The traditional St. Petersburg International Economic Forum (IPEF) is taking place this year in a different way: fewer prestigious participants, many of them following a code, less extravagant food, and no promise of luxurious businesswomen, but the cost of the entrance ticket with a performance has increased by 110 thousand.
The IPEF has been held in St. Petersburg since 1997, with representatives from politics and business as participants. In the best years, representatives of 160 countries took part. German Gref, who was then the vice-governor of St. Petersburg, played a significant role in organizing the first forums. President Vladimir Putin has been a regular participant and speaker at the event since 2005. From this time, the IPEF has become an important political meeting where significant international business contracts are made, and important political messages are delivered in the context of the economic agenda. Over the years, the forum has been known for its luxury and expensive entertainment. There was also a scandal related to the price of an entrance ticket for an entrepreneur.
Governor’s buffet stays the same.
For obvious reasons, the current 25th IPEF, which will happen from June 15 to 18, is special, and visitors from Europe, America, Japan, or Korea with official status should not be expected. However, the forum will be will host guests from at least 115 countries (last year representatives from 141 countries participated). It is clear that all foreign politicians and businessmen carefully considered whether to attend. The locals don’t have much of a choice. However, in terms of expenses, which are purely within the budget, the IPEF remains at its best, with the exposition, business zone, and catering being handled by Expo Global Group LLC from Moscow for 63.2 million rubles. Just as before, the Committee for Culture of the Government of St. Petersburg has chosen the same performer of the so-called governor’s buffet as last year – ANO “Gala-Rus”, and it will cost 15 million rubles. This amount also includes exclusive handmade gifts for esteemed guests. Traditionally, the forum does not skimp on food – it is not only costly, but also exquisite. This applies not only to the final buffet table, but also to familiarize the regular catering based on last year’s forum.
We focus on food because the business aspect of the forum, surprisingly, often remains in the background. The conclusion of treaties and agreements is always announced loudly, with figures, amounts, and achievements presented, but formalities are emphasized. According to an official from the economic sector of Smolny, “all agreements and contracts, decisions on them, are made well in advance, with most still being finalized in January-February.” In reality, there is a funded system – contracts and various options for cooperation are designated long before the forum, but they are officially announced with great show at the event. And, of course, the number of contracts is steadily growing from year to year, both in quantity and financial value. The momentum cannot be lost.
Certainly, attendees of SPIEF will face challenges, not just for political reasons. Travel arrangements are difficult and often problematic. The specific situation by June 15 is uncertain. As for accommodations, luxury hotels in St. Petersburg are prepared to take advantage of high-paying guests. The cost of the most deluxe rooms in these hotels reaches 1 million rubles per day. However, according to consulting company PFM, hotel occupancy during SPIEF this year may be 5-10% lower than last year due to a decrease in the number of international forum participants.
Furthermore, many foreign guests will be, as they say, "in code." ask Organizers do not disclose all information about themselves, not even on a simple badge, in order to avoid potential sanctions. However, what can be concealed in the modern world…
No escorts?
But the St. Petersburg Economic Forum, which occurs during the renowned white nights, is more renowned for its financial aspect than its entertainment. Its traditional called flight of escorts. Additionally, these women participated in the forum as 'entrepreneurs' (although they are businesswomen in their own way, aren’t they?), paying a large sum of money to take part in the forum. However, it's not always their own money. According to some reports, they had 'partners' who invested in the entrance ticket to the SPIEF. They claim the investment will undoubtedly pay off. Furthermore, these women represent a top tier in the industry from across the country, a luxury segment of sorts. Previously, foreigners were extremely interested in these women, but not so much now. According to one industry 'insider' who spoke with Our Version, 'only St. Petersburg women are in demand now — the heyday of escorts is over, and the pandemic has also had an impact.' As another 'dealer' explains, 'an evening escort will hardly cost less than 200,000 now, whereas in the past it reached half a million, especially for guests from India.' In general, 'ladies with low social responsibility' in St. Petersburg have been facing a real crisis since the 2018 World Cup, much like the entire service sector.
And speaking of escorts, the St. Petersburg forum has always been known for its 'nightlife', which included impressive concerts by both domestic and foreign music stars. According to rumors, the fees were exorbitant, but no one saw any contracts or financial statements. 'If there are such parties now, foreign performers definitely won't be present,' stated Yevgenia Milova, a society columnist for the Kommersant newspaper. 'And they certainly won't be publicized — it's not the right time for that. There are some rumors about particular individuals, particularly about the favorite music groups of our elite, but if any facts come to light, they will be kept under wraps.'
However they sayThe most sought-after performer at SPIEF during the 'glory days' of the early 2000s, Sergey Shnurov, is currently not highly regarded by the elite. However, who knows – we sell what we bought. In any case, a year ago, he was at the forum spoke and as a businessman. Now, in a crisis, only real business sharks can afford the price of entry – it increased per year for 110 thousand rubles.
And last year’s St. Petersburg forum was remembered for commercial scandals. It turned out that to pay for participation and performance 840 thousand (or 960 thousand, if the President of the Russian Federation is present) need not only businessmen, but also expert speakers. Anastasia Tatulova, the Russian public ombudsman for small and medium-sized businesses, articulated this topic harshly. As for parties, in 2021, from June 2 to June 5, within this framework, participants annealed on Krestovsky Island to the songs of Shnurov’s protégé “Zoya”, the next – at a Forbes reception at the House of Leningrad Trade, also at the apartment building of the Otkritie bank and a Yandex party. The third day, the tape of certain secular lionesses of our “sublunar world” was overflowing with shots from the concerts of Svetlana Loboda and the Zhuki group.
