Russian State Bank Economist Warns of Social Crisis Over War Costs

POOL New / REUTERS The chief economist of the Kremlin’s top state bank has defied Vladimir Putin and sounded the alarm about Russia’s flailing war with Ukraine.

Andrei Klepach, chief economist at Vnesheconombank and a former Putin appointee, gave a scathing assessment of where things stand for Russia at a Moscow forum, according to The Moscow Times .

“We’re falling behind,” Klepach was quoted as saying.

“We’re losing both the technological and economic competition globally.

And, as I’ve already said, we’re losing not only to China and the U.S., but in some ways, we’re losing to Ukraine.” “We won’t win the competition in this war of attrition.

We’re under the illusion that everything will collapse.

It hasn’t, and it won’t.

Our costs are mounting,” he added.

Klepach’s dire warning came as the Russian president embarked on a desperate charm offensive to bolster support for his war as the so-called “special military operation” dragged on in its fifth year, yielding none of the quick victories the Kremlin had promised.

Instead, Putin’s humiliating setbacks have increasingly been laid bare, with Ukrainian long-range drone strikes bringing the war home to ordinary Russians and bleeding the Russian economy by way of fuel shortages and damaged infrastructure.

Ukraine’s defense ministry twisted the knife further this week with an announcement that captured Russian tanks would be put on display in five European countries.

Putin, meanwhile, has shrugged off economic concerns and vowed to double down on the war even as some members of the country’s elite say it’s time to find an off-ramp.

Klepach appeared to allude to this disconnect as he warned of “mounting” damage.

“The conflict in Ukraine, involving NATO, has lasted longer than the Great Patriotic War, and there’s no end in sight.