Story perspectives

Russia Fires VEB.RF Chief Economist After Ukraine Economic War Remarks

8/17/2026

Summary

Story summary

Russia dismissed Andrei Klepach, VEB.RF chief economist, after his remarks that Moscow cannot win an economic war with Ukraine.
VEB.RF Igor Shuvalov carried out the firing on orders “from above,” sources said.
Klepach warned that rising costs could trigger a social crisis “no one expects.”
Russia’s 2026 budget deficit reached 5.87 trillion roubles, far above the 3.79 trillion target, while Ukrainian strikes damaged Wildberries warehouses, destroying billions of dollars of stock.

History

Historical Context

In August 1998 Russia defaulted on about $40 billion of GKOs and devalued the ruble by roughly 70%, prompting acting Prime Minister Sergei Kiriyenko’s emergency measures. The shock spurred political turmoil, Yeltsin’s cabinet reshuffle, and a lasting pattern of silencing dissenting analysts. VEB.RF dismissed chief economist Andrei Klepach on Igor Shuvalov’s order, echoing the 1998 punitive approach.

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Story summary

Russia dismissed Andrei Klepach, VEB.RF chief economist, after his remarks that Moscow cannot win an economic war with Ukraine.
VEB.RF Igor Shuvalov carried out the firing on orders “from above,” sources said.
Klepach warned that rising costs could trigger a social crisis “no one expects.”
Russia’s 2026 budget deficit reached 5.87 trillion roubles, far above the 3.79 trillion target, while Ukrainian strikes damaged Wildberries warehouses, destroying billions of dollars of stock.

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