RUSSIA OPENED its annual business summit last week promising debates to rival the Davos World Economic Forum, but participants said Moscow was reluctant to discuss its own woes.

"Heads of state and government, experts and representatives of public and business circles will review a range of issues," said Russian president Dmitry Medvedev in a message to participants. "Our common task is to develop innovative and modern mechanisms to respond to economic challenges."

The meeting has previously been a showcase for foreign investors eager for a slice of the action in Russia.

But lower prices for key exports, debts owed abroad and a series of squabbles with neighbours have ended that.

"The Russians told everyone last year the world financial system was about to collapse but that Moscow had created some wonder economy," said a senior business participant who asked not to be identified.

Government officials remained upbeat. "Russia can lead discussion about solutions to the problems the world faces," said one senior figure. But not everyone agreed.

"The forum will put Russia on the map for its scale but the objective of seeking a central role in global policymaking is misplaced," said Natalia Leschenko of IHS Global Insight.

Unlike previous years, leaders of the former Soviet states will not be holding a summit in St Petersburg at the same time. No explanation was given but Moscow has been embroiled in public rows over financial aid with once close satellite Belarus and over gas payments with Ukraine and Turkmenistan. Georgia, with whom Russia fought a brief war last year, has left the grouping altogether.

"Last year Russia's economy was at the peak," said a senior Russian businessman. "Hotels were fully booked, markets were rising, interest was colossal. Then there was Georgia. . . we are in a completely different world, politically and economically."