Politics

North Korea sends thousands of workers to rescue Russia’s crumbling economy Under a Strict Condition

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Russia’s economy is going through a tough time. President Vladimir Putin is trying to fix the situation by bringing in thousands of workers from North Korea. This is happening even though it seems to go against rules set by the United Nations, which were put in place to limit North Korea’s international activities after their missile tests.

South Korean intelligence says about 15,000 North Korean workers have been sent to Russia to help fill the huge labor gap caused by the war in Ukraine.

Russia doesn’t have enough workers right now because many soldiers have died in the war, fewer babies are being born, and a lot of people have left the country since the war started. Because of all this, the number of available workers has dropped sharply, and the problem is only expected to get worse. The Russian Labor Ministry believes that by the end of the decade, the country could be short by 2.4 million workers. Right now, the shortage is already at 1.5 million.

North Korea has been one of Russia’s strongest allies during the war. After signing a defense agreement in late 2024, North Korea began sending soldiers to help Russia fight Ukraine. In 2024, 12,000 North Korean troops arrived, and in 2025, another 3,000 followed. It’s estimated that about 600 of these soldiers have already died while fighting alongside Russian forces. This is a sign of just how involved North Korea has become in supporting Russia’s war effort.

At the same time, Russia’s economy is shrinking. This year, for the first time in nearly three years, the economy may have gotten smaller during the first part of 2025. This is a big deal, especially for a country already hit by international sanctions. Russia is also suffering from low oil prices and weak production from its industries, which makes the economic situation even worse. A full report on the real state of the economy is expected soon.

Because of all these problems, the Russian government is planning to make changes to the national budget. Right now, the government is spending much more money than it’s earning. To deal with this, they might raise taxes for everyday people and businesses.

Early plans suggest personal income tax could go up by 180%, and corporate taxes might rise by 110%. VAT—the tax on goods and services—may also be increased by 17%. These changes would hit small and medium-sized businesses the hardest. Many of them are already struggling, and higher taxes could push them into bankruptcy.

Russia’s own intelligence service has warned that nearly one-third of small and medium businesses are close to shutting down. If things don’t improve, that number could grow to half of all such businesses by the end of the year. This paints a worrying picture of an economy under heavy pressure, with shrinking opportunities, rising taxes, and fewer people available to work.