St Petersburg ( CNN ) -- St Petersburg has been a city of splendor for more than three centuries , and bears the name of the man who dreamt it all up : Tsar Peter the Great . But since Vladimir Putin took power in 2000 , this city has been best known as the hometown of the president , and those in his inner circle who call the shots within the Kremlin and in business . Anna Scherbakova , bureau chief for the financial daily Vedomosti , said the power structure of `` Team Putin , '' is woven through with the city 's elite . `` There are a lot of St Petersburg-born people in the Russian cabinet , '' she said . `` Also the CEOs of the Russian big monopolies like Gazprom , like Rosneft , like Sberbank . '' In a symbol of the city 's rising prominence , the state-run energy giant Gazprom will move its headquarters here next year at a cost of nearly $ 2 billion . The St Petersburg International Economic Forum , or SPIEF , is Putin 's version of Davos . It is a showcase event for his administration and a chance for CEOs of the Global 100 to rub shoulders with those who matter most in this near $ 2 trillion economy . But it is obvious , with a long , long list of no shows from corporate America and Europe , the tone has changed dramatically for the worse at SPIEF 2014 . According to Scherbakova , `` it could painful for the president 's self esteem . '' A year ago , the forum kicked off what was designed to be a smooth agenda of orchestrated events . German Chancellor Angela Merkel shared the stage with the president in a panel that I chaired . Tensions between them were obvious , but so too were overriding bilateral trade interests . A few months later , Putin talked of re-igniting growth as he hosted the G20 Summit in St Petersburg . In December , he moved to rescue Ukraine with a $ 15 billion bailout for his old ally , the now ousted Ukrainian President Viktor Yanukovich . Shortly thereafter , he was hosting the high-priced Sochi Winter Olympics . But it is Putin 's annexation of Crimea and unrest in Eastern Ukraine which will define 2014 and very likely his legacy . Putin 's popularity has skyrocketed at home , but that is weighed against economic isolation abroad . During the height of the Western-led banking crisis , Putin chided co-members of the G8 for their careless ways and lack of corporate governance . Today , the economic tide of growth has moved out on Russia . And that , according to Peter Truscott , former UK Energy Minister and Putin biographer , will force the Kremlin to take measured steps going forward . `` If a military conflict were to spread into Ukraine , against the background of further economic and trade sanctions , then I think Putin might lose support , '' Truscott said . `` That 's why I think Russia is very wary of full military intervention in eastern and southern Ukraine at the moment . '' In the spring of 2013 , the Russian president promised protestors he would raise their standards of living by fostering investment . Having most U.S. and many European corporate leaders staying away from his annual gathering on the Neva River will not assist in the effort . And the event that was scheduled to round off the president 's calendar on the global stage -- the G8 summit , due to be held during St Petersburg 's long white nights -- has been canceled . Instead , there will only be the G7 in Brussels . READ MORE : The European Union needs a new vision . WATCH MORE : Is the EU out of its economic crisis ? EXPLORE : Protest parties shake up Europe election .
St Petersburg , dreamt up by Tsar Peter the Great , is now best known as president Vladimir Putin 's hometown . Last year Putin used SPIEF -- Russia 's Davos -- to showcase his international links and political influence . This year , the Ukraine crisis is overshadowing the forum , and many executives are staying away from Putin . The Russian economy has been in a slump for years, but it still managed to grow at an impressive rate last year.