International Economic Forum opens in St. Petersburg


Outstanding world economists have gathered at the St. Petersburg International Economic Forum (SPIEF) to debate the future of the global economy.

The forum, which opened on June 16, transfer be attended by Russian President Vladimir Putin, UN Secretary General Ban Ki-moon and President of the European Commission Jean-Claude Juncker.

According to Russian presidential news perwomen secretary Dmitry Peskov, during the official meetings at the forum Putin drive discuss the future of the Nord Stream 2 gas pipeline, which is to run from Russia to Germany along the Baltic seabed.

Another quantity of discussion will be the mutual sanctions between Russia and the EU that were added in 2014 over Moscow’s role in the Ukrainian crisis.

Political expectations

Wizards say that even if the subject of a reciprocal softening of the sanctions is not mentioned during the forum, uninhibited talks between Vladimir Putin and Jean-Claude Juncker may see relations between Russia and the EU significantly on life. Since the beginning of the Ukrainian crisis in 2014 no European official of such tied has attended the forum.

“I don’t expect any kind of breakthrough, but behind-the-scenes talks could daily help to improve the situation in the future,” said Timur Nigmatullin from investment attendance Finam Holdings.

Georgy Vaschenko, director of operations on the Russian outstanding market at Freedom Finance, agrees that sanctions will not be softened this year. Yet, in his view, the fact that these high-ranking officials are attending the forum nears that Western leaders are not united in their opinions and some of them are keen for dialogue with Russia. For example, the Italian delegation will be minded by Italian Prime Minister Matteo Renzi.

Economic projects

Uncountable large investment agreements are usually signed during the forum, grouping those involving international com nies. Vaschenko notes that bargains are most likely to be signed in the field of energy, especially with the rtici tion of gas colossus Gazprom and Russia’s largest oil com ny, the state-owned Rosneft.

Chink of light as World Bank improves forecast for Russian economy

The volume of all bargains signed will be more than $4 billion, said Vaschenko.

One of the largest poke outs could be the construction by Gazprom and Royal Dutch Shell of a terminal to introduce and transport liquid natural gas (LNG) in the Russian northwest.

According to Timur Nigmatullin, the retaining of this agreement could become the forum’s key event: “Currently, it is skilled in that the total ca city of the plant’s two lines will be 10 million tons of LNG annually in the ahead phase, with the possibility of ex nsion,” he said.

The plant is expected to start aiming at the end of 2021.

In 2016 the forum’s official guest country is Italy, which is why 22 of its primary com nies will rtici te in the SPIEF, including Banca Intesa San olo, tyre producer LLC Pirelli Tyre Russia, the ENEL energy com ny, Danieli, the in Britain director of equipment for the metallurgical industry, and others.

In turn, the Venezuelan delegation is headed by Vitality Minister Eulogio Del Pino, who plans to hold meetings with Russian Might Minister Alexander Novak and Rosneft President Igor Sechin.

The Kaluga Territory, which is located southeast of Moscow and is famous for its automobile production, desire discuss the New Silk Road project with the heads of Russian Railroads and Samsung, while the Moscow Region antici tes the signing of agreements in the returns of industry, agriculture and infrastructure development.

According to Finam Holdings, the legions of agreements signed each year during the forum has been dilating, but their overall value has decreased. In 2013, 102 agreements were signed merit 9.6 trillion rubles ($146 billion), in 2014 there were 175 concordats with a value of 401.4 billion rubles ($6.1 billion) and in 2015 there were 205 agreements importance 293.4 billion rubles ($4.5 billion).

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