Russian state bank dismisses economist after criticism of wartime economy

Andrei Klepach, chief economist at VEB, Russia's second largest bank, was dismissed following critical comments about the current economic situation in the country. The dismissal occurred on a Sunday, just days after a speech Klepach delivered in May, where he warned about the impacts of war on the Russian economy, including warnings that Moscow would not win a prolonged economic war with Ukraine.

Sources indicate that the management of VEB received a "call from above," which may have led to the decision to dismiss Klepach. He had held his position since 2014 and had expressed concerns over the negative trend in the Russian economy, noting that the country was falling behind other economic powers, such as China and the United States, as well as in certain areas compared to Ukraine itself.

Klepach's comments were seen as troubling within the power circles of Moscow, particularly in a context where the Russian leadership has faced internal criticism over economic management during the ongoing conflict. The release of his speech appears to have precipitated his dismissal, reflecting the sensitivity of the Russian leadership regarding open criticism of the country's economic situation.

As a state institution, VEB is under pressure to maintain an image of stability and economic strength, especially in times of crisis. The dismissal of a chief economist who expressed views contrary to the official narrative can be seen as an effort to control internal and external communication about the economic situation in Russia.

Klepach's fall comes at a time when the Russian economy has been challenged by international sanctions and the effects of the war in Ukraine. His public remarks, which questioned Moscow's ability to compete economically with other countries, were deemed unacceptable by the leadership at such a critical moment.

The situation continues to be monitored by economic analysts and news sources, as more developments unfold regarding Russian economic policy and reactions within financial and political circles.