Page 40 - RusRPTJun24

2.18 Arrests, appointments, and announcements around the Defense Ministry
Russia’s government reshuffle continues with changes in and around the Defense Ministry.
This week, Oleg Savelyev, the former deputy head of Russia’s Accounts Chamber, was appointed Deputy Defense Minister and Colonel General Yury Sadovenko was dismissed from the position. Savelyev, who was also a minister for Crimea in 2014-2015, was likely appointed to help the ministry’s new head, Andrei Belousov, tighten control over war spending. Meanwhile, arrests have also continued. In addition to former Deputy Defense Minister Timur Ivanov, Yury Kuznetsov, the chief of the Defense Ministry’s main personnel directorate, and Lev Martirosyan, the former head of Food Service for the Krasnodar Higher Military School, were also arrested on corruption charges. Furthermore, last week, Major General Ivan Popov was arrested on suspicion of large-scale fraud. Popov, the former commander of Russia’s 58th Army, was removed from his position in July 2023 after complaining about high casualty rates among Russian soldiers invading Ukraine, pointing out a lack of adequate support, and trying to make a push for the rotation of soldiers (which still has not happened). Popov is popular with army troops, and pro-war bloggers have reacted to his arrest with anger.
At the same time, Belousov, a supporter of greater and more direct state involvement in military production, is already facing pressure from the head of Rostec, Sergey Chemezov. Rostec is a major supplier for the Russian army. In an interview with RBC, Chemezov complained about low profit margins in the defense industrial complex; profitability is currently only 2.28%, while it should be between 5% and 10% in order to stimulate development and raise productivity. Chemezov—who, according to Meduza’s sources, had a conflict with ex-Defense Minister Shoigu—indicated that he expects higher payments from the state if war production continues to be a priority. The sector—and manufacturing as a whole—has been suffering from the effects of labor shortages for at least a year. Chemezov and Deputy Prime Minister Denis Manturov, who is considered to be his ally, held a meeting with President Putin on May 11 to outline their views.
On May 21, the Dossier Center published an investigation into Belousov’s past. The report claims, based on a leaked copy of the calendar of late Wagner Group leader Yevgeny Prigozhin, that Belousov was the “curator” of Wagner’s activities in the Russian government. The Dossier Center also found that Belousov owned a villa in Italy (which he sold in 2018) and a bank account in Malta, somewhat tarnishing his image as a relatively non-corrupt member of the federal government.
2.18 Russian business and consumer confidence https://rosstat.gov.ru/central-news?page=1
40 RUSSIA Country Report June 2024 www.intellinews.com