Russian State Banker Fired Over War Economy Warnings

Andrei Klepach, chief economist at state development bank VEB since 2014, was fired after a May speech warning Russia would not defeat Ukraine economically. VEB confirmed his departure but gave no reason.

• Russia's budget deficit hit 5.87 trillion roubles in the first four months of 2026 alone.
• The government's deficit target for all of 2026 was 3.79 trillion roubles.
• Russia's central bank said in July that economic growth could fall to zero this year.
• EU sanctions have cost Russia's war effort more than $1.16 trillion, Kaja Kallas said.

Why it matters: Klepach's remarks directly contradicted official Kremlin messaging. Vladimir Putin has publicly claimed Russia is weathering sanctions and that Ukraine's economic collapse is inevitable.

• Independent Russian outlet the Bell reported Klepach was fired on Kremlin orders, directly tied to the May speech.
• Alexandra Prokopenko, a former Russian central bank adviser now at the Carnegie Russia Eurasia Center, said firing Klepach would not delay the crisis he warned about.

How 12 sources split on this story

Where they split: Whether Russia faces near-term economic collapse or has enough oil revenue to sustain the war for another year or more.

What’s next: The EU plans to present a new sanctions list to member governments in early September, targeting Russia's military-industrial complex.

• A European intelligence source told Fox News that higher oil prices give Putin budget cover, delaying pressure to end the war.
• Whether other senior Russian economists or officials hold similar private assessments and how far the Kremlin's loyalty enforcement reaches.
• How much additional runway higher oil prices actually give Moscow before wartime spending triggers the social crisis Klepach described.