New Reality in Armenia with Influx of Those Fleeing Effects of Ukraine War

On Tuesday, March 22, Economy Minister Vahan Kerobyan announced measures to ease import restrictions on supplies as well as an agreement with other member-states of the Eurasian Economic Union to drop customs duties altogether on a wide range of goods. He also suggested that ongoing Western sanctions on Russia could provide Armenian manufacturers with new opportunities, but warned “expect an increase of exports to Russia, but a drop in profitability.”

The ruble’s spectacular collapse is expected to reverberate in Armenia, too, since remittances from workers in Russia bring in an estimated $549 million annually into the country, though this is usually in rubles. But the ruble’s devaluation may also hurt Armenian exports as Armenian products would face fierce local competition.

Either way, the government has welcomed the influx of new Russians with open arms, partially in an attempt to balance the negative economic outcomes with a potential gain in productivity and economic performance which these highly skilled professionals offer.

The Economy Ministry has already developed a platform to help incoming Russian IT and business professionals fast track work-related paperwork and find them employment in the country’s burgeoning tech sector. Ironically, despite a history of chronic underemployment and low wages, recent economic growth — particularly in information technology — has created a skilled workforce shortage, which many employers are now eager to fill with these new arrivals. Some are even trying to lure new skilled workers outside of Yerevan, like American entrepreneur Todd Fabacher, who is building an entire new neighborhood in Armenia’s historic city of Gyumri to house tech workers at his IT services company Digital Pomegranate.

This hoped-for economic balancing effect is already being felt in Yerevan. Lena Seropyan, who works in one of the city’s trendier nightlife spots, said that every third customer she serves is Russian. “They often order more expensive cocktails on the menu too,” she added. Indeed, young Russians patrons can be seen lounging at cafes or enjoying meals at fashionable eateries around town.

Karen Margaryan, president of MBG hospitality group which operates several high-end restaurants in Armenia, welcomed this trend in a statement to the Mirror-Spectator. “Of course we’re happy with this flow of guests. This is the healthiest our industry has been since the war and COVID pandemic both hit in 2020.” He noted how his restaurants have started serving breakfast earlier to accommodate their Russian patrons’ working schedule.

Elena Kozhemyakina, a long-time Yerevan resident and herself an ethnic Russian, also said she hoped that these new arrivals will enrich Armenian society.

“I expect that at least part of them will stay and become part of this collaboration to bring in new ideas and perspectives, but of course, we also expect them to respect Armenian culture. We like our rhythm without any snobbery or imperialist mentality, so let them only pack useful habits in their suitcases” she said.

These newcomers arguably already are contributing to Armenian society. As the Armenian government continues skillfully avoiding entanglement in the ongoing war, young Russians have been participating in larger numbers in a series of grass-roots anti-war protests held in the Armenian capital. At a particularly large rally on Sunday, an exiled Russian journalist explained that she felt “the same kind of shame at what my country is doing now that Germans must have felt when faced with the consequences of their actions in the Second World War.” She, along with hundreds of other young Russians, marched down Yerevan’s main Mashtots Boulevard chanting “No War” and “Down with Putin.”

For Armenians the prospect of taking a public stance on this ongoing conflict has been uncomfortable. Some have cited fear of provoking Russia upon which Armenia relies for security. Others remain reluctant to back a country whose government they perceive to have either tacitly or overtly sided with Azerbaijan during its 2020 invasion of Artsakh. Many feel betrayed by a world which ignored their plight while enthusiastically taking up the mantle of support for Ukraine.

Still, for the Armenians taking part in Sunday’s anti-war rally, the images of devastation of Ukrainian cities, hospitals and critical infrastructure by an authoritarian neighbor bent on rewriting history make for clear parallels with Artsakh. “Ukrainians are suffering today because the world left us to suffer in 2020” said Sonya Galstyan, one of the participants.