Andrei Klepach, the chief economist at Russia’s state-controlled development bank VEB, has been fired after making critical remarks about the country’s economic outlook and its capacity to sustain a prolonged war with Ukraine.
Klepach had served at VEB, Russia’s second-largest bank, since 2014. His dismissal came days after Russian media reported on a speech he delivered to fellow economists in May.
According to the reports, Klepach said Russia was falling behind China and the United States economically, and “in some respects, Ukraine”.
He warned that pressure created by the war would eventually lead to a social crisis.
“We will not win this competition in a war of attrition with Ukraine,” Klepach said, according to the reported speech. “We have an illusion that everything will collapse there. It hasn’t collapsed, and it won’t. Our costs are growing.”
VEB did not state a reason for his departure. An acquaintance of Klepach told business outlet Vedomosti that it was linked to his “harsh assessments” of Russia’s economic and political development, which did not align with the bank’s position.
The independent outlet The Bell reported, citing sources, that the Kremlin ordered Klepach’s dismissal and that it was directly connected to his May address.
Klepach’s comments contradicted public statements by President Vladimir Putin that Russia is managing the economic impact of the war and that Ukraine faces eventual economic exhaustion.
Russia’s economy is under pressure from wartime spending, western sanctions and Ukrainian strikes on oil, gas and other infrastructure. Its budget deficit reached 5.87tn roubles, or $81bn, in the first four months of 2026, exceeding the government’s target for the full year.
The report said the Kremlin has sought further revenue by raising taxes on smaller businesses and pressuring oligarchs to contribute more to the war effort. Higher oil prices this year have also provided Russia with additional revenue, helping to ease some of the pressure.
