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Ukraine strikes overshadow Russia's economic showcase
St. Petersburg's International Economic Forum (SPIEF) opened and closed with a stark reminder of the war next door. Ukrainian drones targeted the city on both days, sending thick black smoke billowing over the skyline and damaging unspecified infrastructure, according to local officials.
Zelensky's public challenge to Putin
Amid the attacks, Ukrainian President Volodymyr Zelensky published an open letter to Vladimir Putin, mocking the Russian leader's age and military setbacks while proposing a face-to-face peace summit in a neutral country. The Kremlin swiftly rejected the offer, calling its tone "rude" and reaffirming its focus on the battlefield.
"It's not the author of the letter I need to respond to, but our soldiers on the frontline... I say to them: keep at it, brothers!"
Vladimir Putin, Russian President
Putin projects strength amid economic strain
At the forum's plenary session, Putin struck a defiant note, insisting Russia's economy remains stable despite war and sanctions. "There are wars and sanctions. But the economy is developing," he declared to applause from entrepreneurs and foreign dignitaries. Yet outside the hall, the war's toll was undeniable-massive battlefield losses, long-range drone strikes deep inside Russia, and an economy showing signs of stagnation.
Russian officials echoed the Kremlin's line when pressed on the conflict. "I can only respond in the words of our president," said Alexander Zhukov, deputy speaker of the Duma, when asked if the war would end soon. Smolensk Governor Vasily Anokhin similarly deferred: "As our president says, our enemies, unfortunately, are trying to hurt us."
Economic reality clashes with forum optimism
While SPIEF's glossy exhibits and high-profile guests painted a picture of resilience, the economic data told a different story. Growth has stalled in most sectors, with economists warning of "stagnation" and "decline" in key areas. Small business owners in regions like Lipetsk described struggling to stay afloat, and even Putin's envoy on foreign investment, Kirill Dmitriev, acknowledged that high interest rates were hampering investment.
"Russia's economy has proved resilient over the last five years: something that many Western analysts believed was impossible."
Kirill Dmitriev, Putin's special envoy
Some entrepreneurs see opportunity in the crisis. German Galperin, a businessman, noted that sanctions and shifting attitudes abroad have spurred domestic tourism. "A few years ago, Russians flocked abroad on holiday," he said. "Now, modern tourist centers are developing here."
Symbolism and skepticism at SPIEF
The forum's mix of spectacle and substance included everything from boxing robots to a giant Russian "nevalyashka" (tumbler doll), a symbol of resilience. Yet the event's most memorable moment-a folkloric sorcerer conjuring coins and smoke-underscored the disconnect between Russia's defiant image and its economic challenges.
Russia's efforts to showcase stability were further complicated by the presence of Rodney Mims Cook Jr., chair of the U.S. Commission of Fine Arts, who greeted Putin with a message from "your friend President Trump." While Russia touted his visit as the first official U.S. delegation in a decade, the U.S. State Department distanced itself, with Secretary of State Marco Rubio stating he was "not aware of the delegation."
A wobbly but defiant Russia
The tumbler doll on display at SPIEF-wobbling but never falling-mirrored the Kremlin's narrative: a country battered by war and sanctions but still standing. Yet for foreign investors, the message was less reassuring. "For that, the less wobbles the better," one observer noted.
