Russian Economist Dismissed Over Ukraine War Cost Warnings

Andrey Klepach, a prominent economist, has been dismissed from his position as chief economist at Russia's state development bank VEB. His removal follows public disclosure of a speech where he criticized the economic impact of Russia's ongoing conflict in Ukraine. This speech, which surfaced on a forum's website, marks a rare instance of a state official openly critiquing the financial burdens resulting from the war.

Klepach highlighted the toll of the war on Russia's economy, cautioning against the growing technological and economic gaps not only with global powers like the United States and China but also with Ukraine. He attributed some of these challenges to Ukraine's financial backing from Western nations, which he suggested exacerbates Russia’s economic vulnerabilities.

His warnings included predictions of a looming social crisis within Russia, driven by increasing economic pressures and ineffective resistance to Western sanctions. Additionally, Klepach noted the strain on Russia's energy and logistics infrastructure, further complicating economic recovery and growth, as signaled by the Russian central bank's cautious outlook on economic expansion this year.