Basically, Space-Russia has some rich ass natural resources, and is ruled by bears who adopt and care for human orphans. One of those orphans happened to be Golden Hamster, who upon hearing that her home was at risk stole equipment meant for Heaven-tier angels despite only being a human tier and went to go wreck shit. Admiral Mu is putting her through a 'tribulation', basically leaving her completely on her own and letting her get thrashed repeatedly by the Dragon Slayer Alliance, with the hopes of provoking an insane spike in her power.
Meanwhile, there's a PR war being waged, which Admiral Mu is taking advantage of by feigning weakness as much as he can, defusing a lot of the propaganda the Dragon Slayer Alliance spreads about him. They keep painting him as an evil world-destroying monster, but then he looks weak and helpless by not going to help Space-Russia, and he even makes a show of not going to help, while at the same time putting Merak's 7th Prince in the spotlight by winning the prince's fights for him and then giving the Prince ALLLLLL the credit.