“In Moscow I live like a king”: Why do Russian ‘relocants’ return?

10:32 04.08.2024 •

British ‘The Economist’ forced to admit that Russian "relocants" (transmigrators) with the highest technical level are returning en masse to Russia from Europe. The magazine writes:

Sergey and Nikolai became friends after they met through Moscow’s tech scene, nearly a decade ago. They were in their early 20s and life was about coding, earning money and having fun.

In February 2022, Sergey’s and Nikolai’s carefree lifestyle came to an end. When there was an announced that 300,000 reservists in Russia would be called up, many took this as a sign that “all men of fighting age might soon be mobilised.”

The friends left behind their homes, but not their well-paid jobs. Both worked for private Russian tech companies that let their staff work anywhere and offered generous relocation packages. Nikolai was joined by his girlfriend, Anya, who also worked in tech.

Assuming they would be digital nomads until at least the end of the war, they studied a list of places that let Russians stay without a visa. After stints in various countries, including Georgia, the friends decided to move to Belgrade, Serbia – one of the most popular destinations for Russians fleeing the draft. Sergey found the Serbs more welcoming.

Many Serbs are pro-Russian and despise NATO for bombing the country 25 years ago during the Kosovo war. A poll by the Open Society Foundations found that roughly two-thirds of Serbs blamed the West for the war in Ukraine.

Sergey loved Belgrade. But Nikolai and Anya were hesitant about staying. They missed Russia and were sick of living out of a suitcase.

Last autumn the couple returned to Moscow. “We loved every country we lived in,” said Nikolai in April, when Sergey spoke to him over a video call from Sergey’s flat in Belgrade. “But who should stop me from enjoying my own home?”

When the couple got back to Moscow, Nikolai’s employer offered him a better-paid job. He and Anya bought a flat, helped by a government-subsidised mortgage.

In 2020, to boost the housing market during the pandemic, the Russian government launched a scheme to give buyers of new-build apartments lower mortgage rates. Despite the central bank hiking interest rates to 16% in an attempt to curb inflation, buyers could obtain mortgage rates of just 8% until as recently as July. There are separate schemes to subsidise the mortgages of it workers and young families.

So far, he has not felt inconvenienced by sanctions. “If you have money you can still buy any Western goods.” Russia has found ways to evade sanctions, for instance by importing European goods via Central Asian countries and Turkey.

“Moscow is thriving,” said Nikolai, “even more than before. Bars are packed even on Monday evenings, all the tables are occupied.”

He has money to burn – most Russians pay just 13% income tax, with high earners paying 15% (although these rates are now set to rise slightly).

He and Anya go to nice restaurants and get frequent takeaways. He often buys new clothes and gadgets online: products are delivered to his door in 20 minutes by Yandex, a Russian tech company. He gets taxis everywhere – it’s only $2 for a 20-minute ride, he said.

“European countries are expensive. In Moscow I live like a king,” said Nikolai.

 

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