Boom Time: Siberia's Oil-Rich Middle Class

As you approach Nefteyugansk from the air, the first things you see are hundreds of little flames, spread across the landscape like candles on a birthday cake. The source of the plumes are oil rigs, burning off the gas that accompanies the oil as it rises to the surface.

This is Western Siberian oil country, the bedrock of modern Russia’s economy. Two of Russia’s largest oil companies have their official headquarters in this region: top-ranked Yukos is based in Nefteyugansk, and fourth-ranked Surgutneftegaz resides in Surgut, an hour’s drive away. Situated just a few hundred kilometers from the Polar Circle, these are prosperous, well-run companies, which, by Russian standards, pay their staff extremely well.

At Yukos (which made headlines last October when its then-CEO, Mikhail Khodorkovsky, was arrested at gun point, soon after announcing he was funding the political opposition), a reasonably experienced oil rig worker can bring home $700 a month, over three times the national average. At Surgutneftegaz, which is generally acknowledged to pay higher wages, the same worker can make $1,000.