Top Russian economist predicts defeat in Ukraine war and is fired

In Moscow, prominent economist Andrej Klepatsch predicted Russia would lose in its war of attrition against Ukraine and has now lost his job.

State-owned company VEB.RF, Russia's leading economic development institution, has fired its chief economist, several Russian media outlets reported on Sunday evening. Klepatsch had previously been quoted as saying that it was impossible for Russia to win the war of attrition against Ukraine. He was also convinced that Russia was heading for a crisis.

The newspaper “The Moscow Times” reported on a lecture by Klepatsch in a club at the Moscow Stock Exchange, in which the economist had already confirmed Ukraine's economic survival in May. "We are under the illusion that everything will collapse there [in Ukraine]. It has not collapsed and will not collapse," the newspaper quoted Klepatsch as saying. Russia's costs, on the other hand, were rising and the country would lose out "in both technological and economic competition worldwide."

The statements are explosive because the power apparatus and the state-owned companies always claimed that the situation was under control despite all the problems. Kremlin leader Vladimir Putin, who ordered the invasion of Ukraine in February 2022, repeatedly emphasizes that Russia will win. So far, however, there is no sign that the president will achieve his war goals. In Russia, economic problems are increasing every day.

Putin confidant fired Klepatsch

The 67-year-old Klepatsch is one of the most renowned economic experts in Russia. He has worked for twelve years for VEB, formerly the Russian State Bank for Foreign Trade, which was subject to Western sanctions. Expert Alexander Prokopenko from the Carnegie think tank in Berlin said that Klepatsch had never hidden his opinion.