Dissatisfaction Is Growing Within The Kremlin

• 21.08.2026, 11:33

The economist's dismissal revealed Putin's fear.

Disagreements are intensifying within the Russian political elite over the war against Ukraine and its economic consequences. American journalist and historian Amy Knight writes about this, linking the dismissal of renowned economist Andrei Klepach to the Kremlin’s growing concern over the mood among high-ranking officials, reports The Wall Street Journal.

Klepach, a former deputy minister of economic development in Russia and chief economist at the state-owned VEB corporation, spoke at a closed-door meeting of the Nikitsky Club in late May. He warned that the Russian economy is approaching stagnation, and that the continuation of the war, new sanctions, and Ukrainian strikes on infrastructure could limit GDP growth in 2027 to 1–1.5%.

However, his assessments of Russia’s military prospects drew the most attention. “We are losing the global race—both technologically and economically,” Klepach stated. According to him, Moscow lags behind even Ukraine in some respects and will not be able to prevail in a protracted conflict.
The economist also warned of a possible social crisis, comparing the situation to the events of 1917. “No one expected the February Revolution,” he noted.

After the transcript of his speech was published, Klepach was fired. Other members of the Russian elite also joined in criticizing him.

Former Deputy Prime Minister and head of VEB Igor Shuvalov spoke out against the idea of shifting the economy to a war footing. Sberbank CEO German Gref stated that society is interested in a swift end to hostilities.

Moscow Mayor Sergei Sobyanin spoke even more bluntly. “To destroy normal life and a normal economy is to destroy the country itself,” he said.

“Klepach’s dismissal is unlikely to quell the discontent. On the contrary, the Kremlin’s harsh reaction may only intensify the frustration among influential officials and businesspeople,” Knight writes.