Andrei Klepach, the chief economist at the Russian state development bank VEB, has been dismissed from his position. The bank confirmed Klepach is no longer in the role he held since 2014, though it did not provide a specific reason for his departure. Klepach also confirmed his dismissal following the publication of comments he made regarding the Russian economy.
The dismissal followed remarks Klepach made at a financial forum in May, which were reported by Russian media last week and published on the website of the Nikitsky Club, a forum for academics and officials. Klepach previously served at the Russian economy ministry for 10 years before joining VEB, which is responsible for financing state projects.
During his May speech, Klepach stated that Russia was losing technological and economic competition to the United States, China, and Ukraine. According to reports from Reuters and The Times, he warned that while the economy might hold up, a social crisis could occur unexpectedly, drawing a comparison to the 1917 February revolution that overthrew Tsar Nicholas II. Klepach attributed some of Russia's economic challenges to the financial support Ukraine receives from the West and rising costs associated with the ongoing conflict.
The scale of the economic shift involves the entire Russian federation, where the central bank suggested in July that the economy might see zero growth this year. The reported impact includes supply shocks and inflation risks driven by Ukrainian attacks on energy infrastructure and major retailers like Wildberries. Klepach specifically noted that Russia's lag behind global competitors would grow, which could eventually manifest in a social crisis that he said would happen "precisely when nobody is particularly expecting it."
For the average citizen, these developments relate to potential changes in income inequality and the stability of basic goods and services. While Klepach noted Russia's initial resilience to sanctions, he argued that deteriorating governance and "low level of justification" for strategic decisions would have long-term consequences. What happens next depends on the Russian government's response to mounting costs and infrastructure damage; however, specific dates for new policy implementations or a successor for the chief economist role at VEB were not reported.