Key Kremlin bank's chief economist reportedly dismissed over criticism of war of attrition

Andrei Klepach, chief economist at VEB RF (previously known as Vnesheconombank, Bank for Foreign Economic Affairs), a major Russian state-owned bank, has been dismissed after media outlets drew attention to a speech in which he said it was impossible for Russia to win a war of attrition and predicted a social crisis.

Source: The Bell, citing two people familiar with the economist, as reported by Novaya Gazeta Europe

Details: Klepach was reportedly dismissed on Sunday 16 August. The previous day, media outlets drew attention to a speech he had given in May following a publication by The Moscow Times.

One of The Bell sources said that VEB chairman Igor Shuvalov dismissed the economist after a call from someone much higher in the power hierarchy. The second source also linked the decision to Klepach's speech.

Klepach worked as VEB's chief economist for around 12 years. In 2004, he became head of the Macroeconomic Forecasting Department at Russia's Ministry of Economic Development, and from 2008 to 2014, he served as deputy minister. After moving to VEB, Klepach also served as deputy chairman of the state corporation. In 2019, he left its management board but remained chief economist.

VEB.RF is a Russian state development corporation. Since 2018, it has been headed by former Russian First Deputy Prime Minister Igor Shuvalov.

Background:

• Andrei Klepach, chief economist at VEB RF (previously known as Vnesheconombank, Bank for Foreign Economic Affairs), a major Russian state-owned bank, has said that Russia will not be able to win a war of attrition against Ukraine backed by the West and is inevitably heading towards a major social crisis.
• He acknowledged that Russia is losing the technological and economic competition not only to the US and China but, in some respects, to Ukraine as well.

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