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European business seethes over new US sanctions law

Shocked at US disregard for Europe’s economic interests Europe’s energy businesses step up their criticism of the new sanctions law.

Alexander Mercouris

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The dispute between the US and Germany over the anti-Russian pipeline provisions of the new sanctions law continues to mount, with RT reporting Klaus Schaefer, a German businessman whom it describes as the CEO of German energy major Uniper fiercely denouncing the new sanctions as a ploy to force Europe to buy expensive liquified American natural gas instead of cheap Russian pipeline gas

The core reason (for the sanctions) are strategic economic interests, meaning the targeted dominance of the US in energy markets.

RT reports Schaefer saying that liquified natural gas from the US would cost 50% more than pipeline gas from Russia, and that “Nobody wants to pay such a premium“.

I have previously discussed the economics for Europe of buying expensive American liquified gas in place of cheap Russian pipeline gas in a lengthy article, in which I also discussed how this was at least one motive for the new sanctions law.

In truth the new sanctions law serves multiple agendas.  There is the wish of some people in the US to give the highly contested claim that Russia meddled in the US election the stamp of legal authority by imposing on the country and the President a law which insists it.  There was the desire of some people to provoke Donald Trump into a head-on collision with Congress in a way that might have set the scene for his impeachment (discussed by me at length here).  There was the desire of some people to protect the Maidan regime in Ukraine by blocking the building of Russian gas pipelines that bypass Ukraine.  There is the widespread wish in the US – extending far back into the Cold War – to limit economic contacts between the US’s European allies and Russia as much as possible.  Above all there is the overarching desire of the overwhelming majority of the US political class – including above all its intelligence and media communities – to maintain the confrontation with Russia, and to block President Trump’s attempt to end it.

Last but not least, there are undoubtedly the tough minded commercial calculations of some people in the US – including some US businessmen – who are looking to leverage this quarrel to gain commercial advantages for the US and themselves by forcing the Europeans to buy expensive American liquified gas instead of cheap Russian pipeline gas.

It is the last which is provoking the greatest anger in Germany and Europe.

Pipeline gas from Russia is inherently cheaper than liquified gas from the US because of the geographic proximity between Russia and Europe and the simple and cheap way it is transported.

Replacing Russian pipeline gas by US liquified gas by contrast would require a stupendous investment in new storage facilities and in building the large numbers of specialised and expensive ships needed to transport it.

Whilst the resources to do this exist in Europe and the US, doing so would come at a fearsome cost, and would be a gross misallocation of resources making no economic or commercial sense.  Moreover even after the storage facilities and the ships were built, the liquified gas transported to Europe from the US would still be significantly more expensive than the pipeline gas Russia would offer.

Meanwhile the US and China – Europe’s biggest industrial competitors – would have the competitive benefit of cheaper gas, in the case of the US from its own production – though there are doubts as to how sustainable that is – and in the case of China – far more sustainably – in the form of cheap pipeline gas from Russia transported via the pipelines which are being built now.

What makes this episode even weirder is that the one other country which might conceivably have sufficient pipeline gas to replace Russian pipeline gas in the European energy market cheaply and effectively – though this is doubted by many – is Iran.

It is precisely because some European officials see Iran as a major source of energy for Europe that the Europeans have lobbied so hard for the sanctions on Iran to be lifted.  One of the strongest European advocates of the EU forging energy links with Iran is Frederica Mogherini, the EU’s High Representative for Foreign Affairs and Security Policy, who has just visited Iran to attend President Rouhani’s inauguration, where she received an enthusiastic reception from some Iranian parliamentarians.

The US is however as adamantly hostile to Iran as it is to Russia.  Indeed the US military and the Republican Party appear if anything to be even more hostile to Iran than to Russia.  The US therefore opposes energy projects linking Europe to Iran if anything even more fervidly than it opposes energy projects linking Europe to Russia.  One reason why the EU’s ill-starred Nabucco pipeline project failed was precisely because as a result of US opposition and UN sanctions it was prevented from drawing gas from Iran.

Faced by this US hostility to any energy arrangement that makes for Europe economic or commercial sense, it is not surprising if some European business people like Klaus Schaefer, and some European governments like notably the Austrian government, are now showing signs of growing anger and exasperation.

I would add that gas is not the only example of the US leveraging its geopolitical dominance in order to gain commercial advantages for itself and for certain US businessmen at the expense of its European allies.  My cynical and no doubt controversial view is that the ongoing attack on the German car industry and the criticism of its diesel engine technology is simply another case of the same thing.

Suffice to say that I do not think it is any coincidence that the whole emissions scandal that suddenly targeted the German car industry came at precisely the same time when certain people in the US were investing heavily in electric car technology and were receiving huge subsidies from the US government to do so.  The fact that electric car technology still looks to me immature – and therefore expensive and inefficient – is of course neither here nor there, and is being drowned out by the blizzard of orchestrated publicity which invariably accompanies such moves.

It is however the issue of gas which possibly enrages the business community in Germany the most, to the point where it is now reflected in the increasingly angry words coming from German and EU officials.  The insouciant way in which the US Congress disregarded European economic interests – with some members of Congress openly bragging about the fact – has unsurprisingly caused particular offence, and seems for some people in Europe to have come close to being the crossing of a red line.  There is now even talk in some parts of Europe that the new US sanctions law might harden European opposition to the existing EU sanctions, and might lead to them being lifted more quickly.

The Russians doubt that will happen, and so do I.  Atlanticist voices within the European elite are still strong and in my opinion are still dominant.  Already some of them – alarmed by the opposition in Europe to the new US sanctions law – are calling on Europe to drop its opposition to the new sanctions law and to submit to it.

The fact however remains that the European business elite has now been given an object lesson in the cost the subservience of Europe’s political leaders to US demands is causing them.  The Russians are already driving the point home, with Russian officials apparently already saying both openly and in private that it was Europe that brought this calamity on itself by agreeing in 2014 to the US demand for sanctions.

It will be interesting to see for how much longer the European business community is prepared to put up with it.

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Ukraine’s Cult of Stepan Bandera: Not a Detail, but a Cornerstone

Unlike Poroshenko with his aerial bombings of the Russian-speaking Donbass in 2014 and 2015, Bandera killed the “wrong” victims, the representatives of those nations that are valued even by the modern Western media.

Dmitry Babich

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Authored by Dmitry Babich via The Strategic Culture Foundation:


During the recent years of the confrontation between Russia and Ukraine, there has been one issue where the Western mainstream press simply cannot fully ignore or reject the Russian arguments. This issue concerns the life and actions of Stepan Bandera (1909-1959) and his followers from what is known as the “Banderite” faction of the Organization of Ukrainian Nationalists (OUN, a far-right organization that took terrorist actions against Polish and Soviet officials from the 1920s to the 1950s and which is now legally protected from any criticism in Ukraine).

THE “WRONG” AND “RIGHT” VICTIMS

Because Bandera was born on January 1, 1909, celebrations of his birthday have become disgusting New Year’s rituals in Ukraine in recent years, with thousands participating in Nazi-style torch-lit marches that include shouted protests against “Putin’s Russia” and rants such as, “Jews out!” which are heard by everyone except the police. This New Year was no exception, since the current Ukrainian government under President Petro Poroshenko (who publicly identified himself as a Banderite after taking office in 2014) officially added Bandera’s 110th birthday to the list of Ukraine’s most important anniversaries. This time, there were several quiet voices of condemnation heard in Poland, Israel, and even the US. Why? In truth, torches, masks, political murders, and mob attacks against “pro-Russian” public figures are nothing new in post-Maidan Ukraine. And these things usually pose no problem for the mainstream press of the US and its allies. So, why is Bandera an exception?

The answer is ethnic, as awful as that may sound. Unlike Poroshenko with his aerial bombings of the Russian-speaking Donbass in 2014 and 2015, Bandera killed the “wrong” victims, the representatives of those nations that are valued even by the modern Western media, with its double and triple standards. In the 1930s Bandera killed Polish officials, in the 1940s his people killed civilian Jews and Polish peasants, and these are groups whose plight even the New York Times cannot ignore today. If Bandera’s infamous slogan “Death to enemies!” had been directed only against “disloyal” Russians and anti-Banderite Ukrainians (the groups currently persecuted by Poroshenko), Bandera would have been no different from his modern admirers in the Ukrainian government. But Bandera’s followers from the OUN decimated the Jewish population of Lvov and Kiev in 1941, trying to curry favor with the advancing Germans. And between 1943 and 1944, the Ukrainian Insurgent Army (UPA), taking its orders from Bandera’s OUN officers, ethnically cleansed his native Western Ukraine of ethnic Poles, killing from 70,000-100,000 of them (the infamous “slaughter of Volhynia”). The aim was to create an “ethnically pure” Ukraine before the arrival of the Red Army in late 1944. Documents published by the Polish historian Grzegorz Motyka indicate that Bandera and the OUN hoped that the Red Army would soon be replaced by Anglo-American domination. “His strategy was to clean up the house before the arrival of the real master,” Motyka concludes in his book.

THE LADY OF THE RADA VS. ISRAEL’S PRESIDENT

The American domination took another 70 years, but it did come. And now the Banderites’ (and Poroshenko’s) only historic disagreement with the West is over the infamous “ethnic cleansing,” to which Bandera’s “glorious heroes” subjected Ukraine in 1941-1944. When Israeli President Reuven Rivlin dared to raise the issue during his visit to Ukraine in 2016, he got a scolding from the vice speaker of the Ukrainian parliament (Verkhovna Rada), Irina Gerashchenko: “The Israeli president allowed himself some incorrect and undiplomatic words about the OUN’s tragic history,” Gerashchenko said at the time. “It was highly inappropriate, especially now, when Ukraine is fighting for its independence.” Gerashchenko forgot to mention the fact that Babi Yar, the burial site of some 30,000 Jews killed by German and Ukrainian Nazis in Kiev in 1941, was vandalized nine times between 2015 and 2016, according to data provided by the Ukrainian Jewish Committee.

WHY THE WEST WANTS TO FORGET, BUT CANNOT

In the immediate aftermath of the Maidan coup in 2014, the mainstream press was ready to forget even that, since an honest account of Bandera’s activities between 1939 and 1959 could rekindle memories of the undesirable parallels to the “resistance to Russian occupation” by Poroshenko’s army in the Donbass in 2014 and 2015. Between the summer of 2014 and the winter of 2015, about 10,000 people died there, victims of the aircraft and tanks sent by Poroshenko (just months earlier, the US and the EU had been unable to abide the use of truncheons by the police of the ousted president, Viktor Yanukovych). At the time, the NYT called Bandera the “Ukrainian nationalists’ hero.” Obviously, the NYT’s authors were taking their cues from the Washington Post’s Anne Applebaum, with her Banderite headline, “Nationalism is exactly what Ukraine Needs” in the once-glorious New Republic.

But here the mainstream press tried to kill off a memory that will never die — the memory of how Hitler’s East European Nazi allies participated in the destruction of the region’s Jewish population in the early 1940s. This was something not even Anne Applebaum could make people forget.

In his articles in the American press, the director of the Ukrainian Jewish Committee, Eduard Dolinsky, tried to explain to the American public that Bandera’s cult is not an isolated, unpleasant phenomenon: Stepan Bandera never acted alone, he represented a crudely nationalist ideology. Unfortunately, this ideology reigns triumphant in modern Ukraine behind the “liberal” façade displayed for the West. For example, Dolinsky notes that Poroshenko’s hypocritical speeches memorializing Jewish victims can be heard next to, say, a memorial to OUN activist Ivan Rogach, whose newspaper called Jews “the greatest enemy of the people” in 1941. “The Ukrainian leadership set itself on the course of rehabilitating anti-Semitism and introducing censorship of history,” concludes the official statement of the Simon Wiesenthal Center, an international Jewish human-rights group, famous for its work to bring Nazi criminals to justice.

THE RUSSIAN QUESTION BEHIND THE JEWISH ONE

If the West cannot afford to be completely silent about Bandera’s participation in the Holocaust, it is willingly ignoring another huge injustice that is inseparable from Bandera’s cult in modern Ukraine — the erasure of the Russian and anti-Banderite component of Ukraine’s historic memory. In 2017, Kiev’s Vatutin Avenue was renamed Bandera Avenue, resulting in an outcry in Russia and complete silence in the West. This avenue, a major thoroughfare in the Ukrainian capital, had originally been named in honor of General Nikolai Vatutin, who liberated Kiev from Nazi occupation in 1943 and died in a shootout with the OUN’s guerillas in 1944. At the time, there was no question about where America’s sympathies lay: the fight against Hitler was not yet over, and Vatutin, born in 1901 to a peasant family living immediately adjacent to the future Russian-Ukrainian border, was a useful ally for the United States. Will Bandera and his modern followers be a good replacement? Only someone with Poroshenko’s plans for Ukraine or with Anne Applebaum’s views on history could agree.

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Entering a Major Regional Re-set – The Syria Outcome Will Haunt Those Who Started This War

It should be obvious now that we are entering a major regional re-set.

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Authored by Alastair Crooke via The Strategic Culture Foundation:


The Middle East is metamorphosing. New fault-lines are emerging, yet Trump’s foreign policy ‘hawks’ still try to stage ‘old movies’ in a new ‘theatre’.

The ‘old movie’ is for the US to ‘stand up’ Sunni, Arab states, and lead them towards confronting ‘bad actor’ Iran. ‘Team Bolton’ is reverting back to the old 1996 Clean Break script – as if nothing has changed. State Department officials have been briefing that Secretary Pompeo’s address in Cairo on Thursday was “ slated to tell his audience (although he may not name the former president), that Obama misled the people of the Middle East about the true source of terrorism, including what contributed to the rise of the Islamic State. Pompeo will insist that Iran, a country Obama tried to engage, is the real terrorist culprit. The speech’s drafts also have Pompeo suggesting that Iran could learn from the Saudis about human rights, and the rule of law.”

Well, at least that speech should raise a chuckle around the region. In practice however, the regional fault-line has moved on: It is no longer so much Iran. GCC States have a new agenda, and are now far more concerned to contain Turkey, and to put a halt to Turkish influence spreading throughout the Levant. GCC states fear that President Erdogan, given the emotional and psychological wave of antipathy unleashed by the Khashoggi murder, may be mobilising newly re-energised Muslim Brotherhood, Gulf networks. The aim being to leverage present Gulf economic woes, and the general hollowing out of any broader GCC ‘vision’, in order to undercut the rigid Gulf ‘Arab system’ (tribal monarchy). The Brotherhood favours a soft Islamist reform of the Gulf monarchies – along lines, such as that once advocated by Jamal Khashoggi .

Turkey’s leadership in any case is convinced that it was the UAE (MbZ specifically) that was the author behind the Kurdish buffer being constructed, and mini-state ‘plot’ against Turkey – in conjunction with Israel and the US. Understandably, Gulf states now fear possible Turkish retribution for their weaponising of Kurdish aspirations in this way.

And Turkey is seen (by GCC States) as already working in close co-ordination with fellow Muslim Brotherhood patron and GCC member, Qatar, to divide the collapsing Council. This prefigures a new round to the MB versus Saudi Wahhabism spat for the soul of Sunni Islam.

GGC states therefore, are hoping to stand-up a ‘front’ to balance Turkey in the Levant. And to this end, they are trying to recruit President Assad back into the Arab fold (which is to say, into the Arab League), and to have him act, jointly with them, as an Arab counter to Turkey.

The point here is obvious: President Assad is closely allied to Iran – and so is Moscow and Turkey. To be fashionably Iranophobic – as Pompeo might wish the GCC to be – simply would spoil the GCC’s anti-Turkey ‘play’. Syria indeed may be (justly) skeptical of Turkey’s actions and intent in Syria, but from President Assad’s perspective, Iran and Russia are absolutely crucial to the managing of an erratic Turkey. Turkey does represent an existential Syrian concern. And trying to lever President Assad – or Lebanon or Turkey – away from Iran, would be absurd. It won’t happen. And the GCC states have enough nous to understand this now (after their stinging defeat in Syria). The Gulf anti-Iranian stance has had ‘the burner’ turned sharply down, (except when their need is to stroke US feathers).

They can see clearly that the Master of Ceremonies in the Levant – putting together the new regional ‘order’ – is not Mr Bolton, but Moscow, with Tehran (and occasionally Ankara), playing their equal part ‘from behind the curtain’.

Presumably, America’s intelligence services know, (and Gulf states certainly are aware), that in any case, Iranian forces are almost all gone from Syria (though of course Syria’s ‘Iranian connection’ remains as firm, as ever) – even as Pompeo and Israel say the precisely the opposite: that they are pushing-back hard at the ‘threatening’ Iranian military ‘footprint’ in Syria. Few in the region will believe it.

The second notable emerging regional fault line then, evidently is the one that is opening between Turkey and the US and Israel. Turkey ‘gets it’: Erdogan ‘gets it’ very clearly: that Washington now deeply distrusts him, suspects that Turkey is accelerating into Moscow and Beijing’s orbit, and that DC would be happy to see him gone – and a more NATO-friendly leader installed in his stead.

And it must be clear to Washington too ‘why’ Turkey would be heading ‘East’. Erdogan precisely needs Russia and Iran to act as MCs to moderate his difficult relations with Damascus for the future. Erdogan needs Russia and Iran even more, to broker a suitable political solution to the Kurds in Syria. He needs China too, to support his economy.

And Erdogan is fully aware that Israel (more than Gulf States) still hankers after the old Ben Gurion ideal of an ethnic Kurdish state – allied with Israel, and sitting atop major oil resources – to be inserted at the very pivot to south-west and central Asia: And at Turkey’s vulnerable underbelly.

The Israeli’s articulated their support for a Kurdish state quite plainly at the time of Barzani’s failed independence initiative in Iraq. But Erdogan simply, unmistakably, has said to this ‘never’ (to Bolton, this week). Nonetheless, Ankara still needs Russian and Iranian collaboration to allow Bolton to ‘climb down his tree’ of a Kurdish mini-state in Syria. He needs Russia to broker a Syrian-led buffer, vice an American-Kurdish tourniquet, strapped around his southern border.

It is unlikely however, that despite the real threat that America’s arming of the Kurds poses to Turkey, that Erdogan really wants to invade Syria – though he threatens it – and though John Bolton’s ‘conditions’ may end by leaving Turkey no option, but to do it. Since, for sure, Erdogan understands that a messy Turkish invasion of Syria would send the delicately balanced Turkish Lire into free-fall.

Still … Turkey, Syria, Iran and Russia now all want America gone from Syria. And for a moment, it seemed it might proceed smoothly after Trump had acquiesced to Erdogan’s arguments, during their celebrated telephone call. But then – Senator Lindsay Graham demurred (against the backdrop of massed howls of anguish issuing from the Beltway foreign policy think-tanks). Bolton did the walk-back, by making US withdrawal from Syria contingent on conditions (ones seemingly designed not to be met) and not tied any specific timeline. President Erdogan was not amused.

It should be obvious now that we are entering a major regional re-set: The US is leaving Syria. Bolton’s attempted withdrawal-reversal has been rebuffed. And the US, in any event, forfeited the confidence of the Kurds in consequence to the original Trump statement. The Kurds now are orientated toward Damascus and Russia is mediating a settlement.

It may take a while, but the US is going. Kurdish forces (other than those linked with the PKK) are likely to be assimilated into the Syrian army, and the ‘buffer’ will not be directed against Turkey, but will be a mix of Syrian army and Kurdish elements – under Syrian command – but whose overall conduct towards Turkey will be invigilated by Russia. And the Syrian army will, in due time, clear Idlib from a resurgent al-Qaida (HTS).

The Arab states are returning to their embassies in Damascus – partly out of fear that the whipsaw of American policy, its radical polarisation, and its proclivity to be wholly or partially ‘walked-back’ by the Deep State – might leave the Gulf unexpectedly ‘orphaned’ at any time. In effect, the GCC states are ‘hedging’ against this risk by trying to reconnect a bifurcated Arab sphere, and to give it a new ‘purpose’ and credibility – as a balance against Turkey, Qatar and the Muslim Brotherhood (Syria’s old nemesis).

And yet – there remains still another layer to this calculus, as described by veteran Middle East journalist, Elijah Magnier:

“Indeed the Levant is returning to the centre of Middle East and world attention in a stronger position than in 2011. Syria has advanced precision missiles that can hit any building in Israel. Assad also has an air defence system he would have never dreamed of before 2011 – thanks to Israel’s continuous violation of its airspace, and its defiance of Russian authority. Hezbollah has constructed bases for its long and medium range precision missiles in the mountains and has created a bond with Syria that it could never have established – if not for the war. Iran has established a strategic brotherhood with Syria, thanks to its role in defeating the regime change plan.

NATO’s support for the growth of ISIS has created a bond between Syria and Iraq that no Muslim or Baathist link could ever have created: Iraq has a “carte blanche” to bomb ISIS locations in Syria without the consent of the Syrian leadership, and the Iraqi security forces can walk into Syria anytime they see fit to fight ISIS. The anti-Israel axis has never been stronger than it is today. That is the result of 2011-2018 war imposed on Syria”.

Yes. This is the third of the newly emergent fault-lines: that of Israel on the one hand, and the emerging reality in the Syrian north, on the other – a shadow that has returned to haunt the original instigators of the ‘war’ to undermine Syria. PM Netanyahu since has put all the Israeli eggs into the Trump family ‘basket’. It was Netanyahu’s relationship with Trump which was presented in Israel as being the true ‘Deal of the Century’ (and not the Palestinian one). Yet when Bibi complained forcefully about US withdrawal from Syria (leaving Syria vulnerable, Netanyahu asserts, to an Iranian insertion of smart missiles), Trump nonchalantly replied that the US gives Israel $ 4.5 billion per year – “You’ll be all right”, Trump riposted.

It was seen in Israel as an extraordinary slap to the PM’s face. But Israelis cannot avoid, but to acknowledge, some responsibility for creating precisely the circumstances of which they now loudly complain.

Bottom line: Things have not gone according to plan: America is not shaping the new Levantine ‘order’ – Moscow is. And Israel’s continual, blatant disregard of Russia’s own interests in the Levant, firstly infuriated, and finally has provoked the Russian high command into declaring the northern Middle East a putative no-fly zone for Israel. This represents a major strategic reversal for Netanyahu (and the US).

And finally, it is this repeating pattern of statements being made by the US President on foreign policy that are then almost casually contradicted, or ‘conditioned’, by some or other part of the US bureaucracy, that poses to the region (and beyond) the sixty-four-thousand-dollar question. The pattern clearly is one of an isolated President, with officials emptying his statements of executive authority (until subsequently endorsed, or denied, by the US bureaucracy). It is making Trump almost irrelevant (in terms of the setting of foreign policy).

Is this then a stealth process – knowingly contrived – incrementally to remove Trump from power? A hollowing out of his Presidential prerogatives (leaving him only as a disruptive Twitterer) – achieved, without all the disruption and mess, of formally removing him from office? We shall see.

And what next? Well, as Simon Henderson observes, no one is sure – everyone is left wondering:

“What’s up with Secretary Pompeo’s extended tour of the Middle East? The short answer is that he is trying to sell/explain President Trump’s “we are leaving Syria” policy to America’s friends … Amman, Jordan; Cairo, Egypt; Manama, Bahrain; Abu Dhabi, United Arab Emirates (UAE); Doha, Qatar; Riyadh, Saudi Arabia; Muscat, Oman; Kuwait City, Kuwait. Wow, even with his own jet and no immigration hassles, that’s an exhausting itinerary … The fact that there now are eight stops in eight days, probably reflects the amount of explaining that needs to be done.”

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Kaspersky Lab snags former NSA contractor stealing hacking tools

Semi-buried article did see publication on Politico and Fox News, but Kaspersky Lab was not vindicated for its help in solving this case.

Seraphim Hanisch

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In a time known for Smear Campaigns of the Strangest Kind, we have seen Russia blamed for being there, for interfering and preventing the election of Hillary Rodham Clinton to the Presidency, putting Donald Trump in the White House instead. One of Russia’s companies, Kaspersky Lab, has a particularly notable history of late; that is to say, this computer security company has found itself on the receiving end of quite frankly, illegal levels of slander and punishment without cause from the US government. Kaspersky Lab owner and CEO tried very hard to come to the US to discuss these matters with a Congressional committee, only to have the meeting shelved into limbo.

However, the truth made itself manifest when it became known that Kaspersky Lab actually helped the American FBI catch Harold T. Martin III, who was found to be attempting to steal some of the American government’s most sensitive hacking tools. This fact emerged on Wednesday, January 9, 2019, when sources familiar with this investigation spoke to The Politico magazine. Politico says the following in its report:

[Kaspersky Lab’s] role in exposing Martin is a remarkable twist in an increasingly bizarre case that is believed to be the largest breach of classified material in U.S. history.

It indicates that the government’s own internal monitoring systems and investigators had little to do with catching Martin, who prosecutors say took home an estimated 50 terabytes of data from the NSA and other government offices over a two-decade period, including some of the NSA’s most sophisticated and sensitive hacking tools.

The revelation also introduces an ironic turn in the negative narrative the U.S. government has woven about the Russian company in recent years.

Under both the Obama and Trump administrations, officials have accused the company of colluding with Russian intelligence to steal and expose classified NSA tools, and in 2016 the FBI engaged in an aggressive behind-the-scenes campaign to discredit the company and get its software banned from U.S. government computers on national security grounds. But even while the FBI was doing this, the Russian firm was tipping off the bureau to an alleged intelligence thief in the government’s own midst.

“It’s irony piled on irony that people who worked at Kaspersky, who were already in the sights of the U.S. intelligence community, disclosed to them that they had this problem,” said Stewart Baker, general counsel for the NSA in the 1990s and a current partner at Steptoe and Johnson. It’s also discouraging, he noted, that the NSA apparently still hasn’t “figured out a good way to find unreliable employees who are mishandling some of their most sensitive stuff.”

The Politico piece as well as Fox News’ variant still seem somewhat determined to keep that negative narrative in place, with Fox assessing that the FBI had a “strange bedfellow” in the investigation, and what appears to be an absolutely enormous presumption in Politico’s piece:

The first message sent on Aug. 13, 2016, asked one of the researchers to arrange a conversation with “Yevgeny” — presumably Kaspersky Lab CEO Eugene Kaspersky, whose given name is Yevgeny Kaspersky. The message didn’t indicate the reason for the conversation or the topic, but a second message following right afterward said, “Shelf life, three weeks,” suggesting the request, or the reason for it, would be relevant for a limited time.

However, there are many people in the world named “Yevgeny” (Evgeny, or Eugene) in Russia, and presumably many Evgenys in Kaspersky Lab itself. The notion that the CEO of the company would be involved in this appears to be an absolutely enormous leap of logic.

The maintenance of a negative narrative about Kaspersky Lab has been one of the most frustratingly effective examples of American propaganda in use since Russia overall became increasingly used as America’s newest scapegoat.

This is also not the first time that Kaspersky Lab saved the day for an American intelligence agency. In 2017 the same company’s services found 122 viruses on an NSA employee’s computer.

Kaspersky Lab itself is a highly sophisticated company based in Moscow, Russia, specializing in securing computers against malware, viruses, ransomware and all manner of invasive efforts by the bad guys out on the ‘Net, and among the providers of such services it consistently rates among the best in the industry, including in US surveys. While US retailers Best Buy, Office Depot and the US government have banned selling or running Kaspersky Lab software, European allies of the US have not even breathed the slightest bit of discontent with the AV provider. The narrative is the only thing that is actually wrong, and since Evgeny Kaspersky’s education was largely at the Academy that trained former KGB personnel, (now called FSB), the anti-Russia narrative in the US the acronym “KGB” is usually enough to alarm most low-information American news readers and watchers. 

However, logic and awareness of life in modern Russia, point to the fact that getting an education on security at the FSB Academy ought to be equivalent to the same education at the CIA. Who would know better about how to create security than those people specially trained to compromise it? However the propaganda vantage point that Kaspersky afforded the US government in its drive to get rid of President Donald Trump made the Russian company too juicy a target to ignore.

Over the last year or two, however, this narrative has slowly been falling apart, with this Politico article being a significant, though still small vindication of the company’s prowess and abilities.

That a Russian Internet Security company could succeed where American enterprises failed, and especially where it helped the Americans catch a man who was stealing very powerful hacking tools, is a significant story, indeed.

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