The St Petersburg International Economic Forum, Russia’s flagship showcase for investment, has been overshadowed by a wave of drone attacks on the city. Sources say the Kremlin is scrambling to downplay the security breach, but the optics couldn’t be worse. As business leaders sipped champagne, explosions echoed from districts near the venue. No casualties reported, but the message is clear: Ukraine can now strike deep into Russia’s heartland. This is not just a military problem for Putin. It’s a political one. It signals weakness. And in the corridors of Whitehall, that’s being noted.
Inside the Treasury, officials are finalising a new sanctions package aimed at closing loopholes exploited by oligarchs. The drone attacks have given the hawks ammunition. “If Russia can’t protect its own financial hub, why should we protect their assets here?” one minister told me. The debate is shifting. The usual argument that sanctions hurt British businesses is losing ground. The mood in the Lobby is hardening. Even some eurosceptic backbenchers, traditionally sceptical of foreign entanglements, are now pressing for tougher measures. They see an opportunity: hit Russia while it’s weak, they argue.
But Downing Street is cautious. The PM’s team is worried about a backlash from the City of London. There are whispers of a compromise: target specific entities linked to the drone programme rather than a blanket expansion. That might satisfy the hawks without spooking the markets. For now, the game is being played out in closed meetings. But the drone attacks have changed the weather. The debate is no longer about whether to act, but how far to go.
Back in St Petersburg, the forum continues. But the real action is in London and Washington. Eyes are on the next G7 meeting. The UK wants to lead on sanctions, but needs allies. The US is preoccupied with domestic politics. Europe is wobbling. The result may be a package that looks tough but bites slowly. Still, for the first time in months, the momentum is on the side of the hardliners. Watch for a statement from the Foreign Office this week. Something is brewing.
