Russian President Vladimir Putin has sacked defence minister Anatoly Serdyukov two weeks after a criminal investigation was opened into alleged fraud over the selling off of military assets.
The surprise announcement was made during in a televised meeting between Mr Putin and Moscow regional governor Sergei Shoigu, whom he appointed as the new minister.
Mr Serdyukov's departure comes amid accusations that the state has been cheated of around $100m (£63m) because its assets, including property, were sold off at prices that were far below market value.
"Taking into consideration the situation around the defence ministry, I have made a decision to relieve defence minister Serdyukov of his post in order to create conditions for an objective investigation of all the issues," Mr Putin said.
Some analysts believe the sacking of a top official who had enjoyed the president's unconditional support is aimed at instilling fear in the elites as the Russian strongman struggles with the worst political crisis of his almost 13-year rule.
"This decision is very much in the spirit of Stalin," said Pavel Felgenhauer, a military commentator for opposition newspaper Novaya Gazeta. "You need to keep the elites in fear."
A former furniture salesman who rose to head the Russian tax authority, Anatoly Serdyukov became the first civilian to serve as post-Soviet Russia's defence minister when he was appointed in 2007.
However, his lack of military credentials and controversial military reform programme earned him derision in the defence ministry as he tried to push through an army overhaul.
Mr Putin had previously repeatedly resisted calls from within the military for Mr Serdyukov - the son-in-law of Viktor Zubkov, a former Russian deputy prime minister and a long-time Putin ally - to leave his post.
"There are no indispensable people for Putin," a defense ministry source said, adding that the armed forces had greeted Mr Serdyukov's sacking with "moderate joy".
Mr Shoigu is another Putin loyalist, who headed the country's emergency ministry from 1994 until earlier this year.
He has often accompanied Putin on his macho fishing and wildlife-spotting stunts but usually remains in the background.
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