Russian President Vladimir Putin made a strategic shift on Sunday, appointing a civilian economist as the new Defence Minister. This move, aimed at bolstering Russia’s readiness for economic warfare, underscores Putin’s focus on optimizing the defence budget and fostering innovation to secure victories in Ukraine. Andrei Belousov, a 65-year-old economist and former deputy prime minister with expertise in economics, has been chosen to succeed his longstanding ally Sergei Shoigu, 68, in the role of Defence Minister.
The Kremlin said Putin wants Shoigu, who has been in charge of defence since 2012 and is a long-standing friend and ally, to become the secretary of Russia’s powerful Security Council, replacing incumbent Nikolai Patrushev. Shoigu would also be responsible for the military-industrial complex. Patrushev will get a new, as yet unannounced, job.
The changes, which are expected to be approved by parliamentarians, mark the most significant shift in the military command under Putin’s leadership. These changes, initiated since the special military operation in Ukraine in February 2022, are set to have a profound impact on Russia’s defence strategy and economy.
Kremlin spokesman Dmitry Peskov said the change made sense because Russia was approaching a situation like the Soviet Union in the mid-1980s when the military and law enforcement authorities accounted for 7.4% of the gross domestic product (GDP).
That, said Peskov, meant it was vital to ensure such spending aligned with and was better integrated into the country’s overall economy, which was why Putin now wanted a civilian economist in the Defence Ministry job.
“The one who is more open to innovations is the one who will be victorious on the battlefield,” Peskov said.
Belousov, a former economy minister known to be very close to Putin, shares the Russian leader’s vision of rebuilding a strong state and has also worked with Putin’s top technocrats who want greater innovation and are open to new ideas. Belousov has played an important role in overseeing Russia’s drone programme.
The shake-up, which caught the elite off-guard, indicates Putin is doubling down on the Ukraine war and wants to harness more of Russia’s economy for the war after the West sought, but failed so far, to sink the economy with sanctions.
ECONOMIC WAR
Russia’s economists have so far largely ensured economic stability and growth despite the toughest sanctions ever imposed on a major economy, even though the failings of the Russian military were laid bare shortly after the invasion.
Putin’s move, though unexpected, preserves balance at the top of the complex system of personal loyalties that make up the current political system. The shake-up gives Shoigu a job that is technically regarded as senior to his defence ministry role, ensuring continuity and saving Shoigu’s face. Valery Gerasimov, the Chief of Russia’s General Staff and someone with a more hands-on role when it comes to directing the war, will remain in post.
Shoigu was heavily criticised by Russian military bloggers for a series of retreats the Russian military was forced to make in 2022. Yevgeny Prigozhin, the leader of the Wagner mercenary group and one of Shoigu’s fiercest critics, led an abortive mutiny he hoped would topple Shoigu last year before agreeing to call it off. Prigozhin was later killed in a plane crash.
The change is likely to be seen as Putin’s attempt to subject defence spending to greater scrutiny to ensure funds are effectively spent after state prosecutors accused a Shoigu ally and deputy defence minister, Timur Ivanov, of taking kickbacks worth nearly $11 million.
Putin left Alexander Bortnikov and Sergei Naryshkin, the Heads of the Federal Security Service (FSB) and the Foreign Intelligence Service (SVR), in their posts. The Kremlin said Sergei Lavrov, the country’s veteran Foreign Minister, would also stay in his job.
Team BharatShakti
With inputs from Reuters
