Russia’s largest automaker Avtovaz now wants to fill gaps in its workforce with prisoners. The prison administration in the industrial region of Samara announced on Wednesday that the Lada manufacturer had asked them to allocate prisoners sentenced to forced labor due to the extremely tense labor market. This was discussed at a meeting between representatives of both sides.
Avtovaz aims to increase its production by 28 percent from September and 40 percent from January next year, the statement said. Further details about production targets were not given.
The company, based in the town of Togliatti in the Samara region, named after an Italian communist, declined to comment.
The Russian auto industry is recovering
The Russian auto industry is gradually recovering from last year’s historic slump. After Russia attacked Ukraine, Russian car production fell to 450,000 cars last year, partly due to Western economic sanctions. That was the lowest level since the end of the Soviet Union.
Many Western manufacturers have withdrawn from Russia
Several Western manufacturers have pulled out of the country, including former Avtovaz major shareholder Renault. Avtovaz also suffers from a shortage of car parts, among other things.
The Russian labor market is almost full. The unemployment rate fell to a record low of 3.3 percent in April. As a result of the war in Ukraine, hundreds of thousands of men were drafted into the army and many others fled abroad.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
