Click Here Podcast Summary Episode: Tech Workers Return to Russia, Not Quite with Love
Release Date: January 7, 2025
Host: Dina Temple Raston
Produced by: Recorded Future News

Introduction

In this compelling episode of Click Here, host Dina Temple Raston explores the intricate and unexpected journeys of Russian tech workers who initially fled the country amidst geopolitical turmoil but have since chosen to return. The episode delves into the personal struggles, economic challenges, and societal pressures that have influenced this significant migration trend.

Stan’s Journey: From Exile to Return

Stan's Departure from Russia

Two years prior to the episode, Stan epitomized the successful Russian tech entrepreneur. He enjoyed a prosperous business, a comfortable apartment, and a family life with four children. However, the Russian invasion of Ukraine marked the beginning of his downward spiral. As Dina notes:

"Stan was against the war, but he was surrounded by people who were very much in favor of it."
[00:02] Dina Temple Raston

Challenges Abroad

Seeking refuge, Stan relocated his family to Southeast Asia, hoping for better opportunities and safety from the escalating situation in Russia. However, his optimism was quickly met with harsh realities:

• Financial Struggles:
  Stan experienced significant financial setbacks, including an $8,000 theft on his first day abroad.

  "I was unlucky to not to put it in the safe box because I was so tired..."
  [05:10] Stan

• Educational Hurdles:
  Unable to afford private schooling, Stan had to switch his children to a Russian online school, adding stress and affecting his business performance.

  "Policing the kids was nearly a full-time job."
  [06:03] Dina Temple Raston

• Business Limitations:
  Despite his efforts to secure international clients, Stan faced hurdles due to his Russian passport and the pervasive impact of sanctions, making financial transactions and establishing new business relationships difficult.

  "I have accounts in seven countries now. Seven countries just to skip the sanctions."
  [06:57] Stan

Personal Crisis and Decision to Return

The turning point came when Stan's youngest son nearly drowned, culminating in the family's decision to return to Russia after enduring months of hardship abroad.

"After months of managing four young kids in online school while trying to prop up a business, Stan told us that his dreams of setting up a new life half a world away just started to unravel. And then this unthinkable thing happened."
[08:55] Dina Temple Raston

Stan reflected on his return as a breath of fresh air compared to the exhausting life abroad:

"Coming back, it was like fresh air because we were so tired of everyday routine."
[10:28] Stan

The Wave of Returning Tech Workers

Stan's story is not isolated. The episode highlights a broader trend where a significant portion of Russian tech professionals are returning home despite initial plans to stay abroad permanently. Approximately 40-45% of the estimated 100,000 tech workers who fled Russia in 2022 have chosen to come back.

Reasons for Returning:

1. Economic Pressure:
   The high cost of living abroad, coupled with financial losses and business difficulties, makes staying in exile less viable.

2. Cultural and Social Ties:
   Exile has proven to be isolating and emotionally taxing, driving many to seek the comfort of their homeland.

3. Employment Requirements:
   Russian IT companies are increasingly mandating the return of remote workers, threatening termination for those who do not comply.

   "If you are not returning back, you are fired."
   [17:20] Stan

4. Incentives for Returnees:
   Companies offer attractive incentives, such as doubled salaries and military deferments, to entice tech workers back.

   "For IT workers who come back, companies are actually offering military deferments."
   [18:25] Stan

Impact of Sanctions and Economic Adaptations

The episode features insights from Alexandra Prokopenka, a researcher at the Carnegie Russian Eurasia Center, and Ivan Greg, a professor of international relations, discussing the effectiveness and unintended consequences of Western sanctions on Russia.

Sanctions: A Double-Edged Sword

Sanctions were intended to cripple the Russian economy and pressure the Kremlin to cease its aggressive actions. However, the reality has been more nuanced:

• Resilience and Adaptation:
  Russia has developed a "workaround economy," finding alternative methods to bypass sanctions. This includes smuggling goods, using VPNs for software access, and creating domestic alternatives to Western products.

  "Russia developed a workaround economy. For every sanction, they found a loophole or an alternative."
  [13:15] Ivan Greg

• Economic Ingenuity:
  Despite the exodus of over a thousand foreign companies, ordinary citizens and businesses have demonstrated remarkable resilience, maintaining economic activities through innovative solutions.

  "Normal citizens bolstered the economy with ingenuity."
  [15:33] Ivan Greg

Inflation and Everyday Struggles

The sanctions, coupled with increased military spending, have led to significant inflation, making daily life challenging for ordinary Russians. Stan illustrates this with rising costs:

"It looks the same, only they have problems with prices."
[16:32] Stan

Inflation has affected everything from food prices to transportation, diminishing the purchasing power and quality of life for many families.

Societal and Security Concerns

Freedom of Expression and Safety

Returning to Russia doesn't free individuals from the oppressive environment. Stan emphasizes the ongoing risks associated with expressing dissent:

"Russia is still a place where speaking freely, saying what you think can land you in jail."
[20:14] Dina Temple Raston

He shares his cautious approach to communication, choosing to speak from his car to avoid potential repercussions.

Kremlin’s Efforts to Retain Tech Talent

The Russian government is not only encouraging the return of tech workers by offering incentives but also ensuring their safety and loyalty, such as providing military deferments. This strategy aims to reinvigorate the tech sector, which is crucial for Russia's long-term economic stability beyond temporary military spending.

"Tech has a kind of mythic quality for people in Russia. It's one of the few sectors where people thought they could succeed just on merit, not connections."
[19:54] Dina Temple Raston

Future Outlook and Personal Reflections

Stan remains uncertain about the future, expressing doubt that the war will end anytime soon. He contemplates the possibility of relocating his family once more if the situation doesn't improve, highlighting the perpetual instability faced by Russian citizens.

"I'm not expecting any happy ending here. So I don't know. So maybe I will just grab my kids like in five years."
[21:05] Stan

Top Cyber and Intelligence Stories

In addition to Stan's narrative, the episode covers significant recent cyber and intelligence developments:

1. Major Treasury Department Breach by Chinese Hackers:
   Chinese state-sponsored hackers infiltrated a third-party software provider, accessing Treasury workstations and targeting unclassified information from the Office of Foreign Assets Control (OFAC). This incident underscores the escalating cyber threats from China.

2. FCC’s Upcoming Cybersecurity Regulations:
   The Federal Communications Commission (FCC) is set to vote on rules mandating telecom providers to annually submit their cybersecurity practices or face fines. This move aims to enhance network security and prevent widespread breaches.

3. Biden Administration’s Actions Against China Telecom:
   The Commerce Department is moving to ban China Telecom’s operations in the U.S., citing national security risks. This decision reflects ongoing tensions and the prioritization of cybersecurity in national policy.

4. US Consideration of Drone Restrictions:
   Following numerous drone sightings, the Biden administration is contemplating restrictions or bans on certain foreign-made drones, particularly those from adversarial nations like China and Russia, to mitigate security risks.

Conclusion

Click Here's episode on the return of Russian tech workers offers a profound exploration of the personal and economic complexities faced by individuals caught between geopolitical conflicts and the pursuit of stability. Through Stan's story and expert analyses, the episode illuminates the resilience of Russian citizens, the limitations of international sanctions, and the enduring challenges of navigating a rapidly changing digital and political landscape.

Notable Quotes:

• "I have accounts in seven countries now. Seven countries just to skip the sanctions."
  — Stan
  [06:57]

• "Sanctions were supported with the narrative from Western policymakers that they will put Russian economy on their knees."
  — Ivan Greg
  [13:15]

• "Tech has a kind of mythic quality for people in Russia. It's one of the few sectors where people thought they could succeed just on merit, not connections."
  — Dina Temple Raston
  [19:54]

• "I'm not expecting any happy ending here. So I don't know. So maybe I will just grab my kids like in five years."
  — Stan
  [21:05]

Produced by: Megan Dietrich, Sean Powers, Erica Gajda, and Dina Temple Raston
Edited by: Karen Duffin
Fact-Checked by: Darren Ancrum
Music by: Ben Levington and Blue Dot Sessions
Staff Writer: Lucas Riley
Illustrator: Megan Gough
Sound Designer and Engineer: Martin Peralta

Click Here is a production of Recorded Future News. Stay tuned for more insightful episodes every Tuesday and Friday.