A corruption scandal centered on allegations against Russia’s deputy defense minister has drawn surprise and speculation from close observers of the country’s elite.

But it’s not the allegations against Timur Ivanov — a close ally of Defense Minister Sergei Shoigu, well known for his lavish lifestyle — that are causing a stir. Instead, many are trying to figure out what his sudden arrest means in the power games at the heart of the Kremlin. 

The arrest was announced last week by…