In general, reindeer husbandry is a profitable and usually sustainable economic activity. However, there are a number of problems that severely impinge on its viability and even threaten its very existence. I will focus on some of the crucial factors that currently affect reindeer herding and the reindeer herders' livelihood. The difficult overall economic situation in Russia, and especially in rural areas, has a very negative impact on all aspects of agriculture, including reindeer husbandry. For instance, agricultural workers have not received wages for years.
Most rural inhabitants have the impression that agriculture is entirely neglected by the government.
Governmental programmes do exist to help reindeer herders but their implementation usually fails because of the general lack of financial means. The heads of the enterprises engaged in reindeer husbandry have realised that they cannot expect support from the authorities but must tackle the problems on their own. Some local officials do not see the profitability of reindeer husbandry but rather think it is a quaint traditional activity for ethnic minorities. Reindeer herding is not a prestigious activity. Most of the young people prefer to live in town or, at least, in the village.