Steve Rosenberg: Russia's economic forum overshadowed by drone attacks on St Petersburg Steve RosenbergBBC Russia EditorGetty ImagesA huge plume of thick black smoke dominated the St Petersburg skyline on Wednesday after a Ukrainian drone attackAn evil sorcerer is the last person you'd expect to see at an economic forum.But there he stood working his wizardry.With sleight of hand Russian folklore villain "Koshchei the Deathless" (or, rather, someone dressed as him) produced coins out of thin air, "broke" and reassembled someone's glasses and shocked passers-by with occasional puffs of smoke from his fingers."Russians are unpredictable people," he declared. "We do things no one expects."Perhaps.But in St Petersburg this week, the unexpected was delivered most dramatically by Ukraine.Ukrainian drones attacked the St Petersburg area on the opening – and closing – days of the set-piece St Petersburg International Economic Forum (SPIEF).The abiding image of SPIEF 2026 will be the huge plume of thick black smoke which dominated the St Petersburg skyline on Wednesday. Without specifying what was hit, local officials admitted that drones had damaged "infrastructure".
All the delegates saw the smoke as they arrived at the expo centre on the edge of the city.Symbol of unpredictability: A man dressed as a sorcerer is perhaps the last thing you would expect to see at an economic forumFew could have predicted what came next.Volodymyr Zelensky published an open letter to Vladimir Putin. Ukraine's president taunted Russia's leader about his age and about Russian setbacks in the war but proposed the two leaders meet in a neutral country to talk peace.President Putin's response?Nothing unpredictable about that.The Kremlin leader, who had rejected previous calls for direct talks with President Zelensky, criticised the letter's "rude" tone and dismissed the offer."It's not the author of the letter I need to respond to," President Putin said, "but our soldiers on the frontline…I say to them: keep at it, brothers!"Vladimir Putin is not ready to end Russia's war on Ukraine.Not unless it's on his terms.I listened to what he said at the forum's plenary session. There were few surprises.The Putin we saw is the Putin we expected to see - uncompromising, unrepentant, determined to project an image of strength and unwavering conviction.
He tried to appear confident about the war, and about Russia's economy.EPAPutin rejected Zelensky's call for a face-to-face meeting on ending the war, labelling his open letter "rude"Ukrainian drones hit St Petersburg as Putin's flagship economic forum opensPutin says there is 'no point' meeting Zelensky over ending Ukraine warUkrainian drones target St Petersburg in attack Russia calls 'unprecedented'"There are wars and sanctions. But the economy is developing," Vladimir Putin claimed. "Everything is stable."Applauded by entrepreneurs, friendly foreign dignitaries and officials, inside the congress hall the Russian president could style himself as a super strong leader.His problem is what's happening outside.The massive battlefield losses that Russia has suffered in its war on Ukraine.The long-range Ukrainian drones now penetrating deep inside the country.At the forum when I asked senior officials about the war, their responses had one thing in common: they quoted the Kremlin.
A reminder, perhaps, of whose idea the so-called "special military operation" was in the first place."The war is in its fifth year," I pointed out to Alexander Zhukov, deputy speaker of the Duma, the lower house of Russia's parliament. "Do you think it will it end soon?""I can only respond in the words of our president. He said this situation must be resolved soon," replied the MP."Drones targeted St Petersburg this week," I reminded Vasily Anokhin, the governor of Smolensk region.
"And your region too has in the past come under drone attack.""As our president says," the governor began, "our enemies, unfortunately, are trying to hurt us."The Russian economy is hurting. There are no signs of imminent collapse, but war and sanctions are creating considerable pressure. Growth has stalled in most sectors.
Russian economists speak of "stagnation" and, in some areas, "decline". The ongoing conflict is sucking massive resources, both human and financial.On a recent trip to Lipetsk region, small business owners told me they were struggling to stay afloat.With its shiny stands and big-budget presentation the St Petersburg forum presented a more rose-tinted view of Russia's economy. "Interest rates are a bit too high," conceded Kirill Dmitriev, President Putin's special envoy on foreign investment when we spoke at the forum."We believe rates should be lower for more investments.
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