VEB Chief Economist Fired After Warning Russia Cannot Win ‘War of Attrition’ – The Bell

Aug. 17, 2026 Andrei Klepach. Sophia Sandurskaya / Moskva News Agency The chief economist at Russia’s state development corporation VEB.RF has been fired after presenting a report earlier this year warning that Russia cannot win a prolonged war of attrition against Ukraine and is falling behind economically and technologically, The Bell reported on Sunday, citing sources familiar with the matter. Andrei Klepach, who served as VEB.RF’s chief economist for 12 years, delivered the stark assessment during a May meeting at the Moscow Exchange’s Nikitsky Club. However, Klepach’s remarks only attracted widespread attention this weekend after the Russian service of The Moscow Times published excerpts from his report. In it, Klepach offered a blunt evaluation of Russia’s wartime economic outlook, saying that the country is “losing not only to China and the United States, but in some ways, we’re losing to Ukraine.” While noting Ukraine’s severe demographic and economic problems, Klepach argued that Western financial backing was a key reason the country “despite everything is surviving.” “We won’t win the competition in this war of attrition,” Klepach said in the report. “We’re under the illusion that everything [in Ukraine] will collapse. It hasn’t, and it won’t. Meanwhile, the costs we bear are mounting.” Klepach said Ukrainian strikes on Russian infrastructure, Western sanctions and high domestic interest rates are cramping future growth and hindering technological investment. “I don’t believe Russia will collapse, but I’m almost certain we’re coming up against a social crisis,” he warned. “We won’t collapse economically, but we are going to lag behind even further, with all of its ensuing consequences”. An anonymous source told The Bell that Klepach, whom some have described as “one of the best” macroeconomics experts in Russia, was fired on Sunday after VEB.RF leadership received a phone call “from above,” suggesting that the Kremlin ordered his dismissal. A second source directly linked Klepach’s firing to his remarks in May. VEB.RF has not commented on his reported dismissal. Before joining VEB.RF, Klepach spent a decade at Russia’s Economic Development Ministry, serving as deputy minister from 2008 to 2014 alongside senior officials including Central Bank Governor Elvira Nabiullina and Defense Minister Andrei Belousov. Read more about: VEB , Banks , Economy Sign up for our free weekly newsletter Our weekly newsletter contains a hand-picked selection of news, features, analysis and more from The Moscow Times. You will receive it in your mailbox every Friday. Never miss the latest news from Russia. Preview Subscribers agree to the Privacy Policy We sent a confirmation to your email. Please confirm your subscription. A Message from The Moscow Times: Dear readers, We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent." These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia. We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help. Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact. By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us. Once Monthly Annual Continue Not ready to support today? Remind me later. × Remind me next month Remind me Thank you! Your reminder is set. We will send you one reminder email a month from now. For details on the personal data we collect and how it is used, please see our Privacy Policy. Read more Russia's Sberbank Warns of Rising Corporate Credit Risks as Bad Loans Increase Meanwhile, Sberbank cut its 2026 GDP growth forecast to 0%-0.5% from a previous estimate of 0.5%-1%. 3 Min read Russia Turns to State Banks to Help Finance Mounting Wartime Budget Deficit Russia's budget deficit reached nearly 6 trillion rubles ($77.40 billion) in the first half of the year, driven by record military spending. 3 Min read Visa, Mastercard, Amex Block Russian Banks After Sanctions The steps taken by the credit card firms prevent these entities and individuals from accessing their platforms. American Banker and Putin Ally Dealt in Access and Assets, Emails Reveal The emails show the role of Western bankers in the days of Moscow's 2007 economic boom.