Vladimir Putin stood before a hall of applauding entrepreneurs and foreign dignitaries at his flagship economic forum in St Petersburg, insisting that Russia's economy was stable and the war was going well. But outside, a huge plume of thick black smoke from a Ukrainian drone attack dominated the city skyline, a vivid reminder that the war Putin launched five years ago has come home.
Russia's International Economic Forum (SPIEF) was overshadowed in June 2026 by two large-scale Ukrainian drone attacks on St Petersburg. On the opening and closing days, Ukrainian drones struck infrastructure in the area, with local officials reporting 141 drones shot down over the surrounding region. The abiding image of the event was the smoke plume visible to all delegates arriving at the expo centre. Ukraine's president, Volodymyr Zelensky, published an open letter to Putin proposing peace talks in a neutral country, but Putin rejected the offer, telling soldiers on the frontline to "keep at it, brothers!". The episode underscores how Russia's war on Ukraine has stretched into a fifth year, with long-range Ukrainian drones now penetrating deep inside the country and battlefield losses mounting.
“Russia faces drone attacks on its soil and losing influence over allies like Armenia.”
At the same time, Russia's influence over its traditional allies is fraying. Armenia, a tiny, landlocked state of three million people that has long looked to Moscow as its protector, is expected to re-elect its pro-Western prime minister, Nikol Pashinyan, in a vote on Sunday. Pashinyan came to power in a 2018 popular uprising, but the relationship with the Kremlin has steadily unravelled since Russia's full-scale invasion of Ukraine. Putin retaliated against Armenia's drift towards the West by allowing Russian peacekeepers to stand aside as Azerbaijan reclaimed the Armenian-populated enclave of Nagorno-Karabakh in 2023. But instead of overthrowing Pashinyan, Armenians directed their anger at Moscow. Pashinyan now argues that Armenia's future depends on ending its vassalage to Russia, and is seeking to reopen borders with Azerbaijan and Turkey to unlock US-backed trade routes.
For UK readers, these developments matter because they signal a shift in the balance of power. Russia is simultaneously fighting a costly war in Ukraine, facing drone attacks on its own soil, and losing influence in its historical sphere of influence. The war, sanctions and isolation are straining Russia's economy and its ability to project power. The UK and its allies have backed Ukraine with military aid and sanctions, and this story shows the pressures on the Kremlin. It also highlights the geopolitical realignment in the Caucasus, where a country like Armenia is turning towards the West, potentially opening new trade corridors that could reduce dependence on Russia. The outcome of Armenia's election will be closely watched as a test of whether Moscow can still control its neighbours.
Q: Why did Ukraine attack St Petersburg? Ukraine launched drones at St Petersburg to disrupt Russia's flagship economic forum and demonstrate its ability to strike deep inside Russian territory. The attacks were a show of force aimed at the Kremlin and the international delegates attending the event.
Q: What is Russia's International Economic Forum (SPIEF)? SPIEF is an annual event in St Petersburg where Russian leaders, business figures and foreign dignitaries discuss economic policy and investment. It is a symbol of Russia's economic ambitions and global standing, and its overshadowing by drone attacks was a propaganda blow for Putin.
Q: Why is Armenia turning away from Russia? Armenia's prime minister, Nikol Pashinyan, has moved closer to the West, appalled by Russia's conduct in Ukraine. When Moscow failed to protect Armenian interests in Nagorno-Karabakh in 2023, Armenians blamed Russia, not Pashinyan. He now argues that independence from Moscow can unlock prosperity through trade with Azerbaijan and Turkey and integration with Europe.
What happens next depends on two key unknowns. First, whether the war in Ukraine continues to escalate, with further drone strikes inside Russia and more battlefield losses. Second, whether Armenians confirm Pashinyan in power on Sunday and proceed with the risky strategy of decoupling from Moscow. Both will shape Russia's position in the world for months and years to come.