- Andrei Klepach, the chief economist at Russia’s state development corporation VEB.RF, was fired after presenting a report in May warning that Russia cannot win a prolonged war of attrition against Ukraine, according to The Bell.
- Klepach's remarks, which included a blunt evaluation of Russia's wartime economic outlook, were widely circulated in Russian media just a day before his dismissal.
- VEB.RF confirmed Klepach's dismissal on Sunday, stating that a successor had already been selected but did not provide a reason for the firing.
- Sources indicated that Klepach's firing was linked to his May remarks and suggested that the dismissal was ordered by the Kremlin following a phone call 'from above'.
- During his May presentation, Klepach warned that Russia is falling behind economically and technologically, stating that the country is losing not only to China and the United States but also to Ukraine.
- Klepach argued that Western financial backing is a key reason Ukraine is surviving despite its severe demographic and economic problems.
- He expressed concerns about a potential social crisis in Russia, stating, 'I don’t believe Russia will collapse, but I’m almost certain we’re coming up against a social crisis.'
Andrei Klepach, who served as VEB.RF’s chief economist for 12 years, was fired after delivering a blunt assessment of Russia's economic outlook during a May meeting. He stated, “We won’t win the competition in this war of attrition.” Klepach warned that Russia is “losing not only to China and the United States, but in some ways, we’re losing to Ukraine.”17
Klepach attributed Ukraine's resilience to “enormous” Western financial support, despite its demographic and economic challenges. He cautioned that the ongoing conflict and sanctions are “cramping future growth” and leading to a potential “social crisis.” His remarks, which included a comparison to the 1917 Russian Revolution, were reportedly linked to his dismissal, as sources indicated the Kremlin may have ordered it following his critical comments.9
VEB.RF confirmed Klepach's firing but did not provide a reason, stating a successor had already been chosen. Klepach's insights highlighted the mounting losses from Ukrainian strikes on Russian infrastructure, which he described as a “significant macroeconomic barrier to Russian economic growth.” He concluded, “We will not collapse economically, but we will continue to fall further behind.”
His dismissal raises questions about the Kremlin's tolerance for dissenting views on the war's economic impact, as independent outlets suggest his firing was directly linked to his candid assessments.
Klepach had previously worked at Russia’s Economic Development Ministry, serving as deputy minister from 2008 to 2014 alongside notable officials.
“Klepach, who served 12 years at VEB.RF, had warned that Russia is 'losing not only to China and the United States, but in some ways, we're losing to Ukraine.' He also predicted a 'social crisis,' citing Ukrainian strikes on infrastructure and Western sanctions as barriers to growth.”
The Moscow Times
TVP World
