Belousov’s Appointment Signals Transformation of Russian Economy into War Economy amid Military Build-Up

The recent appointment of Andrei Belousov, former minister of economic development, as deputy prime minister in charge of industry and trade by President Vladimir Putin has sparked speculation and raised eyebrows in military circles. This significant move marks a major shake-up in the Russian administration, following Putin’s constitutional reforms last year that allowed him to potentially rule until 2036. While the reasons behind this decision are unclear, analysts believe that Belousov’s appointment signals a transformation of the Russian economy into a war economy, as Russia continues to grapple with international sanctions and the ongoing conflict in Ukraine. In contrast to Belousov’s appointment, Putin’s daily involvement in the Ministry of Defence indicates a heightened focus on the military sector. Over the past few weeks, Russian troops have made progress in the northeastern region of Kharkiv, prompting questions regarding the effectiveness of defensive structures and the need for a ceasefire. As Western media suggests, there may be growing support for this proposal within both Ukraine and the West. However, Putin’s decision to replace the commander of the Kharkiv group of the Armed Forces of Ukraine further highlights the complexity of the situation and underscores the ongoing volatility of the region. Ultimately, Putin’s recent moves seem to indicate a restructuring of administrative centers, with three distinct bodies vying for power: the government led by Prime Minister Mishustin, charged with managing the economy and industry; an apparent domestic policy body headed by the presidential administration (AP); and the Ministry of Defence under the leadership of Bylawosov, focused on war and production. These developments serve to further destabilize an already tumultuous political landscape in Russia.