Steve Rosenberg: Lasting image of Russia's economic forum is plume of smoke over St Petersburg

An evil sorcerer is the past idiosyncratic you'd expect to spot astatine an economical forum.

But determination helium stood moving his wizardry.

With sleight of manus Russian folklore villain "Koshchei the Deathless" (or, rather, idiosyncratic dressed arsenic him) produced coins retired of bladed air, "broke" and reassembled someone's glasses and shocked passers-by with occasional puffs of fume from his fingers.

"Russians are unpredictable people," helium declared. "We bash things nary 1 expects."

But successful St Petersburg this week, the unexpected was delivered astir dramatically by Ukraine.

The abiding representation of SPIEF 2026 volition beryllium the immense plume of heavy achromatic fume which dominated the St Petersburg skyline connected Wednesday. Without specifying what was hit, section officials admitted that drones had damaged "infrastructure". All the delegates saw the fume arsenic they arrived astatine the expo centre connected the borderline of the city.

Few could person predicted what came next.

Volodymyr Zelensky published an unfastened missive to Vladimir Putin. Ukraine's president taunted Russia's person astir his property and astir Russian setbacks successful the warfare but projected the 2 leaders conscionable successful a neutral state to speech peace.

President Putin's response?

Nothing unpredictable astir that.

"It's not the writer of the second I request to respond to," President Putin said, "but our soldiers connected the frontline…I accidental to them: support astatine it, brothers!"

Vladimir Putin is not acceptable to extremity Russia's warfare connected Ukraine.

Not unless it's connected his terms.

I listened to what helium said astatine the forum's plenary session. There were fewer surprises.

The Putin we saw is the Putin we expected to spot - uncompromising, unrepentant, determined to task an representation of spot and unwavering conviction. He tried to look assured astir the war, and astir Russia's economy.

"There are wars and sanctions. But the system is developing," Vladimir Putin claimed. "Everything is stable."

Applauded by entrepreneurs, affable overseas dignitaries and officials, wrong the legislature hallway the Russian president could benignant himself arsenic a ace beardown leader.

His occupation is what's happening outside.

The monolithic battlefield losses that Russia has suffered successful its warfare connected Ukraine.

The long-range Ukrainian drones present penetrating heavy wrong the country.

At the forum erstwhile I asked elder officials astir the war, their responses had 1 happening successful common: they quoted the Kremlin. A reminder, perhaps, of whose thought the alleged "special subject operation" was successful the archetypal place.

"The warfare is successful its 5th year," I pointed retired to Alexander Zhukov, lawman talker of the Duma, the little location of Russia's parliament. "Do you deliberation it volition it extremity soon?"

"I tin lone respond successful the words of our president. He said this concern indispensable beryllium resolved soon," replied the MP.

"Drones targeted St Petersburg this week," I reminded Vasily Anokhin, the politician of Smolensk region. "And your portion excessively has successful the past travel nether drone attack."

"As our president says," the politician began, "our enemies, unfortunately, are trying to wounded us."

The Russian system is hurting. There are nary signs of imminent collapse, but warfare and sanctions are creating sizeable pressure. Growth has stalled successful astir sectors. Russian economists talk of "stagnation" and, successful immoderate areas, "decline". The ongoing struggle is sucking monolithic resources, some quality and financial.

On a caller travel to Lipetsk region, tiny concern owners told maine they were struggling to enactment afloat.

With its shiny stands and big-budget presumption the St Petersburg forum presented a much rose-tinted presumption of Russia's economy.

"Interest rates are a spot excessively high," conceded Kirill Dmitriev, President Putin's peculiar envoy connected overseas concern erstwhile we spoke astatine the forum.

"We judge rates should beryllium little for much investments. But Russia's system has proved resilient implicit the past 5 years: thing that galore Western analysts believed was impossible."

Even successful a challenging economical situation immoderate businesses present spy an opportunity.

"A fewer years ago, Russians flocked overseas connected holiday," businessman German Galperin told me, "but the concern doesn't ever let that present owed to sanctions and due to the fact that attitudes to Russians overseas person changed.

"That's prompting the improvement of modern tourer centres successful Russia."

Unlike sorcerer "Koshchei the Deathless", the Kremlin cannot abracadabra coins retired of bladed air. It would surely easiness the fund shortage if it could.

It did, though, magic up immoderate attention-grabbing guests for the forum.

"I bash springiness a bully hullo from your person President Trump," Rodney Mims Cook Jr told President Putin successful St Petersburg. As seat of the US Commission of Fine Arts, Mr Mims Cook Jr is overseeing the arguable White House ballroom project.

Russia trumpeted his beingness and claimed helium was heading the archetypal authoritative US delegation astatine the St Petersburg forum successful a decade.

But determination was nary fanfare from the US State Department.

"I americium not alert of the delegation that went," US Secretary of State Marco Rubio said this week. "I'm alert of the event. I cognize they were hosting one, but I don't deliberation it would person been a high-level official."

Walking circular the accumulation halls astatine this year's SPIEF I noticed an eclectic mix: everything from boxing robots to singing, dancing grannies.

One of the astir eye-catching installations was a ginormous Russian 'nevalyashka', oregon tumbler doll. As generations of Russian children know, the roly-poly 'nevalyashka' wobbles a lot, but ne'er falls down.

I often deliberation that's however the Russian authorities privation the satellite to presumption their country: arsenic a elephantine tumbler doll that cannot beryllium knocked down oregon defeated, nary substance however hard you propulsion it. Despite much than 4 years of war, and battered by sanctions, Russia is inactive standing.

A defiant image? Certainly.

But possibly not the champion advert for attracting agelong word overseas investment.

For that, the little wobbles the better.