US: When Russia’s annual international investor showcase opened here this time last year, the political uproar over Crimea’s annexation overshadowed most business deals and financial concerns. This year, as corporate executives and Russian leaders arrive in President Vladimir Putin’s hometown for the economic forum’s opening day, there’s a different elephant in the room
Russia’s struggling economy, which has fallen into recession amid low oil prices, expensive credit and Western sanctions. Since last year’s event, the ruble has lost 37% of its value against the dollar “Despite claims that has finally bottomed out, economic contraction keeps going and does not seem to be slowing down,” said Yevgeny Nadorshin, chief economist at PF Capital, a Moscow-based consulting firm. “The country may now face prolonged recession or stagnation.”
Last year, in protest of Crimea’s annexation, U.S. authorities actively discouraged top-level corporate executives from attending the annual event, known as the St. Petersburg International Economic Forum. What was once Russia’s flashy answer to Davos transformed into a far quieter affair, with a limited number of international chief executives choosing to attend.
