During his early years in power, President Vladimir Putin used Russia’s annual economic conference in St. Petersburg to showcase how the country was becoming a magnet for Western businesses. Multibillion-dollar oil and gas deals were signed, including the agreement to build the Nord Stream 2 pipeline between Russia and Germany. Corporate giants like BP, Chevron, Deutsche Bank, and Total sent their top executives. In 2011, even Sting performed in front of the Winter Palace.
But this year, the event—held from Wednesday to Saturday—has been starkly transformed by Putin’s invasion of Ukraine in 2022. The Kingdom of Bahrain was the guest of honor, and instead of the usual Mercedes, the Chinese brand Tank was chosen as the official car. A Taliban delegation walked the massive exhibition halls, a far cry from the Western executives of Morgan Stanley and Citibank. Only second-tier Russian pop and rock stars performed, with no international acts in sight. Even Coca-Cola was replaced by a Russian-made alternative.
This year’s conference sends a clear message: Russia will never again rely on business with the West. Despite newly reopened lines of communication between Putin and President Trump, major American investors stayed away from the event. The session labeled as “identifying shared interests and shaping long-term partnerships” with the United States was closed to the media, featuring unknown figures like a crypto investor and a former executive of a state-owned Russian petrochemicals company.
Kirill Dmitriev, the Kremlin’s representative in U.S. negotiations, stated that Russia “cannot be dependent on the West,” although he acknowledged the need for balance. He claimed that over 70 American representatives attended, though many kept their participation low-profile due to former President Biden’s portrayal of Russia as a threat.
Dmitriev hopes that by the end of the year, “real results” will emerge from the Russian-U.S. dialogue, with American energy companies potentially leading the charge back to Russia. However, some Russian business leaders are not eager to see the return of American companies.
Oleg Paroyev, head of Vkusno i Tochka (the fast-food chain that replaced McDonald’s after it exited Russia), made it clear he didn’t want McDonald’s to return. “Some people think sanctions will be lifted and things will go back to normal, but we don’t believe things will return—they will be different,” he said. Paroyev emphasized that Russian businesses must “build something in Russia” instead of waiting for Western companies.
Since the February phone call between Trump and Putin—the first since the Ukraine invasion—many Russians hoped that sanctions would be lifted and Western businesses would reenter the market. This expectation briefly boosted the ruble by almost 40 percent. However, no sanctions have been lifted, and not a single Western company has returned. Russian Economy Minister Maksim Reshetnikov acknowledged on Thursday that Russia is now “on the brink of falling into a recession.”
Although Russia has pivoted toward China, India, and some Middle Eastern nations in response to Western isolation, business leaders from these regions were notably absent from the conference. Indonesian President Prabowo Subianto was expected to attend a session with Putin on Friday, highlighting Russia’s growing ties with Southeast Asia. Saudi Arabia’s energy minister, Prince Abdulaziz bin Salman, appeared on Thursday.
The conference agenda, covering topics from AI to education and demographics, was largely dominated by state companies, which displayed visions of Russia’s future, featuring high-speed railways and modern highways. However, the ongoing war still loomed large, with military hardware like giant drones and armored vehicles on display.
Vyacheslav Fedorishchev, governor of the Samara region, remarked, “Ten years ago we gathered here to discuss how to attract foreign investment faster.” Today, he said, “We discuss what additional measures we can implement to defend our technologies and our businesses.”
