Russia Fires VEB Chief Economist Over War Warnings

The state-owned development bank VEB.RF dismissed its chief economist, Andrei Klepach, in August 2026 after public reports surfaced regarding a pessimistic speech he delivered in May at the Nikitsky Club. Klepach warned that Russia is losing global technological and economic competitions to the United States, China, and Ukraine, asserting that Moscow would not win a prolonged war of attrition.

Klepach predicted that mounting costs, deteriorating governance, and the impact of sanctions on oil exports would lead to a severe social crisis, comparing the current instability to the conditions preceding the 1917 February Revolution. He specifically noted that Ukrainian strikes on energy and logistics infrastructure have created macroeconomic barriers and that civilian industries, such as aviation and food production, entered a recession this year.

While VEB.RF confirmed the dismissal via the state news agency TASS, reports indicate the firing was ordered by the Kremlin to suppress dissent and maintain the official narrative of economic strength. President Vladimir Putin has countered these warnings, stating the Russian economy remains resilient. The ousting coincides with broader signs of elite discontent, with Moscow Mayor Sergei Sobyanin and Sberbank CEO German Gref expressing concerns over the war's impact on the civilian economy and the need for hostilities to end.