Warning from the main state bank of Russia: "We are almost certain to reach a social crisis"

Andrei Klepaci, the chief economist of Vneșeconombank, stated that Russia will not win the economic war in the current context, where Ukraine is benefiting from financial support from the West.

He emphasized that the sanctions and blockades imposed on Russia are increasing economic costs, and Ukrainian attacks on Russian infrastructure are amplifying the damages.

Klepaci mentioned that Russia is losing the technological and economic competition not only against China and the USA but also against Ukraine, which, despite the difficulties, manages to survive. He highlighted that the Russian economy has entered a decline, with a drastic decrease in investments and recession in civil industrial sectors. The restrictive policy of the Central Bank of the Russian Federation contributes to this recession.

Klepaci warned that Russia is heading towards a social crisis. He forecasted modest economic growth of 1-1.5% under the conditions of sanctions tightening and losses caused by the conflict.