The partial mobilization is having a painful impact on the Russian labor market. The central bank sees this as another inflation driver. The state-owned companies Rosneft and Gazprom are reacting drastically: Employees are to be strictly prohibited from traveling abroad.
Employees of state-owned Russian oil and gas companies have apparently been banned from traveling abroad. This was reported by the independent media company Verstka, citing sources at Gazprom and Rosneft. According to an executive at Gazprom's St. Petersburg office, he and his staff have been "unofficially banned" from traveling abroad -- "even to Turkey." The ban also applies to close relatives of Gazprom employees.
The media quoted another source at Gazprom: "We have been banned from traveling abroad, that applies to all trips. The consequences have not been specified in detail. But we are smart. You informed us about the ban a few days ago . Many of us had already bought tickets and booked hotels for the New Year holidays. But it is impossible to leave the country, not even for medical treatment, let alone holidays. People are very unhappy."
According to the informant, the Gazprom security service is monitoring the implementation of the order. A similar ban applies to Rosneft. There, employees signed a special document that prohibits them from traveling abroad, the report said.
Meanwhile, the Russian central bank warned of increased inflation risks as a result of the partial mobilization for the war against Ukraine. "The labor shortage is increasing in many sectors due to the effects of partial mobilization," said the monetary authorities. Since September, this has led to hundreds of thousands of Russians either being drafted into the army or leaving the country. They are no longer available for the job market. The shortages are causing prices to rise because many companies are unable to keep their range of goods and services as planned. The problems would severely limit economic activity and the ability to expand production. "In our opinion, inflationary factors are currently predominant, not only in the medium term but also in the short term," said central bank governor Elvira Nabiullina.
According to the Ministry of Economic Affairs, the inflation rate is currently 12.65 percent. It is thus more than three times as high as the four percent target of the central bank. Despite high inflation, the central bank left its key interest rate at 7.5 percent. After the invasion of Ukraine, the monetary watchdogs raised the key interest rate to 20 percent at the end of February, but then gradually lowered it. You are in a bind. Inflation, which depresses the standard of living, should actually be fought with higher interest rates. However, these would also put an even greater strain on the already shrinking economy, which is suffering from Western sanctions.
