Chief economist at key Russian state development bank reportedly fired after warning of economic defeat to West

Andrei Klepach, chief economist at Russian state development corporation VEB.RF, was reportedly dismissed on August 16, a day after Russian media disseminated his warnings that Russia was facing economic and technological defeat to the West. The Bell, an independent Russian media outlet, reported Klepach's termination on August 16, citing two sources familiar with the situation.

The report followed two days after The Moscow Times published excerpts from Klepach's May remarks, which then spread to other Russian media outlets. Immediate verification of The Bell's claims was not possible. Klepach addressed an audience at the Moscow Exchange's Nikitsky Club, asserting Russia would struggle to maintain competition with the West in a prolonged contest and foresaw an impending social crisis.

According to one of The Bell's sources, VEB.RF's head Igor Shuvalov dismissed Klepach following an order from above. Another source confirmed the firing was linked to Klepach's May remarks. The Bell sought a response from VEB.RF, which had not been provided at press time. Klepach had served as VEB.RF's chief economist for a decade before joining the state development corporation.

Previously, he spent a decade at Russia's Economic Development Ministry, beginning in 2004 as head of its macroeconomic forecasting department and serving as deputy economic development minister from 2008 to 2014 under Elvira Nabiullina, Andrei Belousov, and Alexei Ulyukayev. Klepach stated, "We are falling behind. We are losing both the technological and economic competition in the world.

And, as I have already said, we are losing it not only to China and the United States — in some respects, we are losing it to Ukraine." He cited Ukraine's surviving economy, supported by substantial financial assistance, with military and other expenditures nearing 50% of Russia's budget. Klepach reiterated that Russia would not win this competition through attrition, as its costs were rising.

While he believed Russia would not collapse, he was nearly certain the country would face a social crisis, highlighting the consequences of falling further behind.