Putin grabs reins of military rebuilding in response to NATO operations

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Russian President Vladimir Putin took personal control of his country's Military-Industrial Commission on Wednesday, saying Russia needed to respond quickly to mounting "threats" at a time of heightening tensions with NATO over Ukraine.

While a wobbly five-day old ceasefire in eastern Ukraine has raised hopes that the worst may be over in that conflict, the rhetoric from the Kremlin – like the pointed words spoken at last week's NATO summit in Wales – makes clear that the broader standoff between Russia and the West is only just beginning.

"There are a lot of new threats appearing. As you know, not long ago, a decision was taken on building up NATO forces in Eastern Europe," Mr. Putin told a meeting to discuss a planned $560-billion (U.S.) overhaul of Russia's military over the next 12 years. In remarks released by the Kremlin, he accused NATO of trying to start a new arms race and said Russia, while reticent, was "forced – absolutely forced – to take appropriate measures in response."

Mr. Putin said maintaining Russia's nuclear deterrent would remain core to Russia's defence strategy. "First of all, we are talking about creating a rational series of assault capabilities, including maintaining a guaranteed solution to the task of nuclear deterrence," he said.

Hours before Mr. Putin spoke, Russia announced a successful test of a submarine-launched Bulava intercontinental ballistic missile, which is capable of carrying a nuclear warhead. It was the first test of a Bulava since a failed launch last year.

Mr. Putin's remarks came five days after NATO announced the creation of a "spearhead force" of several thousand soldiers that would be able to deploy to Eastern Europe on 48 hours' notice. NATO leaders who gathered in Wales condemned Moscow's interference in Ukraine and declared they would be their willing to defend any member state, including the former Soviet republics of Estonia, Latvia and Lithuania, from Russian aggression.

The United States, Canada and the European Union have also hit Russia with escalating sanctions – including a ban on arms sales – as punishment for its intervention in Ukraine. Moscow, infuriated by the February ouster of its ally Viktor Yanukovych, annexed the Crimea Peninsula in March and continues to back anti-government militias in the southeastern regions of Donetsk and Lugansk.

By assuming control of the Military-Industrial Commission, Mr. Putin has taken on the challenge of reviving Russia's once-mighty defence industry at a time when it's cut off from Western technologies. In effect, he has become the sole arbiter of how much Russia's military should pay to which defence company for which type of armament.

The move fits a pattern evident throughout Mr. Putin's 15 years as Russia's president or prime minister, which has seen him accumulate more power for himself whenever he perceives the country to be in crisis. Deputy Prime Minister Dmitry Rogozin, a firebrand nationalist who previously headed the commission – and frequently made provocative announcements about defence industry decisions via his Twitter account – was demoted to deputy chairman.

"From now on, everybody will complain directly to Mr. Putin, and he will make unique decisions," said Alexander Golts, a Moscow-based military analyst and deputy editor of an online news site.

Moscow has also warned that it will adjust its defence doctrine in response to the NATO deployments. Mr. Golts said the new doctrine would likely identify Western-backed popular uprisings – which is how the Kremlin views the revolt that toppled Mr. Yanukovych – as a new type of "warfare" that Russia must be prepared to defend against.

Some Russian generals have called for the United States and NATO to be explicitly named as enemies of Russia in the new doctrine, though Mr. Golts said it was unlikely the Kremlin would go that far.

The fighting in southeastern Ukraine has largely calmed – despite accusations of breaches by both sides – since the Friday announcement of a ceasefire that was crafted by Mr. Putin. Ukrainian President Petro Poroshenko said Wednesday that he was willing to offer greater autonomy to the battle-scarred regions, a promise that falls far short of the rebels' demand for full independence.

Prior to the ceasefire, Mr. Poroshenko accused Russian troops of having directly invaded Ukraine to support the rebels, leading to a string of rapid reversals on the battlefield just as the insurgents had seemed on the verge of defeat. On Wednesday, Mr. Poroshenko told an audience in Kiev that 70 per cent of the Russian forces in Ukraine had left since the announcement of the ceasefire. "This gives more reason to hope that the peace initiatives have a future," he said.

However, foreign-policy experts in Moscow believe the fighting in Ukraine will soon restart and that it is now too late for any kind of peace that aims to keep the country united. Mr. Putin has spoken of the possibility of "statehood" for southeastern Ukraine, a region he has repeatedly referred to as "Novorossiya," or "New Russia."