Western companies leave Russia, Russians are left without jobs

Until the end of January Alexander (renamed) worked in a factory with 12-hour night shifts earning 35,000 rubles a month for about 480 euros. The 22-year-old student from the Saratov region in southwestern Russia wanted to become a pilot, but for health reasons, which did not allow this, he changed his mind to become an air observer. He accidentally saw an advertisement of a Russian airline and immediately applied. He was invited for an interview and for a practical test in Volgograd. Both tests went well. At that time Alexander resigned from the factory.

The airline offered him good conditions: a training course in Moscow followed by an employment contract with a monthly salary of 100,000 rubles, about 1370 euros. But he never did the training. On February 24, Russia launched an invasion of Ukraine, and foreign companies began to leave the Russian market. Western sanctions affect hundreds of Russian individuals and companies, including airlines. But the West also closed airspace to Russian aircraft and banned the sale, supply and transfer of aircraft and spare parts to Russia. This forced leasing aviation companies to close contracts for planes in Russia, but Russian firms did not return the leased aircraft.

However these planes today fly only to destinations within Russia. As a result, Alexander’s training and employment were canceled. He now thinks it makes no sense to apply for jobs at other airlines. “Aircraft are not subject to maintenance inspections, which is a normal procedure. Spare parts not supplied. Therefore the condition of these aircraft circulating in the air is not certain. “The risks for me are very big”, says Aleksandri.

Back to the economy as in the 90s

Tatiana Mikhailova, an economist and lecturer at the New Economy School in Moscow, says the sanctions will have long-term effects, including excluding Russia from global supply chains, and that these restrictions will cause technological backwardness. “The aviation industry, meanwhile, is complaining that there will be no spare parts after six months. “Other industries are facing similar developments,” says Mikhailova.

She expects the Russian economy to shrink back to the level of the 1990s. She points out that the sanctions will hit all sectors of the Russian economy that use foreign components such as the automotive industry, the pharmaceutical sector and even agriculture that receives seeds from abroad. “Many businesses will be forced to close and lay off workers. “Demand for goods and services will fall, because the population will become poorer and this will affect every sector, even hairdressers and beauty salons,” says Mikhailova.

According to her, many Russians are losing their jobs and are unable to find new jobs because the demand for qualified workers is falling. She says people in Moscow are particularly affected because many of them work in the finance sector or in marketing and publicity services. According to Moscow Mayor Sergei Sobyanin, about 200,000 people in the Russian capital alone are losing their jobs as foreign companies are leaving.

Renault plant in Moscow

A resident of Moscow: “We expected it but not so fast”

Aliona (name changed) a 19-year-old worked as a saleswoman for the Spanish denomination firm “Zara”. This job suited her undergraduate studies. But in early March the firm told its employees that all stores in Russia would be closed and that none of the employees would have to return to work. “My co-workers and I expected this, but not so fast,” says Aliona. She still receives two-thirds of her salary and is paid annual leave. “My situation is not the worst. I worked there only for money and I will leave this job anyway. “I now want to focus on my career advancement and find a job in the profession I like,” says Aliona, who is currently taking a design training course.

Marina (name changed) also wants a job to advance further. The 30-year-old from Moscow works in the field of digital marketing. Last winter at the firm where she had long wanted to work she was told, that there is a position for her. But when Russia’s war broke out in Ukraine, managers suddenly told him they would not hire more employees. This greatly disappointed Marina. “Of course I would like to find a similar position, but this is not realistic in the near future. Many firms are downsizing. And the demand for new employees has generally decreased. “Especially in marketing,” she says. Right now it is not about fulfilling career ambitions, but it is important to find a source of income, she says further.

Forbes: Mass unemployment at the end of the year

Forbes recently writes, that more than 600,000 jobs could be lost by the end of the year in Russia. For Alexander the loss of a job was accompanied by strong emotional side effects. “If I had not passed the test it would have been my mistake and I would have tried to improve. “But something happened that I did not anticipate and I can not change, and it hurts me,” he said. Alexander now intends to first do more advanced higher studies and then look for a job. Parents are helping her with money. None of the people who spoke to DW support Russia’s war in Ukraine. They all think of leaving their country. “We have some general thoughts to move on, but we have not yet planned to leave Russia at this time, but we have this option in mind,” says Marina.

Aliona will initially receive a degree from a Russian university and then she intends to leave for Germany. Alexander’s stay in the Russian capital was originally intended as an intermediate station to go elsewhere. “I thought this would give me a chance,” he says. After Moscow he had planned to go abroad. “But now it is much more complicated. Prices have risen, while wages have remained the same and people are unhappy about this. Instead of holding the Russian government accountable, they blame the people behind the sanctions, Alexander criticizes. He admits that he will really leave, but it is difficult for him to talk about this issue.DW

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