The St. Petersburg International Economic Forum, an annual event in Russia, is set to feature a speech by President Vladimir Putin. This comes shortly after Ukrainian drone strikes shook the city. The forum, held in Russia’s cultural capital, is traditionally used by Putin to promote Russia’s economy and attract foreign investments.
The drone attack on Wednesday created significant disruptions. An oil terminal caught fire, flights at the city’s airport faced delays or were diverted, and authorities restricted cellphone internet service to prevent further drone incursions. The city was under high alert as the forum commenced on Thursday.
Russia’s economy is showing signs of stagnation, with the $3 trillion economy appearing to slow down. The initial economic boost from large-scale military spending is waning. The government has raised taxes and increased domestic borrowing to manage the budget deficit.
“To our regret, some of them break through,” Putin stated about the drone attacks. “Russia has an air defense system, we need to improve it, strengthen it, and we will do that.”
Putin emphasized the need to bolster Russia’s air defenses against long-range Ukrainian attacks. Despite the tensions, he expressed willingness to settle the conflict with Ukraine through diplomacy. Speaking to foreign media editors, he stated, “We are certainly prepared and willing to reach an agreement with Ukraine through peaceful means.”
Ukrainian President Volodymyr Zelenskyy suggested face-to-face negotiations in a public letter addressed to Putin. The Kremlin spokesperson acknowledged the letter but indicated Putin hadn’t reviewed it yet. The proposal for talks in Moscow remains unaccepted by Kyiv.
Despite these diplomatic overtures, the situation on the battleground remains tense, with aerial strikes escalating between Moscow and Kyiv. The reality of these conflicts was evident in St. Petersburg, where smoke from drone strikes lingered over the city.
During the forum, drones produced in Russia were prominently displayed. Organizers expected over 24,000 attendees, but Western officials and business leaders have maintained their distance since Russia’s invasion of Ukraine in February 2022. However, a small U.S. delegation, led by Rodney Mims Cook Jr., marked the first official American presence in years. Cook emphasized his role as a cultural representative, not a political one.
Attendees included far-right influencer Candace Owens and actor Steven Seagal. The U.S. ally Saudi Arabia sent a significant business delegation as a special guest this year. High-ranking officials from Uzbekistan, Tanzania, China, and Iran also participated in the event.
Reporting was contributed by Keir Simmons and Natasha Lebedeva from St. Petersburg, and Henry Austin from London.