A prominent Russian economist fired after warning, "We will not win"...

A prominent Russian economist has been removed from his position after making public warnings about Russia's long-term economic prospects. Andrej Klepač, chief economist at the state-run development corporation VEB.RF, was reportedly replaced on August 16, following reports in Russian media that he had expressed concerns over Russia’s ability to maintain technological and economic competitiveness with the West. According to independent Russian media outlet The Bell, Klepač was dismissed under orders received “from above,” though the exact nature of these directives remained unclear. A second source confirmed that his removal was linked to statements he made in May, which were later widely circulated by other Russian outlets. The Bell sought comment from VEB.RF, but no response was immediately available. Kyiv Independent noted that it could not independently verify the claims at the time of reporting. Klepač had served as VEB.RF’s chief economist for 12 years before his dismissal. Prior to joining the state development agency, he spent decades working within the Russian Ministry of Economic Development. He began his career there in 2004 as head of the macroeconomic forecasts department and held the position of deputy minister from 2008 to 2014, during which he worked under ministers including Elvira Nabiullina, Andrei Belousov, and Alexei Ulukayev. In remarks delivered at an event organized by the Nikitsky Club of the Moscow Exchange, Klepač warned that Russia was falling behind technologically and economically in the global arena. He emphasized that this decline was not solely due to competition with China and the United States, but also included challenges posed by Ukraine. “Ukrainian economy, of course, has been partially destroyed, and there is a demographic catastrophe,” he stated. “Yet, despite everything, Ukrainian economy survives. Naturally, it receives substantial financial support. With that assistance, their military spending and domestic expenditures reach almost 50 percent of our budget.” He further argued that Russia would not succeed in a prolonged contest of exhaustion. “We will not win this competition of exhaustion,” Klepač said. “There is an illusion that everything will collapse. It hasn’t collapsed yet, and it won’t. Our costs are rising.” He concluded with a warning about potential social unrest, stating, “I believe Russia will not break apart, but I am almost certain we will face a social crisis. Economically, we will not collapse, but we will continue to fall behind, with all the consequences that come with it.” His comments reflect broader anxieties among Russian analysts about the country’s economic trajectory amid ongoing sanctions and geopolitical tensions. While Klepač’s views have not been officially endorsed by government officials, they align with growing concerns within academic and policy circles about the sustainability of Russia’s current path. His dismissal underscores the sensitivity of such critiques in a political environment where economic performance is tightly controlled and publicly framed.