Top Russian Economist Ousted After Warning of Ukraine War’s Economic Toll
Moscow, Russia – August 18, 2026 – Andrey Klepach, a prominent economist and former chief economist at Russia’s state development bank VEB, has been removed from his position following public remarks where he critiqued the economic impact of the ongoing war in Ukraine. The news, initially reported by Russian state media outlet TASS on Sunday, confirms Klepach’s departure from the influential role he held since 2014.
VEB.RF, the state development bank, issued a statement cited by TASS, confirming the change: "Andrey Klepach is no longer serving as chief economist at VEB.RF. His successor will soon be appointed. The candidate has already been selected." Klepach himself later confirmed his dismissal to Reuters.
The dismissal comes after a speech Klepach delivered at a financial forum in May garnered significant attention last week. In his address, which was published on the website of the Nikitsky Club – a forum for economists, academics, and government officials – Klepach offered a rare public critique of the Kremlin’s economic strategy amidst the conflict.
"We are falling behind. We are losing both the technological and economic competition in the world. And we are losing it not only to China and the United States, in some ways we are losing it to Ukraine too," Klepach stated, attributing Ukraine’s relative economic resilience to substantial financial support from Western nations.
Klepach went further, predicting that the economic strain caused by the conflict would inevitably lead to a social crisis within Russia. "We will not win the competition in this war of attrition. We have the illusion that everything there (in Ukraine) will collapse. It has not collapsed and will not collapse. Our costs are mounting," he warned.
His comments represent a stark deviation from the official narrative often promoted by the Russian government, which has consistently downplayed the economic impact of international sanctions and the prolonged military campaign. Klepach’s extensive experience, including a decade at the Ministry of Economic Development before joining VEB, lends considerable weight to his observations.
During his May speech, Klepach highlighted the severe testing of Russia’s resilience to Western sanctions, particularly in light of Ukraine’s strategic targeting of Russian energy and logistics infrastructure. He pointed to growing income inequality and a slower Gross Domestic Product growth rate compared to both the United States and Ukraine. These concerns were echoed by the Russian central bank in June, which suggested the economy might not experience any growth at all this year.
Despite President Vladimir Putin’s reassurances to the public that the economy remains stable against "external attempts to undermine it," Klepach painted a more somber picture. "Economically we will not collapse, but our lag will continue to grow, with all the resulting consequences," he predicted, emphasizing the potential for a social crisis to emerge "precisely when nobody is particularly expecting it."
Beyond the war’s direct impact, Klepach also levied criticism against the quality of governance within Russia. "The quality of governance is almost constantly deteriorating," he asserted. "Decisions are being made all the time that have an extremely low level of justification but long-term strategic consequences."
Klepach’s removal underscores the sensitivity surrounding open discussions about the economic ramifications of the Ukraine conflict within Russia’s state institutions. His candid assessment, though belatedly publicized, offered a rare glimpse into the concerns harbored by some within the country’s economic elite regarding the sustainability of current policies and the potential for mounting domestic challenges. The appointment of his successor will be closely watched for any indications of a shift in economic messaging or policy.
