SectionsSEARCHSkip to contentSkip to site indexLog inTechnology|Russian Tech Industry Faces ‘Brain Drain’ as Workers Fleehttps://www.nytimes.com/2022/04/13/technology/russia-tech-workers.htmlGive this articleRussia-Ukraine WarliveUpdatesMapsPhotosHow We Verify ImagesHistory of TensionsRussian Tech Industry Faces ‘Brain Drain’ as Workers FleeSince their country invaded Ukraine, Russian tech workers have left by the thousands. They appear intent on rebuilding their lives and businesses in other countries.Give this articleRead in appZvartnots International Airport in Yerevan, Armenia. The country has become a landing spot for tech workers leaving Russia. Credit...Daro Sulakauri for The New York TimesBy Cade Metz and Adam SatarianoApril 13, 2022Sign up for the Russia-Ukraine War Briefing.  Every evening, we'll send you a summary of the day's biggest news. Get it sent to your inbox.In early March, days after Russia invaded Ukraine and began cracking down on dissent at home, Konstantin Siniushin, a venture capitalist in Riga, Latvia, helped charter two planes out of Russia to help people flee.Both planes departed from Moscow, carrying tech workers from the Russian capital as well as St. Petersburg, Perm, Ekaterinburg and other cities. Together, the planes moved about 300 software developers, entrepreneurs and other technology specialists out of the country, including 30 Russian workers from start-ups backed by Mr. Siniushin.The planes flew south past the Black Sea to Yerevan, the capital of Armenia, where thousands of other Russian tech workers fled in the weeks after the invasion. Thousands more flew to Georgia, Turkey, the United Arab Emirates and other countries that accept Russian citizens without visas.By March 22, a Russian tech industry trade group estimated that between 50,000 and 70,000 tech workers had left the country and that an additional 70,000 to 100,000 would soon follow. They are part of a much larger exodus of workers from Russia, but their departure could have an even more lasting impact on the country’s economy.The exodus will fundamentally change the Russian tech industry, according to interviews with more than two dozen people who are part of the tightknit community of Russian tech workers around the world, including many who left the country in recent weeks. An industry once seen as a rising force in the Russian economy is losing vast swaths of its workers. It is losing many of the bright young minds building companies for the future.ImageA cafe in Yerevan draws Russian immigrants. Credit...Daro Sulakauri for The New York Times“Most Russian tech workers are part of the global market. Either they work for global companies or they are tech entrepreneurs trying to build new companies for the global market,” Mr. Siniushin said through an interpreter from his office in Riga. “So they are leaving the country.”The recent exodus reverses 10 to 15 years of momentum in the Russian tech industry, said Konstantin Sonin, an economist at the University of Chicago’s Harris School of Public Policy, who immigrated from Russia to the United States. “It is now like the ’90s, when whomever was able to move moved out of the country,” he said.Tech is a small part of the Russian economy compared with the energy and metals industries, but it has been growing rapidly. The loss of many young, educated, forward-looking people could have economic ramifications for years to come, economists said.“The long-run impact may be more significant than the short-run impact,” said Barry Ickes, head of the economics department at Pennsylvania State University, who specializes in the Russian economy. “Eventually, Russia has to diversify its economy away from oil and gas, and it has to accelerate productivity growth. Tech was a natural way of doing that.”Workers left the country because they objected to Russia’s invasion of Ukraine, no longer wanted to live under the Putin regime and feared they could not speak their minds if they remained. Working in tech, a comparatively lucrative industry, they had money to flee the country. And like other tech workers globally, they could continue their work from anywhere with a laptop and an internet connection.Others left because their companies pulled them out.After foreign governments imposed sanctions on Russia and many American and European companies stopped selling products there or barred access to banking and internet services, some Russian tech workers did not have the tools needed to do their work. Companies struggled to pay them.Some worked for companies based in Russia and others for companies with headquarters elsewhere. Many start-ups in the United States and Europe — including many founded by Russian-born entrepreneurs — relied on software coders, engineers and other tech workers in Russia. To Russian entrepreneurs living abroad, these workers were a known quantity, and they were not as expensive as specialists in Silicon Valley and other parts of the United States.StudyFree, a San Francisco start-up that helps students find university scholarships and grants, employed about 30 workers in Russia, but keeping them there became a liability, so the company has moved them out, said Dasha Kroshkina, the company’s Russian-born founder.Live Updates: Russia-Ukraine WarUpdated April 14, 2022, 10:58 a.m. ET20 minutes ago20 minutes agoAs two U.S. lawmakers visit Kyiv, the trip’s organizer says he hopes more officials, and weapons, will follow.Using a Neptune missile on Russia’s Black Sea flagship would be ‘a big deal,’ a former U.S. Army commander says.Damage to Russia’s Black Sea flagship is a boost to Ukraine, but unlikely to alter the war.“We will not be able to attract as much funding if we still have employees in Russia,” she said.Editors’ PicksN.F.L. Players Try a Different Training Camp: The Broadcast BoothAmbient Music Isn’t a Backdrop. It’s an Invitation to Suspend Time.As Mamet Returns to Broadway, His Claims on Pedophilia Get SpotlightContinue reading the main storyImageYerevan, the Armenian capital. The country’s economic minister said Armenia was not trying to attract Russian companies, but would assist them if they chose to come.Credit...Daro Sulakauri for The New York TimesIn March, a group that offered tips and other help for people moving from Russia to Yerevan on the internet messaging app Telegram swelled to as many as 18,000 members. During workdays, Russian tech workers filled coffee shops and other public spaces, and as they jockeyed for places to live, rent prices rose significantly, according to many who worked to find apartments through the Telegram group.“We don’t have enough quality apartments for highly educated people with high salaries and high standards,” said Aram Shahbandarian, a former Google employee based in Yerevan who is helping many Russians move to the city. “Yerevan is cracking.”Vahan Kerobyan, Armenia’s economy minister, said in an interview that as a country with a strategic relationship with Russia, it was not marketing itself as trying to pull companies out of Russia, but that if companies decided to move, it would work to accommodate them.“The Armenian tech community is providing support to their Russian friends, and the government is very much worried about giving Russian companies a nice place that is not too expensive where they can work,” he said. Mr. Kerobyan estimated that 43,000 people had moved from Russia to Armenia, half of whom hold Russian passports and half Armenian passports.Miro, a U.S. software company, chartered flights to Yerevan for its Russian employees and moved them into two hotels in the heart of the city, Mr. Kerobyan said. X-tensive, a software development company in Russia, has also moved its employees to the Armenian city because its primary client, ServiceTitan, has an office there, he said.Miro has said publicly that it was moving its workers out of Russia. X-tensive did not respond to a request for comment.Russia-Ukraine War: Key DevelopmentsCard 1 of 4A blow to Russian forces. The flagship of Russia’s Black Sea fleet suffered catastrophic damage that forced the crew to abandon it. Russia said that a fire had caused the damage, though Ukraine claimed to have struck the vessel with missiles.A boost to NATO. Finland and Sweden are considering applying for membership in the alliance. Dmitri A. Medvedev, Russia’s former president and prime minister, said Moscow would be forced to “seriously strengthen” its defenses in the Baltics if the two countries were to join.U.S. support. President Biden told Ukraine that the United States would send it an additional $800 million in military and other security aid. American officials, meanwhile, confirmed they had increased the flow of intelligence to Ukraine about Russian forces in the Donbas and Crimea.Gathering evidence of atrocities. A wide-ranging investigation by the Organization for Security and Cooperation in Europe detailed what it said were “clear patterns” of human rights violations by Russian forces in Ukraine.Many of those workers may eventually move on to other places because visa restrictions require them to leave their current home after a certain number of days. Many are unsure where they might go. Others are planning moves to up-and-coming tech hubs farther away, such as Dubai and Lisbon.Artem Taganov, founder and chief executive of a Russian start-up called HintEd, said he knew about 70 founders of Russian companies who, like him, had fled to Armenia. If entrepreneurs stay in Russia, he said, their companies can serve only the local market.“Before all this started, Russia had such a strong technology base,” Mr. Taganov said. “Now, we have a brain drain that will continue for the next five to 10 years.”Russia has a tradition of producing talented software engineers and web developers. Noteworthy companies like Telegram and Yandex have come from the country. As sanctions cut the country off from the global economy, tech companies will have to take cues from China, a much larger country, where businesses have succeeded by catering to domestic customers.The Russian government wants to keep tech workers in the country, offering lower tax rates, preferable mortgages and even the promise that they will not be conscripted into the army, according to state media. Last week, Mikhail V. Mishustin, the prime minister of Russia, called on Russian tech workers to create “our own ecosystem.”“The motherland gave you all you need to do your work,” Mr. Mishustin said in his annual address to Parliament. “You will be able to work reliably and calmly for your country, for your company, earn normal money and live here comfortably.”Many will remain in Russia working for state-affiliated companies. But they will face other obstacles.They may have to rebuild many of the fundamental tools needed to construct modern software and internet services. Crucial computer hardware may become harder to find as sanctions limit availability.Stepan Pachikov, considered by many to be one of Russia’s first successful tech entrepreneurs after he built Paragraph International, a company that made handwriting software for Apple machines, said that the smartest tech workers had been leaving the country for years but that the pace was accelerating.As Mr. Pachikov has watched Russia become economically isolated from the world and more restrictive at home, he has little optimism about the future. “It’s devastating,” he said. “If you lose too much blood, it is death for the body. Russia has lost a lot of blood.”Anton Troianovski contributed reporting.More on Russia, the War and TechRussia Is Losing Tens of Thousands of Outward-Looking Young ProfessionalsMarch 20, 2022Russia, Blocked From the Global Internet, Plunges Into Digital IsolationMarch 7, 2022Correction: April 12, 2022An earlier version of this article misstated which company built by Stepan Pachikov made handwriting software for Apple machines. It was Mr. Pachikov’s company Paragraph International, not Parascript. It also misstated the location of a software company’s founding. ServiceTitan was founded in California, not in Armenia.Cade Metz is a technology correspondent, covering artificial intelligence, driverless cars, robotics, virtual reality, and other emerging areas. He previously wrote for Wired magazine.  @cademetz Adam Satariano is a technology correspondent based in Europe, where his work focuses on digital policy and the intersection of technology and world affairs. @satariano A version of this article appears in print on April 14, 2022, Section B, Page 1 of the New York edition with the headline: ‘Brain Drain’ Threatens Russian Tech. Order Reprints | Today’s Paper | SubscribeGive this articleRead in appOur Coverage of the Russia-Ukraine WarUkrainians and the WarUkrainian artists are continuing to work, documenting the impact of events as they unfold to keep the world watching. Here are five whose work can be seen on Instagram.Ukraine’s vibrant wetlands, forests and protected landscapes could be profoundly affected by the war. Reports from the ground and research suggest that the destruction of habitats, killing of wildlife and pollution are among the greatest dangers.Russians and the WarAs Russia presents a sanitized version of the war to its people, Ukrainian activists and Western institutions have begun to pierce that propaganda bubble with a mix of high-tech and Cold War tactics.Russia’s tech industry is facing a “brain drain” as thousands of workers are leaving to rebuild their lives and businesses in other countries.Around the WorldIn Germany, doubts are emerging over Chancellor Olaf Scholz’s commitment to his promises to arm his nation, send weapons to Ukraine and end Germany’s dependence on Russian energy.China’s officials and state media have been amplifying Russian propaganda on the war, undercutting U.S. and European diplomatic efforts.How We Verify Our ReportingThe Times has deployed dozens of journalists to report on the ground in Ukraine, to cut through the fog of misinformation.Our team of visual journalists analyzes satellite images, photographs,videos and radio transmissions to independently confirm troop movements and other details.We monitor and authenticate reports on social media, corroborating these with eyewitness accounts and interviews. Read more about our reporting efforts.Understand What Is Going OnAvoiding Misinformation: Here are warning signs to look for before you retweet information about the war.Dig Deeper: Understand the history of the relationship between Russia and Ukraine, the causes of the conflict and the weapons that are being used.Potential Impact: The fate of Ukraine could have enormous implications for the world. Learn more about what’s at stake and how the energy sector is already affected by the war.Outside Pressures: Governments and businesses are taking steps to punish Russia. Here are some of the sanctions adopted so far and a list of companies pulling out of the country.Stay Updated: To receive the latest updates on the war in your inbox, sign up here. The Times has also launched a Telegram channel to make its journalism more accessible around the world.More in TechnologyMarc Piasecki/WireImage, via Getty ImagesFor Prominent Women on Instagram, DMs Can Be a Cesspool of MisogynyApril 7Brendan ConroyThe Old-Timers Are Chasing NetflixApril 6Víctor ArceEtsy and the Sameness of Internet FightsApril 13Chelsea BeckWelcome Back to the Office. Isn’t This Fun?April 12Johana and Maxim KroftWe Can’t Predict the Grocery FutureApril 8Editors’ PicksMark Sullivan/WireImage, via Getty ImagesAs Mamet Returns to Broadway, His Claims on Pedophilia Get SpotlightApril 13Claudio Lavenia/Getty ImagesAre There Any Limits to Leggings Any More?April 8Clockwise from top left: Saul Loeb/AFP — Getty Images; Evan Sung for The New York Times; Amy Lombard for The New York Times; Chuck Burton/Associated PressPFAS: The ‘Forever Chemicals’ You Couldn’t Escape if You TriedApril 12Most PopularWe Always Give Generous Gifts. Why Are My In-Laws So Cheap?Alexander Skarsgard’s Viking DreamHe Was Remarkably Healthy Until Chronic Diarrhea Nearly Killed HimHow Is War Affecting Your Grocery Bill?Why No One Died When a Gunman Opened Fire on the SubwayThey Were College Friends. Now They’re Art Thieves.If You Think Houses Are Expensive, Wait Till You See What Condos CostAm I Done Suffering for Fashion?Blaming Trump, Jan. 6 Suspect Says He Fell Down a ‘Rabbit Hole’ of LiesOpinion: The Pity of the ElitesSite IndexGo to Home Page »newsHome PageWorldCoronavirusU.S.PoliticsNew YorkBusinessTechScienceSportsWildfire TrackerObituariesToday's PaperCorrectionsTrendingOpinionToday's OpinionColumnistsEditorialsGuest EssaysLettersSunday ReviewOpinion VideoArtsToday's ArtsArt & DesignBooksBest Sellers Book ListDanceMoviesMusicPop CultureTelevisionTheaterVideo: ArtsLivingAutomotiveGamesEducationFoodHealthJobsLoveMagazineParentingReal EstateStyleT MagazineTravelMoreReader CenterThe AthleticWirecutterCookingHeadwayLive EventsThe Learning NetworkTools & ServicesPodcastsVideoTimesMachineNYT StoreManage My AccountNYTLicensingSubscribeHome DeliveryDigital SubscriptionsGamesCookingEmail NewslettersCorporate SubscriptionsEducation RateMobile ApplicationsReplica EditionInternationalCanadaEspañol中文网Site Information Navigation© 2022 The New York Times CompanyNYTCoContact UsAccessibilityWork with usAdvertiseT Brand StudioYour Ad ChoicesPrivacy PolicyTerms of ServiceTerms of SaleSite MapHelpSubscriptions