A prominent Russian state economist was fired after publicly warning that Moscow is losing an economic "war of attrition" with the West and could eventually face a social crisis, as the European Union prepares a major expansion of sanctions targeting Russia’s military-industrial base.The episode goes beyond an internal Kremlin personnel shake-up.For Washington and its European allies, the central question is whether years of economic pressure are beginning to constrain Moscow’s ability to sustain the war — or whether Russia can continue absorbing the costs while replenishing the resources needed to fight.Andrei Klepach, chief economist at state development bank VEB.RF, was dismissed after remarks in which he said Russia was falling behind technologically and economically and suffering mounting costs from the war in Ukraine, two sources familiar with the matter told Reuters on Aug.
17.RUSSIA’S ‘AMAZON’ IN DEEP-STRIKE UKRAINE BLITZ, WIPING BILLIONS FROM PUTIN-LINKED CEOAndrey Klepach, chief economist of VEB.RF, attends a session of the St.Petersburg International Economic Forum (SPIEF) in Saint Petersburg, Russia June 16, 2022.
(Anton Vaganov/Reuters)VEB confirmed to Reuters that Klepach was no longer its chief economist but did not give a reason for his departure.Klepach, who had held the position since 2014 after spending a decade at Russia’s Economy Ministry, also confirmed his dismissal."We are falling behind.
We are losing both the technological and economic competition in the world," Klepach said in a May speech to the Nikitsky Club, a forum of economists, academics and government officials.The remarks were delivered in May but did not draw attention in Russian media until last week."And we are losing it not only to China and the United States, in some ways we are losing it to Ukraine too," he said, attributing Ukraine’s resilience in part to continued financial backing from the West."We will not win the competition in this war of attrition,"...