Russia Sees Tech Brain Drain, Other Nations Are Hoping To Benefit

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Many companies seek to relocate in order to avoid the consequences of international sanctions. This week, a senior diplomat from Kazakhstan, a Russian neighbor, appealed for foreign companies to flee to his country.

Kazakhstan is looking for high-tech investors to diversify its economy which depends heavily on oil exports. The government established a technology park in the Nur-Sultan capital and provided tax breaks, preferential loans and grants to anyone who wanted to open a business there.

Although the uptake so far has been slow, the hope is that the Russian brain drain will give this initiative a significant boost.

“Russian companies have their accounts frozen and transactions are not going through,” said Arman Abdrasilov, chairman of Zerde Holding. They want to retain customers and one option is to go Kazakhstan,” Arman Abdrasilov (chairman of Zerde Holding), a Kazakhstani investment fund in Almaty.

However, not all countries are as eager.

Inga Simanonyte is a consultant to the Baltic nation’s Economy & Innovation Minister. She stated that “Russian startups or companies cannot move to Lithuania.” “We don’t work with any Russian company regarding their relocation to Lithuania and the ministry has suspended all startup visa applications since February 24.”

Some governments are wary of welcoming economic refugees from Russia because of security concerns or suspicions that they might spy on foreigners or engage in cyber-crime.

“The security services are very closely linked to the IT sector in Russia.” The problem is that we risk importing parts from Russia’s criminal system without a very strong vetting process,” Marius Laurinavicius, a Lithuanian political analyst, told The Associated Press.

Siniushin, the managing partner of Untitled Ventures, urges Western countries to open their doors for their employers to take advantage of the unique hiring opportunities created by the war.

He stated that the United States and Europe can take more talent from Russia than Russia, which will result in more benefits for other countries.