Russian economist fired for Ukraine war warning

Andrei Klepach, the chief economist at Russia’s major state development bank VEB.RF, has been fired after delivering a speech warning that the country’s economy is losing a "war of attrition" due to the prolonged conflict in Ukraine and could face a sudden social crisis. His dismissal, reportedly ordered by the Kremlin, underscores the government’s low tolerance for public economic pessimism as the war enters its fifth year.

Klepach, a former deputy economy minister who held his position at VEB.RF since 2014, was dismissed in mid-August 2026. The firing followed remarks he made at a closed-door conference of economists and officials known as the Nikitsky Club in May. In those comments, Klepach stated Russia was falling behind technologically and economically, not only to China and the United States but also to Ukraine, which he credited for its resilience. "We will not win the competition in this war of attrition," he said. "Our costs are mounting." Klepach drew parallels to the crises of 1917 and 1991, predicting a social crisis "precisely when nobody is particularly expecting it" if current trends continue.

While acknowledging Russia’s economy had shown resilience, Klepach...