VEB Dismisses Chief Economist After War-Economy Critique

On August 17, Russian state development bank VEB terminated the employment of its chief economist, Andrei Klepach, following remarks that Russia is lagging behind the West, China and even Ukraine in a “war of attrition.” Two sources familiar with the matter confirmed the firing, while VEB issued a brief written response stating that Klepach was no longer in the role but gave no explanation.

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Klepach, a former deputy minister and a prominent macro-economist, delivered a speech at the Nikitsky Club forum in May. He also criticized Russia’s over-dependence on China and described the quality of governance as “almost constantly deteriorating.”

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VEB’s written statement confirmed Klepach’s removal without detailing the reasons. Klepach himself acknowledged the dismissal to Reuters. President Vladimir Putin has publicly asserted that the Russian economy remains stable despite external attempts to undermine it, a stance that contrasts with Klepach’s prediction of growing lag and social unrest.

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• “Economically we will not collapse, but our lag will continue to grow, with all the resulting consequences,” — Andrei Klepach, vnesheconombank deputy chairman

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Klepach’s comments represent a rare public critique from a senior figure within a state-controlled institution. The Russian central bank later suggested that the economy might not grow at all in the current year, and repeated Ukrainian attacks on Russian oil refineries and major retailers have heightened inflation risks. The dismissal underscores the Kremlin’s intolerance for internal dissent on the economic costs of the war launched in 2022.

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