The Show Must Go On... Without Mentioning Ukraine
Russia's president, Vladimir Putin, discusses armaments, yet shows reluctance to address the ongoing situation in Ukraine.
While many expected Russian President Vladimir Putin to address the ongoing Ukraine conflict during his speech at the St. Petersburg International Economic Forum, he surprised attendees by focusing on arms and the economy instead. In a clever move tailored to the event's economic and geopolitical context, Putin steered clear of the war against Ukraine, keeping the focus on Russia's economic priorities.
The Weapons Race and Beyond
With a keen eye on boosting the defense industry as a pillar of the domestic economy, Putin called for the development of weapons based on combat experience at the forum. The Russian president also announced plans to develop defense projects alongside friendly nations, produce weapons jointly, and train relevant personnel.
Putin emphasized the need to move away from the division between civilian and purely defense companies, advocating for the integration of technological and organizational innovations from the civilian sector into the defense industry.
The Russian Economy: Navigating Tough Times
Putin painted a positive picture of Russia's economic development, highlighting the steady growth of the gross domestic product in recent years (more than four percent each of the last two years) and a decrease in inflation to 9.6 percent. However, amid differing opinions among Russian leaders on how to boost the economy, the central bank's high interest rates, currently at 20 percent, have been criticized for causing financial struggles for many companies.
Analysts argue that high interest rates may not be an effective tool against inflation given the level of government spending. The idea behind restrictive monetary policy is to cool the economy and reduce demand. However, the government is less sensitive to higher borrowing costs than the private sector, making high interest rates an ineffective solution.
Looking Ahead: A Shifting Economic Landscape
The St. Petersburg International Economic Forum provided Putin with an opportunity to reinforce Russia's economic priorities, focusing on resilience amid Western sanctions, strengthening trade relations with China, India, and the Global South, and Russia's burgeoning role in a shifting global power dynamic.
In this complex geopolitical landscape, Putin's decision to focus on arms and the economy in his formal speech, rather than directly addressing the Ukraine conflict, serves to present Russia as economically resilient and militarily capable while reassuring international partners and stakeholders about its stability and strategic direction.
[1] Economist.com, "Russia’s worldview: Putin at the St. Petersburg International Economic Forum", 2025
[2] Reuters.com, "Putin says Western sanctions must not divide Russia, doesn’t mention Ukraine", 2025
[3] Brookings.edu, "Putin’s geopolitical message at the 2025 St. Petersburg International Economic Forum", 2025
[4] NPR.org, "Putin talks arms and economy, not Ukraine at economic forum", 2025
[5] RussiaBriefing.com, "Putin's economy speech - key takeaways from SPIEF 2025", 2025
- The Community policy regarding the St. Petersburg International Economic Forum underscores the importance of focusing on economic matters rather than political conflicts, as demonstrated by Putin's speech that mainly discussed arms and the economy, excluding any mention of the Ukraine conflict.
- In the context of global news, the economic and monetary union, particularly within the defense industry, is a significant area of focus for the Russian government, as indicated by Putin's call for the integration of technological and organizational innovations from the civilian sector into the defense industry.
