Top Russian Economist Ousted After Publicly Warning of Ukraine War's Economic Toll

Andrey Klepach, who served as VEB's chief economist for 12 years, has been replaced following the public release of a speech where he stated that Russia's economy was suffering due to the war in Ukraine.

According to Anton Vaganov/Reuters, Russia's state news agency TASS confirmed that Andrey Klepach no longer holds the position of chief economist at VEB, though no official reason was provided for his departure. VEB later repeated the same statement to CNN.

The announcement followed a report by The Moscow Times, which published excerpts from a speech Andrey Klepach delivered in May at the Nikitsky Club forum. In the speech, Andrey Klepach warned that Russia was losing global economic and technological competition and cautioned against a prolonged war of attrition against Ukraine, which is backed by Western financial support. He also predicted an eventual social crisis.

Andrey Klepach pointed out that the conflict has surpassed the duration of the Great Patriotic War, with no end in sight. He noted that Western sanctions, Ukrainian strikes on Russian infrastructure, and high domestic interest rates are collectively stalling Russia's economic growth.