Among the participants of this flagship event this week there are several close relatives of the high -ranking Kremlin officials. The conference takes place after years of conflict and strict Western sanctions that hit Russia's economic perspectives.
– Nobody talks about any investments, because how can you invest in Russia in the current situation – during war, sanctions, slowing down economic growth and persistent inflation? – said Alexandra Prokopoenko from Carnegie Russia Eurasia Center in Berlin. – The main goal of the forum is to show Putin that the economy is not in stagnation and that everyone is having a great time, running a business as usual. This is the same old traveling circus.
State television has already announced an important speech of Putin about international matters and “who is responsible for what is happening today”.
Indonesia behind Putin
He will be joined by the President of Indonesia Prabowo Subianto, the first Deputy Prime Minister of China Ding Xuexiang, Szejk Nasser Bin Hamad Al Chalifa, the third in order to the throne of Bahrain, and Vice President of South Africa Paul Mashatile.
This is the most eminent group of world leaders that Russia has gathered at the conference since the beginning of the war, because the widespread condemnation of full invasion of Ukraine and the fear of the reaction of the West prompted many Russian allies to be inherent in the event.
In particular Prabowo undertook to strengthen the relationship with Russia, even when other foreign powers turned away from Putin after the invasion. As a defense minister during his last visit to this country in July 2024, Prabowo called Russia a “great friend” and left the G7 summit in Canada this week to take part in the conference. On Thursday he is to meet Putin.
Since the took place by Prabowo last year, Indonesia conducted the first joint maritime exercises in history with Moscow and agreed to join the group of developing BRICS countries, led by China and Russia.
In 2023, Prabowo proposed a peace plan for Ukraine, which included proposals to create a demilitarized zone and conduct an UN referendum in “various disputed areas”. The proposal met with sharp criticism from Kiev, who stated that there were no disputed territories, but only regions in south-eastern Ukraine under Russian occupation.
Evan Laksman from the International Institute of Strategic Studies believes that Russia will benefit more from developing relations with Indonesia.
– says the expert.
Investing in Russia, a good face for a bad game
Putin's triumphalist rhetoric does not reflect the growing pessimism among the economic officials and the economic prospects of the country as the war prolongs.
The high costs of loans, aimed at reducing the galloping inflation, began to inhibit the war economic boom in Russia, and the accompanying increase in the standard of living is weakening.
Russia's advantage on the battlefield weakened Putin's appetite to a peace agreement in Ukraine, which makes the perspective of the abolition of Western sanctions seem distant.
Although the Kremlin claims that he is interested in the return of Western investors who want to return to Russia in the event of the abolition of sanctions, officials admitted on Wednesday that no one has taken any formal steps in this direction yet.
– We have not seen any applications from companies that have left for now – said Deputy Minister of Finance Ivan Czebeskov in an interview with the RBC news agency.
– If we are talking about output contracts, we have dozens of them a month – added Czebeszkow, despite the fact that over the past year Exodus Western companies have slowed down.
Putin, who had not yet shown interest in a peace agreement in Ukraine negotiated by the United States, seemed to change his position on this matter last month, supporting activities aimed at stopping Western companies from buying their substitute counterparts.
– Our management is able to meet the most difficult challenges related to the replacement of imports – said the first Deputy Prime Minister Denis Manturow on Wednesday. He added that Western companies “should first do something so that the sanctions are lifted.” – Then let them come and we will talk.
The forum has become a showcase of the family of the highest rank of Russian officials. On Wednesday, Katerina Tichonowa, Putin's daughter, and the 25-year-old son of his staff, Aleksander Vaino, appeared via the video.
One of the sessions devoted to sports federations will be attended by the children of three for the longest time cooperating with Putin and the son -in -law of the Minister of Foreign Affairs Sergei Ławrowa – but only two athletes.
Even if the repetitive performances of Russian princes indicate the lack of other speakers, the Forum cultural program clearly shows that family ties are now its characteristic feature.
A fast VIP train from Moscow offered guests a nine -course meal served along with wine from two producers, next to the Palace allegedly built for Putin. At the conference you could see a stand with 11 Soviet state decorations of his father. State media has published a film that shows long queues for free T -shirts with quotes of Putin and Lavrov.
– This is the same old traveling circus – says Prokopienko, a former clerk of the Central Bank. – The most important thing is Putin to be happy.
