Russia Fires VEB Chief Economist After Warning of Social Crisis
· World · The Independent, Al Jazeera, CNN
Andrei Klepach was dismissed from his role as chief economist of VEB, a Russian state development bank. His dismissal followed remarks at the May Nikitsky Club forum where he compared the present economy to the 1917 February revolution. Klepach warned that Russia was falling behind the West and China and that a social crisis could emerge because of mounting war costs and loss of competition with Ukraine. He noted rising income inequality and slower GDP growth than the United States and Ukraine. VEB confirmed his removal but did not provide a reason. The Russian central bank later suggested the economy might not grow this year, and recent Ukrainian attacks on oil refineries and Wildberries warehouses have created supply shocks and inflation risks.
Why it matters
The removal signals internal dissent over Russia's handling of the war and its economic slowdown, which could affect investors and Russian citizens facing higher inflation. Reduced confidence in Russia's economic management may also influence global commodity markets that impact Indian importers.
Read the original report — The Independent
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