Russian government nervous, countries in the face of economic challenges

At the St Petersburg International Economics Forum, a Russian MP came.

“Will you bomb IRAN?” asked.

“I don’t plan to bomb anyone!” I replied.

“I mean, British …”

“Don’t you mean Donald Trump?”

“What should great Britain do,” the man smiled. “And depending on the deep state.”

The conversation was short and intense. But he showed that St Petersburg’s mind was about the mind of the people this week.

Take the President Vladimir Putin.

On Friday, Kremlin’s leader gave the main lecture at the plenary session of the forum. Focused on the economy.

But the Chief of Kremlin said he said in the panel discussion after titles.

“We have an old rule,” Putin said. “The feet of a Russian soldier step, that is ours.”

Imagine the leader in a country organizing an economic forum, looking for foreign investment and collaboration. Knocking foreign lands will be the most effective way to get around your army.

But that’s the point. Russia Ukraine’s full-scale invasion in February 2022, the state of the economy has been secondary with the aim of gaining war against Ukraine. That’s the main priority of Kremlin. It is true that the Russian economy has been growing, but largely has been massive expenditure on the defense sector and military industrial complexes.

And this growth related to war is also petrint.

Putin didn’t worried too much.

“The” murder of the Russian economy, when a famous writer said, “Many rumors of my death are excessive,” he declared Russian president.

But the Russian government is nervous.

In the forum, the Minister of Economic Development, Maxim Reshetnikov warned that the country economy was “on the edge of the recession”.

“We have been in a relatively high rhythm for two years, because unused resources were activated,” said Russian central bank governor Elvira Nabiullina. “We need to understand that many of these resources are exhausted.”

The San Petersburg International Economic Forum was thought of as a bright showcase of the Russian economy. This shine has disappeared for thousands of international sanctions that Russia has established in the war in Ukraine. Many Western companies took out of Russia.

Can they return?

After all, Donald Trump’s president clearly allowed to have better relations with Moscow.

“We’ve had breakfast today with the American chamber of commercial and investors had breakfast for breakfast. Many American companies want to return” Kirill Dmitriev, President about the foreign investment told me. We talked at the edges of the St Petersburg Forum.

“I think the American Administration understands that the joint dialogue and cooperation is better than penalties that do not work than those who do not hurt your business.”

Western businesses, however, are unlikely returning in large numbers in Russia while he is making war in Ukraine.

“I think it’s clear that you must have a certain end of the conflict, they consider American companies seriously,” Robert Age said Russian Chamber of America.

“Did you ask Trump Administration to get rid of some punishment from Russia?” I asked him.

“We went to Washington,” he replied. “We have studied the influence of American penalties in American business. We passed the administration.”

“Do you agree that Western business ideas is a questionable idea in Ukraine’s war?” I asked.

“Western companies have made decisions according to what happened three to four years ago,” said Mr. Agee. “And it’s up to them to decide whether it is right to return.”

After passing the war and mass penalties for more than three years, Russia has tough economic challenges: high inflation, high interest rates, stop, recession reports. The problems of the economy have been discussed and discussed in an open way.

There is no clear how to fix it soon.