A series of drone strikes in St Petersburg has cast a pall over Russia’s flagship economic forum, forcing organisers to scramble for security while delegates question the stability of the country’s financial outlook. The attacks, which targeted infrastructure sites in the city’s outskirts, came hours before President Vladimir Putin was due to address investors and foreign dignitaries.
For many here, the timing could not be worse. The St Petersburg International Economic Forum is Russia’s answer to Davos, a chance to project an image of business confidence and global integration. Instead, the sight of air defence systems over the Neva River and the evacuation of a shopping centre near the main venue have become the dominant images.
Local residents have grown accustomed to power cuts and the rumble of drones since the war began, but the strikes’ proximity to the forum’s high‑end hotels and convention halls has shaken the mood. “People are worried,” said Marina, a hotel worker. “When they start hitting places like this, you realise no one is safe.”
Behind the scenes, forum organisers have tightened entry checks and closed several roads. Yet the damage to Russia’s soft‑power ambitions goes beyond logistics. Many international participants have already scaled back attendance. Those who remain include representatives from China, India and several Middle Eastern states, but Western business leaders are almost entirely absent.
The drone raids have also revived questions about the forum’s purpose at a time when Russia’s economy is under the weight of Western sanctions, capital flight and labour shortages. Official figures show inflation running at over 7%, and the central bank has kept interest rates high to prop up the rouble. For working families, the economic reality is stagnant wages and rising prices for basics like bread and milk.
Putin’s speech on Friday is expected to focus on economic sovereignty and trade with “friendly” nations. But the background noise of drones and explosions is a stark reminder that the war in Ukraine is never far away. In the words of one factory supervisor, “They talk about growth and new partnerships. But we are still living with the cost of conflict. Rent, food, bills – everything goes up, but not our pay.”
The forum’s ability to attract foreign investment looks increasingly threadbare. Deals signed last year, including a $2 billion joint venture with an Indian conglomerate, have yet to materialise. Critics say the event has become a stage for propaganda rather than substantive business.
For now, St Petersburg’s residents are left to pick up the pieces, both from the drone strikes and from an economy that feels hollowed out. As one taxi driver put it: “They hold their meetings in fancy halls. We are the ones who will pay the price.”
