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Russia Dismisses Top Economist After He Said Country Is Losing War of Attrition
🇬🇷 Greece /Economy & Trade

Russia Dismisses Top Economist After He Said Country Is Losing War of Attrition

From Ta Nea · () Greek

Translated from Greek, summarized and contextualized by DistantNews.

At a glance

News Named sources Outcome reported
  • Andrei Klepach, chief economist at Russia's state development bank VEB, was dismissed after publicly stating Russia is losing an economic and technological war of attrition against the West and China.
  • Klepach also questioned the assumption that Ukraine's economy would collapse, noting that Russia's costs are increasing.
  • His comments, made in May but widely reported recently, represent rare public criticism from a high-ranking Russian state official regarding the economic consequences of the war in Ukraine.

Andrei Klepach, the chief economist at Russia's state development bank VEB, has been dismissed following public remarks suggesting Russia is losing an economic and technological war of attrition against the West and China. The dismissal, confirmed by two sources familiar with the matter, follows Klepach's candid assessment of Russia's position.

Klepach, a prominent Russian macroeconomist, stated at an economic conference in May that Russia is falling behind not only China and the United States but also, "in a way, Ukraine." He attributed this gap partly to Western financial support for Kyiv. His comments, which gained wider traction recently after being republished by Russian media, represent a rare instance of public criticism from a senior official within a Russian state entity concerning the prolonged conflict in Ukraine.

We are falling behind. We are losing both in technological and economic competition globally.

— Andrei KlepachChief economist at VEB, describing Russia's competitive standing against Western nations and China.

"We are falling behind. We are losing both in technological and economic competition globally," Klepach reportedly said. He further expressed skepticism about the notion that Ukraine's economy and society would collapse under pressure, stating, "We have the illusion that everything there will collapse. They have not collapsed and will not collapse. Our costs are increasing."

The VEB bank confirmed Klepach's departure from his role, which he held since 2014, but did not provide a reason. In his May speech, Klepach acknowledged the Russian economy's resilience against Western sanctions but warned that pressures are mounting. He pointed to Ukrainian attacks on energy and supply infrastructure, rising income inequality, and slowing growth. Earlier in July, the Russian central bank projected that the economy might not see any growth in 2026, further highlighting the economic challenges Russia faces.

We have the illusion that everything there will collapse. They have not collapsed and will not collapse. Our costs are increasing.

— Andrei KlepachChief economist at VEB, expressing doubt about the collapse of Ukraine's economy and noting rising costs for Russia.
DistantNews Editorial

Originally published by Ta Nea in Greek. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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