Steve Rosenberg: Plume of smoke over St Petersburg becomes lasting image of Russia’s economic forum
Vladimir Putin used the St. Petersburg forum to project confidence, saying that despite war and sanctions, “the economy is developing” and “everything is stable.” Inside the congress hall, the Russian president was greeted by entrepreneurs, foreign dignitaries and officials, giving him the image of a strong and secure leader. But that polished setting contrasted sharply with the realities outside.
Russia continues to face major battlefield losses in its war against Ukraine, while Ukrainian long-range drones are increasingly reaching deep into Russian territory. These attacks have exposed vulnerabilities that the Kremlin’s public messaging tries to downplay. When asked about the war, senior Russian officials at the forum repeatedly echoed the language of the Kremlin, suggesting that official discourse remains tightly controlled and aligned with Putin’s framing of events.
One lawmaker, Alexander Zhukov, deputy speaker of the Duma, avoided offering his own assessment when asked whether the war might end soon, instead referring back to Putin’s statement that the situation must be resolved quickly. Similarly, Smolensk governor Vasily Anokhin responded to questions about drone strikes by repeating the president’s line that Russia’s enemies are trying to harm the country. The repeated reliance on Putin’s words underscored how deeply the Kremlin’s narrative shapes public commentary from senior officials.
Despite the forum’s optimistic tone, Russia’s economy is under growing strain. While there are no signs of an immediate collapse, war spending and Western sanctions are creating heavy pressure across the system. Economic growth has stalled in most sectors, and Russian economists increasingly describe the situation as one of stagnation, with some industries already in decline. The war is absorbing enormous resources, both financial and human, and the cost is becoming harder to hide.
A recent visit to Lipetsk region highlighted the challenges facing ordinary businesses. Small business owners said they were struggling to survive amid the pressure of sanctions, uncertainty and the broader economic slowdown. Their concerns stand in contrast to the more upbeat image presented at the St. Petersburg forum, where elaborate displays and expensive presentations were designed to showcase resilience and confidence.
The event was meant to demonstrate that Russia remains economically strong and politically united. But beneath the polished surface, the war in Ukraine is reshaping the country’s economy and security environment. Drone attacks, mounting military losses and weakening growth all point to a more difficult reality than the one presented on stage.
Putin’s message at the forum was one of stability and endurance. Yet the contrast between the official narrative and the conditions facing regions, businesses and the military suggests that Russia is entering a more fragile phase. The Kremlin continues to insist that the country is holding firm, but the pressures of war are increasingly visible across the economy and inside Russia itself.
