President Vladimir Putin signed the labor mobility pact on Monday, completing Russia's ratification process after the State Duma approved it on October 1 and the Federation Council followed suit on October 2. The agreement, signed during Putin's state visit to New Delhi in December 2025, establishes a comprehensive framework for facilitating temporary employment of citizens in each other's territories. The ratification represents an important step towards formalising bilateral employment cooperation between the two countries.
More than 70,000 Indian citizens are currently working in Russia, primarily in the construction and textile industries, as reported by the Russian Ministry of Labour. The number is expected to reach 100,000 by the end of 2026, indicating significant growth in bilateral employment cooperation. Moscow has agreed to accept around 70,000 skilled Indian workers in 2026, according to Indian Foreign Minister S. Jaishankar who addressed a parliamentary panel earlier this month. Additionally, demand for Indian specialists has been expanding in Russia's engineering and electronics sectors, with the agreement potentially strengthening opportunities for Indian professionals as demand grows in these sectors.
Russia is facing a severe labour shortage that has become the main factor holding back economic development, according to researchers at the India Lab at the Moscow School of Management, Igor Gundobin and Lydia Kulik, in their report titled 'Human Capital in India and Russia: In Search for Complementarity'. Russian authorities have estimated an immediate shortage of at least 2.3 million workers in the country. Sberbank, Russia's largest bank, has called for easier entry procedures for Indian workers to help address shortages in the construction industry. The employment agreement aims to support this massive workforce requirement through formalised temporary employment frameworks.
The agreement, signed in New Delhi on December 5, 2025, covers Indians working in Russia and Russians employed in India under employment or service contracts, as well as full-time students taking temporary jobs outside their studies. The agreement requires foreign employees to receive pay and working conditions no less favorable than those offered to local workers in comparable positions. Employees laid off because of business closures or staff reductions will be entitled to compensation under local laws, while pension, social security, and medical insurance provisions will be governed by host-country legislation and applicable bilateral agreements. The agreement will formally take effect once both governments complete the required domestic procedures and exchange written notifications.
