Russian President Vladimir Putin has made a significant change in military leadership by replacing his defense minister and close confidant, Sergei Shoigu, with a civilian economist. This reshuffle comes amid Russia's prolonged conflict with Ukraine, which has led to a sharp increase in defense spending.
Andrey Belousov, a civilian with expertise in economics who previously served as the first deputy prime minister, has been appointed to the top defense position, according to Kremlin spokesperson Dmitry Peskov.
Shoigu has been "relieved" of his duties through a presidential decree, Peskov announced. However, Shoigu will retain influence within Putin's administration as the Secretary of Russia's Security Council, taking over from former FSB head Nikolai Patrushev, who will be moving to another role. Additionally, Shoigu will serve as a deputy in Russia's Military-Industrial Commission as Putin begins his fifth term as president.
This shake-up coincides with Russia's recent significant ground assault across the border into Ukraine, marking the most serious offensive since Ukraine regained control of the northern Kharkiv region in late summer 2022. It follows months of intensified Russian air attacks on the city of Kharkiv and an ongoing advancement in Donetsk in the east, which has seen gradual but notable progress.
Shoigu led Russia's defense ministry for 12 years and spearheaded the invasion of Ukraine in 2022. While Russian forces initially surprised Kyiv, they faced resistance and were ultimately repelled, exposing weaknesses in Moscow's military plagued by corruption. Critics often portrayed Shoigu as disconnected from the realities of the conflict. Notably, Yevgeny Prigozhin, the late chief of the Wagner Group, accused the Defense Ministry of neglecting his fighters and displaying bureaucratic incompetence before staging an unsuccessful mutiny. Prigozhin died in a plane crash weeks later.
Increasing expenditures on the military and the imperative for "innovation" are becoming more pronounced.
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Belousov's selection by Putin was driven by the necessity for "innovation," as emphasized by Peskov in a press briefing where he underscored the escalating budget of the ministry, nearing levels reminiscent of the Cold War era.
"Today, the victor on the battlefield is the one embracing innovation," Peskov asserted. "Hence, it's only natural that, at this juncture, the president has decided to appoint a civilian to lead the Russian Ministry of Defense."
Referencing the conflict in Ukraine, Peskov noted that due to "well-known geopolitical circumstances," Russia is edging closer to the situation of the mid-1980s when security expenditures accounted for 7.4% of the economy. Though not critical, it's deemed extremely significant, Peskov added, specifying that the current budget stands at 6.7% of GDP.
Peskov highlighted Belousov's prior leadership roles and economic expertise, emphasizing his successful tenure as head of the Ministry of Economic Development and his previous advisory positions within the government.
The press secretary clarified that the appointment doesn't signal a change in Russia's military structure. He assured that the military component remains under the purview of Chief of the General Staff Valery Gerasimov, with no anticipated alterations.
Shoigu, in his new capacity, will oversee Russia's military-industrial complex, Peskov disclosed, underscoring Shoigu's deep involvement in the sector.
The reshuffle comes after the recent arrest of one of Shoigu's close associates, deputy defense minister Timur Ivanov, on bribery charges, marking Russia's most prominent corruption scandal since Putin's Ukraine invasion.
Former US Secretary of Defense Mark Esper deemed Putin's move "important" and "interesting," suggesting a shift towards a wartime economy. Esper also expressed disappointment over the lack of anticipated modernization and professionalization in the Russian military under Shoigu's tenure.
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