Senior Russian economist fired after warning Russia can't win a protracted wartime economy

Andrei Klepach, chief economist at state-backed VEB, was fired after a May speech in which he warned that Russia is falling behind economically, that a war of attrition with Ukraine won’t be won, and that a social crisis is likely. The dismissal, described by sources as ordered by the Kremlin, underscores loyalty expectations at Russia’s top levels amid mounting wartime costs and sanctions. The episode comes as Russia’s economy shows strain from spending and sanctions, with a large 2026 budget deficit in the first four months, even as oil revenues cushion some pressures.