Russia’s annual St. Petersburg International Economic Forum (SPIEF), once likened to the World Economic Forum in Davos, has shifted focus due to the ongoing war in Ukraine. Previously a magnet for Western business leaders and heads of state, SPIEF now seeks to attract countries from Asia, Latin America, and Africa, along with some eastern European nations still purchasing Russian oil and gas, such as Slovakia and Hungary.
Max Hess, a fellow at the Foreign Policy Research Institute and author of “Economic War: Ukraine and the Global Conflict Between Russia and the West,” noted that the forum aims to project an image of normalcy despite the international sanctions and geopolitical tensions. “They highlight international attendees in domestic propaganda, but notable new investments or deals with major foreign countries are unlikely,” Hess said.
Since the invasion of Ukraine in February 2022, Western businesses and politicians have largely boycotted SPIEF. Nevertheless, Russia is keen to demonstrate its openness to business with non-Western nations. This shift accompanies increased anti-Western sentiment and rhetoric in recent years, with Russia advocating for a multipolar world order. This year’s SPIEF theme is “The Foundations of a Multipolar World — The Formation of New Areas of Growth.”
The forum’s agenda includes sessions on expanding Russian development of the Arctic, the growth of the BRICS economies, and the state of Russia’s car industry. Other topics cover “Family Values,” a significant theme during President Vladimir Putin’s fifth term, and Russia’s relationship with the West. One session provocatively asks if the West has successfully demonized Russia through a purported smear campaign.
Russian presidential foreign policy aide Yuri Ushakov reported that representatives from 136 countries are attending the forum, which runs from June 5-8. Putin is expected to address delegates on Friday, focusing on Russia’s economic resilience and investment opportunities despite international sanctions. It remains uncertain how much attention the ongoing conflict in Ukraine will receive during his speech.
Despite sanctions, Russia’s economy has shown resilience. The International Monetary Fund (IMF) predicted in April that Russia’s economy would grow faster than all advanced economies in 2024, with an expected growth rate of 3.2%. This growth surpasses forecasts for the U.S., U.K., Germany, and France. Russia credits sanctions for increasing self-sufficiency and maintaining robust oil export revenues, primarily through trade with India and China.
Analysts are particularly interested in any announcements regarding the BRICS organization, which includes Brazil, Russia, India, China, South Africa, and new members such as Ethiopia, Iran, and Egypt. Discussions about Turkey potentially joining BRICS are also anticipated, though Hess views these talks as largely political posturing without substantial outcomes.
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