Steve Rosenberg: Russia’s Economic Forum Overshadowed by Drone Attacks on St Petersburg

A Sorcerer’s Performance in the Shadow of War

Steve Rosenberg – At first glance, the image of a sorcerer at an economic forum seems incongruous. Yet, such was the spectacle in St Petersburg, where a figure resembling the Russian folklore villain “Koshchei the Deathless” captivated attendees. With deft gestures, this enigmatic presence conjured coins from thin air, dismantled and reassembled spectacles, and conjured clouds of smoke from his fingertips. “Russians are unpredictable people,” he proclaimed. “We do things no one expects.” This whimsical display, though theatrically engaging, was eclipsed by a more tangible and dramatic form of unpredictability: Ukraine’s drone strikes.

Drones and the Unforeseen Threat

The International Economic Forum (SPIEF) in St Petersburg, held in early 2026, was not just a platform for economic discourse but a stage for war’s unexpected intrusion. Ukrainian drones targeted the city on both the opening and closing days of the event, leaving delegates to grapple with the imagery of smoke engulfing the skyline. The plume of black smoke, which lingered over the city on Wednesday, became the defining memory of SPIEF 2026. Local authorities confirmed that the attacks damaged “infrastructure,” though specifics remained elusive. As attendees arrived at the exhibition grounds, the sight of smoke was a stark reminder that economic discussions could not escape the shadow of conflict.

Volodymyr Zelensky’s open letter to Vladimir Putin during the forum marked a pivotal moment. The Ukrainian leader challenged Putin’s leadership, humorously referencing his age and Russia’s struggles in the war. Zelensky proposed a meeting in a neutral country to discuss peace, a move that stirred both intrigue and tension. However, Putin’s reaction was predictably firm. In a statement delivered at the plenary session, he criticized the letter’s “rude” tone and rejected the peace offer. “It’s not the author of the letter I need to respond to,” Putin asserted, “but our soldiers on the frontline. I say to them: keep at it, brothers!” This response underscored his resolve to continue the war on his terms.

The Economy Under Fire

Despite the chaos, Putin maintained an air of confidence in the economic forum. He insisted that the war and sanctions had not derailed Russia’s economic progress. “There are wars and sanctions,” he declared, “but the economy is developing. Everything is stable.” This claim resonated with the chamber of entrepreneurs, foreign dignitaries, and officials present. Within the congress hall, Putin positioned himself as a resilient leader, unshaken by external pressures. Yet, the reality outside painted a different picture.

Russian economists have noted a troubling stagnation in most sectors, with some regions experiencing decline. The war has drained resources, both human and financial, and sanctions have further strained the economy. During a visit to the Lipetsk region, small business owners shared their struggles, citing difficulties in maintaining operations. While the forum showcased a polished image of economic strength, the underlying challenges were evident. “Interest rates are a bit too high,” admitted Kirill Dmitriev, Putin’s special envoy on foreign investment. “We believe rates should be lower to attract more investments. But Russia’s economy has proven resilient over the last five years: something many Western analysts once thought impossible.”

Even in the face of adversity, some businesses see opportunity. German Galperin, a businessman, highlighted the shift in consumer behavior. “A few years ago, Russians flocked abroad on holiday,” he noted. “But the situation doesn’t always allow that now due to sanctions and changing attitudes toward Russians overseas.” This observation reflects the broader economic adjustments taking place, as domestic markets adapt to a new reality. Yet, the lingering question remains: can this resilience withstand the ongoing pressures of war and international isolation?

A Stark Contrast Between Perception and Reality

When senior officials were asked about the war, their answers consistently echoed Kremlin rhetoric. Alexander Zhukov, deputy speaker of Russia’s lower house of parliament, reiterated the need for a swift resolution. “Our president has said this situation must be resolved soon,” he stated, emphasizing the government’s determination. Similarly, Vasily Anokhin, governor of the Smolensk region, acknowledged drone attacks on his territory but framed them as a testament to the enemy’s persistence. “Our enemies, unfortunately, are trying to hurt us,” he remarked, a sentiment that mirrored the broader narrative of Russian resolve.

The SPIEF 2026 event, with its glossy displays and high-profile talks, offered a rose-tinted view of the economy. But this optimism contrasted sharply with the devastation wrought by drone strikes. The forum’s shiny veneer could not conceal the cracks beneath. While delegates celebrated economic resilience, the attacks served as a grim reminder of the war’s pervasive impact. The resilience of the Russian economy, though notable, was being tested by relentless challenges, from inflation to supply chain disruptions.

As the forum concluded, the smoke from the drone attacks remained a potent symbol. It was a visual representation of the war’s encroachment into economic spaces, forcing participants to confront the reality that progress and peace are not guaranteed. Steve Rosenberg, the author, captured this duality, highlighting how the forum’s ambitions were overshadowed by the urgent, unpredictable nature of conflict. In a world where economic stability is often seen as a measure of strength, Russia’s ability to endure the war’s toll will be the ultimate test of its resolve.

The SPIEF 2026, while a platform for economic dialogue, also became a mirror reflecting the complexities of modern warfare. The juxtaposition of a sorcerer’s magic and drones’ destruction underscored the paradox of a nation both enduring and engaging in a brutal conflict. As the smoke cleared, the true cost of the war and its economic ramifications would continue to shape Russia’s trajectory, even as it sought to project an image of invincibility on the global stage.