Belousov to introduce economic discipline to Russian defense budget

In a surprising move, Russian President Vladimir Putin has appointed Andrei Belousov, a Soviet-trained economist with no military background, as the new defense minister. Belousov’s appointment signals a major shift in the handling of Russia’s ongoing invasion of Ukraine, according to sources familiar with both men.

Belousov, known for his advocacy of statist industrial policy and state investment in the economy, is seen as a no-nonsense technocrat who will bring closer control over Russia’s defense spending, which currently stands at a record Rbs10.8tn ($118.5bn). His appointment comes as a departure from the previous defense minister, Sergei Shoigu, who was criticized for alleged corruption in defense procurement.

Despite his lack of military experience, Belousov is praised for his honesty and work ethic. He is expected to conduct a thorough audit of the defense ministry’s financial-economic bloc, a move welcomed by many in the patriotic community and pro-Kremlin media.

Belousov’s appointment comes at a critical time for Russia, as it faces increasing pressure from western sanctions and internal corruption scandals. His statist views and support for industry-led economic growth are seen as key to producing arms for the ongoing conflict in Ukraine.

While some question Belousov’s lack of military background, others see his appointment as a positive step towards cleaning up the defense ministry and improving coordination with the cabinet on military spending. With Belousov at the helm, Russia may see an increase in defense spending to stimulate the economy through the defense sector.