By: TPA News Desk | editor@thepointafricanews.com

The 28th St. Petersburg International Economic Forum (SPIEF) concluded this weekend with a clear message: Russia is increasingly turning toward the Global South—including BRICS, China, India, and Middle Eastern partners—as Western investment effectively disappears in the face of ongoing sanctions.

Despite Putin’s optimistic platform speech, where he emphasized economic growth, multipolarity, and new partnerships, foreign direct investment (FDI) into Russia remains at historically low levels. According to UN data cited at the forum, FDI inflows collapsed by 62.8 percent in 2024, while total foreign investment nearly halved since the 2022 Ukraine invasion. Government asset seizures and weakened property rights continue to deter serious investors.

Alexander Kornienko, attending the forum for the 18th time, described SPIEF as increasingly a domestic political showpiece rather than a genuine global investment platform . With Western firms largely absent, attendance was dominated by officials and business representatives from non-Western nations. Indonesia’s President Prabowo Subianto was among the few major foreign leaders present. While SPIEF 2025 generated reports of deals worth 6.3 trillion rubles (~$68 billion), many were internal transactions or involved Russian state-backed entities. Analysts are skeptical these deals signal a real shift in investment flow; critics say they mask stagnation and economic risk.

Other highlights included oil-market cooperation signals, with the U.S., Saudi Arabia, and Russia reportedly exploring coordinated action to stabilize energy prices amid Middle East tensions. Russia also reiterated its goal of de‑dollarizing trade, increasing settlements in rubles and other national currencies to resist sanctions pressure.

Acknowledging internal economic strain, Economy Minister Maxim Reshetnikov described the country as being “on the verge of recession,” pinning hope on defense-led industrial growth to prevent economic downturn. Putin assured the audience that recession would be avoided, advocating defense–civil industrial strategies .