Russian President Vladimir Putin has acknowledged problems in the Russian economy, telling the plenary session of the St Petersburg International Economic Forum (SPIEF) on Friday that economic momentum was subdued.
"Yes, economic momentum is currently slowing," Putin said, adding in a dig at the European Union that Russia had now reached the level at which Europe has been for years.
The Russian president nonetheless expressed confidence that the economy would soon recover.
Russia has been at war with Ukraine for more than four years.
In the early years of the conflict, Moscow managed to generate economic growth despite Western sanctions by shifting the economy to war production.
Growth slowed significantly in 2025, however, and in the first quarter of 2026 the government was forced to acknowledge a contraction in gross domestic product (GDP).
In his speech, Putin also indicated that the budget deficit could grow further in the current year. He stressed that it stands at only 2.6%, which he said was below the deficit levels of European countries.
What he omitted to mention was that due to high interest rates driven by inflation, Moscow must spend comparatively more on servicing its national debt than EU countries.
Annual forum seen by Putin as showcase
Moscow uses the annual SPIEF as a showcase for Russia's economic and geopolitical ambitions.
The event got off to a rocky start on Wednesday after a Ukrainian drone attack on St Petersburg triggered an alert that lasted several hours.
As delegates arrived at the forum venue, black smoke could be seen rising above parts of the city.
Following increasing Ukrainian drone attacks on refineries in recent months, Deputy Prime Minister Alexander Novak admitted on Thursday at the forum that Russia is currently producing less oil than originally planned.
He attributed this to unscheduled repairs, without giving further details on their cause.
The forum runs until Saturday. Some 20,000 participants from more than 100 countries have registered to attend, according to the Kremlin.
