St. Petersburg Forum and the Search for a Stable Future

The 29th edition of the St. Petersburg International Economic Forum concluded today, Saturday, in Russia’s historic city of St. Petersburg. Since its establishment in 1997, the forum has grown into one of the world's most prominent economic gatherings, attracting participants from 130 countries, including China and the United States, as well as a notably large and remarkable European presence this year. At the heart of the event was the Kingdom of Saudi Arabia, which attended as the forum’s principal guest of honor.

The world watches this event with considerable interest. Some describe it as “Russia’s Davos.” By bringing together a diverse spectrum of sovereign nations that are willing, capable, and prepared to move forward immediately on the basis of partnership and economic development, the forum is viewed by many as distinct from the Western model represented by Davos. Its advocates argue that it offers an alternative vision of global economic cooperation, one that differs from what they see as the shortcomings and failures of the ideology promoted by Western institutions.

This year’s forum highlighted, first and foremost, the strength and resilience of relations between Moscow and Riyadh—or, more precisely, the effectiveness of Saudi diplomacy in maintaining balanced relations with major powers and capitals across the globe. It also underscored the considerable respect and influence that Saudi Arabia enjoys in international forums.

This distinguished participation comes as relations between the two countries enter their centennial year, while partnerships continue to deepen across sectors such as energy, industry, agriculture, the digital economy, and tourism.

Moscow has clearly recognized Riyadh’s active and vital role, particularly in relation to the Ukrainian crisis. Saudi Arabia has pursued a balanced, rational, and constructive position, opening its doors to all parties and hosting multiple initiatives aimed at ending a war that has dragged on for far too long while yielding little beyond death and destruction for all involved.

Saudi Arabia’s presence at the St. Petersburg Forum also reinforced the broader Arab and Gulf role in the discussions that took place throughout the event. Russian President Vladimir Putin took a direct interest in participating in many of these sessions, especially at a time when the global order is undergoing rapid transformation and when new forms of cooperation are being sought to address numerous divisive international challenges.

Foremost among these concerns are the state of the global economy, fears of a worldwide recession, and the possibility of severe financial crises reminiscent of—or perhaps even worse than—the 2008 financial crisis in the United States.

It became evident from the participation of representatives of major multinational corporations, government officials, and technological experts that artificial intelligence has become a central topic at virtually every international gathering, whether political, economic, social, or even religious.

This growing focus stems not only from the extraordinary opportunities AI offers humanity—opportunities that seem to surpass even the imagination of mythology—but also from the serious risks associated with these technologies, ranging from the threat of deepfakes to discussions about cyborg technologies and brain-chip integration.

“Pragmatic Dialogue: The Path to a Stable Future” was the theme of this year’s forum. It appears that many Europeans in general, and Germans in particular, have come to recognize—through a pragmatic lens—that a prolonged confrontation with the Kremlin is not in their best interests.

There is still no clear prospect of a rapid resolution to the conflict in Ukraine, while the United States has begun reducing portions of its military presence in Europe after eight decades of strategic partnership dating back to the Second World War.

Despite the decline in economic ties between Berlin and Moscow, approximately 1,800 German companies continue to operate in Russia. Historically, Russia has attracted German investment on a scale ten times greater than that of any other European country.

Following the outbreak of the war in Ukraine, many German firms pledged to withdraw from the Russian market. However, only about 9 percent ultimately left, while the overwhelming majority chose to remain.

The European presence at the St. Petersburg Forum suggests that many policymakers and business leaders increasingly recognize the substantial damage suffered by the European Union, particularly in the energy sector. This has intensified divisions within Europe regarding relations with Moscow and raised questions about whether a future reconciliation with Russia may ultimately prove more beneficial than continued hostility.

This debate has become especially relevant given estimates suggesting that Germany and other European economies have lost nearly three trillion euros as a consequence of abandoning Russian energy supplies—losses significant enough to place considerable strain on the continent’s economic stability.

The forum also highlighted the growing momentum of Eurasian cooperation, particularly between China and Russia. According to available data, approximately 1,400 Chinese companies were established in Russia during the first quarter of this year alone.

As the forum precedes the upcoming NATO summit scheduled for July, an important question emerges: Could St. Petersburg become a signal of a future European-Russian rapprochement—one that eases pressure from Washington on its allies and grants European capitals greater room for strategic maneuver?