VEB bank's chief economist warns Russia may shift to a "partial mobilization" economy
The chief economist of Russia's state bank VEB, Andrei Klepach, has said the country may be forced to move toward a "partial mobilization" economic model, warning that current economic policy cannot sustain a prolonged standoff with the West.
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Andrei Klepach, chief economist at Russia's state development bank VEB and a former deputy economy minister of the Russian Federation, has said the country will soon face a choice about its future economic direction.
Speaking at a session of the Nikitsky Club, Klepach said Russia stands at a crossroads: either continue with its current macroeconomic policy or shift to what he described as a "partial mobilization" economy. According to him, under the existing framework of economic policy, the country will not be able to withstand a prolonged confrontation with the West.
Klepach did not provide further detail on what exactly such a shift would involve or what specific measures it would require. His remarks nonetheless suggest that concerns about Russia's ability to sustain its current economic course amid ongoing confrontation with Western countries also exist among economic experts close to official circles.
VEB is one of Russia's largest state development banks, and public statements from its senior economists are often viewed as a signal of how circles close to the Kremlin assess the country's economic situation.
