- Andrei Klepach has been fired from VEB.RF after publicly warning that Russia is losing the economic 'war of attrition' with the West and Ukraine.
- In May, Klepach stated, "We are falling behind. We are losing both the technological and economic competition in the world," attributing this to Ukraine's resilience and Western support.
- Klepach's remarks included a prediction that Russia could face a serious social crisis due to mounting economic pressures.
- Klepach's warnings came as the European Union was preparing to intensify economic pressure on Moscow, which has already deprived Russia's war machine of over $1.16 trillion.
- Klepach highlighted that while Russia has shown resilience to Western sanctions, pressures are mounting due to Ukrainian strikes on energy and logistics infrastructure.
Andrei Klepach, the chief economist at VEB.RF, was dismissed following his stark warnings about Russia's economic trajectory amidst the ongoing conflict with Ukraine. He stated, "We are falling behind. We are losing both the technological and economic competition in the world."12
Klepach's remarks, made at the Moscow Exchange's Nikitsky Club, highlighted the mounting costs of the war and the potential for a social crisis in Russia. He noted, "Economically we will not collapse, but our lag will continue to grow, with all the resulting consequences."3
Despite acknowledging Russia's resilience to Western sanctions, Klepach warned that pressures were increasing due to Ukrainian strikes on critical infrastructure. He pointed out that income inequality is rising and that Russia's GDP growth rate is slower than that of both the U.S. and Ukraine.5
The European Union is preparing to intensify sanctions against Russia, which have already deprived its war machine of more than $1.16 trillion, according to EU officials. Klepach's firing underscores the growing tension within Russia regarding its economic strategy and the ongoing conflict, as he cautioned that the country could face a social crisis unexpectedly.4
Klepach criticized Russia's over-dependence on China and the lack of coordinated economic policies, which he believes have contributed to the current economic slowdown. His dismissal reflects the Kremlin's sensitivity to dissenting views on the economic impact of the war.
“Klepach's dismissal follows his stark warning that Russia is falling behind technologically and economically, with rising costs leading to a potential social crisis. The European Union is preparing to intensify sanctions, which have already deprived Russia's military-industrial base of over $1.16 trillion.”
Fox News
