More than 80 Belarusian companies would like to move to Lithuania: they care more about immigration rules than bills

The companies oppressed by the authoritarian regime in Belarus are looking for solutions and looking to the surrounding states. The interest of the companies of this country in Lithuania has increased, admits Mantas Katinas, general director of the Invest in Lithuania agency.

“Currently, we have received more than 80 inquiries, we are actively communicating with dozens of companies and that number is constantly changing. The demands of companies in the technology sector dominate, but there are also actors from other sectors. Because the process of taking Decisions is confidential, we can only talk if we have approved projects, ”says Katin, who regrets that company names cannot be disclosed due to geopolitical sensitivity and employee safety.

Companies considering Lithuania provided the Agency with information to transfer important competencies, highly experienced specialists with extensive experience in the IT field. Invest in Lithuania provides companies with the information and assistance they need to make decisions.

“Not only would the number of IT specialists in the country increase, it would expand the software developer ecosystem, all of this would strengthen Lithuania’s IT industry and at the same time increase the country’s potential to compete with world leaders,” says M. Katinas.

The Belarusian IT sector enjoys a good reputation in the world. Even the largest gaming market company in the region, Wargaming, which has created the global hit World of Tanks, is still interested in the opportunity to expand in Lithuania, media previously announced.

Searching where is quick and easy

What is most relevant for Belarusian tech entrepreneurs?

“The unique need for inbound requests is speed and simplicity. Therefore, the issues of speeding up the migration process, the efficiency of the quarantine process, and improving other important components in the process of making copies remain important. business decisions: the tax environment, business establishment procedures, etc. ”, explains M. Katinas.

Paulius Jakutavičius, director of public relations for the Infobalt Association, estimates that Belarusian companies interested in Lithuania could have more than 1,600 employees, most of them small and medium-sized.

“From a new company to a medium-sized company with about 100 employees, these companies could be the ones that we as a country should have something to offer: offices, accommodation, market, opportunities for cooperation”, says P. Jakutavičius.

Rate this year’s unprecedented situation: if in the past Lithuania was interested in individual entrepreneurs or even specialists, now the latest presidential elections in Belarus have increased interest.

“There are factors that directly affect business; for example, if the Internet connection is interrupted, data restrictions are imposed and the like, then it becomes difficult for companies that develop products or provide services for the international market to operate. There are also individual, emotional and value factors: frustration with the government, search for freedom, uncertainty about one’s own security, ”explains P. Jakutavičius.

What can Lithuania offer?

Geopolitical stability and security, access to the EU market, increased customer trust in a company established in an EU country are some of the reasons why Lithuania could be attractive to Belarusian companies. But that alone is not what she can offer.

“Main competing countries: Poland, Latvia, Ukraine. The latter competes at lower costs but has serious shortcomings in the business environment. “Poland and Latvia have conditions very similar to ours, therefore, the decision of Belarusian companies will probably be determined by ‘soft’ factors: urban convenience, smooth migration and integration processes, investment attraction agencies,” explains Katin. .

Most Belarusian companies want their employees to feel good in the new place, so various social aspects are very important, such as a favorable public attitude, social infrastructure, access to services in Russian or English, taking children to educational institutions where education and science are conducted in Russian, Belarusian or English, named after M. Katinas.

“It is possible to mention the rich Belarusian diaspora in Lithuania, which is the third largest national minority. The availability of remote and multilingual e-government and municipal services also appears positive. Good communication with Minsk: a direct flight to Vilnius takes 35 minutes, communication by train, car or bus takes about 2.5 hours ”, explains the director of Invest in Lithuania.

Be careful with migration rules

Gediminas Tarasevičius, director of the Lithuanian Association of Game Developers, identifies the immigration procedure as the main obstacle for Belarusian entrepreneurs.

“There are many nuances when traveling to Lithuania precisely because of the way the Migration Service works. As a result, there are problems for all people who want to move from outside the European Union and work or do business in Lithuania. Only 150 kilometers from Minsk to Vilnius, but bureaucratic fuses, which in some cases become walls that are difficult to break, can make this short distance a long and painful relocation process, ”says G. Tarasevičius.

According to him, immigrant IT professionals are subject to excessive requirements that make it difficult to hire such specialists, and it makes it even more difficult for certain specialists in the gaming industry to meet the qualification requirements.

“Even in Lithuania, it is difficult to find certain specialists that the industry needs with relevant experience and education for the simple reason that such specialists have not been trained in universities or colleges for a long time. A significant part of the industry comes and works with education in other fields and retrains and gains skills while already working. It is quite difficult for an experienced specialist from a third country to start working in Lithuania without education, in some cases even impossible, and even with education; the process of recognizing this education as appropriate will wait, ”says G. Tarasevičius.

He believes that strict immigration regulations may erode the advantages Lithuania can offer Belarusian investors.

“Although we have a Startup Visa system in place, whose main purpose was to accelerate the process of relocation or establishment of a company, it is not effective precisely because when a company moves, it is thrown into the dense bureaucratic jungle of the Migration Service. You will meet a less benevolent official who can participate in an endless marathon of collecting and transporting papers, letters and certificates. COVID-19 certainly does not help the situation, but at the same time it is very strange that neither the Migration Service nor the pandemic have prevented the transport sector from employing low-skilled third-country nationals and ensuring their free movement within the EU. There seems to be a double standard in Lithuania and our sector has not received the best set of those standards, “says G Tarasevičius.

This could be especially relevant for the larger Belarusian IT companies, such as Wargaming, whose representatives have been visiting Lithuania not long ago.

To sue. accounts, the problem is not completely resolved

The Infobalt representative notes more obstacles, including the initial opening of savings accounts e. monetary institutions, although implemented, but not fully. The obligation to make the first transfer from an account opened at another credit institution was maintained.

“The first payment will only be accepted from a credit institution, with no possibility of accepting it from an electronic money institution. And in the case of start-ups, this requirement is generally not feasible. For example, when a customer tries to open their first counts in general, ”says P. Jakutavičius.

It lacks a systemic tool that allows efficient transfer of the entire company from third countries to Lithuania. Another problem is when it comes to relocating individual professionals.

“IT professionals have the same regime because they are on the list of missing professions. However, the company has other employees: the director, the department heads, the marketing staff. They are already subject to entry and employment procedures. very different and much more complex. So far, I don’t see that we are moving in the right direction here, “says P. Jakutavičius.

According to him, individual talents, unlike companies, are not looked after much in Lithuania.

“It would probably be easier for them to use the humanitarian corridor than to try to drive here and work in a profession, to join one of the companies operating in Lithuania. Yes, there are somewhat simplified procedures, but certainly not so much that the companies of IT operating here hire third-party IT specialists, ”says P. Jakutavičius.

It suggests that professionals who are paid three times the median salary should, in general, be subject to a five-day authorization procedure.

“If a company agrees to pay a salary higher than 1.5 at VMU, no one else should decide whether it is a suitable specialist or not, the company knows better, especially when highly qualified specialists are lacking”, believes P. Jakutavičius.

Prepare changes

The head of “Invest in Lithuania” assures that we are working with institutions to improve a specialized individualized solution for a fast and efficient investment process for Belarusian companies.

“Consideration is being given to abandoning redundant documents, simplifying visa issuance rules and staff qualification requirements. It is important to consider relocation and integration issues, especially in cases where moving with families is considered. ”, Says M. Katinas.