Chief Russian Bank Economist Fired For Warning Of 'Economic Defeat' By West

Not what the dictator wanted to hear. Especially in a public forum. But the experienced economist said what he believed, which is that Russia is falling behind economically and technologically, not just to the US, China and Europe but -get this -to Ukraine. He went on to say that Russia cannot win a war of attrition in the long run. 

Comrade Klepach would be well advised to stay away from windows in tall buildings for the foreseeable future. JL

Olena Goncharova reports in the Kyiv Independent:

Andrei Klepach, the chief economist at Russian state development corporation VEB.RF, was fired on Aug. 16, a day after Russian media widely circulated his warnings that Russia was losing its economic and technological competition with the West. Speaking at an event organized by the Moscow Exchange’s Nikitsky Club, Klepach said Russia would be unable to sustain competition with the West in a prolonged confrontation and predicted that the country would eventually face a social crisis. "We are falling behind. We are losing both the technological and economic competition in the world. And, we are losing it not only to China and the US — in some respects, we are losing it to Ukraine whose economy has been partly destroyed. But despite everything, the Ukrainian economy is surviving. We will not win this competition in a war of attrition," 

What Happens When Putin's New Mobilization Fails?

Putin's ground war has stalled and shows no signs of correcting the inefficiencies and incompetences of the past four-plus years. There are rumors he is beginning to implement a quiet 'soft' mobilization so as not to spark further popular resentment, but given Ukraine's success to date in thwarting increased Russian and North Korean troop deployments with drones, mines and counterattacks, there is little reason to believe the corrupt Russian system is capable of - or interested in - change to correct that.

The question then is, what will Putin do when his latest mobilization fails? China has reportedly nixed the nuclear option so further sabotage and provocation to keep Europe off balance look like the most probable tactics. But if the US midterm elections this fall return the Congress and Senate to Democratic control, his options will be further limited by their support for Ukraine. Either way, the war's evident failure means he has to continue it or risk being overthrown and eliminated himself. JL

Mick Ryan reports in Futura Doctrina:

Putin is rapidly running out of options for achieving even his minimalist goals for Ukraine, which would be the capture of all of the Donbas. But even that appears increasingly unlikely for the Russian ground forces. Putin will hope that the injection of a few hundred thousand extra troops might get him over the line, but even that is a doubtful proposition given the increases in effectiveness we have seen the Ukrainians demonstrate in 2026. He could double down, do more mobilization and step up the use of chemical weapons or even i`ndicate his willingness to employ nuclear weapons. However, his nuclear sabre rattling in the past has not shifted Ukrainian determination to hold on to their territory. And NATO has now moved beyond being deterred by these kinds of threats.

Russia's 2026 Offensive Has Stalled By Ukraine "Across Multiple Fronts"

Ukrainian forces have reportedly stalled attempted Russian advances across multiple fronts as the summer begins to wind down.

There has been an uptick in Russian claims of successes, which have almost always been disproved, usually within hours. The independent assessments concur that Russia's infiltration tactic of sending small groups of two or three men has not added up to anything approaching a sustainable ability to take and hold territory. JL

The Kyiv Post reports:

Russian forces continued offensive operations across several sectors of the front on Aug. 15 and 16 but failed to make advances across multiple fronts. Russian claims of advances remain disputed as the Kremlin continued to claim battlefield gains that were not independently confirmed. Russia continues to apply pressure across a wide section of the front, but the attacks have yet to translate into a confirmed breakthrough.

Nvidia Commits $105 Billion To Back OpenAI Ohio Data Center

As Nvidia announced its $105 billion in financial support for one of the world's largest data centers in the latest of its circular deals lending money to customers who buy its products, the company's CEO, Jensen Huang, made a noteworthy statement intended to explain the investment. 

He said that AI companies are "growing faster than their balance sheets and long term credit profiles can support." That used to be a market signal that a company should rein in its borrowing. In the AI economy, that is apparently a signal for the world's largest supplier of AI chips and wealthiest corporation to lend them the money to keep going. How this ends well for the companies, their employees, lenders, investors and the public is not explained, presumably because no one really knows. JL

Kalley Huang reports in the New York Times:

Nvidia agreed to spend as much as $105 billion to back one of the world’s largest data centers, which is being built in Ohio and will be leased to OpenAI. Nvidia’s financing for the data center, that could cost as much as $500 billion, is part of the complex dealmaking behind the A.I. boom. Using unusual arrangements with chipmakers, cloud computing providers and governments, OpenAI and Anthropic are gaining access to computing power that they could not afford themselves. Many of these deals are circular, with an A.I. start-up receiving billions of dollars from technology giants before spending those billions on the same companies to pay for chips, cloud computing and other services. Jensen Huang, Nvidia’s CEO, said that A.I. labs “are growing faster than their balance sheets and long-term credit profiles can support.”

In Combat, Exoskeletons Made Artillerymen Faster, Less Fatigued

Ukrainian artillerymen have to carry 30 shells a day which weigh 50 kilograms - 100 pounds. Artillery brigades using exoskeletons found they reduced leg muscle load by 30%, making the troops faster and less prone to fatigue at operational tempo for longer periods of time. 

This, in turn, contributed to increased rates of fire and more accurate. Smart use of technology enhances performance and results for Ukraine again. JL

Wes O'Donnell reports:

At current tempo, Ukraine’s 147th Brigade artillery crews carry 30 shells per day: at 1,200 kilograms per soldier, per day. That’s a small car’s worth of explosives, manually humped to a howitzer by one man. Ukraine has deployed exoskeletons to try to fix that. It is a leg exoskeleton with hinged joints along the thighs and knees, weighing 2 kilograms. It buckles at the waist and legs, wraps behind the user’s back, and has two hip actuators. It has 10 intelligent operating modes, over a temperature range of minus10 to 60 degrees Celsius, reaches an assisted movement speed up to 20 km/h, and supports assisted walking for up to 17.5 kms. The AI mode adapts in real time to the load on the soldier’s legs and spine. “According to combat test results, troops become less fatigued, work faster, and maintain combat effectiveness longer.” An exoskeleton reducing leg muscle load 30% and cuts fatigue contributes to rate of fire, accuracy, and the ability to sustain operations at tempo.

North Korean Train Carrying Missiles To Russia Blown Up In Siberia

As Russia becomes more dependent on North Korea for military support, including troops, artillery and now missiles, the rails lines connecting the two countries become a more important target.

Ukrainian forces identified and destroyed a train carrying North Korean missiles to the front. The sabotage occurred close to the North Korean-Russian border and in difficult terrain, making reconstruction of the line more difficult. The missiles, their warheads and accompanying troops were eliminated. JL

RFU News reports:

6,000 kilometers from the front line,  explosions destroyed a train transporting KN-Twenty-Three and KN-Twenty-Four ballistic missiles together with railcars loaded with artillery ammunition on the Trans-Siberian Railway. The attack occurred close to North Korea. The detonation destroyed the train, devastated part of the surrounding railway infrastructure, and halted traffic along the affected section. Remotely controlled explosive charges were placed beneath the railway tracks before being detonated as it entered a difficult section of the line. Choosing such terrain aims to maximize destruction while making restoration more complicated. The explosion triggered a chain reaction that detonated the warheads and the accompanying ammunition. The KN missiles carry a warhead weighing five-hundred kilograms. This ranks among the deepest Ukrainian attacks inside Russia.

Ukraine Is Steadily Liberating Russian Territory At Notable Scale

It's generally better to be lucky. But if you are capable of taking advantage of your enemy's misfortune, you can make your own. 

In the case of Ukraine's shockingly successful offensive retaking large swaths of Russian-held territory in the country's south, it was a bit of both. The Ukrainians started probing what they correctly perceived were weak Russian defenses in late January. But when the Russians lost their Starlink access, the Ukrainians were ready and began armored assaults which would not have been possible had the Kremlin's forces had adequate electronic communications and defenses. Though the Russians have finally stabilized to some degree, the Ukrainian gains have been large and strategically significant. JL

Phillips O'Brien reports in his substack and David Axe reports in Trench Art:

We are now more than halfway through the summer season. This year, the reports are not about Russian advances, but Ukrainian ones. The scale of Ukraine's counteroffensive in southeastern Ukraine is becoming clear. In six months, Ukraine's 78th, 79th, 80th, 82nd, and 95th Air Assault Brigades and the 1st and 425th Assault Regiments—tens of thousands of troops—marched through gaps in Russian defenses. In contrast to the usual assault tactics, the Ukrainians attacked in tanks and other armored vehicles, counting on the Russians' connectivity problems to clear a path. Working in Ukraine's favor: better operational planning, a campaign to suppress Russian air defenses, deeper strikes on Russian logistics, Ukrainian drone superiority at the tactical level—and the Starlink cutoff. But the cutoff is the one that arrived all at once, and just as Ukrainian armor was starting to move. The reality was that the Ukrainians had gained ground. A lot of it.