The Russian President's decision to call up 300,000 men to fight in Ukraine will have a negative impact on the Russian economy and worsen the labor shortage.
With record-low unemployment, companies are scrambling to prevent their employees from being drafted, as there are few candidates to replace them.
The recent announcement has also led to an exodus of young men fleeing the country to avoid the mobilization.
"The main thing isn't the loss of workers, it's the brain drain. The people who are leaving as a rule are wealthier, educated. You can't flee with an empty wallet."
- Natalya Zubarevich, Moscow State University
The government expects a contraction of 3% in GDP this year and 1% next year. Renaissance Capital economist Sofya Donets forecasts another 0.5% following the partial mobilization.
