London Daily

Focus on the big picture.
Tuesday, Apr 07, 2026

World Economic Forum: Davos distracted by war in Europe and growing global division

World Economic Forum: Davos distracted by war in Europe and growing global division

It is not easy to disturb the tranquillity of Davos, but Vladimir Putin has managed it.

The invasion of Ukraine has shattered economic and security assumptions, and the self-assured bubble of the World Economic Forum is no exception, though its delegates are better placed to withstand, and shape, the consequences.

The headcount of political and business leaders was a little down at this first spring meeting and more Eurocentric, with a smaller US & Chinese presence. But if they still glided from seminar to reception to hotel in luxurious black saloon cars - largely electrified to reflect the times - the themes have been as unfamiliar as the weather.

For half a century this conference has been the cradle of globalisation, tirelessly promoting ever closer trade as the solution to the world's ills, but those comfortable certainties have been challenged.

Executives have found themselves repeatedly discussing food security and the humanitarian consequences of the Black Sea grain blockade, while politicians have had to grapple with the economic cost for their electorates of freezing out Russia.

"Food security, a subject we have never had to consider at Davos before, but it's been on every agenda in every meeting, and second has been security and defence," says Ilham Kadri, chief executive of Belgian chemical giant Solvay.

"And Davos used to be about globalisation, right? The reality is now we are talking about decoupling economies, between China and the US, and obviously Russia with the rest of Europe. There are still opportunities for our industry, but it has been very different."

If executives are operating in a more hostile environment, with inflation fuelled by energy prices exacerbated by the war, a large Ukrainian delegation has ensured that the human cost of the invasion has not been forgotten.

President Volodymyr Zelensky's address on the opening day was uncompromising, calling on business to isolate Russia entirely and politicians to sanction those that do not, and to immediately end the reliance on Moscow's fossil fuels.

Europe's answer to Putin's aggression


Ukrainian ministers and MPs have made the point in person, stressing that every dollar spent on Russian energy is returned in bullets aimed at civilians. The Klitschko brothers have loomed large in every way, the embodiment of Ukraine's fighting spirit.

European leaders here have offered their solidarity but little progress on the supply of further heavy weaponry, or bringing forward the closing of oil and gas taps.

That's most pressing for Olaf Scholz who closed the meeting with a pledge to defeat Putin's "imperialism", striking for a German chancellor, but no end date for the era of cheap Russian gas on which its prosperity is built.

For EU leaders here, the answer to Putin's aggression is more Europe, not less. Taoiseach Micheal Martin was among those who said they would support Ukrainian membership, and there were calls to admit Albania and Montenegro.

"If we don't export European values, we will import Russian aggression," he said.

The starkest note came from Eduard Heger, Prime Minister of Slovakia. With 400,000 refugees and a border with Ukraine, the invasion is not an abstract economic issue. "If Ukraine fails, we are next," he said.

Dutch PM Mark Rutte, the longest-serving EU leader, called for the union to be more forceful, flexing its diplomatic and market muscle.

In language to curl Brexiteer toes, he said the EU should also present a more united foreign policy front, even if that meant Paris, Berlin, and Rome sacrificing some diplomatic sovereignty.

Had there been a senior British minister present, they would doubtless have explained that's precisely why we left, but the UK has been largely invisible.

From Brexit to Ukraine - leaders give their verdict on UK


Lord Grimstone, the investment minister, was here.

"It's a good call for me because I can meet everyone I need here, I save 10 flights by coming," he told me, but the chancellor and business secretary were notable for their absence.

Joining the elite in the Alps may not have been a good look for Rishi Sunak as he prepared his cost-of-living package, but the UK was not unseen.

Partygate was likely to raise a smile, while irritation at the running sore of the Northern Ireland Protocol came close to the surface.

"This is the oven ready deal," said Irish deputy prime minister Leo Varadkar, who negotiated it with Boris Johnson.

"We'd be dismayed if the British government followed through and took unilateral action. We accept that there are some problems with the protocol that could be ironed out or improved, but that can only be done by negotiation, not through threats."

A minister from another northern capital was more direct: "If they break this deal, why should we trust them to sign a new one?"

But the UK's contribution to the war effort was acknowledged. "The UK's is probably number one in this," said Estonia's President Alar Karis.

Major talking points go under the radar


The war meant a host of issues that would normally enjoy oxygen dropped down the agenda.

Pharmaceutical giant Pfizer made a major commitment to supply drugs to the 45 poorest nations on earth, a move that deserved more than a footnote.

Even climate change and the road to net-zero, still the defining challenge of the age, was discussed largely in the context of Russian aggression, though it has added urgency to the effort.

Svein Tore Holsether, chief executive of global fertiliser manufacturer Yara, whose Ukrainian offices were shelled by Russia, summed up the challenge.

"We had already sounded the alarms when we saw how energy prices were impacting the production and cost of fertiliser, and the cost to produce food.

"On top of this, we have climate change. That's part of the equation as well. It makes farming more difficult, more unpredictable. And now the war accelerates everything. It's really the perfect storm."

Svein Tore Holsether of Yara


It has not been all gloom.

On the main promenade, a few doors down from a display of alleged Russian war crimes, Davos Medical Psychedelics was doing good business. So too Bitcoin Pizza (which presumably gets much larger, or disappears altogether, before it's delivered). Nearby, the Liquidity Lounge, hosted by various financiers, suggested there was still business to be done.

The circus will be back in just eight months in its usual January slot, in the familiar snow and sub-zero temperatures.

Everyone will hope the agenda has returned to more comfortable themes too, but no-one's betting on it.

Newsletter

Related Articles

0:00
0:00
Close
King Charles Faces Criticism From Some UK Christians Over Absence of Easter Message
Former UK Defence Secretary Raises Concerns Over Ability to Counter Iran Missile Threat
UK Signals Non-Involvement in Iran Conflict as Trump Reasserts Firm Deterrence Stance
US and UK Strengthen Medical Device Cooperation Following Tariff Removal
Trump Backs Steve Hilton for California Governor, Highlighting Reform Agenda
UK Seeks Closer Ties With Anthropic as AI Policy Divergence Emerges Across Atlantic
Experts Warn of Evolving Extremism After Teens Arrested in UK Ambulance Arson Case
UK Convenes Talks to Safeguard Shipping Through Strait of Hormuz After Conflict Escalation
Trump Highlights Strong Leadership in Critique of UK Stance on Iran
UK Authorities Review Kanye West’s Entry Status Following Festival Backlash
UK Considers Deploying Aircraft Carrier for US Independence Day Celebrations Amid Renewed Transatlantic Focus
United Kingdom Moves to Attract AI Firm Anthropic Amid Tensions with US Defense Officials
RAF Intercepts Iranian Drones in Middle East to Defend Allied Security Interests
Labour Signals Shift on Foie Gras and Fur Restrictions to Advance EU Trade Talks
Seven Arrested Near RAF Base as UK Authorities Respond to Protest Activity
Economic Pressures Mount as Analysts Warn UK Growth Is Being Constrained by Policy Burdens
UK Green Party’s Push for Church-State Separation Sparks Debate Over National Identity
Strategic Island Emerges as Growing Challenge for United States and United Kingdom Defense Planning
Pepsi Pulls Sponsorship from UK Festival Following Backlash Linked to Kanye West
Signs Emerge of Declining Enthusiasm for Social Media in the United Kingdom
Security Alert Raised Ahead of Meghan Markle’s Planned Visit to Australia
UK Food Halls Defy Hospitality Slowdown, Emerging as Bright Spot in Challenging Market
UK Sets Firm Conditions for Military Action, Insisting on Legal Mandate and Clear Strategy
UK Medicines Regulator Launches Probe into Peptide Clinics Over Health Claims
New North Sea Drilling Unlikely to Significantly Cut UK Gas Imports, Analysis Finds
Woman Linked to UK’s First All-Female Terror Plot Faces Deportation
Downed US Aircraft Over Iran Linked to Operations from UK Airfield
Two Men and Teen Detained in UK Following Attack on Jewish Charity Ambulance
UK Police Launch Inquiry After Firearms Left Unattended Outside Mayor’s Residence
Giuffre Family Calls on King Charles to Meet Epstein Survivors During US Visit
Amber Wind Warning Issued as Storm Dave Approaches Parts of the United Kingdom
Prince Harry and Meghan’s Australia Visit Set to Draw Heightened Global Attention
UK Considers Entry Fees for Overseas Visitors at Major Museums Ahead of 2026 Travel Season
UK Prime Minister and Kuwait Crown Prince Coordinate Security Response After Regional Escalation
Calls Grow to Expand Fully Paid Maternity Leave for UK Teachers Amid Workforce Pressures
UK Secures Tariff-Free Access to US Market in Landmark Pharmaceuticals Agreement
Trump Projects Strength in Critique of UK Leadership and Naval Readiness
UK FinTech Setback as VibePay and Smartlayer Cease Operations Amid Funding Pressures
UK Leads Global Coalition of Over Forty Nations to Address Strait of Hormuz Crisis
UK Firms Urged to Accelerate Preparation as New Sustainability Reporting Rules Take Shape
UK Moves Rapid Sentry Air Defence System to Kuwait After Drone Strike Escalation
Transatlantic Relations Tested as UK Seeks Balance While Trump Reshapes Strategic Approach
Trump’s Strategic Pressure on UK Seen as Push for Stronger Alignment and Fairer Terms
UK Focuses on Trade Finance to Secure Critical Materials for Defence and Energy Sectors
Majority of UK Businesses Hit by Middle East Conflict While Confidence Holds Firm
UK Royal Navy Faces Renewed Scrutiny as Debate Intensifies Over Capability and Readiness
Reform UK Faces Mounting Distractions as Policy Agenda Struggles to Gain Traction
Investigation Launched Into Northern Cyprus IVF Clinics After UK Families Receive Incorrect Sperm
International Meeting Issues Unified Call to Safeguard Navigation Through Strait of Hormuz
Potential Strait of Hormuz Closure Raises Concerns Over UK Food and Medicine Supply Chains
×