Amid restricted access to Western markets, Russia is actively promoting its $2 trillion economy to major players such as China and Saudi Arabia, alongside burgeoning partnerships with countries like Zimbabwe and Afghanistan. This effort is taking place at the forefront of investment gathering in St. Petersburg, historically established by the tsars to connect with Europe, signifying a notable pivot in Russia’s economic approach.
The war in Ukraine has caused the biggest upheaval in Russia’s relations with the West since the 1962 Cuban Missile Crisis. Western sanctions have forced a profound reorientation in Russia’s economic ties. Since Peter the Great’s era, Russia has historically looked to the West for technology, investment, and ideas. However, the 2022 invasion of Ukraine has driven President Vladimir Putin to pivot towards Asia and the non-Western world, responding to what the Kremlin describes as an economic blockade by the United States and its European allies.
Despite the sanctions, Russia’s economy has shown resilience, and Moscow has fostered closer ties with China, major Middle Eastern powers, and countries across Africa and Latin America. However, the extent of financial commitment from these nations remains uncertain, with no major deals announced at the forum so far. Russian officials assert that this is just the beginning and that relations with the West are irreparably damaged for the foreseeable future.
Bolivian President Luis Arce, attending the main session of the St. Petersburg International Economic Forum, expressed interest in sharing Bolivia’s economic model, which emphasizes a strong state role since 2006. “We have our own economic model, which we have been implementing since 2006, and we want to share this experience,” Arce told Putin.
The forum also saw the participation of Zimbabwean President Emmerson Mnangagwa and 45 other foreign officials, including the Saudi energy minister, Oman’s minister of trade and commerce, and a senior Taliban official. However, Russia’s trade with Zimbabwe will remain minimal at $168 million in 2023, compared to the $300 billion trade volume with the EU before the Ukraine invasion.
Absent from the forum were Western investors and bankers who previously sought opportunities in Russia’s vast mineral wealth and large consumer market. Also largely gone are the 1990s oligarchs who thrived during the chaotic collapse of the Soviet Union. In Putin’s Russia, the state, controlled by former Cold War spies and technocrats, is the primary authority.
State-controlled banks like Sberbank, VTB, and VEB had a significant presence, alongside resource giants such as Gazprom Neft and Novatek. Notably, Alfa Bank’s stand featured a vast Chinese dragon, highlighting its business focus in China. Chinese luxury car brand Hongqi displayed armored vehicles, symbolizing the shift towards Eastern markets.
A Taliban delegation, despite the group being officially banned in Russia, toured the forum. The Taliban, initially supported by the U.S. to repel Soviet forces in the 1980s, now represents part of Russia’s new strategic outreach.
The forum’s theme, “The foundation of a multipolar world is the formation of new points of growth,” underscores Russia’s push for a diversified global alliance. While the Russian economy shows resilience against Western sanctions, inflation is rising due to increased defense spending. Economically, Russia remains similar in size to a decade ago, but it faces a financial struggle against the vastly more powerful Western economies.
Foreign attendees praised the forum’s scale and opportunities. “This year’s event has grown in size… There are a lot of opportunities,” Nebeolisa Anako, an official from Nigeria, remarked. “The West may be isolating themselves, as they are a minority in the world, although a very important part of the world. It is always better to cooperate with other parts of the world.” Similar sentiments were echoed by other officials from Africa and the Middle East.
Saudi Energy Minister Prince Abdulaziz bin Salman met with Putin’s energy advisor, Deputy Prime Minister Alexander Novak, who highlighted that “friendly countries” account for the majority of Russia’s oil exports, with about 70% paid for in national currencies. “We already supplied 95% of oil and petroleum products to friendly countries this year in four months,” Novak stated.
