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Incoming Def Min Talks Up Efficiency Gains At MoD & War Economy

RUSSIA

Wires carrying comments from the incoming Defence Minister Andrey Belousov in his first public comments since gaining President Vladimir Putin's nomination. Much has been made of Belousov's background as an economist and position as a technocrat rather than nationalist rabblerouser. Already, this view seems to have gained credence, with Belousov talking up both the need foe efficiency gains, but also the creation of a more entrenched war economy in Russia.

  • Belousov: "Greater control over Ministry of Defence spending would bring greater efficiency...We must ensure the full integration of the military side of the economy into the overall economy...We are not implying a reduction in costs - but an increase in efficiency...Everything that is effective and advanced in our country should be used to ensure victory...Russia's defence industry must be fully opern to innovation."
  • The incoming minister (he still needs to be approved by the rubber-stamp State Duma) also claimed that there is no need for another mobilisation of troops.
  • A more integrated war economy could be seen as an indication of growing expectations from Putin and the Kremlin that the war in Ukraine will not be concluded in the coming months, but could be a multi-year conflict that requires a fundamental reshaping of the Russian economy.

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