According to the economist, the Russian economy is experiencing increasing losses due to Western sanctions and Ukraine’s strikes on ports, infrastructure, chemical plants, and oil refineries. A. Klepach admitted that Russia is losing the technological and economic competition not only to the USA and China but also to Ukraine.
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“We are falling behind. We are losing both technological and economic competition worldwide. And, as I have already mentioned, we are losing it not only to China and the USA – in some respects, we are also losing it to Ukraine,” said A. Klepach at the “Nikitsky Club” meeting, which unites Russian academics and businessmen.
“The Ukrainian economy, of course, is partly destroyed, experiencing a demographic catastrophe. However, I repeat, the Ukrainian economy, despite everything, is surviving. Of course, huge financial aid is provided… With such aid to meet military and other needs, it amounts to approximately almost 50% of our budget,” said the economist.
“We will not win the competition in this long-lasting war. We have the illusion that everything there will collapse – it has not collapsed and will not collapse,” he added.
The economist recalled that after a period of rapid economic growth in 2023–2024, mainly due to increased state military spending and investments in the military-industrial complex, the Russian economy began to decline in early 2026. Investment activity sharply decreased, and a number of civilian industries – from aviation and building materials production to light and food industries – fell into recession.
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The banker also drew attention to the consequences of the tightening of US sanctions at the end of 2025. According to him, these restrictions caused India and China to reduce their purchases of Russian oil, “despite repeated statements that they do not comply with sanctions.”
Because of this, A. Klepach predicted an upcoming social crisis in Russia, which he compared to the February Revolution of 1917 and the collapse of the USSR. In his opinion, the crisis will come when no one expects it, and the technological gap between Russia and the world will only increase.
“I think Russia will not collapse, but I am almost certain that we will come to a social crisis,” he concluded.
