Putin faces Ukrainian drone threat and stagnating economy at ‘Russian Davos’

Russian President Vladimir Putin addressed the International Economic Forum in St. Petersburg on Friday, days after Ukrainian drone strikes targeted the city, including an attack on an oil terminal and disruptions to airport operations. Authorities responded by cutting cellphone internet service to mitigate further threats, while Putin acknowledged gaps in Russia’s air defense system and pledged to improve it. The forum, often called Russia’s ‘Davos,’ highlighted the country’s economic struggles, with Putin’s $3 trillion economy showing signs of stagnation. The initial boost from military spending has faded, forcing the government to raise taxes and increase domestic borrowing to manage a growing budget deficit. In his speech, Putin reaffirmed Russia’s readiness for both battlefield victory and diplomatic negotiations with Ukraine. He referenced compromises allegedly agreed upon with former U.S. President Donald Trump during their 2020 Anchorage summit but did not specify details. Putin also claimed Russia controls or holds a majority in Ukraine’s Donetsk, Luhansk, and Zaporizhzhia regions—territories annexed in 2022—while omitting the Kherson region. Ukrainian President Volodymyr Zelenskyy proposed face-to-face talks in a public letter, but Kremlin spokesman Dmitry Peskov reiterated that negotiations could only occur if Zelenskyy traveled to Moscow—a demand Kyiv has repeatedly rejected. Meanwhile, U.S. officials, including Rodney Mims Cook Jr., head of the U.S. Commission of Fine Arts, attended the forum as part of a small American delegation, marking the first official U.S. presence in years. The event drew over 24,000 attendees, though Western leaders and businesses largely boycotted it following Russia’s full-scale invasion of Ukraine in February 2022. Putin’s speech came as both sides escalated aerial attacks, with battlefield progress stalled and tensions remaining high.