The number of entrepreneurs and companies founded in Serbia by Russian citizens has surged tenfold over the past two and a half years, rising from 1,017 to 11,081, according to Bloomberg Adria. This significant increase underscores the growing influx of Russians into Serbia, primarily engaged in IT and hospitality sectors.
At the end of 2021, the Serbian Register of Business Entities listed just 296 entrepreneurs and 721 companies founded by Russian individuals and entities. Since the onset of the Ukraine conflict on February 24, 2022, until June 5 this year, 9,317 new entrepreneurial firms and 1,764 companies have been established by Russian nationals, as reported by the Agency for Business Registers (APR).
This exponential growth marks a staggering 3,148 percent increase in the number of entrepreneurs from Russia, significantly reshaping the Serbian business landscape. The Ministry of Internal Affairs reports that approximately 370,000 Russians have moved to Serbia, with the majority settling in Belgrade, Novi Sad, Subotica, and Niš.
The sectors attracting the most Russian entrepreneurs include IT and computer programming, with an increasing number also entering hospitality and service industries, opening restaurants, cafes, hairdressing salons, and fashion boutiques. Bojan Stanić, assistant director of the strategic analysis sector at the Serbian Chamber of Commerce, notes that the largest influx occurred at the end of 2022 and throughout 2023, leading to a significant spike in the establishment of companies with Russian founders.
The presence of affluent Russians has had a notable impact on the Serbian economy. Stanić explains, “Many of them have stronger purchasing power compared to the average Serbian citizen. They have established numerous IT companies serving foreign clients, receiving funds through remittances, which has substantially boosted remittance growth in recent years.”
Stanić also highlights that the influx includes a significant number of middle and upper-class Russians, primarily young individuals, who have contributed to maintaining consumption levels in Serbia despite the overall economic downturn. “While the standard of living for our citizens has declined, their higher purchasing power has boosted consumption,” he adds.
The ICT sector has particularly benefited, with exports growing from 1.86 billion euros in 2021 to 3.44 billion euros by the end of 2023. The first quarter of this year alone saw ICT exports amount to 917 million euros. However, Stanić cautions that the long-term impact remains uncertain, as it is unclear whether the Russians will remain in Serbia or integrate into the local labor market. He contrasts this with the situation in Slovakia and the Czech Republic, where a significant influx of Ukrainian refugees has led to their integration into various jobs, from newsagents to restaurant workers.
As the situation evolves, the key question remains: Will the Russians stay and continue to contribute to Serbia’s economy, or will they move on?
