Steve Rosenberg: Lasting image of Russia’s economic forum is plume of smoke over St Petersburg

“There are wars and sanctions. But the economy is developing,” Vladimir Putin claimed. “Everything is stable.”

Applauded by entrepreneurs, friendly foreign dignitaries and officials, inside the congress hall the Russian president could style himself as a super strong leader.

His problem is what’s happening outside.

The massive battlefield losses that Russia has suffered in its war on Ukraine.

The long-range Ukrainian drones now penetrating deep inside the country.

At the forum when I asked senior officials about the war, their responses had one thing in common: they quoted the Kremlin. A reminder, perhaps, of whose idea the so-called “special military operation” was in the first place.

“The war is in its fifth year,” I pointed out to Alexander Zhukov, deputy speaker of the Duma, the lower house of Russia’s parliament. “Do you think it will it end soon?”

“I can only respond in the words of our president. He said this situation must be resolved soon,” replied the MP.

“Drones targeted St Petersburg this week,” I reminded Vasily Anokhin, the governor of Smolensk region. “And your region too has in the past come under drone attack.”

“As our president says,” the governor began, “our enemies, unfortunately, are trying to hurt us.”

The Russian economy is hurting. There are no signs of imminent collapse, but war and sanctions are creating considerable pressure. Growth has stalled in most sectors. Russian economists speak of “stagnation” and, in some areas, “decline”. The ongoing conflict is sucking massive resources, both human and financial.

On a recent trip to Lipetsk region, small business owners told me they were struggling to stay afloat.

With its shiny stands and big-budget presentation the St Petersburg forum presented a more rose-tinted view of Russia’s economy.