Andrei Klepach, the chief economist of state-controlled bank VEB, was dismissed after predicting that Russia could not win a prolonged war of attrition.

Andrei Klepach, the former chief economist of Russia's state-controlled development bank VEB, was dismissed on Sunday following comments he made earlier this year regarding the country's economic future. Klepach had warned in a May 21 speech that Russia would likely face a major social crisis and could not win a prolonged war of attrition against Ukraine. His dismissal reportedly follows the Kremlin's zero-tolerance policy toward public criticism of its military campaign.

Divergent Views on Economic Health

While Klepach warned of a widening economic lag and social instability, Russian government officials maintain that the economy remains strong. The Russian embassy to the U.K. stated that the country's fiscal position is resilient, citing foreign public debt of approximately $57 billion as evidence of its stability compared to Western nations. Officials argue that Western sanctions have failed to produce expected results and have instead imposed costs on the economies of countries like the U.K.

Expert Reactions to the Dismissal

Analysts have noted that the firing of Klepach, a former deputy economy minister, highlights the internal concerns held by some of Russia's top economic experts. Anders Aslund, a Swedish economist, stated that Klepach's analysis of a potential social crisis was significant, while Nigel Gould-Davies of the International Institute for Strategic Studies remarked that the country's best economic minds are becoming increasingly alarmed.