The carefully choreographed veneer of normalcy at the St Petersburg International Economic Forum has been shattered. Drone strikes hit the city early this morning, targeting infrastructure near the venue. No casualties have been confirmed, but the symbolism is unmistakable. This is the Kremlin's flagship showcase for foreign investment. Now it's a war zone.
The timing is brutal for Putin. He was set to parade a semblance of economic resilience. Instead, the world sees a leadership that cannot guarantee safety at its own Davos-on-the-Neva. The attack, which Ukraine has not claimed but few doubt was Kyiv's handiwork, sends a clear message: no corner of Russia is beyond reach.
Whitehall sources confirm the UK is moving to close sanctions loopholes. New designations target entities facilitating the forum's logistics. The Treasury is laser-focused on the shadow fleet of tankers and the gold trade. A senior source put it bluntly: 'We are tightening the noose. Every ruble that flows through this forum is dirty money.'
The forum itself is a ghost town. Western delegations are absent. The few non-Russian attendees are from China, India, and the Gulf. They are doing business, but the atmosphere is thick with unease. The drone strikes have spooked even the most hardened oligarchs.
Backbench MPs are circling. Labour and Conservative backbenchers alike are demanding the government go further. Freeze assets. Expel diplomats. The usual thunder from the Tory right is now joined by Labour's left. A rare moment of cross-party unity on Russia. One senior backbencher told me: 'The public wants action. They see this war as existential. We cannot look weak.'
Downing Street is listening. A new sanctions package is being drafted, targeting the financial infrastructure of the forum itself. The message to Moscow: your economic propaganda is a liability. Every partner you court becomes a target.
For Putin, the forum was meant to project strength. Instead, it has exposed vulnerability. The drones have done more than damage buildings. They have punctured the myth of a safe haven for authoritarian capital. The game has changed.
Eleanor Rigby, Political Bureau Chief
