Steve Rosenberg: Russia’s Economic Forum Overshadowed by Drone Attacks on St Petersburg
Steve Rosenberg – At first glance, an evil sorcerer seemed an unlikely figure to grace an economic forum. Yet, there he was, conjuring coins from thin air, manipulating objects with an air of mystique, and even summoning wisps of smoke from his fingertips. Dressed as the Russian folklore villain Koshchei the Deathless, the performer demonstrated a flair for the unexpected, embodying the very essence of unpredictability that the nation is known for. “Russians are unpredictable people,” he declared, “We do things no one expects.” His antics, though whimsical, served as a metaphor for the broader narrative of Russia’s recent actions.
Dramatic Strikes on St Petersburg
The International Economic Forum (SPIEF) 2026, held in St Petersburg, was meant to showcase Russia’s economic strength and resilience. But the event’s opening and closing days were marked by a stark contrast: Ukrainian drone attacks that left a lasting impression on the city’s skyline. The most vivid memory of the forum will be the towering plume of black smoke that dominated the horizon on Wednesday. While the exact targets of the strikes were not immediately revealed, local officials confirmed that infrastructure had been damaged. For attendees arriving at the expo center, the sight of smoke was a sobering reminder that the war’s impact extends beyond the battlefield.
As delegates gathered for the forum, the atmosphere was one of anticipation. Yet, the unexpected was not just a theme of the performance—
“We do things no one expects,”
the sorcerer had proclaimed. It was also a reality, as Ukraine’s drones struck St Petersburg twice within a week, once at the start and once at the end of the event. The attacks highlighted the ongoing conflict’s reach, even as Russia tried to project stability during the conference.
Putin’s Response to Zelensky’s Peace Offer
Amid the smoke and spectacle, a political exchange unfolded. President Volodymyr Zelensky, speaking via an open letter, challenged Vladimir Putin’s leadership and proposed a neutral setting for peace talks. The letter was a pointed critique, referencing Putin’s age and Russia’s struggles in the war. However, Putin’s reaction was predictably firm.
“It’s not the author of the letter I need to respond to,”
he stated, shifting the focus to the soldiers on the frontlines. “I say to them: keep at it, brothers!” His stance, as always, emphasized resolve and a refusal to compromise.
Putin’s unyielding posture at the forum reinforced his image as a leader unshaken by adversity. In the plenary session, he spoke with confidence about the war and the economy, claiming,
“There are wars and sanctions. But the economy is developing,”
and asserting that everything remained “stable.” The audience, comprising entrepreneurs, friendly foreign dignitaries, and Russian officials, echoed his optimism. Yet, the truth outside the conference hall painted a different picture. The economic strain, driven by the war and sanctions, was palpable, even if it wasn’t openly discussed during the event.
The Economy’s Resilience Amidst Strain
Despite the challenges, Russia’s economy has demonstrated remarkable resilience. In a recent visit to the Lipetsk region, small business owners shared their struggles, highlighting how sanctions and shifting attitudes abroad have disrupted their operations. Yet, they also noted the adaptability of their businesses, which have found ways to survive in a turbulent climate. “A few years ago, Russians flocked abroad on holiday,” one businessman observed, “but the situation doesn’t always allow that now due to sanctions and the perception of Russians as targets.”
The SPIEF 2026 event itself was a showcase of this resilience. With polished presentations and glossy displays, the forum painted a more optimistic picture of the economy. Kirill Dmitriev, President Putin’s special envoy on foreign investment, acknowledged the current high interest rates as a challenge.
“Interest rates are a bit too high,”
he admitted, “We believe rates should be lower to encourage more investments.” But he also emphasized the economy’s ability to withstand five years of conflict, a claim that many Western analysts had once considered improbable.
Senior officials at the forum echoed Putin’s rhetoric when questioned about the war. When asked about the fifth year of the conflict and whether it would end soon, Alexander Zhukov, deputy speaker of the Duma, deferred to the Kremlin’s perspective.
“I can only respond in the words of our president,”
he said, “He said this situation must be resolved soon.” Similarly, Vasily Anokhin, the governor of Smolensk region, referenced the same narrative when reminded of drone attacks in his area.
“As our president says,”
the governor began, “our enemies, unfortunately, are trying to hurt us.” These statements underscore the centralized control of messaging within the Russian government.
While the forum’s setting was one of polished stages and carefully curated optimism, the economic reality was more complex. Growth in most sectors has stalled, and some regions are reporting declines. Russian economists describe the situation as one of “stagnation” or “decline,” noting that the war has drained resources and diverted attention from long-term development. The ongoing conflict, with its heavy human and financial toll, continues to cast a shadow over the nation’s economic ambitions. Yet, the Russian government remains steadfast in its efforts to present a united front, even as the war’s impact becomes increasingly visible.
As the forum drew to a close, the interplay between the nation’s image and its reality was undeniable. The sorcerer’s magic and the drone attacks both symbolized the same theme: Russia’s ability to surprise with its actions, whether through performance or warfare. For those attending the event, the smoke from the drones served as a powerful reminder that the country’s economic narrative is intertwined with the broader war. While the forum aimed to highlight progress, it also underscored the fragility of the situation. The question remains: can Russia’s economy sustain its current trajectory, or will the war ultimately reshape its future?
The contrast between the forum’s polished veneer and the war’s disruptive force was striking. As Steve Rosenberg observed, the event was a stage for projecting strength, but the reality of the conflict loomed large. The smoke from the drones, the terse responses from officials, and Putin’s unwavering confidence all pointed to a nation grappling with internal and external pressures. Yet, in the face of adversity, Russia’s leaders continue to navigate the delicate balance between resilience and retreat, ensuring that the economic forum remains a symbol of endurance—even as the war’s shadow grows longer.
