The 68-year-old had been in the role since 2012 and will be replaced by Deputy Prime Minister Andrei Belousov, an economist with little military experience. Mr. Shoigu is to be appointed secretary of Russia’s Security Council.
Vladimir Putin Removes Sergei Shoigu From Russian Defence Ministry
The 68-year-old had been in the role since 2012 and will be replaced by Deputy Prime Minister Andrei Belousov, an economist with little military experience. Mr. Shoigu is to be appointed secretary of Russia’s Security Council. The Kremlin said the defence ministry needed to stay “innovative”.
Reshuffles in Russia don’t happen very often, so this is a big moment at the top of Russian politics. The appointment of Mr. Belousov as defence minister will come as a surprise to many, given his previous experience.
But analysts suggest President Putin is seeking to align the Russian economy more closely with the war effort.
The decision to put an economist in charge of the Ministry of Defence reflectsthe changing priorities of the Kremlin and the huge amounts of money the Russian authorities are now pouring into the war in Ukraine – and Russia’s need to boost efficiency in the armed forces.
Why the sudden move?
The cost of the Ukraine war is taking a toll. The Defence Budget has reached 6.4 percent of the GDP (almost equivalent to the Soviet era). Last year (2023) it was US$109bn (around 16 percent of total govt expenditure). “Club this with corruption charges on Shoigu’s deputy and unable to win war after more than two years”.
Who is Belousov?
Belousov was currently posted as the Deputy Prime Minister of Russia. Along with being the Finance Minister of Russia (2012-13), he has also served as Putin’s economic advisor (2013-2020) for a long time. If Russia’s economy is on track despite the Ukraine war and all the sanctions from Western countries, then Belousov is considered to have a big role in it. This is the reason why Putin has given the responsibility of the Defence Ministry to him. Because Russia’s ever-increasing defence budget is a matter of concern for Putin. According to Peskov, Russia’s defence budget is now 6.7 percent of GDP. This defence budget is now about to reach the level of the Soviet era when it used to be 7.4 percent.
In fact, due to the Ukraine War (Special Military Operation), huge expenditure is being made on the Russian army. According to the Stockholm International Peace Research Institute (SIPRI), Russia is the third largest military spending country in the world (after America and China).
Russia’s Annual Defence Expenditure
Last year i.e. in 2023, Russia’s annual defence expenditure was US$109 billion i.e. about 9 lakh crores, which is 24 percent more than in 2022. It is clear that due to the Ukraine war, Russia is increasing its defence expenditure significantly. Following the annexation of Crimea in 2014, Russia’s defence budget has gone up by 57 percent. Russia’s defence budget is 16 percent of the total government expenditure. In such a situation, Russia not only has to use its defence budget very carefully, but it also has to make it in line with the country’s economy.
What does this mean?
“In such a situation, it can be assumed that Russia is not able to get a decisive victory against Ukraine because the army under the leadership of Shoigu is fighting in a traditional manner. Whereas the Ukrainian Army has been equipped with drones and destructive technology since the beginning and is causing great damage to Russia. This is the reason why Shoigu has been removed from the post of Defence Minister for 12 years”.
