Wrong - it does. Such process in company indicates that the engineers employed there didn't mind to go through such process and don't see a problem in imposing

Wrong - it does. Such process in company indicates that the engineers employed there didn't mind to go through such process and don't see a problem in imposing such process on others i.e. people with volatile visa/legal situation (e.g H1B in US, American in EU, Russian/Ukrainian in EU), and probably awfully underpaid (I mean the salary range 40-50k USD in a developed EU country). Basically company is cherry picking engineers willing to engage in race to the bottom.