Russian government nervous as country country in economic problems

In St. Petersburg International Economic Forum, a Russian MP approached me.

“Will you bomb Iran?” he asked.

“I’m not planning a bomb anybody!” I replied.

“I mean you, British …”

“Don’t you mean Donald Trump?”

“He told what British would do,” the man smiled. “And in the deepest condition.”

It’s a short, strange conversation. But it is shown that in St. Petersburg this week has more than the minds of people than the economy.

Bring President Vladimir Putin.

Friday, the Kremlin leader sent Keynote convey to the plenary session in the forum. It focuses on the economy.

But what the Kremlin leader says in the piant discussion then makes headings.

“We have an old rule,” Putin declares. “Where a Russian soldier’s foot, that’s us.”

Imagine that you are leading a country hosting an economic forum, looking for foreign investment and cooperation. To boast about your army that seizes foreign lands does not appear to be the most effective way to achieve it.

But that’s the point. Because the entire Russian invasion of Ukraine in February 2022, the state of the economy is second to the purpose of winning war against Ukraine. That was Kremlin’s first priority. In fact, Russia’s economy grows, but mostly due to much spending state of the defense sector and military business complex.

And even the growth associated with war now shakes.

Putin didn’t really worry.

“Up to the ‘murder’ of the Russian economy concerned, as a famous writer once said – ‘The rumors of my death are greater,'” said the Russian president.

But the Russian government is clearly nervous.

In the forum, the Russian minister for economic growth, Maxim Reshetnikov, warned that the country’s economy suffered “to shrink”.

“We grew up for two years in a long step because unused resources activated,” as Russian Central Bank Central Bank Central Elvira Nabullulina. “We need to understand that many of the resources are actually tired.”

St. Petersburg International Economic Forum is conceived as a shiny showcase for Russian economy. The light shines a lot for thousands of international sanctions that Russia inflicts in the Ukrainian war. Many western companies have been removed from Russia.

Can they come back?

Then, the US President Donald Trump explained that he liked a better relationship with Moscow.

“Now we have breakfast with the American Chamber of Commerce and many investors from the US. We understand that many companies in America want to return,” Kirill Dmitriev, President Putin’s Envoy in foreign investment, I am told by foreign. We say the paths to St. Petersburg Forum.

“I think the American administration understands that conversation and joint cooperation are better than penalties without working and hurting your businesses.”

Western businesses, however, cannot be avoided to return to many numbers while Russia has launched a war in Ukraine.

“I think it’s clear that you need to have a conclusion of the Russice in Russic Russice in Russice in Russic Russic to Russic Russic in Russice in Russice in Russice in Russice in Russice in Russice in Russice Russice in Russice in Russice in Russic Russic in Russice in Russice in Russic Russic in Russicia.

“Do you ask the Trump administration to remove some penalties from Russia?” I asked him.

“We went to Washington,” he replied. “We make an analysis of the impact of American sanctions in American businesses. We have passed that to the administration.”

“Do you accept that the idea of ​​business business in Western returns is the controversial of the Light of the War in Ukraine?” I asked.

“Western businesses have made decisions based on what happened three or four years ago,” Mr Agee replied. “And it’s for them to decide whether this is the right time back.”

After more than three years of war and consecutive masses, Russia faced hard economic challenges: high inflation, high interest, recession reports, shrinking. Economic problems are now open-mentioned and debuted.

It is not clear how they can be carefully.