VEB Chief Economist Fired After Warning Russia Cannot Win ‘War of Attrition’ – The Bell

Andrei Klepach, Russia’s former chief economist at VEB.RF, has been terminated following a May report that warned Russia cannot win a protracted war of attrition against Ukraine, The Bell disclosed on Sunday. Klepach, who held the position for twelve years, delivered his assessment during a meeting at the Moscow Exchange’s Nikitsky Club.

However, his comments only garnered significant attention this weekend after excerpts from his report were published by a Russian service of The Moscow Times. In the report, Klepach highlighted Russia’s economic and technological lag, stating, "We won’t win the competition in this war of attrition. We’re under the illusion that everything [in Ukraine] will collapse.

It hasn’t, and it won’t. Meanwhile, the costs we bear are mounting." He also attributed Ukraine’s resilience to Western financial support, despite the country’s own severe demographic and economic challenges. Klepach attributed mounting costs to Ukrainian strikes, Western sanctions, and high domestic interest rates, which are hampering future growth and technological investment.

According to an anonymous source, Klepach was fired after VEB.RF leadership received an order from "above." A second source directly tied his dismissal to his May remarks. Klepach, considered one of Russia’s top macroeconomics experts, served at VEB.RF prior to his tenure at the Economic Development Ministry alongside senior officials including Central Bank Governor Elvira Nabiullina and Defense Minister Andrei Belousov.