Russian citizens in Serbia are currently leading more than 11,000 businesses, with a focus on various sectors. Over the past two and a half years, the number of companies, entrepreneurs and corporate entities established by Russians in Serbia has surged by over 1,000%.
At the end of 2021, Serbia’s Business Register (APR) listed just 296 individual entrepreneurs and 721 corporate entities founded by Russian nationals, totaling 1,017 firms. Fast forward to today, the Agency for Business Registers reports a significant increase to 11,081 such firms.
The growth in registered entrepreneurs surpasses that of companies, marking an immense numerical rise of 3,148% from 2022 to early June 2024.
Diversifying business ventures
The majority of Russian nationals who have temporarily settled in Serbia are primarily engaged in IT and computer programming. However, there’s a growing trend towards hospitality and service sectors, with Russians increasingly opening restaurants, cafes, hair salons, and fashion boutiques.
According to insights from APR via “Blumberg Adrija,” the initial surge in 2022 saw Russians predominantly registering entrepreneurial ventures in programming and IT. Subsequently, from 2023 onwards, there has been a noticeable shift towards establishing hospitality venues and beauty salons.
Interestingly, the top ten businesses dominated by Russians in Serbia include four from the IT sector, alongside consulting services, design activities, and establishments in the restaurant and beauty salon industries.
Russians have also made notable inroads into Serbia’s arts sector, venturing into the production of cinema, audio-visual products, and TV programs. Additionally, they are active in photography services, artistic creation, entertainment, recreational activities, retail trade via mail or internet, as well as sports and recreational education. Since the beginning of this year alone, Russian entrepreneurs have launched ten or more firms in these sectors in Serbia.
The peak year for new business ventures initiated by Russians was 2023, during which a total of 4,580 firms were established. Bojan Stanic, Assistant Director of Strategic Analysis at the Chamber of Commerce and Industry of Serbia, attributes this surge to the highest influx of Russians and subsequent company registrations.
“The largest influx of Russians into Serbia occurred between late 2022 and throughout 2023, tapering off thereafter. Consequently, this period witnessed the highest number of companies and entrepreneurial ventures founded by Russian citizens,” stated Stanic to “Bloomberg Adria.”
Stanic highlighted the dominant presence of Russians in the IT sector but noted their expanding footprint in hospitality and trade sectors as well. He emphasized their significant impact on Serbia’s market and economy.
“A substantial number of Russians arrived in Serbia with higher purchasing power compared to our average citizens. They’ve registered numerous entrepreneurial ventures, particularly in the IT sector, serving foreign companies. These ventures receive funds via remittances, which have notably contributed to the growth of remittances in recent years,” explained Stanic.
Stanic noted that a middle to upper-class demographic of young Russian nationals has settled in Serbia, influencing consumption patterns positively despite a slight decline in real consumption among Serbian citizens in 2023.
Moreover, he pointed out that ICT sector exports have surged due to Russian involvement, rising from EUR 1.86 billion in 2021 to EUR 3.44 billion by the end of 2023, with EUR 917 million recorded in just the first three months of this year.
Nevertheless, Stanic cautioned on the uncertain long-term impact of Russians who arrived in Serbia due to the Ukraine conflict.
“We cannot predict their prolonged impact on the economy as we don’t know how many will stay. The situation differs in countries like Slovakia and the Czech Republic, which have seen about half a million Ukrainian refugees fully integrate into society, engaging in various occupations such as retail, hospitality, and domestic services,” Stanic elaborated.
Overall, Russians in Serbia appear to maintain a relatively closed community, frequenting their own establishments and hosting Russian cultural events. This suggests they will continue this trend whenever opportunities arise.
The exact number of Russians in Serbia remains ambiguous. According to 2023 data, 370,000 Russians arrived in Serbia, but MUP records indicate 340,332 Russians departed between February 2022 and June 2023.
Earlier MUP data also indicated approximately 30,000 Russians received temporary residence permits, predominantly residing in Belgrade, Novi Sad, Subotica, and Nis, among other cities.
