The recent reshuffling within the Russian government has raised eyebrows across the globe, signaling a possible shift in the Kremlin’s strategy.

With President Vladimir Putin seemingly redirecting the focus from energy giant Gazprom to the defense sector, analysts suggest that the move could have significant implications for the country’s military efficiency and internal power dynamics.

The changes, which include the appointment of a new Defense Minister and the promotion of close Putin allies, come at a time when Russia is deeply embroiled in the war against Ukraine.

Putin’s reorganization has led to the ousting of former Defense Minister Sergei Shoigu, who was replaced by Andrei Belousov, a figure known for his economic expertise and loyalty to Putin.

The replacement of former Defense Minister Sergei Shoigu has been perceived by some as a response to Russia’s shortcomings in the conflict with Ukraine.

However, Shoigu’s new role as secretary of Russia’s Security Council, a position he already held as defense minister, can be viewed as a promotion in certain aspects.

His successor, former Deputy Prime Minister Andrei Belousov, is reputed to be a proficient economist.

Consequently, his selection is seen as an indication of Russia’s intent to expedite the shift towards a wartime economy.

Nonetheless, Belousov has been downgraded in some regards with his new position as minister.

Lacking experience in the military-industrial complex, his ministry will primarily focus on war logistics rather than the war economy.

Observers also note that Putin has not been deeply involved in arms procurement in the past, suggesting that his recent focus on this area may be driven by personal interests, possibly as a new avenue for embezzlement.

The Russian president’s objectives seem to be anchored in nepotism and corruption rather than in the nation’s victory or welfare.

This view is supported by Vladimir Milov who argues that Putin has turned to arms procurement as a lucrative sector after Gazprom’s exports and profits plummeted.

Milov points out that, “Nothing in Russia is more secret than arms procurement, which allows the Putin circle to extract big money.”

As Russia’s military expenditures soar, official figures place them at $120 billion, but some, like Martin Kragh, estimate that the actual amount could be closer to $160 billion—approximately 10 percent of Russia’s GDP.

Relevant articles:
– OPINION: Russian Government Changes: More Corruption and Nepotism, Kyiv Post
– Putin’s Russia: How propaganda bolsters corruption, European Centre for Press and Media Freedom
– OPINION: What’s Behind Putin’s Ministerial Rochade in the Kremlin?, Kyiv Post
– High Perceptions of Corruption in Former Soviet Nations, Gallup News