Latest news with #SaintPetersburg
News.com.au
2 hours ago
- Business
- News.com.au
Russian economy on verge of recession, minister warns
Russia's economy minister warned that the country was 'on the verge' of recession, issuing the downbeat message on the second day of a forum designed to bolster economic confidence. The Russian economy has been marked by volatility since it launched its full-scale military offensive on Ukraine in 2022, with growth now slowing after a period of what officials called 'overheating'. Moscow reported strong economic expansion in 2023 and 2024, largely due to massive state defence spending on the conflict. But economists have cautioned that growth driven by the defence industry is unsustainable and does not reflect a real increase in productivity. 'Overall, I think we are on the verge of a recession,' Economy Minister Maxim Reshetnikov told journalists at a panel on the second day of the Saint Petersburg Economic Forum. He said this view was based on 'current business sentiment and indicators' that were pointing to a slowdown. 'Everything else depends on our decisions,' Reshetnikov said, calling for the central bank to show a 'little love for the economy'. Russia's central bank jacked interest rates to an eye-watering high of 21 per cent last October to combat inflation and kept them at that level until earlier this month, when it eased them to 20 per cent. Economists had warned for months that the high interest rate and a downturn in manufacturing were weighing on the economy. Russia's economic growth slowed to 1.4 per cent year-on-year in the first quarter of 2025, the lowest quarterly figure in two years. Prices have also been rising across the Russian economy, driven up by the massive government spending on the Ukraine assault and widespread labour shortages. Annual inflation ebbed below 10 per cent in May but has been more than double the central bank's four per cent target for over a year.
Sky News
5 hours ago
- Politics
- Sky News
Russia would react 'negatively' if Iran's leader is killed, says the Kremlin
Why you can trust Sky News Regime change in Iran is "unacceptable" and the assassination of the country's Supreme Leader would "open the Pandora's box", the Kremlin has said. In a rare interview with a foreign media organisation, Kremlin spokesman Dmitry Peskov told Sky News that Russia would react "very negatively" if Ayatollah Ali Khamenei was killed. The comments came as US President Donald Trump said he will decide within two weeks whether America will join Israel's military campaign against Tehran, after earlier speculating on social media about killing the Iranian leader. "The situation is extremely tense and is dangerous not only for the region but globally," Mr Peskov said in an interview at the Constantine Palace in Saint Petersburg. "An enlargement of the composition of the participants of the conflict is potentially even more dangerous. "It will lead only to another circle of confrontation and escalation of tension in the region." Russia has deepened its ties with Iran since invading Ukraine, and the two countries signed a strategic partnership in January. "[Regime change in Iran] is unimaginable. It should be unacceptable, even talking about that should be unacceptable for everyone," Mr Peskov said, in a thinly veiled reference to Washington. 1:35 But Mr Peskov refused to be drawn on what action Russia would take if Khamenei was killed, saying instead it would trigger action "from inside Iran". "It would lead to the birth of extremist moods inside Iran and those who are speaking about [killing Khamenei], they should keep it in mind. They will open the Pandora's box." Vladimir Putin's offers to mediate an end to the conflict have so far been rejected by Mr Trump, who said on Wednesday that he told the Russian president to "mediate your own [conflict]", in reference to Russia's war against Ukraine. Mr Peskov denied the American president's words were insulting, adding: "Everyone has a different language. "President Trump has his own unique way of speaking and his unique language. We are quite tolerant and expect everyone to be tolerant of us." The Trump administration's own mediation efforts to end the war in Ukraine have failed to yield any major breakthroughs, despite two rounds of direct talks between Moscow and Kyiv. Moscow has stepped up its aerial bombardment of Ukraine in recent weeks and continues to reject Volodymyr Zelenskyy's calls for a 30-day ceasefire. "Now we have a strategic advantage. Why should we lose it? We are not going to lose it. We are going further. We're advancing and we'll continue to advance," Mr Peskov said. Russia has previously said it would only commit to a ceasefire if Kyiv stops receiving foreign military support, fearing that a pause in the fighting would offer Ukraine a chance to rearm and regroup its forces. 0:57 Asked if Moscow could commit to not using a ceasefire in the same way, Mr Peskov said: "A ceasefire is a ceasefire, and you stop. "But America is not saying that 'we'll quit any supplies'. Britain is not saying that as well. France is not saying that as well. This is the problem."
Asharq Al-Awsat
12 hours ago
- Politics
- Asharq Al-Awsat
Russia Warns US Against 'Military Intervention' in Iran-Israel War
Russia's foreign ministry on Thursday warned the United States not to take military action against Iran, amid speculation over whether Washington will enter the war alongside Israel. "We would like to particularly warn Washington against military intervention in the situation, which would be an extremely dangerous step with truly unpredictable negative consequences," the ministry's spokeswoman Maria Zakharova told reporters. Earlier, Russian President Vladimir Putin said Iran has not asked its ally Russia for military help amid its escalating air war with Israel. "Our Iranian friends have not asked us about this," Putin said in response to a question from an AFP reporter at a televized press conference in Saint Petersburg.
Al Jazeera
21 hours ago
- Politics
- Al Jazeera
Putin rejects question about any potential attempt to kill Iran's Khamenei
Russian President Vladimir Putin declined to comment on speculation that Israel or the United States may try to assassinate Iranian Supreme Leader Ayatollah Ali Khamenei, and continued to push for a political solution to the Iran-Israel conflict during a meeting with international journalists. 'If I may, I hope that this will be the most correct answer to your question. I do not even want to discuss this possibility. I do not want to,' he said in response to questions about Khamenei on Thursday from the sidelines of the Saint Petersburg International Economic Forum. Israeli Prime Minister Benjamin Netanyahu said earlier this week that the conflict could lead to regime change in Iran, where Israeli attacks have targeted senior military leaders and top nuclear scientists. Israeli strikes have killed at least 585 people, among them 239 civilians, since last Friday, according to a US-based Iranian human rights group. US President Donald Trump earlier said that Washington knew the location of Khamenei. He said the US would not act for now, although he has not ruled out the possibility that the US may join Israel's attack on Iran. Despite the threats from Netanyahu, Putin said that Iranian society remains united behind its government. 'We see that today in Iran, with all the complexity of the internal political processes taking place there … that there is a consolidation of society around the country's political leadership,' he said. The Russian leader has presented himself in recent days as a possible mediator between the two sides, although his overtures have been rebuffed by world leaders like Trump due to Moscow's close ties with Tehran. Despite the roadblocks, Putin has continued to push for a peaceful resolution that would need to ensure Iran's 'peaceful nuclear activities' and the 'interests of Israel from the point of view of the unconditional security of the Jewish state'. 'This is a delicate issue, and of course, we need to be very careful here, but in my opinion, a solution can be found,' he said. Russia has yet to supply Iran with weapons, despite signing a strategic partnership in January, he said, although it continues to help with Iran's nuclear programme. Tehran says this programme is designed for civilian use and has consistently denied seeking a bomb, but Israel claims Iran intends to build a nuclear weapon. Putin said Tehran's nuclear programme continues underground despite the recent Israeli air strikes. 'These underground factories, they exist, nothing has happened to them,' Putin said. Putin also said that more than 200 Russians continue to work at the Russian-built Bushehr nuclear power plant in southern Iran. The group is safe, he said, after Moscow 'agreed with the leadership of Israel that their security would be ensured'.
Japan Times
a day ago
- Business
- Japan Times
Russia's 'Davos' yet to recover Western appeal despite thaw with Washington
Russia's flagship economic forum kicked off Wednesday with stalls selling Russian President Vladimir Putin-themed merchandise and humanoid robots, but Westerners were few and far between — despite warming ties between Moscow and Washington under U.S. President Donald Trump. Once dubbed "Russia's Davos," the annual Saint Petersburg International Economic Forum (SPIEF) is designed to attract foreign investment and is the biggest showcase of Russian technology and business. Some 20,000 guests from 140 countries are set to take part in the forum over the next four days, both online and in person, according to the Kremlin. But for the fourth year running, high-profile European and American representatives have been absent amid Moscow's offensive on Ukraine — a stark contrast to before the conflict, when some Western leaders would attend. Among the states sending high-level government figures this year are the likes of China, Vietnam, Iraq, Saudi Arabia, the Central African Republic and Burkina Faso. Taliban officials were also spotted at the expo, amid Russia's push to normalize ties with the militant Islamist group. Russian officials said some Western executives will attend. "American business representatives, but I can't say at what level," Kremlin aide Yuri Ushakov told reporters at a briefing Tuesday. According to the official program, not a particularly high one. A panel on Thursday, titled simply "Russia-USA," will feature the head of the American Chamber of Commerce in Russia, some private investors, the founder of a microphone manufacturer and head of a crypto project. But in one high-profile win for Putin, Indonesian President Prabowo Subianto skipped an invitation to the G7 in Canada, choosing instead to meet Putin and attend SPIEF. Among the events on the first day of the forum were panels focused on artificial intelligence and investment in the Global South. Russia has channeled its economic interests away from the West and towards emerging markets in Asia and Africa due to sanctions over the Ukraine conflict. One stand handed out T-shirts featuring quotes from Putin and other government officials. One from Foreign Minister Sergei Lavrov read: "Why the hell did I come here?" Technology was also on display. A humanoid robot flaunting a Dior handbag was seen walking around the exhibits. The forum comes amid intense speculation in Russia about the prospect of sanctions relief and the return of Western firms that left the country after Moscow launched its offensive on Ukraine in February 2022. Hundreds of companies sold off, abandoned or gave away their Russian operations — ranging from McDonald's and Nike to Ford and Goldman Sachs. Putin has at times blasted them for departing, warned they will not be allowed to return and said Russia is better off without them. He has also introduced punitive counter-sanctions, restricting the ability of firms from so-called "unfriendly" countries from accessing their profits and imposing huge exit fees and taxes on any wishing to leave. Trump's return to the White House and opening of diplomacy with Russia led to a frenzy of headlines in Russian media about whether he would ease U.S. sanctions. Russia's top economic negotiator, Kirill Dmitriev, said Wednesday that the United States may "in the next couple of months" announce joint projects with Russia in the Arctic, without elaborating. "The very important process of improving relations between American society and American companies towards Russia is currently underway," he was quoted as saying by state media. Once a fixture of Europe's business calendar, SPIEF was where Western leaders, CEOs and major investors gathered to seal deals on entering and expanding their footprint in Russia. Then-German Chancellor Angela Merkel attended in 2013, as did Mark Rutte, then the Netherlands' prime minister and now the Secretary General of NATO — the man marshaling the military alliance's response to Putin's Ukraine offensive. Its prestige started to dip after 2014, when Russia annexed the Crimean peninsula from Ukraine and was hit with the first tranche of Western sanctions. But even as recently as 2018, French President Emmanuel Macron and Japan's then-Prime Minister Shinzo Abe sat on stage alongside Putin.
