Andrei Klepach, chief economist at Russia’s state development corporation VEB.RF, was allegedly dismissed after arguing that the country could not prevail in its prolonged war of attrition against Ukraine. VEB.RF did not comment on the dismissal claim.
The economic cost of the war is rising
At a meeting held in May at the Moscow Exchange’s Nikitsky Club, Klepach said Russia was falling behind economically and technologically. He argued that Russia was losing its competitive edge not only against China and the United States but also against Ukraine in some areas.
Klepach said Ukraine was facing serious demographic and economic problems and stated that Western financial support had played an important role in keeping the country afloat. He said Russia would not gain the upper hand in the war of attrition, adding that expectations of a total collapse of Ukraine’s economy had not materialized and that the costs of the war were rising.
Sanctions and high interest rates limit growth
According to Klepach, Ukrainian attacks on infrastructure in Russia, Western sanctions and high interest rates in the country were putting pressure on future growth. Klepach assessed that these conditions were also making technology investments more difficult. He said the Russian economy would not collapse but would fall further behind, potentially creating social consequences.
Two unnamed sources suggested that Klepach’s dismissal was linked to his assessments in May. One of the sources claimed that the decision came from the Kremlin.
Klepach’s public service roles
Before joining VEB.RF, Klepach worked at Russia’s Ministry of Economic Development for about 10 years. He served as a deputy minister from 2008 to 2014, working during that period with senior officials including Central Bank Governor Elvira Nabiullina and Defense Minister Andrei Belousov.
