RUSSIAN BANK CHIEF ECONOMIST FIRED AFTER CRITICISM OF WAR ECONOMY

Andrei Klepach, chief economist at VEB, Russia's second-largest state-controlled development bank, was dismissed following critical remarks he made about the Russian economy in May. In a speech to fellow economists, Klepach stated that Russia was "falling behind" China and the United States economically, and "in some respects, Ukraine". He warned that economic pressures from the war would lead to a "social crisis" that would emerge unexpectedly, and said Russia would not prevail in a prolonged economic competition with Ukraine.

Klepach had held the role at VEB since 2014. In his May address, he challenged the expectation that Ukraine's economy would collapse, saying instead that Russian costs were mounting without delivering victory. VEB provided no official reason for his dismissal, though a person acquainted with Klepach told the business outlet Vedomosti that his departure resulted from his "harsh assessments of the country's economic and political development". The independent Russian outlet the Bell reported, citing sources, that Klepach was fired on orders from the Kremlin and that his dismissal was directly linked to his May speech.

Klepach's removal reflects what observers describe as the Kremlin's insistence on loyalty among senior officials. His dismissal stands in contrast to Vladimir Putin's public statements that Russia was successfully managing the economic effects of the war and that Ukraine faced imminent economic exhaustion. Alexandra Prokopenko, a former adviser to the Russian central bank, was cited in the reporting as a source of analysis on the case, though her full remarks were not included in available accounts.