Putin faces Ukrainian drone threat and stagnating economy at ‘Russian Davos’

Pressure at the forum

Putin is using the St. Petersburg International Economic Forum, often styled as Russia’s version of Davos, to project strength and attract interest. But this year’s setting is awkward: Ukrainian drones hit the city days before his speech, causing an oil terminal fire, airport disruptions, and temporary internet restrictions aimed at reducing further attacks.

Economy under strain

The article says Russia’s roughly $3 trillion economy looks stagnant as the initial boost from wartime spending fades. To manage the budget deficit, the government has raised taxes and increased domestic borrowing. That is a sign the war economy is becoming harder to sustain without broader economic pain.

War and diplomacy

Putin told reporters that Russia is prepared to end the war through diplomacy, while also saying it could defeat Ukraine on the battlefield if needed. He said Russia agreed to compromises reached with Donald Trump at an August summit in Anchorage, though he did not spell out what those compromises were. Zelenskyy separately proposed face-to-face talks, while the Kremlin repeated its stance that he could come to Moscow.

Foreign attendance, limited Western return

The forum still expects more than 24,000 attendees, including delegations from Saudi Arabia, Uzbekistan, Tanzania, China, Iran, and others. But the article notes that Western officials and business leaders have mostly stayed away since Russia’s full-scale invasion of Ukraine in 2022. The U.S. presence is small and unusual, led by Rodney Mims Cook Jr., alongside figures such as Candace Owens and Steven Seagal.