VEB’s chief economist predicted Russia’s defeat in a “war of attrition” and an inevitable social crisis because of new sanctions and Ukrainian Armed Forces strikes

VEB’s chief economist predicted Russia’s defeat in a “war of attrition” and an inevitable social crisis because of new sanctions and Ukrainian Armed Forces strikes

Andrey Klepach said that the country is falling further and further behind the rest of the world in technological development, while the costs of sanctions keep rising.

He pointed out that losses from Ukrainian Armed Forces strikes on oil and gas, port, and logistics infrastructure are turning “into a significant macroeconomic barrier to the growth of the Russian economy.”

We are losing both the technological and the economic competition in the world. And, as I already said, we are losing it not only to China and the United States, in some respects we are even losing it to Ukraine. Ukraine’s economy is, of course, partly destroyed, a demographic catastrophe. But once again, despite everything, the Ukrainian economy survives.

According to Andrey Klepach’s estimate, the potential growth rate of the Russian economy may not exceed 1–1.5% because of new sanctions and Ukrainian strikes. In his opinion, all of this will inevitably lead to a social crisis in the country, “when no one is particularly expecting it.”

@meduzalive