Top Kremlin State Bank Economist Says Russia Cannot Outlast Ukraine
Analysts said 1.3% second-quarter GDP growth masks weaker energy revenue, higher taxes and subsidized lending that could widen Russia’s deficit.
- Russia's economy grew by 1.3% year-on-year in Q2 2026, surpassing expectations despite ongoing challenges related to the war and economic issues.
- Economic problems include inflation, higher interest rates, shrinking energy revenues, reliance on military spending, higher taxes, subsidized bank lending, and impacts from Ukrainian drone strikes and Western sanctions.
- Experts suggest Russia may use frozen central bank reserves and increase taxes on oil companies to address fiscal gaps, but these measures risk inflation and weakening confidence.
- Analysts believe the current economic difficulties are unlikely to end the war soon, noting support from higher oil prices and political commitment.
19 Articles
19 Articles
Russia’s key bank dismissed its chief economist, who predicted Russia’s defeat "in a war of attrition"
УНН News of the World ✎ Russian state-owned bank VEB dismissed Andrei Klepach after his remarks about losing the war of attrition and a possible social crisis. He had held th…
Kremlin’s top state bank predicts Russia could lose war of attrition
State-owned VEB.RF (Vnesheconombank) has stated that Russia cannot win the economic confrontation with the West as long as Western countries continue to support Ukraine. According to him, the Russian economy is facing rising costs, falling investment, and
The chief economist of the Russian state development corporation VEB.RF, Andrei Klepach, stated that the Russian Federation is lagging behind the world technologically and economically and that the war in Ukraine will lead to a social crisis. The Moscow Times reports that Klepach also said that Moscow cannot win a war of attrition against Kiev as long as the West supports it.
Russia might not win the prolonged ‘war of attrition’ against Ukraine, Moscow's chief economist warns: Here's why
Russian economist Andrei Klepach warned that Moscow may struggle to defeat Ukraine in a prolonged war of attrition as sanctions, military spending and Ukrainian strikes weigh on the economy. He also warned of slowing growth, rising costs and a potential social crisis.
A chief economist personally appointed by Putin compares the situation in Russia with the months before the February Revolution in 1917 - and recalls that even Lenin considered the overthrow impossible a few weeks before.
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