Russian economist Klepach fired after negative economic forecasts

Andrei Klepach, a prominent economist at Russia's state-owned VEB.RF development bank, has been dismissed following critical remarks about the country's economic standing. Sources suggest his termination was ordered from "above," with the economist confirming his departure to Forbes without stating a reason.

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We are losing both in technological and economic competition in the world. Moreover, as I said, we are losing not only to China and the US, but in some aspects, we are also losing to Ukraine.

Klepach's comments, made at an economic forum and later reported by The Moscow Times, highlighted Russia's struggles in technological and economic competition. He noted that Russia is falling behind not only global powers like China and the United States but also, in some aspects, Ukraine. Despite Ukraine's economic devastation and demographic crisis, Klepach observed that its economy is surviving with significant Western financial aid.

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The Ukrainian economy, of course, is to some extent destroyed, there is a demographic catastrophe. But, I repeat, the Ukrainian economy, despite everything, is surviving.

"In this war of attrition, we will not win in competition," Klepach stated, challenging the illusion that Russia's economic situation would collapse. He pointed out rising costs and deteriorating conditions in healthcare, uneven progress in science and technology, and growing inequality within Russia. He expressed strong conviction that Russia would not collapse but warned of an impending social crisis and continued economic backwardness, with GDP growth projected to remain below 1.5% by 2027.

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In this war of attrition, we will not win in competition. We have an illusion that everything will collapse there. It has not collapsed and will not collapse. Our costs are increasing.

Klepach had served as chief economist at VEB.RF for 12 years and previously spent a decade at the Ministry of Economic Development. His dismissal underscores the sensitive nature of economic criticism within Russia, particularly concerning its performance relative to other nations.

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I believe that Russia will not collapse, but I am almost certain that we will end up in a social crisis. Economically, we will not collapse, but our lag will continue to grow with all the ensuing consequences.