Russia Is Far From Isolated

Nikolay Pakhomov

Economics, Eurasia

A recent economic summit shows the world still wants in.

In 2014, when the White House started pressuring the chief executives of some of America’s largest companies to skip the event, the St. Petersburg International Economic Forum (SPIEF) gained an additional symbolic meaning. After the twentieth SPIEF took place earlier this month, it is arguable whether this policy worked at all, since American companies were well represented. However, there is no doubt that firms from other parts of the globe will seize the opportunity missed by American businesses loyally following their country’s policy to avoid Russia. In a broader political context, while Washington pretends to have isolated Russia, Europeans are trying to engage with Moscow.

Hardly anybody thought that if American companies skipped the St. Petersburg Forum it would be the last straw, breaking the back of Russia’s opposition to Western demands regarding Crimea and Ukraine. And the facts stand: Crimea is a part of Russia, the Russian economy has been sustaining external blows better than many experts in the West expected and President Putin, firmly at the helm, continues to receive many foreign guests, including even some Americans, in his home town.

The question arises—what is next for American policy? One cannot say that Washington has completely stopped all engagement with Russia; the Syrian crisis is a glaring example of why it is impossible. Perhaps, then, more engagement would be helpful.

Politically, the St. Petersburg Forum was rich in high-level talks; Ban Ki-moon, Jean-Claude Juncker, Matteo Renzi, and Nicolas Sarkozy all had their reasons to come to St. Petersburg. So did several dozen leaders of American and European companies, who had the chance to hear offers directly from Putin on starting to work in Russia or expanding their already existing business.