Russian 'brain drain' of academic, finance, and tech workers 'might be the most important problem' for its economy, experts say

It is not a question of whether people want to leave Russia, according to an economics professor at the University of California, Los Angeles. It is a question of when they will and whether they can.

There are severe restrictions on mobility as a result of sanctions, but people want to leave in mass quantities.

Fewer people will be able to leave even if more people try harder.

Western countries enacted a wave of sanctions against Russia after it invaded Ukraine. At least 33 foreign airlines have stopped flying to Russia, and most European countries have banned Russian planes from entering their airspace.

Thousands of Russians have left the country in the past week, according to The Telegraph. Russia's well-educated urban middle class is one of the people who are leaving. The country has banned its citizens from leaving with more than $10,000 in their suitcases, in order to keep them homebound.

Russia has a problem with its mass emigration of highly trained and educated citizens to new regions, particularly Southeast Asia, Eastern Europe and the US. According to the Atlantic Council, as many as 2 million people have left Russia since Putin became president.

Insider Russia was told by economists that the military action against Ukraine would make the problem worse. They said that brain drain and general isolation is likely to reverse the country's progress.

In the long run, brain drain might be the most important problem for Russia, according to an economics professor at the University of Pennsylvania.

Foreign institutions will likely leave Russia — and young, wealthy people may follow them 

Roussanov said it was too early to see the influence of the latest Western sanctions on Russian brain drain. The exodus that began in the past few years was inevitable, he said.

He said that there had been a slow trickle over the last decade of people leaving, and that it would accelerate as foreign academic institutions break off their relationships with Russian ones.

Roussanov and Itskhoki said young Russians who work in these industries would follow foreign institutions out of the country to continue collaborating, also influenced by their opposition to war.

The result of educated people not liking living in a dictatorship is brain drain.

Roussanov said that their departure would compromise the health of the Russian economy.

He said that brain drain will have negative consequences on the human capital of the country, which drives growth through innovation and creation, and that it would also reduce consumption demand.

Isolation and brain drain could make Russia unrecognizable 

Brain drain was not the most acute problem in Russia.

He said that it was an economic catastrophe and that the economy was worse than it was 20 years ago.

He said there was no economic growth over the last 12 years and fewer opportunities for young people.

The invasion of a European democratic country by Russia was the reason for the sanctions and company departures. He said that Russia could in the future be like Iran, whose economy has been crippled by Western sanctions.

It would be incredibly costly and painful for ordinary Russians.