(Bloomberg) -- The western Ukrainian city of Lviv has become a temporary refuge for diplomats and IT workers leaving the capital as the U.S. warns of a potential Russian attack. 

A U.S. alert over the threat of an invasion, which the Kremlin has dismissed as untrue, helped trigger an exodus from Kyiv to the city far from the bulk of Russian forces. Lviv, with a baroque old town that reflects nearly a century and a half of Habsburg rule, lies about 70 kilometers (43 miles) from the Polish border. 

The U.S. warned citizens in Ukraine to leave immediately last weekend and is among countries, including Australia, Canada and Germany, temporarily relocating diplomats to Lviv. Amid the increasingly shrill warnings, some European air carriers are taking steps to avoid Ukraine.

“The main drivers for demand I see now are the decisions of the embassies to evacuate their staff to Lviv and fears of air carriers regarding Ukraine,” Vitaliy Kovtun, who owns Lviv’s Duokom real estate agency, said. “Before that happened, Ukrainians were skeptical of the claims in the international media.”

Kovtun said prices are starting to rise and estimates about a third of the requests to rent apartments he fields are now coming from people who are looking for a haven in Lviv.

Russia claimed this week it started the partial withdrawal of troops after drills near Ukraine’s borders, although NATO chief Jens Stoltenberg later said the build up continues. President Vladimir Putin has repeatedly denied he intends to attack Ukraine.

Biden Says Threat to Ukraine Remains, Awaits Russia Pullback

Ukrainian President Volodymyr Zelenskiy has also downplayed the likelihood of a large-scale invasion. Even so, KLM stopped flying to Ukraine on Saturday after the Dutch government raised its alert to red and recommended citizens leave because security was uncertain. 

High-level diplomacy continues despite the elevated tensions. Putin said after a meeting with German Chancellor Olaf Scholz in Moscow Tuesday that there is a basis for further talks with the U.S. and its allies. 

IT Center

Domestic IT companies are looking to Lviv, which already has a sizable tech sector, including offices for digital consultant SoftServe and outsourcing company ELEKS Software.

Vasyl Dzesa, chief operating officer of Odesa-based marketplace Lemon.io, is currently based in Lviv and said he has lined up accommodation in the city for approximately 40 employees in case the security situation deteriorates. 

Technology companies are turning to western Ukraine to ensure business continuity, according to Nadiya Omelchenko, a vice president at Kyiv-based IT-Integrator, which provides information security and consulting for local firms and government agencies. 

“In case full-scale fighting starts, we have a plan that envisages relocating key employees to western regions,” Omelchenko said.

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