Belarus’s tech sector is in crisis due to the mass exodus of IT professionals spurred by political repression and the country’s support for Russia’s invasion of Ukraine. The High Technology Park, once a hub of innovation, has seen a nearly 30% drop in employment since 2022 and a significant decline in exports. Despite these challenges, some experts believe opportunities may arise in Asian markets, though the future remains uncertain amid ongoing geopolitical tensions.
The Crisis in Belarus’s Tech Sector
In Minsk, Belarus, project manager Andreï Dorine recognizes the turmoil facing the country’s once-vibrant tech industry. The crisis has been largely driven by the mass departure of IT professionals, fleeing in response to political repression and the nation’s support for the Russian invasion of Ukraine.
At Qulix, the software development firm where Andreï is employed, around 400 engineers once thrived—yet a staggering quarter have left Belarus in the past five years in search of opportunities abroad. “That’s a lot!” remarks the 42-year-old manager during an interview with AFP. “We are undeniably experiencing a crisis,” he concludes.
Impact on the High Technology Park
High technology has long been a cornerstone of the Belarusian economy, one of the few sectors enjoying liberalization in an otherwise state-dominated landscape. Growth flourished until 2020, particularly in areas such as app development and software maintenance. The ‘High Technology Park’ in Minsk stands as a testament to this success, often referred to as Belarus’s own “Silicon Valley”.
Within this complex, notable creations like the encrypted messaging app Viber and the popular video game ‘World of Tanks’ were developed. However, the political turmoil following President Alexander Lukashenko’s re-election in August 2020 prompted a significant exodus of engineers and IT professionals—many of whom were part of the urban middle class that largely supported the opposition.
The pivotal moment occurred in September 2020 when police raided the software company PandaDoc, apprehending several employees shortly after the company’s leader publicly backed the protesters. The Russian invasion of Ukraine in February 2022 further accelerated this trend, as Belarus facilitated Kremlin operations and subsequently faced Western sanctions.
Despite the ‘High Technology Park’ continuing to host over 1,000 companies benefiting from a favorable tax system, there are signs of struggle. Kirill Zalesski, the complex’s vice president, reported a nearly 30% decline in total employment since 2022, although over 56,000 people are still employed within these companies. He noted that annual exports fell to $1.8 billion in 2023, marking a nearly 45% decrease compared to the $3.2 billion recorded in 2021. Yet, he optimistically points out that the exodus has significantly slowed and mentions that many developers express interest in returning.
Zalesski explained that companies, facing a loss of market share in Western territories due to geopolitical tensions, are now seeking new opportunities, particularly in Asia. “Previously, Western markets accounted for 80 to 90% of our exports; now it’s closer to 60%,” he stated, highlighting that Asian countries now comprise about 10% of these exports.
Stephan Hoffmann, the German director of the Europe-Belarus Chamber of Commerce, remains hopeful about the tech sector’s future, even as daily life has grown more challenging due to sanctions. With direct flights between Germany and Minsk no longer an option, he resorts to long bus rides to Lithuania. Banking transactions have also become more cumbersome and costly, as European sanctions have barred several Belarusian banks from the international Swift system.
While Hoffmann acknowledges that he has friends who have left Belarus, he emphasizes the ongoing collaboration between exiled Belarusians and those who remain in the country, asserting, “There are still connections.” Kirill Zalesski remains cautious about the future of the tech sector, highlighting the importance of a stable regional environment, particularly with regard to the resolution of the war in Ukraine and the broader Russo-Western conflict.