BY EMMANUEL OGBONNA
Russian President Vladimir Putin used the opening session of the annual St. Petersburg International Economic Forum on Friday to argue that the balance of global economic power is shifting away from Western nations and toward developing countries, while also sharply criticizing Western sanctions and financial policies that he said have weakened trust in the international financial system.
Addressing political leaders, business executives and foreign delegates gathered in St. Petersburg, Putin said the world economy is undergoing a fundamental transformation. He argued that emerging economies are assuming a larger role in global growth and investment, while the economic influence of traditional Western powers has steadily declined.
According to Putin, the current period of economic turbulence reflects a broader transition from a world order dominated by a small group of powerful countries to a more decentralized and multipolar system in which developing nations have greater influence over global affairs.
He contended that the shift presents significant opportunities for Russia, despite the challenges posed by international sanctions and geopolitical tensions. Putin said Moscow intends to adapt quickly to changing global conditions and take advantage of new economic partnerships and trade relationships that are emerging outside the traditional Western sphere.
A major focus of his speech was criticism of sanctions imposed on Russia since the outbreak of the conflict in Ukraine. Putin argued that Western governments have damaged confidence in their own financial institutions by freezing Russian sovereign assets and restricting Moscow’s access to international payment systems.
He claimed that the seizure of Russian reserves sent a message to other nations that assets held in dollars and euros may no longer be fully secure during periods of political disagreement. According to Putin, the measures have weakened the standing of major Western currencies and encouraged countries to seek alternative mechanisms for trade and financial transactions.
The Russian leader also pointed to growing levels of public debt in many Western economies, suggesting that fiscal pressures have further eroded confidence in long-established financial institutions and contributed to uncertainty across global markets.
Putin described the ongoing transformation of the world economy as an irreversible process, arguing that nations in Asia, Africa, the Middle East and Latin America are playing an increasingly important role in shaping international economic development.
His remarks came as Russia seeks to deepen ties with non-Western partners and expand economic cooperation with countries that have not joined sanctions imposed by the United States, the European Union and their allies.
The St. Petersburg forum, often promoted by Russian officials as the country’s premier international business event, has become an important platform for Moscow to showcase investment opportunities and demonstrate that it continues to attract foreign interest despite years of diplomatic isolation from much of the West.
Before Russia launched its military operation in Ukraine in 2022, the forum regularly drew major Western executives, investors and government officials. Since then, participation from Europe and North America has fallen sharply, while attendance from Asia, the Middle East, Africa and other regions has increased.
This year’s gathering reflects that shift. Large delegations arrived from several countries, including Saudi Arabia, while the presidents of Uzbekistan and Tanzania attended alongside senior officials from China. The event also included a U.S. representative, Rodney Mims Cook Jr., chairman of the U.S. Commission of Fine Arts, marking a rare appearance by an American official at the forum in recent years.
The conference takes place against a more complicated economic backdrop for Russia. Although the Russian economy has demonstrated resilience under sanctions, government finances have come under increasing pressure from military spending and the prolonged conflict in Ukraine.
To manage budgetary challenges, Russian authorities have raised taxes and expanded domestic borrowing while attempting to contain inflation and maintain economic stability. Economists have warned that growth could slow as the effects of wartime spending moderate and borrowing costs remain elevated.
Putin rejected suggestions that Russia’s economy is facing serious difficulties. During a lengthy question-and-answer session with international media representatives on Thursday, he argued that recent economic cooling measures were introduced deliberately to prevent inflation from accelerating and to ensure long-term stability.
Beyond economic issues, Putin also addressed security concerns following a series of Ukrainian drone attacks deep inside Russian territory. He acknowledged that some Ukrainian drones have succeeded in penetrating Russian defenses and striking strategic targets.
The comments came after a drone attack shortly before the opening of the forum ignited a fire at an oil terminal in St. Petersburg and reportedly struck a nearby naval facility. The incident highlighted the growing reach of Ukrainian long-range attacks and underscored security concerns even in regions far from the front lines.
Putin said Russia would continue strengthening its air defense capabilities and improving protective measures around critical infrastructure.
The Russian president also revisited the issue of peace negotiations with Ukraine, stating that Moscow remains open to a compromise settlement based on understandings reached during discussions with U.S. President Donald Trump at a summit held last year in Anchorage.
According to Putin, any future agreement must reflect the principles discussed during those talks. He argued that Ukrainian leaders should accept those understandings if they hope to secure a lasting settlement to the conflict, which is now in its fifth year.
The diplomatic debate intensified after Ukrainian President Volodymyr Zelenskyy publicly proposed direct face-to-face negotiations with Putin. In a letter addressed to the Russian leader, Zelenskyy urged renewed dialogue while acknowledging that international attention has increasingly shifted toward the conflict involving Iran.
Zelenskyy suggested Ukraine could not afford to wait for Washington to fully refocus on the war, arguing that diplomatic efforts should continue regardless of changing global priorities.
Speaking in Washington, Trump welcomed the possibility of direct talks between the Russian and Ukrainian leaders, saying such a meeting could be beneficial if it helps move negotiations forward.
However, the Kremlin indicated that significant differences remain. Kremlin spokesman Dmitry Peskov said Putin had not yet reviewed Zelenskyy’s letter and reiterated Moscow’s position that discussions should focus on reaching a final settlement rather than arranging symbolic meetings.
Putin also maintained his opposition to an immediate ceasefire, arguing that a temporary pause in fighting would merely allow Ukraine to regroup while failing to resolve the underlying causes of the conflict.
He insisted that Russia seeks a comprehensive political settlement and suggested that a durable peace agreement would require difficult compromises from all sides. According to Putin, Moscow believes ending the war through a negotiated settlement is preferable to a temporary truce that could eventually collapse and lead to renewed hostilities.
As the forum continues, economic issues, security concerns and the future of the Ukraine conflict are expected to dominate discussions among participants, highlighting the increasingly close connection between geopolitics and global economic developments in a rapidly changing international landscape.
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