Russia has a technological brain drain, many countries "wait for time"

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 As Russia is witnessing a technology brain drain, other countries see this as an opportunity to attract IT talent.


The Washington Post reported that by one estimate, up to 70,000 information technology professionals have left Russia since President Vladimir Putin launched a military operation in Ukraine on February 24, and this number will even increase. increase further.


This is a headache for Russia, but for some countries, this brain drain is being seen as a potential opportunity for them to attract new professionals to the high-tech industries.


President Putin has noticed this brain drain. The Russian leader responded to the wave of departures of tech professionals by passing a law eliminating income tax between now and 2024 for individuals working for information technology companies.


However, most people still say that they are in a hurry to return home. Many elite faces with European Union (EU) visas have moved to Poland or other Baltic states such as Latvia and Lithuania. And others go to visa-free countries like Armenia, Georgia and the former Soviet republics of Central Asia.


Anastasia, a 24-year-old computer systems analyst from Novosibirsk, Siberia, chose Kyrgyzstan, the hometown of her husband's family.


"When we heard about the fight (on February 24), we thought it might be time to leave, but we can wait and see. On February 25, we bought tickets and leave," Anastasia said. "There is no time to think much".


The scale of the brain drain was mentioned last week by Sergei Plugotarenko, head of the Russian Electronic Communications Association, an industry lobbying group.


"The first wave of 50,000-70,000 people left," Mr. Plugotarenko told a parliamentary committee. He also predicted another 100,000 people could leave Russia in April.


Konstantin Siniushin, a managing partner at Untitled Ventures, a technology-focused venture capital fund based in Latvia, said Russian tech companies with international clients have no choice but to leave because many foreign companies are in a hurry to separate themselves from anything related to Russia.


"They had to leave the country in order for the business to survive, or in the case of research and development staff, they were relocated due to the relocation of corporate headquarters," Siniusin wrote in an email.


Untitled Ventures is supporting the migration. Siniusin said the company has charted two flights to Armenia carrying 300 tech workers from Russia.


"Headhunting" campaign


Some neighboring countries are eager to attract IT talent from Russia.


Russian tech talent is a group in the world's leading "headhunting" target group. The Global Skills Index 2020 report released by Coursera shows that Russians score the highest in skill proficiency in technology and data science.


Immediately after hostilities began in Ukraine, Uzbekistan completely streamlined the process of obtaining work visas and residence permits for IT professionals.


Some countries, like Uzbekistan, are chosen by IT professionals because Russian citizens do not need a visa for short-term stays. But young professionals like Filippov don't necessarily plan to stay where they first arrive. "If I find better working conditions elsewhere, I'll keep leaving," he said.


Currently, many technology companies in Russia are looking to relocate to avoid the impact of international sanctions. Even this week, a senior diplomat from Kazakhstan called on Russian experts to "come to our country".


Kazakhstan is attracting particular interest from high-tech investors as it tries to diversify its oil-export-dependent economy.


In 2017, the government set up a technology park in the capital Nur-Sultan, offering tax breaks, concessional loans and subsidies to anyone preparing to open a company there. So far there hasn't been much effect, but Kazakhstan hopes that Russia's brain drain will give the initiative a big boost.


"The accounts of Russian companies are frozen and their transactions are not going through. They are trying to keep customers and one available opportunity is going to Kazakhstan," said Arman Abdrasilov, chairman of Zerde Holding, a investment fund in Almaty, the business center of Kazakhstan, said.


However, not all countries are so eager, such as Lithuania.


"Russian companies or startups cannot move to Lithuania. We do not work with any Russian companies," said Inga Simanonyte, an adviser to the Baltic country's Minister of Economy and Innovation. when they can move to Lithuania, and the ministry has suspended all startup visa applications as of February 24".

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