocus Concert Hall, which killed more than 140 people. The attackers, citizens of Tajikistan, were believed to have been radicalized by ISIS-K.
Following the attack, authorities adopted a tougher stance toward migrants, while reports of assaults on foreign workers increased. The climate of hostility has complicated efforts to bring in much-needed labor.
A call for “qualified migration”
“Unfortunately, we are facing negative selection. We are attracting mainly low-skilled labor, while we ourselves are losing highly qualified specialists,” Gref warned.
He called on the government to seek skilled professionals from abroad and to encourage foreign students to remain in Russia after completing their studies.
“It’s a matter of national security and the survival of the country,” Gref said.
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