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Andrei Klepach dismissed as chief economist of VEB.RF following critical assessment of Russia's economic position in Ukraine war

The administration announced that Andrei Klepach, the chief economist of Russia's state-controlled development bank VEB.RF, has been dismissed from his position. Klepach served in the role for 12 years and was fired following a series of critical remarks made during a May speech. In his assessment, Klepach warned that Russia is losing the technological and economic competition against China, the United States, and in some respects, Ukraine. He argued that Russia is under the illusion that Ukraine will collapse, but instead, the costs of the prolonged war of attrition are mounting. While Russian government officials remain defiant, claiming the economy is resilient and stronger than many Western nations, Klepach predicted an inevitable social crisis. His dismissal underscores the Kremlin's preference for officials who align with the official narrative of success. Despite his warnings of a growing economic lag, high oil prices have provided the Kremlin with enough near-term revenue to sustain the war effort for the foreseeable future.

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