Andrey Klepach, chief economist at Russia's state development bank VEB, was dismissed after making critical comments about the economic effects of the ongoing war in Ukraine. Russia's state news agency TASS confirmed the news on Sunday. It stated that Klepach no longer holds his position, but did not give a specific reason for his departure. A new candidate for the role is expected to be named soon.
Key Details
Klepach's firing comes shortly after The Moscow Times published parts of a speech he gave in May. In that speech, he warned that Russia was "losing both the technological and economic competition globally." He also stated that Russia would not succeed in a prolonged conflict with Ukraine, which has strong financial support from Western nations. Klepach predicted a coming "social crisis" in Russia, saying, "Our costs are growing." He noted that the war has lasted longer than the Great Patriotic War, with no end in sight.
Background
His comments sharply contrast with President Vladimir Putin's claims that Russia is handling the economic challenges from the conflict. Klepach also pointed out the pressures from Ukrainian strikes on Russian infrastructure and the impact of Western sanctions, which he said are slowing Russia's economic growth. An acquaintance of Klepach told Vedomosti that his views did not match those of the corporation, suggesting that his dismissal was influenced by the Kremlin's demand for loyalty from its officials.
Klepach's dismissal could indicate more state control over economic discussions in Russia. This change may affect investor confidence in Russian markets. Analysts will be watching how this affects economic policy and the overall business climate in Russia. Further developments regarding the appointment of Klepach's successor and any changes in economic strategy from the Kremlin are expected.
Based on reporting by: us.cnn.com, cnn.com