Chief economist of the Russian state corporation VEB.RF Andrei Klepach was dismissed following media publication of his remarks criticising the protracted conflict with the West. In a May report, he stated that the Russian economy is losing competition and could face a social crisis. This was reported by The Bell citing The Moscow Times, according to the portal PromPolitInform.
The official lost his job on Sunday following the circulation in the media of quotes from his speech at an event held by the Nikitsky Club of the Moscow Exchange. According to sources, VEB head Igor Shuvalov made this decision following a phone call from above.
Andrei Klepach served as chief economist for 12 years. Prior to that, he worked at the Ministry of Economic Development, serving as a deputy minister from 2008 to 2014.
Warning about lag and risks
During the May meeting, the economist noted that Russian economic growth rates lag behind American and Ukrainian figures. According to him, if hostilities and sanctions continue, figures are unlikely to exceed two to two and a half percent per year.
He highlighted problems with rising inequality and low pensions. In the specialist’s view, the state is losing technological and economic competition, including in certain aspects to Ukraine as well.
Threat of a social crisis
The economist forecasted complaints about the quality of healthcare and the accumulation of costs. He stated that the state will withstand the load, but an unexpected social crisis may arise.
Carnegie Berlin Center senior fellow Alexandra Prokopenko called Klepach’s dismissal a step that will not stop crisis processes. In her opinion, the specialist’s forecasts were always based on realistic assessments of the situation.
Illustrative photo: Mrduk / CC BY-SA 3.0
