Russia Fires VEB Chief Economist Over War Warnings

The Russian state development bank VEB.RF dismissed its chief economist, Andrei Klepach, after he publicly criticized the sustainability of the war in Ukraine. The removal followed reports of a May presentation Klepach delivered to the Nikitsky Club, where he argued that Russia is losing a global technological and economic race to the United States, China, and Ukraine.

Klepach warned that while the economy has resisted Western sanctions, mounting costs and deteriorating governance could trigger a major social crisis. He predicted GDP growth of only 1% to 1.5% by 2027 and compared current internal instability to the conditions preceding the 1917 February Revolution. He further criticized the Federal Security Service, claiming its anti-corruption efforts have caused organizational semiparalysis.

Government officials and President Vladimir Putin have rejected these assessments, asserting that the Russian economy remains resilient and stable. However, the dismissal coincides with signs of elite discontent; Moscow Mayor Sergei Sobyanin and Sberbank CEO German Gref have both expressed concerns regarding the war's impact on the civilian economy and the need for hostilities to end. Meanwhile, the Russian state continues to suppress political opposition, recently upholding the disqualification of the antiwar Yabloko party from elections.