Russian President Vladimir Putin has nominated an economist to replace longtime defense minister Sergei Shoigu as the country is trying to better utilize defense spending and harness greater innovation to win the war in Ukraine.

On Sunday, Putin proposed Andrei Belousov, a 65-year-old former deputy prime minister who specializes in economics, to become the country’s defense minister in place of Shoigu, as the Russian leader began his fifth term as president, Press TV reported. 

Shoigu's replacement comes following the arrest of deputy defense minister Timur Ivanov, who was seen as a close Shoigu ally, on bribery charges.

Putin also dismissed Security Council chief Nikolai Patrushev, a key member of his inner circle, “in connection with his transfer to another job.”

Noting that the military and law enforcement authorities accounted for 7.4% of gross domestic product (GDP), Kremlin spokesman Dmitry Peskov said the decision made sense because it was vital to ensure such expenditures aligned with and better integrated into the country’s overall economy.

“The one who is more open to innovations is the one who will be victorious on the battlefield,” Peskov added.

According to the Kremlin, Putin appointed Shoigu as secretary of Russia’s national security council.