Russian President Vladimir Putin has made a significant change to his defense ministry, replacing long-time ally Sergei Shoigu with economist Andrei Belousov. This move is the most substantial shake-up to the military's command structure since Moscow began its war on Ukraine in February 2022.
In a decree published on Sunday, Putin nominated Belousov, a former deputy prime minister specializing in economics, to replace Shoigu. Shoigu, in turn, was named as the new secretary of the Security Council, a position previously held by Nikolai Patrushev. This shift signifies the war's deep impact on Russia's economic strategy.
Shoigu, who has been defense minister since 2012, has come under scrutiny during the Ukraine war. One of his close allies, Timur Ivanov, was recently arrested on bribery charges related to defense contracts. Critics within the Russian military have also blamed Shoigu for failing to adequately prepare for the war in Ukraine.
Despite the appearance of a demotion, analysts suggest that Shoigu's new role could still make him influential due to his proximity to Putin. Belousov, the new defense minister, is seen as a loyalist who is unlikely to overshadow Putin. He is known for advocating increased government intervention in the economy.
Military spending in Russia has surged since the war began, driving economic growth and helping the country withstand Western sanctions. Belousov's appointment indicates that defense spending is unlikely to decrease, as he supports military Keynesianism, which prioritizes government spending on defense.
Putin's decision to appoint an economist to lead the defense ministry reflects a desire for a more economically efficient military. This move is reminiscent of the appointment of Anatoly Serdyukov in 2007, who was brought in to improve efficiency but was later ousted due to corruption allegations.