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even take Gazprom head Alexei Miller with him - as the company told Reuters, Miller instead went to some negotiations in Iran. But the co-owner of Novatek, Leonid Mikhelson, went with Putin. This fact reflects the growing share of liquefied gas (LNG) in the Russian gas trade, produced by Novatek, and the growing influence of Mikhelson, a Russian source noted in a conversation with Reuters.
The joint statement devoted a separate but short paragraph to the war between Russia and Ukraine. It said Russia positively assessed China's "objective and unbiased" position and welcomed its willingness to "play a constructive role" in resolving the crisis. Russia and China “call to prevent” the conflict from moving into an uncontrollable phase, and dialogue is called the optimal form of solution.
According to Financial Times analysts, Beijing foresees a long-term confrontation with the West, and therefore invests in relations with non-Western countries, “without paying attention to the nature of political regimes and respect for human rights.” The deterioration of relations with the United States seems to China to be an inevitable process, the speed of which, however, can be controlled. Therefore, support provided to Russia should not cross “red lines”, which will be followed by sanctions. But overall, the signal from the two leaders to the world is clear: relations are stronger than ever, and Russia has not been so distant from the West for a long time, notes The Guardian.
“Putin will likely continue to push for China to completely replace Europe in energy supplies, technology transfer and financial markets,” writes Bloomberg economist Alexander Isakov. “Kitarossia will cost years and many billions of dollars, but it is the only conceivable option in a protracted war with Ukraine.”
2.15 Russian government reshuffle
Russia’s federal government was reshuffled in mid-May, following the appointment of Mikhail Mishustin as Prime Minister for a second term. The reshuffle saw the appointment of five new ministers, two new deputy prime ministers, and a rearrangement of duties between deputy prime ministers. In addition, Putin appointed Boris Kovalchuk, the son of his friend Yury Kovalchuk, to head the Accounts Chamber, Russia’s main body of financial control, BMB Russia reports.
The most important change in the government was the appointment of Andrei Belousov, an economist and former deputy prime minister, to head the Ministry of Defense. Belousov replaced Sergei Shoigu, who held the position since 2012. Belousov, a competent economist who enjoys Putin’s trust, is a long-time proponent of increasing the state’s role in mobilizing the economy for war purposes and of taxing business more heavily to serve the purposes of the state in general. Meduza’s sources claim that Shoigu’s dismissal was the result of his conflict with Sergey Chemezov, the head of state technology conglomerate Rostec, a major military supplier. Chemezov’s influence in the government was also strengthened by the appointment of Kaliningrad
35 RUSSIA Country Report June 2024 www.intellinews.com