- The war in Ukraine has left Russia economically isolated from the West, forcing it to look elsewhere for financial partnerships.
- Russia has increased economic cooperation with countries such as China, Saudi Arabia and Zimbabwe at its flagship investment forum, the St. Petersburg International Economic Forum (SPIEF).
- Many forum participants from South America, Africa and the Middle East praised Russia and the event. No major Western companies were present.
Cut off from the West, Russia is showcasing its $2 trillion economy to giants like China and Saudi Arabia and countries with long-term prospects like Zimbabwe and Afghanistan at its major investment forum in St. Petersburg, founded by the czars as a window to Europe.
The war in Ukraine has caused the biggest upheaval in Russia’s relations with the West since the Cuban Missile Crisis of 1962, and Western sanctions have unleashed a once-in-a-century revolution in Russia’s economic relations.
Ever since Peter the Great laid the foundations of the modern Russian state and made St Petersburg the capital in the early 18th century, Russia’s rulers have looked to the West as a source of technology, investment and ideas.
However, the invasion of Ukraine in 2022 has forced President Vladimir Putin The Kremlin says this is similar to an economic blockade by the United States and its European allies, while still turning to Asia and the rest of the non-Western world.
However, Western sanctions have not harmed Russia’s economy, and Moscow has nurtured ties with China, the Middle East, and major regional powers in Africa and Latin America.
However, it is unclear how much cash these countries are willing to invest in Russia’s economy and at what cost. No blockbuster deals have been announced yet.
Russian President Vladimir Putin shakes hands with Zimbabwean President Emmerson Mnangagwa during a meeting on the sidelines of the St. Petersburg International Economic Forum (SPIEF) in St. Petersburg, Russia, June 6, 2024. (Reuters/Anton Vaganov/Pool)
But Russian officials say this is just the beginning — and relations with the West have been ruined for a generation.
Bolivian President Luis Arce, who will join Putin at the main session of the St. Petersburg International Economic Forum, said he wanted to share the experience of Bolivia’s new economic model – with a large state – since 2006.
“We have our own economic model, which we have been implementing since 2006, and we want to share this experience,” Ertse told Putin.
Zimbabwean President Emmerson Mnangagwa is also attending, as are 45 other foreign officials, including Saudi Arabia’s energy minister, Oman’s trade and commerce minister and a senior Taliban official.
However, Russia’s trade with Zimbabwe is much smaller – it will be just $168 million in 2023, whereas Russian-EU trade was $300 billion in the year before Russia invaded Ukraine.
Gone from the forum are the Western investors and investment bankers who once flocked to secure Russia’s vast mineral wealth and one of Europe’s biggest consumer markets. Reuters saw no major Western companies at the forum.
Also largely gone are the oligarchs of the 1990s, who made their fortunes by navigating the chaos of a collapsing superpower.
The main mediator in Putin’s Russia is the state, controlled by his entourage of former Cold War spies and technocrats.
Chinese dragon
State-controlled banks such as Sberbank, VTB
As a sign of the times, Alfa Bank’s stand was a giant puffed dragon with Chinese characters on it and the claim that Alfa was “the best bank for business with China.”
Chinese luxury car brand Hongqi displayed armoured vehicles.
a delegation from the talibanStill officially banned in Russia, the Taliban visited the stands. The Taliban originally made up of fighters who, with US support, drove out Soviet forces in the 1980s.
The theme of the Forum is: “The foundation of a multipolar world is the creation of new points of growth.”
While Russia’s economy has shown resilience despite tough Western sanctions, prices are rising due to increased defense spending.
In dollar terms, the economy is roughly the same size as it was a decade ago, and Putin is embroiled in an economic war with Western countries whose financial clout is at least 25 times greater than Russia’s on a nominal GDP basis.
Many foreign attendees praised Russia.
“This year the event has grown in size… there are a lot of opportunities,” Nebeolisa Anako, a Nigerian official, told Reuters.
“The West is actually isolating itself because they are a minority in the world, although they are a very important part of the world. It is always better to cooperate with other parts of the world.”
Other officials in Africa and the Middle East echoed the sentiment.
Click here to get the Fox News app
Saudi Energy Minister Prince Abdulaziz bin Salman met Putin’s energy adviser, Deputy Prime Minister Alexander Novak, at the forum.
Novak said the “friendly countries” had reaped most of the benefits. its oil exports And about 70% of it was paid in national currencies.
“We have supplied 95% of the oil and petroleum products to friendly countries in four months this year,” Novak said.
