Putin Appoints Economic Advisor as Defense Minister to Boost Economy in War Against Ukraine

Russian President Vladimir Putin appointed Andrei Belousov, a former deputy prime minister and economic advisor, as the new defense minister in a major shake-up aimed at gearing Russia’s economy towards winning the ongoing conflict in Ukraine. Belousov, who specializes in economics, replaces Sergei Shoigu, a long-term ally of Putin, who will take over Shoigu’s previous roles as head of Russia’s Security Council and with responsibilities for the military-industrial complex. The move is seen as an attempt by Putin to harness greater innovation and better utilize the country’s defense budget to win the economic war being waged alongside the military conflict. Kremlin spokesperson Dmitry Peskov stated that integrating the economy of the military sector into the broader economy is essential to match its dynamics, and the winning strategy in this case will involve pressuring Ukraine with the superior power of the Russian military-industrial complex and economy. The appointment of an economist to lead the defense ministry reflects Putin’s aim to subject defense spending to greater scrutiny and ensure funds are utilized efficiently, following accusations against a Shoigu ally and deputy defense minister of accepting bribes worth almost $11m. The reshuffle also preserves balance among the elite and ensures continuity, as Shoigu’s new roles are technically regarded as senior to his previous one, and Valery Gerasimov, the head of Russia’s General Staff, remains in office. Mark Galeotti, director of the London-based Mayak Intelligence consultancy, suggested that Belousov’s appointment made sense as the defense minister’s job currently involves administering finances rather than operational duties, which fall under Gerasimov’s remit as he reports directly to Putin.