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Strategy of U.S. Anti-Russia Sanctions Becomes Clearer

Eric Zuesse

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On Friday, April 6th, Reuters headlined “Russian businessmen, officials on new U.S. sanctions list”, and opened: “The United States on Friday imposed major sanctions against 24 Russians, striking at allies of President Vladimir Putin over Moscow’s alleged meddling in the 2016 U.S. election and other ‘malign activity’. Below are the most prominent businessmen targeted along with their main assets and connections as well as extracts from the U.S. Treasury statement.”

As that Reuters list makes even clearer than before, U.S. economic sanctions against Russia are focused against mainly the following four categories of targets in Russia:

Russian competitors to America’s largest international oil companies. These specific U.S. firms were listed, on March 27th, in an excellent article by Antonia Juhasz in Pacific Standard magazine, “INSIDE THE TAX BILL’S $25 BILLION OIL COMPANY BONANZA: A Pacific Standard analysis shows the oil and gas industry is among the tax bill’s greatest financial beneficiaries.” There, they were listed in rank order. For example: the largest such firm, Exxon/Mobil, was given $5.9 billion in “2017 Tax Act Savings,” and the second-largest, Philipps 66, won $2.7 billion in it. The latest round of anti-Russia sanctions focuses clearly against these international U.S. oil firms’ Russian competitors.

However, previous rounds of U.S. sanctions have especially focused against:

Russian competitors of Lockheed Martin and other international U.S. weapons-firms —  Russian manufacturers that are selling, to foreign governments, military aircraft, missiles, and other military equipment, on the international markets: competing military products. The competitive purpose of these sanctions is to boost not U.S. international oil-firms, but U.S. international weapons-firms.

Russian banks that lend to those firms. Some of these banks have also other close ties to those firms.

Russian Government officials, and billionaires, who cooperate with Russia’s elected President, Vladimir Putin. Putin refuses to allow suppliers to the Russian military to be controlled (such as are the military suppliers to America’s Government) by private investors (and especially not by foreigners); he wants the weapons-manufacturers to represent the state, not the state to represent the weapons-manufacturers; i.e., he refuses to privatize Russia’s weapons-producers, and he instead insists that all firms that supply Russia’s military be controlled by Russia’s elected Government, not by any private investors. (By contrast, The West relies almost entirely upon privately owned weapons-makers.) He also prohibits foreign interests from controlling Russia’s natural resources such as oil firms, mining, and land-ownership, and this explicitly applies even to agricultural land. However, most important are Russia’s Strategic Sectors Law (otherwise known as “Strategic Investment Law”), which defines as a “Strategic Entity” and thus subject strictly to control only by the Russian Government and citizenry, four categories: Defense, Natural Resources, Media, and Monopolies. Russia’s refusal to allow U.S. billionaires to buy control over these — to buy control over the Government — is, to a large extent, being punished by the U.S. anti-Russia sanctions.

Focusing on the latest round: The Reuters article lists the specific main targets of the new sanctions. These targets are, as described by the U.S. Treasury Department, and as quoted by Reuters:

  • “Oleg Deripaska is being designated … for operating in the energy sector of the Russian Federation economy.”
  • “Viktor Vekselberg is being designated for operating in the energy sector of the Russian Federation economy.”
  • “Kirill Shamalov is being designated for operating in the energy sector of the Russian Federation economy.”
  • “Andrei Skoch is being designated for being an official of the Government of the Russian Federation.”
  • “Suleiman Kerimov is being designated for being an official of the Government of the Russian Federation.”
  • “Vladimir Bogdanov is being designated for operating in the energy sector of the Russian Federation economy.”
  • “Igor Rotenberg is being designated for operating in the energy sector of the Russian Federation economy.”

Those are the ones that the Reuters article specifically listed. In addition, there are:

DESIGNATED RUSSIAN GOVERNMENT OFFICIALS

Andrey Akimov, chairman of the board at Gazprombank

Andrey Kostin, president of VTB bank

*Alexey Miller, chief executive of Gazprom

Mikhail Fradkov, president of the Russian Institute for Strategic Studies

Sergey Fursenko, member of the board of directors of Gazprom Neft

Oleg Govorun, head of the Presidential Directorate for Social and Economic Cooperation with the Commonwealth of Independent States Member Countries

Gazprom is Russia’s oil-and-gas giant; and, likewise in accord with Putin’s demand that national-security industry remain under state-control instead of control by private investors, its controlling investor is the Russian Government. However, a few individuals are listed who are simply Russian Government officials, presumably likewise more cooperative, with carrying out the intentions of the elected President, than the U.S. and its allied governments consider to be acceptable.

Clearly, the special focus of these sanctions is on supporting U.S. international oil firms competing against Russian international oil firms.

On January 26th, Reuters bannered “U.S. hits Russian deputy minister and energy firms with sanctions”, and opened:

The United States added Russian officials and energy firms to a sanctions blacklist on Friday, days before details of further possible penalties against Moscow are due to be released.

A Treasury Department spokesperson said the department is “actively working” on reports required under the “Countering America’s Adversaries Through Terrorism Act” and aimed to release them consistent with timelines in the legislation.

Trump or his Treasury Secretary were actually responding to pressure from “Democrats” and unnamed others; but, when the final statement from the Treasury was issued on January 29th (and largely ignored by the press), it turned out that no new sanctions were issued, against anyone. The billionaires’ lobbyists had achieved nothing more than to provide (via the anti-Russia verbiage from members of Congress) to the American public, yet more anti-Russia indoctrination in support of America’s war against Russia; but, this time, no real action was taken by the President against Russia.

On 28 December 2017, the ‘private CIA’ firm Stratfor, which does work for the CIA and for major U.S. corporations, had headlined, “Russia Won’t Sit Still for Additional U.S. Sanctions”, and summarized prior U.S. economic sanctions against Russia:

Since the Soviet period, the United States has targeted Russia with numerous sanctions. The primary ones currently in effect were instituted over human rights violations and the conflict in Ukraine. In late 2012, the United States expanded its Soviet-era sanctions over human rights and approved the Magnitsky Act to punish those deemed responsible for the death of Russian tax accountant Sergei Magnitsky, a whistleblower who investigated Kremlin abuses and a tax-fraud scheme. The act penalizes dozens of people believed to be involved in the case, but the measure has evolved into a platform for the United States and its allies to punish Russia for a much wider scope of human rights abuses. 

The Ukraine sanctions imposed by the United States (and, to a lesser extent, by the European Union, Canada, Australia and Japan) stem from Russian involvement in the conflict there and includes the conflict in eastern Ukraine, Russian support of the previous government, the downing of Malaysia Airlines Flight 17 and the annexation of Crimea. Those penalties include:

  • Limits on debt issuance to Russia’s six largest banks, four primary state oil firms and four state defense firms.
  • Sanctions on Russia’s energy industry, prohibiting U.S. firms from providing, exporting or re-exporting goods and technology related to deep-water, Arctic offshore and shale oil and natural gas projects in Russia.
  • Bans on subjects receiving dual-use goods by Russia’s primary state defense companies.
  • Sanctions (travel and asset freezes) against hundreds of Russian entities and individuals. 

That was a fair summary; but, because Stratfor derives some of its income from the CIA, it stated as being facts, instead of as being lies, that “Sergei Magnitsky [was] a whistleblower who investigated Kremlin abuses and a tax-fraud scheme,” even though Magnitsky actually was never a “whistleblower,” and he was, to the exact contrary, assisting an American hedge-fund operator to illegally avoid $230 million in taxes that were due to the Russian Government and which tax-fraud had been reported not by Magnitsky as any ‘whistleblower’ but instead by, essentially, a bookkeeper, who was afraid of being prosecuted if she didn’t report to the police this tax-evasion that she was working on. Furthermore, Stratfor’s “to punish those deemed responsible for the death of” Magnitsky also is a lie, because the only person who so “deemed” was the American tax-fraudster who had employed Magnitsky. That employer accused Russia’s police of beating to death in prison this criminal suspect, Magnitsky, and he used, as ‘documentation’ for his charges, fake ‘translations’

into English of the police documents, and these ‘translations’ were taken at face-value by U.S. and EU officials, who couldn’t read Russian, and who wanted to cooperate with, instead of to resist, the U.S. Barack Obama Administration and the UK David Cameron Administration.

Furthermore, Stratfor, when it refers to “human rights violations and the conflict in Ukraine,” is actually referring instead to “the most blatant coup in history”, as the head of Stratfor put it when describing what the Obama regime referred to as the ‘revolution’ that in February 2014 had overthrown Ukraine’s democratically elected Government and that then began an ethnic-cleansing campaign to get rid of the residents in the areas that had voted over 75% for the President whom the U.S.-run operation had overthrown. In fact, U.S. think-tanks criticized Obama for providing insufficient assistance to the newly installed Ukrainian regime’s firebombings of the places where over 90% of the residents had voted for the now-ousted Ukrainian President. And that was entirely typical. This is a sort of ‘philanthropy’ that America’s billionaires receive ‘charitable’ tax-writeoffs for funding (donating to). No matter how aggressive a U.S. President may be against Russia, America’s aristocracy (through their ‘philanthropies’ etc.) complain that it’s not aggressive enough — America’s Government must do yet more, in order to ‘support human rights’ abroad.

So, that’s what America’s anti-Russian sanctions are all about: serving America’s billionaires.

first published at strategic-culture.org

Investigative historian Eric Zuesse is the author, most recently, of They’re Not Even Close: The Democratic vs. Republican Economic Records, 1910-2010

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Central Asian Jihadi Groups Joined Taliban’s “Al-Fath Jihadi Operations”

Uran Botobekov

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Al Qaeda-backed jihadist groups Katibat Imam al Bukhari (KIB), the Islamic Jihad Union (IJU) and the Turkestan Islamic Party (TIP), consisting mainly of Uzbeks from the Fergana Valley of Central Asia and Uyghurs of Chinese Xinjiang, jointly conduct “Al-Fath Jihadi Operations” alongside the Taliban in Afghanistan amid the US-Taliban negotiation. KIB’s online media channel “Katibat Imam al-Bukhari under the Islamic Emirateof Afghanistan” that implies a Taliban’s subsidiary began to regularly publish news about the “victorious offensives of the warriors of Islam.” As well as IJU’s main two social media channels Badr at-Tawhid and al-Sodiqlar TV (al-Sodiqlar in Uzbek, which means ‘The Truthful’) often release videos featuring both the Taliban and IJU on the joint battleground.

For example, on April 14, 2019, KIB’s Telegram channel reported that “al Bukhari’s Mujahideen of the Islamic Emirate attacked enemy positions and killed 36 militaries of the Kabul administration, among which 4 were high-ranking commanders.”As evidence of its successful attack, KIB published video and photo materials. Another report, dated May 3, 2019, states that “Mujahideen of our Jamaat blew up the Ranger vehicle in Zabul province as a result 7 government soldiers were killed.”

Telegram’s online channel also published an audio message by the emir of the KIB’s Afghan division Jumabai Hafizahulloh, who calls on the Mujahideen to “commit Istighfar (the act of seeking forgiveness from Allah) to defeat foreign invaders led by the United States of Satan and establish Sharia law in Afghanistan.”In his speech, he frequently refers to religious works of the famous Sunni Muslim scholar Ibn Taymiyyah whose worldviews influenced the development of Salafism and Takfirism and became the basis of the ideology of al Qaeda and ISIS. At the end of the speech, he called on all Muslims to join the jihad against the “American occupiers.”

According to audio and video materials distributed by al-Sodiqlar TV on Telegram, Uzbek militants of IJU have frequently taken part in “Al-Fath Jihadi Operations” alongside the Taliban, fighting against Afghan security forces. For example, on April 14, 2019, IJU released a video showing how Uzbek militants under the leadership of the Taliban attacking an Afghan security forces’ convoy in Baghlan province’s capital Puli Khumri and seizing heavy trucks on the Baghlan-Balkh highway, part of the Ring Road which links Kabul to the north.

TIP, KIB and IJU’s videos in Telegram once again reaffirmed al Qaeda-backed Central Asian jihadists’ role within the Taliban insurgency, as the jihadists fight together to resurrect the Taliban’s Islamic Emirate of Afghanistan.

Features of the Taliban military operation

As is known, the Taliban annually conducts military operations under various formidable names that have an ideological and religious implication. In 2018, its military action was called ‘Al Khandaq Jihadi Operations’ (from the name of the famous Battle of Khandaq led by the Prophet Mohammed in 627), which also involved Sunni violent extremist groups: Uyghurs’ TIP and Uzbeks’ KIB. On April 12, 2019, the Taliban announced the launch of a new “Al-Fath Jihadi Operations” (which means Victory), which was published on the website ‘Voice of Jihad’ of ‘the Islamic Emirate of Afghanistan’ (Taliban so refers to itself).

A distinctive feature of “Al-Fath Jihadi Operations” from previous military actions is that the Taliban this year applies new tactics of attacks aimed against the government and municipal officials, the military and police forces of Afghanistan, and does not prioritize attacks on US and NATO forces. Perhaps that is why the Taliban-backed Uzbek and Uyghur jihadist groups often report on successful military operations, as local officials and government offices in remote provinces become an easy target for them.

Another distinguishing feature of “Al-Fath Jihadi Operations” that it is conducted against the backdrop of US-Taliban peace talks. Trump administration’s decision to pull American forces out of Afghanistan and begin direct peace talks between the US and the Taliban without inviting official Kabul inspired the Taliban to tighten the “al-Fath Jihadi Operations”, and was ablow to the morale of Afghan generals. The Taliban are already stronger today than they have been since their ouster in 2001, controlling or holding sway over 60 percent of Afghanistan’s districts. Therefore, they in advance methodically and cynically rejectedLoya Jirga (Afghan grand assembly) demands for a cease-fire and shunned direct talks with the Afghan government, describing it with insulting terms like “a US-imposed puppet regime,” “domestic stooges,” “the hollow Kabul administration” and “cabinet offoreign invaders “.

The main topics of Doha’s peace talks between US peace envoy for Afghanistan Zalmay Khalilzad and co-founder of the Taliban, Mullah Abdul Ghani Baradar, were the full withdrawal of foreign forces from Afghanistan and ensuring that Afghanistan is not used as a base for foreign terrorist organizations, above all for al Qaeda and ISIS, to attack other countries.

After the completion of the sixth round of negotiations, Taliban spokesman Zabihullah Mujahid, in a May 9 statement, assessed the outcome of the meeting as “positive” and the parties made “progress” on some points. But the activities of al Qaeda-linked Central Asian Salafi-Jihadi groups KIB, IJU and TIP in Afghanistan and their active participation in “al-Fath Operations” testified, there is not any “progress” to cut the Taliban’s cooperation with al Qaida.

To achieve international recognition the Taliban in July 2016 issued a statement for the Central Asian countries, in which it assured its neighbors that “the Islamic Emirate does not seek to interfere in the internal affairs of others nor will it allow anyone to use the land under the control of Islamic Emirate against anyone else.” During the Moscow Conference in February 2019, the Taliban reiterated “we do not allow anyone to use the soil of Afghanistan against other countries including neighboring countries.”

But all these false claims are a political ploy aimed at hiding the Taliban’s ties with al Qaeda and its Central Asian affiliates. The KIB, IJU and TIP’s media arm has shown the Taliban keeps using the Uzbek and Uyghur jihadists against West Coalition and Afghan forces, and collaborating with al Qaeda inside Afghanistan, despite assurances to the contrary.

Taliban and al Qaida are the “godfathers” of Uzbek and Uyghur jihadist groups

As is known, the first contact between Uyghur and Uzbek Islamists with the Taliban and al Qaeda occurred in the early 1990s, when members of the Eastern Turkistan Islamic Movement (ETIM) and the Islamic Movement of Uzbekistan, pursued by the Chinese and Uzbek authorities, fled to Afghanistan. Since then, the Taliban and al Qaeda became the “godfathers” of the Central Asian Islamist groups and widely opened the doors of global jihad for them.

The Taliban have been continuously working alongside Uzbek and Uyghur jihadist groups that have sworn allegiance both to al Qaeda and the Taliban, and today this bayat (an oath of allegiance) is effectively operating. In turn, the leaders of al Qaeda bin Laden and Ayman al Zawahiri both swore allegiance to the Taliban, with the result that IMU and TIP (former ETIM) were under double tutelage and control. Although the Taliban staunchly focused on Afghanistan and has not demonstrated al-Qaeda’s global jihadist ambitions outside the country, nevertheless, it continues to host Uzbek and Uyghur militant groups with far-reaching goals.

Under the influence of “godfathers,” ideological views of Uzbek and Uyghur militants expanded significantly with global aspirations. Today, they are not limited to the local agendas to overthrow the political regimes in Central Asia and China and set themselves global tasks to create a world caliphate.

Recently the UN Security Council in its twenty-second comprehensive report confirmed: “The Islamic Movement of Uzbekistan still commands about 500 fighters in Afghanistan, concentrated in Faryab, Sari Pul, Jowzjan, Kunduz, Baghlan, Takhar and Badakhshan provinces. Around another 500 Central Asian fighters are distributed between Khatibat Imam Al-Bukhari, Katibat al Tawhid wal Jihad, Islamic Jihad Union… The Eastern Turkistan Islamic Movement commands 400 fighters in Badakhshan” (page 15-16, section “Central and South Asia”).

This Russian and Turkic-speaking terrorist groups are trusted by al Qaeda and Taliban leaders and have become a link in their strategic ties. In different years, TIP, IMU and IJU were added to the United Nations Security Council Sanctions List as being associated with al Qaeda and the Taliban. In addition, the US State Department designated all of these Central Asian jihadist groups, including Katibat al-Imam Bukhari, as “global terrorist organizations” because of their involvement in terrorist attacks alongside the Taliban and al Qaeda.

The Taliban nervously reacts when Central Asian groups break their bayat al Qaeda and considers betrayal an unforgivable crime. In December 2015, the Taliban captured and executed about 60 Uzbek jihadists led by IMU leader Usmon Ghazi in the Zabul province who broke al-Qaeda oath and pledged to Islamic State.

Sometimes the Taliban, as befits a good “godfather,” forgive Central Asian militants who violated their oath to al Qaeda. After the Taliban’s elimination of the self-proclaimed Islamic State Khorasan Province (ISIS branch in Afghanistan) in the northern Afghan province of Jawzjan,20 Central Asian fighters (citizens of Uzbekistan, Tajikistan, Kazakhstan, and Kyrgyzstan)from Qari Hikmatullah’s ISIS network, who surrendered to the Taliban, were evacuated, along with their families, to Kohistanat district of Sar-e Pul province. Today they serve the Taliban, who has become their new master.

Taliban’s religious roots in support foreign terrorist groups

As the US Special Representative for Afghanistan Reconciliation ZalmayKhalilzad stated in March 2019, the US and the Taliban “agreed in draft”that covers two key issues: a “Coalition’s withdrawal timeline” and “effective counterterrorism measures.”According to this “draft”, the Taliban would provide “counter-terrorism assurances” that Afghanistan would not be used as a base for terrorist groups to attack foreign countries.

Despite the Taliban’s generous promises, after it comes to power in the future (judging by the tone of the negotiations, today’s events are developing precisely in this vein), there are no guarantees that the Taliban will renounce al Qaeda and stop supporting Central Asian Salafi-Jihadi groups. The problem is not the reluctance of the Taliban, but in its radical Islamist ideology and Sharia law, according to which the framework of relations between Ansar [natives] and Muhajireen [foreign fighters] are clearly outlined.

As is known from the history of Islam, mutual relations between Ansar and Muhajireen relies on Islamic values when the local inhabitants [Ansar] of Medina warmly welcomed, provided shelter and supported the Prophet Muhammad and his followers [Muhajireen], who had left their homes behind for widespread Islam during the fight against unbelievers in 622.

The Surahs of the Qur’an, Al-Anfal [8:72] and Al-Hashr [59:9], detail the responsibilities of the Ansar and Muhajireen relationship. For example, Al-Anfal obliges Ansar to help Muhajireen: “Indeed, those who have believed and emigrated and fought with their wealth and lives in the cause of Allah and those who gave shelter and aided – they are allies of one another. But those who believed and did not emigrate – for you there is no guardianship of them until they emigrate. And if they seek help of you for the religion, then you must help, except against a people between yourselves and whom is a treaty.”

As the ups and downs of the Taliban rule showed, the Taliban is strict followers of the Ansar doctrine. During the rule of the Taliban, its territory, so-called “Islamic Emirate of Afghanistan” became the main shelter for Muhajireen of al Qaeda and other foreign terrorist groups. Central Asian Islamists massively migrated there. During the reign of the Taliban, IMU in 1999-2000 twice attacked southern Kyrgyzstan. These fighting clashes went down in history under the name of the Batken War, during which more than 50 soldiers of the Kyrgyz army were killed.

The ties between the Taliban and al Qaeda proved to be so strong that after 9/11 the Taliban refused to hand over the main terrorist Bin Ladin to the US. There is much evidence, including joining Central Asian jihadists to “Al-Fath Jihadi Operations”, that the Taliban and al Qaeda ties remain strong. Therefore, it can be expected that in the event of the US withdrawal and the coming to power of the Taliban, Afghanistan will again become home to international terrorist groups.

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The Russian Mafia

Giancarlo Elia Valori

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Since 1992, the Russian word Mafyia has been officially used in the Russian Federation’s documents to refer above all to organized crime, structured through stable groups that  repeatedly perpetrate severe crimes and offences. In particular, this word refers to the interests of the world “below” – the invisible universe of organized crime – with the world “above”, namely institutions, ruling classes, politicians and companies.

  Both the real Mafia, namely the Sicilian one, and the Russian one were born around mid-19th century.

The Sicilian Mafia became the “parallel State” in a region where the Unitary State did not exist or counted for nothing. A case in point is the Baron of Sant’Agata, the feudal lord of Calatafimi, who ordered his mobsters to “side with the winners”, when he realized that Garibaldi’s troops, the so-called “Garibaldini” were winning in the plain.

  The  Sicilian “organization”, which had long-standing  roots -probably Arab and in any case independent of the Kingdom centred on Naples and the Campania region – discovered its political role precisely with Garibaldi-led Expedition of the Thousand that landed in Sicily, after which it became the primary mediator between the small group of “Piedmontese” soldiers and the great mass of peasants. It immediately agreed with the feudal lords, who helped it considering that it was winning.

The Mafia itself was both the improper bank of the wealthy feudal lords and the only form of effective social control, solely in favour of the Sicilian feudal elites – and hence also of the Unitary Kingdom.

  As happened also in Naples, when Garibaldi appointed Liborio Romano – who was also the Head of Camorra – as Chief of Police. An inevitably very effective policeman.

Conversely, in Russia organized crime was initially used –  in politics – by various revolutionary groups to fight the Tsar.

   Later, there was the magic moment of an important “friend of the people”, namely Nicholai Ishutin.

  He was the first to establish a group of professional revolutionaries, in 1864, simply called “the Organization”.

However, with a view to better achieving the revolutionary, anarchist and violent aims of his Organizacjia, Ishutin created another new structure. It was called the “Hell” and had to engage in all possible illegal activities, together with the already active criminals: murder, theft and blackmail. All this had to happen while the “Organization” was running its lawful social and organizational activities.

  Hence, for the first time politics became the cover for a criminal organization. Goodness knows how many imitators Comrade Ishutin had.

It was the beginning of a very strong bond – also at theoretical level, through many excerpts from Lenin’s texts that exalted Russian revolutionary populism – between organized crime and the Bolshevik Communist Party.

  In fact, on June 26, 1907, a bank stagecoach of the State Bank of the Russian Empire was attacked and robbed in Tiflis, Georgia. It was a robbery fully organized by top-level Bolsheviks, including Lenin and Stalin.

There was also the strong support of local criminals led by Ter-Petrosian (“Kamo”), the Head of the Georgian mob and also Stalin’s early associate.

The relationship between organized crime and Bolshevism – particularly with reference to the “agrarian reform” of 1930-1932 – remained central.

   The Soviet power absolutely needed its extra legem left hand to harshly bring peasants into line and to militarily organize the conquest of factories, as well as to control or physically eliminate the entrepreneurs or bureaucrats of the old Tsarist regime.

Everything changed with Stalin, who, together with the stabilization of the Bolshevik regime, made possible also the verticalization and creation of a unitary command hierarchy in the vast world of Russian crime – and in the Party.

  Hence the Organizatsja was founded, i.e. a strongly verticistic Panrussian structure – as indeed the Bolshevik Party was.

The “Organization” – full of symbols and particular rites, like the many para-Masonic organizations of the revolutionary Napoleonic network in Italy, which imitated the secret society of Carbonari (the so-called Carboneria) or, precisely, Freemasonry, albeit with entirely new mechanisms and symbols – was sung heroically by one of the poets, former “Thief-in-Law” (the generic term used by Stalin to designate all the members of the Organization), but much loved by Stalin, namely Mikhail Djomin, who exalted the achievements of the Vorovskoi Mir, the Thieves’ World, that had only one code of conduct and revenge throughout the USSR.

  Hence the Party established the first organizational structure of the “Thieves-in-Law”, who much operated during the Stalinist regime: the Mir “brigades” were led by a “reserve group” that generated and selected an additional covert group that had to be permanently related to the Soviet political, economic and financial power.

In fact, the “Vory v Zakone”, the Thieves-in-Law, had  relations on an equal footing with the Party and State leaders. They dealt with the various “brigades” and managed the odshak, the cash pool, through an ad hoc Committee.

  Through the odshak, said Committee mainly paid salaries to the Organization soldiers, but above all invested its proceeds in the so-called “white” economy.

 Without the criminal organizations and their autonomous finance, there would have been neither the Soviet normalization after Stalin’s purges, nor the money for  Leninist industrialization and the funds – extremely needed for the USSR – targeted to foreign trade and the related sales of raw materials from 1930 onwards.

 This also applied to the Sicilian Mafia, a true organization between two worlds, the American and the Italian ones, which invested in real estate in Sicily when there was no capital, in the aftermath of the Second World War, or refinanced capitalism in Northern Italy after the political and union storm in the late 1960s and 1970s.

 Without Mafia’s capital and without the protection provided by some entrepreneurs to the most important fugitives in Milan, there would have been no economic recovery after the disaster of 1968.

 Reverting to the Bolsheviks, Stalin accepted the presence of the “Thieves-in-Law” in their main sectors of activity, in exchange for their careful persecution of his personal and Soviet regime’s political adversaries.

 Years later, even de Gaulle did so when proposing to the Corsican underworld – one of the most ferocious in Europe – to fight the OAS and eliminate it, in exchange for some State favours and the transfer of many gangsters of the Brise de Mer – as the Corsican Mafia was called – to Marseille.

 Hence there is no modern power that could do without its particular “Thieves-in-Law”. A case in point was China, in the phase of the “Four Modernizations” and the subsequent Tiananmen Square movement, or the United States itself, which dealt primarily with its various Mafias, especially in periods of severe financial crisis.

 In the 1950s, shortly before Stalin’s death, inter alia, a very close relationship was established between the “Organization” and the Soviet power leaders.

 It was exactly the underground economy – fully in the hands of the “Thieves-in-Law”- which, in Brezhnev’s time, became the meeting point between Mafia and Communists.

 The Organizatsjia already had excellent relations with the parallel “capitalist” organizations – relations which were established upon the creation of the Russian structure in the meeting held in Lviv in 1950 – and it became essential to find the goods which were never found on the Russian market, including weapons and illicit capital flows.

 Corruption became the real axis of bureaucracy and of the Party itself, while there was a spreading of poverty that closely resembled the poverty of Ukrainian and Crimean peasants during the so-called “agrarian reform” of 1930-1931.

 Later, always in agreement with the Bolshevik leadership, Mafyia organized – in every factory or office – “clandestine units”, not falling within the scope of the collectivist system, which created an underground market that, from 1980 to 1991, was even worth 35-38% of the Soviet GDP.

 The proceeds from that semi-clandestine trade were shared between the Party, the “Organization” and the law enforcement agencies. No one could escape that mechanism.

 Again in the 1980s, precisely due to the social and political pervasiveness of the “Thieves-in-Law”, the Organizatsjia was structured into units for each commodity sector, especially with units specialized in oil, minerals, wood, precious stones and even caviar.

 At that stage, however, many Soviet Party and State leaders were officially accepted in the Organizatsjia, thus becoming the necessary link between the “Thieves-in-Law” and the institutions.

 Furthermore, with Gorbachev’s reforms, Mafyia was no longer only an important part of the economic system,but became the economic system in its entirety.

The elimination of the old political apparatus and fast privatizations enabled the old leaders of the various “clandestine units” to quickly collect the initial capital to buy everything going from companies onto the now apparently liberalized market.

 Sometimes Mafia’s intimidation was also needed, when the old employees did not want to assign – for a few roubles – their shares that the law allowed to be allotted between workers and managers of the old State-owned factories.

 In 1992 Yeltsin himself admitted that over two thirds of the Russian production and commercial structure were in the hands of the “Organization”.

 However, in memory of the old ties with similar organizations abroad, only Mafyia did start the first joint-venture contracts with Western companies and 72% of that opening onto the world market was only the work of the Organizatsija.

  That was exactly what Judge Falcone would have dealt with in Russia with his Russian colleague Stepankov, if he had not been killed with his wife and three agents of his escort in a bomb attack.

  The joint venture worked as follows: firstly, foreign capitalists put their money into the companies of the “Organization” and later – without realising it and only with the hard ways – they were in the hands of the old “Thieves-in-Law”.

  Nevertheless, it was from 1990 to 1992 that the Russian Mafia structure penetrated the West with vast illegal funds managed together with the local Mafias.

 Not surprisingly, a few days after the Capaci bombing, Giovanni Falcone was to fly to Russia to talk with the Russian Prosecutor General, Valentin Stepankov, who was investigating into the CPSU funds that had disappeared in the West.

 The intermediary of the operation could only be the “Organization” that knew the Sicilian Mafia very well, at least since the aforementioned meeting held in Lviv in 1950.

  A huge amount of money went from the CPSU to the “sister” parties and probably the issue regarded also the failed coup against Gorbachev in August 1991.

 Each CPSU faction had its autonomous funds – often huge ones – given to “sister” parties but, above all, to their most similar internal wings. Here a significant role was played by the covert bank accounts held in Zurich, together with the Wednesday air transfers to the local Narodny Bank, as well as the money transfers that took place during the visits of the CPSU executives to the various local “comrades”.

 Nevertheless, the cash flows -managed only by the Organization -were regarded by the CPSU’s “old guard” mainly as a source of personal survival and a basis for future political action at national level. Everyone, ranged face to face upon the field of the new CPSU factions, thought to said cash flows.

 Coincidentally, it was exactly in those years and months that the Sicilian Mafia expanded – for its drug business – to the Caucasus and Anatolian Turkey, on the border with the new Russian Federation.

 At that time – as currently – the Russian Mafyia had preferential relations with the Sicilian Mafia, the Neapolitan Camorra, the Chinese triads and the Turkish Mafia.

 Also the relations with Latin American and Arab criminal organizations have been mediated by Sicilians or Calabrians (in South America), Turks (in Central Asia and India) and Chinese (in Maghreb and Africa).

 Currently the Organization’s yearly turnover is still 2,000 billion roubles approximately, with weapons – including nuclear ones – which were provided by the Mafyia sections within the Soviet and later Russian Armed Forces.

 As even Luciano Violante – the former President of an important anti-Mafia Parliamentary Committee –  maintained, both the CPSU and the KGB have long had  excellent relations with the Sicilian Mafia. The Russian Mafyia itself is now the world centre where money laundering strategies, as well as the division of territories at international level and the new strategies of relations with the various ruling classes, are managed.

 Violante used to say that the CPSU and the KGBhad put in place the most recent Russian Mafia, with which they were gradually confused.

 Hence the new post-Soviet oligarchy – selected after Mafia wars that,between 1990 and 1995, exacted a toll of 30,000 victims – has now merged with the ruling class.

As Solzhenitsyn used to say, currently in Russia a maximum of 150 people rules. Putin deals with the “Organization”, but he is certainly not linked to it.

 Furthermore, according to the most reliable Russian sources, currently the “Thieves-in-Law” network is composed of about 50,000 people, including managers and mere “soldiers”.

  Nevertheless, their network of intimidation and capital makes them essential in carrying out any kind of “white” operation. They are the bank of the new Russia, considering that all the official banks are part of the “Organization”.

  In the Russian media jargon, the Russian Mafia bosses who have reinvented themselves in the legal business are called avtoritet(“authorities”).

 The Russian Mafyia also operate abroad, throughout Europe, but does not operate directly in the territory of the various countries. If anything, it seeks relations with the State and bureaucracy, through the national criminal networks, without by-passing them.

 Currently the Russian money laundering hub is still France, while recently the “Organization” has been spreading quickly within the German economic, banking and commercial fabric.

 In Italy, it operates mainly in Emilia-Romagna, Tuscany and, obviously, Rome.

 According to the Italian police sources, the capital flows of the Russian “Organization” in Italy are equal to 38.5 billion a year, while the flow of Russian money laundering is still focused on France, albeit with some operations made in Spain and Portugal. A diversification already underway, which could also affect Italy.

 The first channel has always been Latvia, used by Russian mobsters to enter the Euro area directly.

 With a view to penetrating Latvia, the Russian “Organization” created dummy companies based in London.

 Later a Russian company lent money to the company based in London – a company with main headquarters often located in Moldova.

 The Russian company did not repay the debt – hence a corrupt judge in Moldova forced the Russian company to transfer capital to a Moldavian account.

 Hence the money entered Latvia in a perfectly legal way and later the Euro area and Western economies.

  The network has already endangered 753 Western banks – and money laundering is still one of the primary business activities of the Russian “Organization”.

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AI, Foreign Policy, and National Governance Impact: Focus on China

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How China’s AI technology exports may lead to the emergence of new power structures outside the control of existing governance and accountability frameworks and impact the rules-based global order and geopolitical alliances.

BACKGROUND CONTEXT

The notion of power and geopolitical influence in the digital era

Until recently, analytical attention to the development of digital technologies, including AI, has tended to focus on corporations such as Google, Apple, Facebook, and Amazon (GAFAs). These GAFAs, some of them deemed to be more powerful than some states, have changed the notion of power and geopolitical influence. These corporations are leveraging the power of AI, networks, data intelligence infrastructures, and regulatory frameworks to impact public space around the world. This is leading to the emergence of new power structures outside the control of existing liberal democratic and human rights accountability frameworks, to the extent that even democratic societies resent this power over their public space.

Meanwhile, less noticed but arguably more effective in its consequences, is the Chinese government’s investment in the development and application of these same technologies, —aimed at strengthening its state intelligence infrastructure—strongly suggesting that AI could shape society and government in very different ways than the originators of said technologies at issue may have anticipated. Capitalizing on these current structural and technological shifts in the global information environment—enabled by algorithms, artificial intelligence, and other new opportunities created, China and its allies are able to censor and manipulate information at its source and control what populations can see and say on the internet. While Russia’s role in undermining Western democracies through algorithms is well documented and debated, it is China’s combination of state-directed capitalism and coercive economic diplomacy which will potentially upend the rules-based global order and a geopolitical re-alignment, possibly leading to a real multipolar world. Together with its allies it will, among other strategies that constitute its sharp power, do so through AI-driven applications and ironically by exploiting the vulnerabilities in the openness of democracies. All in all, it will be an attempt to create a new political order which challenges states’ sovereignty.

Chinese AI capabilities and domestic objectives

China is spending vast sums on research related to AI technologies, as cyberpower sits at the intersection of a number of its national domestic and foreign policy priorities.

China’s international cyber ambitions are closely paired with its existing and growing use of AI technologies for surveillance and social control at home. This is evident from the intrusive AI-driven surveillance infrastructures being employed in Xinjiang state and that of the Great Fire Wall (GFW). Although American companies took an early lead in AI, for example, as measured by the application of machine learning and number of AI patents registration, China is closing the gap with the U.S. At the current technological advancement rate, it is predicted that by 2025 China will surpass the U.S. and by 2030it will dominate the industries of AI. This poses significant implications to the economic, political, security, cultural, and human rights global order.    

China’s foreign objectives  

To advance its “going out” foreign investment public diplomacy policy, in 2017 the Chinese government outlined its roadmap for turning itself into the “world’s primary AI innovation Centre” by 2030. The Chinese state-backed “AI National Team,” a group of leading Chinese technology firms, are investing in the development and exporting of new technologies with state backing. Coupled with sizable state investment in cyber technology development, this suggests China aims to become an AI-centered “cyber-superpower”.

In recent years, as part of the Belt and Road Initiative (BRI), China’s export of AI technologies to developing countries, ‘operating both within the Global South and the international community, ’has grown rapidly, reinforcing the idealized South-South development model and a geopolitical re-alignment.  There has been a widely held view amongst development practitioners and policymakers operating within the Global South, that the South-South development model has largely been conducive for economic growth, particularly in terms of attracting investment, infrastructure, including internet infrastructure, and diversifying the landscape of trading partners, diverging from former colonial ties. However, an unintended consequence of this has been that the pro South-South stance has hindered critical thinking in relation to discerning the negative repercussions.

As the democracy and human rights implications stemming from the unregulated export of Chinese AI to the Global South are beginning to surface, it is imperative that this idealized narrative is challenged. It is clear that China’s export of AI technologies exceeds mere economic purposes. In addition to expanding its cyber-industry market share, these exports allow Beijing to use developing countries as laboratories to test, diversify, and improve its surveillance technologies. This goes beyond conventional trading parameters, constituting instead a form of economic exploitation that leans toward extractive dynamics. Perhaps this is an emerging form of cyber colonization?

Recently, China signed agreements with Zimbabwe, Angola and Ethiopia, ostensibly to diversify algorithm training data. Despite the potential economic gains of China’s AI technology exports to Africa, the prospective implications of such unregulated trade on democratic, participatory governance, and human rights in Africa may be extremely negative. Particularly susceptible are countries with long histories of human rights abuses and poor records regarding the rule of law, where China’s surveillance technologies are proving increasingly attractive to governments facing strong domestic opposition, ongoing insurgencies, and other security challenges, including popular protests.

The unregulated export of Chinese AI technologies to countries that fit this profile is likely to reinforce existing systemic repression as well as introduce new ones. AI-driven applications will soon allow authoritarians to analyze patterns in a population’s online activity, identify those most susceptible to a particular message, and target them more precisely with propaganda.AI will create persuasion infrastructures at scale…to manipulate individuals one by one, using their personal, individual weaknesses and vulnerabilities. Such influencing campaigns –aimed at either specific populations of authoritarian countries or those of democracies abroad – undermine free speech, political participation, and other liberal principles in countries around the world through coercive economic diplomacy.

How does this affect the liberal world order and liberal democracies in the west?

China’s growing development and export of AI technologies is fostering state monitoring and control of society, censorship, and the empowerment of states often unaccountable to their populations. Under the guise of BRI, China is seeking to export and globalize its policy of authoritarian cyber controls, which directly run counter to democratic societies’ aspirations for a free and open global internet. However, China’s efforts to influence cyberspace and the rules-based global order is part of larger trends and patterns relating to authoritarian cooperation and innovation, including the emergence of authoritarian cyber counter-norms and its effort to actively contest democratic development, the democratic ideal, and liberal order. Since the end of the Cold War, China and its allies sensed the democratic state’s reluctance to defend the liberal order and a wrong assumption that China would liberalize.  Despite their divergent views, China, Russia, and Iran all agree on the goal of weakening the global democratic norms encouraged by the West. Cyberspace and in particular AI provides a new frontier through which to realize their shared ambitions to undermine human rights, in particular freedom of speech, by controlling information at the source and carrying out influence campaigns as outlined above.

CONSIDERATIONS

Companies and governments that are using AI at a global level should adopt global standards. They should apply human rights law, which provides global standards, for example, article 19 of the International Covenant on Civil and Political Rights which protects everyone’s right to “seek, receive, and impart information and ideas of all kinds, regardless of frontiers.” 

In the same way they have done on the internet, the West should promote a distributed model of AI governance that involves the GAFAs, technical bodies, the private sector, civil society, and governments. They should categorically reject Beijing’s preferred state-centric and UN-led multilateral approach to governing cyberspace as China can easily use its diplomatic clout at the UN to frustrate the distributed model of internet governance. The West should strengthen the voice of marginalized populations, which include urban and rural poor communities, women, youth, LGBTQ, ethnic and racial groups, people with disabilities – and particularly those at the intersection of these marginalized groups, by insisting that:

Companies that own global AI platforms should involve local communities in governing their AI-driven platforms and take measures to create a workforce that includes marginalized populations;

Governments and companies that use AI must be more accountable and transparent in disclosing radically more information about the nature of their rulemaking and enforcement concerning expression on their platforms.

At a technological level, the West should avoid the so called AI race but proactively fortify their own and foreign digital diplomacy through robust government-backed policies and programs that foster a healthy AI ecosystem, like the EU, based on trust. In practical terms, this should include investing in public spatial data infrastructure projects in the Global South in order to monitor and control data flows, building better algorithms that effectively counter Chinese information strategies. The West should also seek ways to engage countries that violate-human rights by showing them the long-term benefits of a liberal world order and cushioning them from being victims of the current geopolitical and geoeconomic realignment contest.

Just like the European Union, these countries should adopt a more assertive policy stance towards Beijing over the openness of Chinese markets and the role of state-led firms, and in this context, the Chinese AI firms such as Tencent, Alibaba and Baidu also.

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