Fleeing Russia to Armenia - alternative for people and companies amid Russo-Ukrainian war

JAMnews

Yerevan

Russians and Ukranians flee to Armenia

Up to 30 or more planes of Russian airlines have been landing at Yerevan Zvartnots Airport in recent days. So far, it is known that in connection with the Russian-Ukrainian events, not only ethnic Armenians, temporarily or permanently residing in Russia and Ukraine, but also representatives of other nationalities are coming to Armenia. It has not yet been reported how many people have arrived already. The Armenian Migration Service stated only that it had not yet received asylum applications from Russian and Ukrainian citizens.

However, there is information that Russian and Ukrainian companies are moving to Armenia as well. It was also confirmed by the Minister of Economy, Vahan Kerobyan, who said that “dozens, if not hundreds of companies” have filed applications to transfer their activities to Armenia, some of them are already in the country. However, local experts believe that this is a temporary phenomenon, they are unlikely to stay here for a long time.

“Dozens of companies have moved, more are coming”

According to the Minister of Economy, many Russian companies are considering the possibility of continuing their activities in Armenia:

“More than a dozen companies have actually already relocated, several companies are on their way. In general, many companies have applied for relocation – dozens, one might even say hundreds”.

Russian companies are thinking about the termination of activities in their country due to international sanctions, the consequences of which are already surfacing – in particular, the devaluation of the ruble.

According to the Minister of Economy, Armenia attracted them with its free business environment, and most of the relocating companies are in the high-tech sector.

“Most of them are companies that have direct ties with Western markets. Today’s restrictions do not allow them to do this work from their own country”, said Vahan Kerobyan.

He said that a special working group has already been created in the ministry, which deals with “the issues of moving existing businesses from other countries to Armenia and the creation of new companies”.

The intention to move to Armenia is announced not only by organizations, but also by those Russians who work online, remotely.

In their own words, they see Armenia as an alternative, as there is “no language barrier”.

People come from both Russia and Ukraine

Because of the war in Ukraine, not only Russian, but also Ukrainian organizations are moving to Armenia, Hayk Chobanyan, executive director of the Union of Advanced Technology Enterprises, said.

According to him, the largest of the relocating Ukrainian companies has 300 employees, and the process of registering it in Armenia is currently underway.

The Minister of Economy also confirmed that Ukrainian companies are negotiating to move their activities to Armenia, but did not specify how many organizations are showing such interest.

Expert commentary

The relocation of organizations or their accounts from Russia and Ukraine to Armenia may be short-term, says economist Suren Parsyan.

In his opinion, these can be IT companies – organizations providing analytical and legal services.

“Manufacturing businesses, for example, take a long time to relocate. I don’t think that in the conditions of hostilities they will be able to move․ Air communication with Russia [referring to cargo transportation] is now very weak, it is practically non-existent”, Suren Parsyan told JAMnews.

The economist is sure that the motivation to move to Armenia for IT employees is lower than the motivation to leave for the USA, Canada or European countries, only now there is no way to get there:

“Conditions in Armenia – welfare, education, healthcare, etc. – are several times worse than in Western countries. It is more likely that companies will move to their clients in the West than they will come to Armenia”.

Suren Parsyan says that it can only be a temporary transfer of business structures, and from a long-term point of view, “Armenia’s positions are not strong enough”.

According to the expert, the Armenian government should take certain steps to detain incoming companies here:

“There is no one universal step with which we could satisfy everyone. Steps should be considered separately – by areas, depending on the needs of companies.

Suren Parsyan believes that they also need financial and legal advice, assistance in finding territories, employees, and logistics. According to him, the Ministry of Economy should seriously deal with all of such matters.