Like a jilted ex texting about meeting up years after a chaotic breakup, Russia appears to be courting American companies to return to the country three years after it invaded Ukraine.

President Trump, who broke with European allies and Ukraine to pursue a Ukraine peace deal with Russia’s President Vladimir Putin this month, said this week that the two are also discussing economic opportunities:

• Before the US finalized a natural resources and post-war reconstruction deal with Ukraine yesterday, Putin noted on Monday that American companies could benefit from critical minerals mining and aluminum production projects in Russia.
• Another Russian official suggested that Boeing consider starting to buy Russian titanium again.

Meanwhile, a Putin emissary at the bilateral talks with the US in Saudi Arabia last week said that US companies have lost $324 billion since their withdrawal from Russia in 2022, hinting at the profit potential of a thaw in Russian–American relations.

No rush back to Russia

Experts say that, given the political risks and concerns about the rule of law in Russia, it might be easier to convince a kid who just watched Jaws to go for a swim in the ocean than to coax a multinational to reinvest in Russia. Companies that lost billions hurriedly leaving the country in 2022—and especially those that had their assets seized by the Russian government, like ExxonMobil or the Danish brewer Carlsberg—might be wary of getting burned again:

• Even if the US lifts its sanctions against Russia, there’s no certainty that relations won’t sour again.
• Many of the niches left vacant by departed companies have been filled by local producers, which Russia’s government might treat preferentially in the face of foreign competition.
• Amazon, Meta, Apple, McDonald’s, Starbucks, and Microsoft are among the hundreds of major Western companies that have either partially or fully severed ties with Russia since 2022.

While some consumer brands might risk returning, experts say that capital-intensive companies, like energy producers or the sanctions-sensitive finance sector, will likely stay away.

It might not be worth the trouble…as the Russian market isn’t that big of a prize, especially given the troubled state of the economy. Most multinationals earned less than 1% of their revenues there before the war, according to a Yale analysis.—SK

US consumers are souring on the economy. The Conference Board’s Consumer Confidence Index dropped nearly 7% in February—the lowest reading since June and the biggest monthly decline since 2021 as Americans increasingly worry about inflation, tariffs, and the labor market. Economists say President Trump’s proposed tariffs on US trade partners like Canada and Mexico could accelerate inflation. One of the board’s senior economists noted a “sharp increase” in index participants mentioning tariffs, “back to a level unseen since 2019.” Still, several other indicators suggest that the US economy continues to grow and is outperforming most major economies.

Taiwan detained a Chinese ship suspected of cutting a subsea cable. Taiwan says it caught a Chinese-crewed freighter in the act of severing an undersea communications cable, adding that it couldn’t rule out sabotage. China’s foreign ministry spokesperson told the Financial Times that he was not familiar with the incident. If intentional, the incident would be the latest in what Taiwan calls China’s “gray zone” harassment campaign against the island country. Both China and Russia have been accused of severing subsea cables around the world in recent months.

Eli Lilly is cutting the price of its popular weight loss drug. Zepbound vials will be about $50 cheaper ($349 and $499 a month, determined by dosage), the drugmaker said yesterday, as it fends off cheaper copycat versions and tries to expand access to patients without insurance coverage. The company started selling vials of Zepbound last year as patients flocked to discount compounded versions from companies like Hims & Hers. Unlike the more expensive injector pens, vials require patients to fill a syringe themselves.—AE

Prepare a 21-airhorn salute: It’s Party City’s final week in business. For nearly 40 years, the New Jersey-based party supply store ruled the balloon bouquet industry and wooed shoppers with its giant Halloween costume wall.

Party City filed bankruptcy for the second time in December. Its first bankruptcy restructuring in 2023 managed to erase $1 billion worth of debt, but the company couldn’t escape the $800 million it was still saddled with.

Employees had waded through weeks of chaotic communication from higher-ups before a December announcement from CEO Barry Litwin (who stepped into the role just four months before) that corporate workers would be done at the end of the day with no severance. The company had ~800 locations and, as of 2021, employed around 16,500 full- and part-time workers.

Amid the task of putting down all the piñatas in the back alley, Party City has scrambled to find someone to take over its leases:

• Budget retailers like Dollar Tree and Five Below have scooped up a lot of them.
• And Party City will live on in a sense, as some franchisees opted to keep 29 locations open independently.

Big picture: This could be the worst year for fluorescently lit US retailers (RIP, Joann) with an expected 15,000 closures, according to Coresight Research.—MM

Documentary crews, gird your loins: Tickets to Fyre Festival 2 went on sale yesterday, and founder Billy McFarland, who went to prison in 2018 for fraud related to the first Fyre Festival, is behind the sequel event.

Fyre 2, as it’s called by its founder, is slated to take place in Quintana Roo, Mexico, from May 30 to June 2. Other details (or lack thereof) include:

• There is no lineup yet, though McFarland has promised “electronic, hip-hop, pop, and rock” artists.
• Tickets start at $1,400 and go as high as $1.1 million.
• Attendees can expect “water adventures, extreme sports, leisure & wellness, cultural & creative activities,” according to the event’s website.

Can he do this? Jordan Belfort is a motivational speaker, so yes. Since his early release from prison in 2022, McFarland has reportedly been contributing to the $26 million in restitution he owes customers and investors from the first Fyre Fest, which was billed as a luxury music festival but in reality was more like Lord of the Flies with Ja Rule. At least $500,000 of proceeds from Fyre 2 will go toward McFarland’s debt.

Zoom out: This time, McFarland said, things will be different. He handed operational responsibilities over to a “festival operator” and has employed hotel, travel, and ticketing companies. He’s also started wearing glasses.—CC

If a government contract is canceled but no money’s saved, does it make a sound? Per a report in the Associated Press yesterday, nearly 40% of the federal contracts axed by President Trump and Elon Musk’s Department of Government Efficiency (DOGE) are not going to save any money. That’s because the total value of those contracts has already been spent.

“It’s like confiscating used ammunition after it’s been shot when there’s nothing left in it,” one expert in government contract law told the AP. The canceled contracts range from software that’s already been purchased to research studies that have already been granted. DOGE says it’s saved the government $65 billion so far, about 3% of Musk’s original goal of $2 trillion.—AE