During the St. Petersburg International Economic Forum, Russian President Vladimir Putin rejected claims that the Russian economy is in decline, asserting that it has stabilized at levels comparable to those in the eurozone. He noted that despite a 0.2% contraction in the first quarter of 2026, which marks the first decline in three years, Russia is experiencing growth. However, economic experts have voiced concerns about stagnation, citing high interest rates and inflationary pressures. The Russian government also reported an $80 billion budget deficit, which is 2.5% of its annual GDP, surpassing the planned deficit for the year. In addition to economic challenges, Ukraine has intensified attacks on Russian energy infrastructure, further complicating the situation. Amid these developments, Putin dismissed Ukrainian President Volodymyr Zelensky's proposal for face-to-face negotiations, describing it as inappropriate given recent violent incidents. He stated that he sees 'no point' in such meetings, suggesting that they would not foster a conducive environment for dialogue.