SCW NEWSWATCH: “The New Geopolitics of the Arctic; Russia’s and China’s Evolving Role in the Region” – RAND/ Stephanie Pezard/ Canadian House of Commons Testimony

Arctic Region Map

[click here to jump to embedded PDF of full document]

“Russia’s Arctic region is strategically important for the Kremlin …. First, it contains major population centers: With 350,000 inhabitants, Arkhangelsk is the largest Arctic town, followed by Murmansk, with 300,000 … Under … Putin, the Russian Arctic has been emphasized as a patriotic and nationalistic theme. Secondly, Russia’s economy relies heavily on its oil and gas industry, and such resources are heavily present in the Arctic, including in the Yamal region, where Russia has recently developed a massive liquified natural gas (LNG) plant and terminal. Russia … is particularly sensitive to security issues around energy infrastructure ….

Thirdly, the Northern Sea Route (NSR) … along Russia’s northern shore, between the Kara Sea and the Bering Strait [] is becoming increasingly navigable. … Russia’s Northern Fleet is based in the Kola Peninsula, near Murmansk, and contains two-thirds of Russia’s nuclear submarine fleet … the Arctic … protects Russia’s strategic deterrent and … allows a sizable share of its Navy to reach the northern Atlantic. Russia’s military capabilities in the Arctic have steadily increased over the past ten years. Russia has opened new airfields and refurbished old ones; created a dedicated northern command for the region; and set up two Arctic brigades. It also is planning to substantially increase its icebreaker fleet … already … the largest in the world. Russia’s new military base on Aleksandra Land is touted as the ‘largest building in the entire circumpolar high Arctic.’ …”

Click here for: “The New Geopolitics of the Arctic; Russia’s and China’s Evolving Role in the Region” – RAND/ Stephanie Pezard/ Canadian House of Commons Testimony 









Arctic Region Map



SCW RUSSIAWIRE: “Germany to back Russian gas link despite Ukraine tensions” – Reuters

File Photo of Gas Flame, adapted from image at energy.gov

“Germany will not withdraw its political support for the Nord Stream 2 gas pipeline with Russia, its foreign minister said … as some lawmakers suggested curtailing the project to punish Moscow for its seizure of Ukrainian ships and their crew. Russia is resisting international calls to release three Ukrainian ships seized last month in the Kerch Strait, which controls access to the Sea of Azov near the Crimea region that Moscow annexed from Ukraine in 2014. … Russia’s Gazprom is the sole shareholder in Nord Stream 2, shouldering half of the construction cost. Its Western partners are Germany’s Uniper and Wintershall, Anglo-Dutch group Royal Dutch Shell, France’s Engie and Austria’s OMV. …”

Click here for: “Germany to back Russian gas link despite Ukraine tensions” – Reuters





 

SCW RUSSIAWIRE: “Russia clashes with Western oil buyers over new deals as sanctions loom” – Reuters

File Photo of Oil Wells with Mountains in Background, adapted from image at blm.gov by Steven C. Welsh www.stevencwelsh.info :: www.stevencwelsh.com

“Russian energy majors are putting pressure on Western oil buyers to use euros instead of dollars for payments and introducing penalty clauses in contracts as Moscow seeks protection against possible new U.S. sanctions. … Western oil majors and trading houses have clashed with Russia’s third and fourth biggest producers, Gazprom Neft and Surgutneftegaz, over 2019 oil sales contract terms during unusually tough annual renegotiation in recent weeks. … mirror[ing] a similar stand-off between Western buyers and Russia’s top oil producer, Rosneft.

* * *  Russia has been under U.S. and EU sanctions since 2014 when it invaded Ukraine’s Crimean peninsula. The sanctions have been repeatedly widened to include new companies and sectors, making it tough for Russian oil firms to borrow money abroad, raise new capital or develop Arctic and unconventional deposits. * * * … Russia supplies over 10 percent of global oil ….”

Click here for: “Russia clashes with Western oil buyers over new deals as sanctions loom” – Reuters







 

 

SCW RUSSIAWIRE TRANSCRIPT, LINKS, WANTED POSTER: “U.S. Charges Russian GRU Officers with International Hacking and Related Influence and Disinformation Operations” – DOJ

U.S. District Court for the Western District of Pennsylvania, adapted form image at uscourts.gov by Steven C. Welsh :: www.stevencwelsh.info ve :: www.stevencwelsh.com

FBI wanted poster and DOJ news release follow further below

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In the latest round of U.S. indictments of Russian figures in connection with espionage, hacking, or other covert activities, the U.S. Department of Justice, on Thursday, Oct. 4, 2018, announced an indictment, in the U.S. District Court for the Western District of Pennsylvania, of Russian GRU military intelligence officers Leksei Sergeyevich Morenets, Evgenii Mikhaylovich Serebriakov, Ivan Sergeyevich Yermakov, Artem Andreyevich Malyshev, Dmitriy Sergeyevich Badin, Oleg Mikhaylovich Sotnikov and Alexey Valerevich Minin, for conspiracy, wire fraud, conspiracy to commit wire fraud, aggravated identity theft and conspiracy to launder money.

The Russian hacking and other covert activities were alleged to included activities targeting: international efforts against Russia’s state-sponsored program athletic doping; international efforts to enforce international norms regarding chemical weapons; and Westinghouse in western Pennsylvania.




[TRANSCRIPT OF DOJ NEWS RELEASE FOLLOWS]

Department of Justice
Office of Public Affairs
FOR IMMEDIATE RELEASE
Thursday, October 4, 2018
[justice.gov/opa/pr/us-charges-russian-gru-officers-international-hacking-and-related-influence-and]

U.S. Charges Russian GRU Officers with International Hacking and Related Influence and Disinformation Operations

Conspirators Included a Russian Intelligence “Close Access” Hacking Team that Traveled Abroad to Compromise Computer Networks Used by Anti-Doping and Sporting Officials and Organizations Investigating Russia’s Use of Chemical Weapons

A grand jury in the Western District of Pennsylvania has indicted seven defendants, all officers in the Russian Main Intelligence Directorate (GRU), a military intelligence agency of the General Staff of the Armed Forces of the Russian Federation, for computer hacking, wire fraud, aggravated identity theft, and money laundering.

According to the indictment, beginning in or around December 2014 and continuing until at least May 2018, the conspiracy conducted persistent and sophisticated computer intrusions affecting U.S. persons, corporate entities, international organizations, and their respective employees located around the world, based on their strategic interest to the Russian government.

Among the goals of the conspiracy was to publicize stolen information as part of an influence and disinformation campaign designed to undermine, retaliate against, and otherwise delegitimize the efforts of international anti-doping organizations and officials who had publicly exposed a Russian state-sponsored athlete doping program and to damage the reputations of athletes around the world by falsely claiming that such athletes were using banned or performance-enhancing drugs.

The charges were announced at a press conference by Assistant Attorney General for National Security John C. Demers, United States Attorney for the Western District of Pennsylvania Scott W. Brady, FBI Deputy Assistant Director for Cyber Division, Eric Welling, and Director General Mark Flynn for the Royal Canadian Mounted Police.

“State-sponsored hacking and disinformation campaigns pose serious threats to our security and to our open society, but the Department of Justice is defending against them,” Attorney General Jeff Sessions said. “Today we are indicting seven GRU officers for multiple felonies each, including the use of hacking to spread the personal information of hundreds of anti-doping officials and athletes as part of an effort to distract from Russia’s state-sponsored doping program. The defendants in this case allegedly targeted multiple Americans and American entities for hacking, from our national anti-doping agency to the Westinghouse Electric Company near Pittsburgh. We are determined to achieve justice in these cases and we will continue to protect the American people from hackers and disinformation.”

“The investigation leading to the indictments announced t (link is external)oday is the FBI at its best,” said FBI Director Christopher Wray. “The actions of these seven hackers, all working as officials for the Russian government, were criminal, retaliatory, and damaging to innocent victims and the United States’ economy, as well as to world organizations. Their actions extended beyond borders, but so did the FBI’s investigation. We worked closely with our international partners to identify the actors and disrupt their criminal campaign – and today, we are sending this message: The FBI will not permit any government, group, or individual to threaten our people, our country, or our partners. We will work tirelessly to find them, stop them, and bring them to justice.”

“We want the hundreds of victims of these Russian hackers to know that we will do everything we can to hold these criminals accountable for their crimes,” said U.S. Attorney Brady.  State actors who target U.S. citizens and companies are no different than any other common criminal:  they will be investigated and prosecuted to the fullest extent of the law.”

The defendants, all Russian nationals and residents, are Aleksei Sergeyevich Morenets, 41, Evgenii Mikhaylovich, Serebriakov, 37, Ivan Sergeyevich Yermakov, 32, Artem Andreyevich Malyshev, 30, and Dmitriy Sergeyevich Badin, 27, who were each assigned to Military Unit 26165, and Oleg Mikhaylovich Sotnikov, 46, and Alexey Valerevich Minin, 46, who were also GRU officers.

The indictment alleges that defendants Yermakov, Malyshev, Badin, and unidentified conspirators, often using fictitious personas and proxy servers, researched victims, sent spearphishing emails, and compiled, used, and monitored malware command and control servers.

When the conspirators’ remote hacking efforts failed to capture log-in credentials, or if the accounts that were successfully compromised did not have the necessary access privileges for the sought-after information, teams of GRU technical intelligence officers, including Morenets, Serebriakov, Sotnikov, and Minin, traveled to locations around the world where targets were physically located.  Using specialized equipment, and with the remote support of conspirators in Russia, including Yermakov, these close access teams hacked computer networks used by victim organizations or their personnel through Wi-Fi connections, including hotel Wi-Fi networks.  After a successful hacking operation, the close access team transferred such access to conspirators in Russia for exploitation.

Among other instances, the indictment alleges that following a series of high-profile independent investigations starting in 2015, which publicly exposed Russia’s systematic state-sponsored subversion of the drug testing processes prior to, during, and subsequent to the 2014 Sochi Winter Olympics (according to one report, known as the “McLaren Report”), the conspirators began targeting systems used by international anti-doping organizations and officials.  After compromising those systems, the defendants stole credentials, medical records, and other data, including information regarding therapeutic use exemptions (TUEs), which allow athletes to use otherwise prohibited substances.

Using social media accounts and other infrastructure acquired and maintained by GRU Unit 74455 in Russia, the conspiracy thereafter publicly released selected items of stolen information, in many cases in a manner that did not accurately reflect their original form, under the false auspices of a hacktivist group calling itself the “Fancy Bears’ Hack Team.”  As part of its influence and disinformation efforts, the Fancy Bears’ Hack Team engaged in a concerted effort to draw media attention to the leaks through a proactive outreach campaign.  The conspirators exchanged e-mails and private messages with approximately 186 reporters in an apparent attempt to amplify the exposure and effect of their message.

Each defendant is charged with one count of conspiracy to commit computer fraud and abuse, which carries a maximum sentence of five years in prison, one count each of conspiracy to commit wire fraud and conspiracy to commit money laundering, both of which carry a maximum sentence of 20 years.  Defendants Morenets, Serebriakov, Yermakov, Malyshev, and Badin are each also charged with two counts of aggravated identity theft, which carries a consecutive sentence of two years in prison.  Defendant Yermakov is also charged with five counts of wire fraud, which carries a maximum sentence of 20 years.

Defendants Yermakov, Malyshev, and Badin are also charged defendants in federal indictment number CR 18-215 in the District of Columbia, and accused of conspiring to gain unauthorized access into the computers of U.S. persons and entities involved in the 2016 U.S. presidential election, steal documents from those computers, and stage releases of the stolen documents to interfere with the 2016 U.S. presidential election.

According to the indictment:

Context of the Hacking and Related Influence and Disinformation Efforts

In July 2016, the World Anti-Doping Agency’s (WADA) Independent Person Report (the “First McLaren Report”) was released, describing Russia’s systematic state-sponsored subversion of the drug testing process prior to, during, and subsequent to the 2014 Sochi Winter Olympics.  This investigation had the support of advocates for clean sports, including the United States Anti-Doping Agency (USADA), the Canadian Centre for Ethics in Sport (CCES, Canada’s anti-doping agency). Eventually, in some instances only after arbitration rulings by the International Court of Arbitration for Sport (TAS/CAS), approximately 111 Russian athletes were excluded from the 2016 Summer Olympic Games, in Rio de Janeiro, Brazil, by a number of international athletics federations, including track-and-field’s International Association of Athletics Federations (IAAF).  The International Paralympic Committee (IPC) further imposed a blanket ban of Russian athletes from the 2016 Paralympic Games, which were also held in Rio.

Intrusion Activities in Rio de Janeiro, Brazil

Days after the release of the First McLaren Report and the International Olympic Committee’s and IPC’s subsequent decisions regarding the exclusion of  Russian athletes, the conspirators prepared to hack into the networks of WADA, the United States Anti-Doping Agency (USADA), and TAS/CAS.   The conspirators, including specifically defendants Yermakov and Malyshev, procured spoofed domains (which mimicked legitimate WADA and TAS/CAS domains) and other infrastructure, probed such entities’ networks, and spearphished WADA and USADA employees.  Although Yermakov and Malyshev are both alleged to have prepared to send spearphishing e-mails to TAS/CAS, the indictment does not allege that organization was compromised.

Likely as a result of the conspirators’ failure to capture necessary log-in credentials, or because those victim accounts that were successfully compromised did not have the necessary access privileges for the sought-after information, defendants Morenets and Serebriakov, in at least one instance with the remote support of Yermakov, deployed to Rio to conduct hacking operations targeting and maintaining persistent access to Wi-Fi networks used by anti-doping officials.  As a result of these efforts, in August 2016, the conspirators captured that IOC official’s credentials and thereafter used them, and another set of credentials belonging to the same official to gain unauthorized access to an account in WADA’s ADAMS database and medical and anti-doping related information contained therein. (The broader ADAMS database was not compromised in the intrusion.)

Also in 2016, a senior USADA anti-doping official traveled to Rio de Janeiro for the Olympics and Paralympic games.  While there, the USADA official used Wi-Fi at the hotel and other Wi-Fi access points in Rio to remotely access USADA’s computer systems and conduct official business.  While the USADA official was in Rio, conspirators successfully compromised the credentials for his or her USADA email account, which included summaries of athlete test results and prescribed medications.

Intrusion Activities in Lausanne, Switzerland

In mid-September 2016, WADA hosted an anti-doping conference in Lausanne, Switzerland.  On September 18, 2016, defendants Morenets and Serebriakov traveled to Lausanne with equipment used in close access Wi-Fi compromises.  On or about September 19, 2016, Morenets and Serebriakov compromised the Wi-Fi network of a hotel hosting the conference and leveraged that access to compromise the laptop and credentials of a senior CCES official staying at the hotel. Other conspirators thereafter used the stolen credentials to compromise CCES’s networks in Canada, using a tool used to extract hashed passwords, the metadata of which indicated it was compiled by Badin.

Intrusion Targeting Anti-Doping Officials at Sporting Federations

In December 2016 and January 2017, conspirators successfully compromised the networks of IAAF and the Fédération Internationale de Football Association (“FIFA”) and targeted computers and accounts used by each organization’s top anti-doping official.  Among the data stolen from such officials were keylogs, file directories, anti-doping policies and strategies, lab results, medical reports, contracts with doctors and medical testing labs, information about medical testing procedures, and TUEs.

Related GRU Influence and Disinformation Operations

On September 12, 2016, shortly after the compromise of the IOC official’s ADAMS credentials, but before the compromise of USADA’s and CCES’s networks, conspirators claiming to be the hacktivist group Fancy Bears’ Hack Team used online accounts and other infrastructure procured and managed by Unit 74455, as well as the website fancybears.net, to publicly release TUEs, other medical information, and emails stolen from anti-doping officials at WADA, USADA, CCES, IAAF, FIFA, and approximately 35 other anti-doping agencies or sporting organizations.  In some instances, the WADA documents were modified from their original form.  Ultimately, the Fancy Bears’ Hack Team released stolen information that included private or medical information of approximately 250 athletes from almost 30 countries.

The conspirators’ release of the stolen information was, in some instances, accompanied by posts and other communications that parroted or supported themes that the Russian government had used in its official narrative regarding the anti-doping agencies’ investigative findings.  From 2016 through 2018, the conspirators engaged in a proactive outreach campaign, using Twitter and e-mail to communicate with approximately 186 reporters about the stolen information.  After articles were published, conspirators used the Fancy Bears’ Hack Team social media accounts to draw attention to the articles in an attempt to amplify the exposure and effect of their message.

Other Targets of the Conspiracy

The conspiracy is also alleged to have targeted other entities in the Western District of Pennsylvania and abroad that were of interest to the Russian government.  For example, as early as November 20, 2014, Yermakov performed reconnaissance of Westinghouse Electric Company’s (WEC) networks and personnel.  In the following months, Yermakov and conspirators created a fake WEC domain and sent spearphishing emails to WEC employees’ work and personal email accounts, which were designed to harvest the employees’ log-in credentials.

More recently, in April 2018, Morenets, Serebriakov, Sotnikov, and Minin, all using diplomatic passports, traveled to The Hague in the Netherlands in furtherance of another close access operation targeting the Organisation for the Prohibition of Chemical Weapons (OPCW) computer networks through Wi-Fi connections.  All four GRU officers intended to travel thereafter to Spiez, Switzerland, to target the Spiez Swiss Chemical Laboratory, an accredited laboratory of the OPCW which was analyzing military chemical agents, including the chemical agent that the United Kingdom authorities connected to the poisoning of a former GRU officer in that country.  However, Morenets, Serebriakov, Sotnikov, and Minin were disrupted during their OPCW hacking operation by the Militaire Inlichtingen- en Veiligheidsdienst (MIVD), the Dutch defense intelligence service.  As part of this disruption, Morenet’s and Serebriakov’s abandoned the Wi-Fi compromise equipment, which they had placed in the trunk of a rental car parked adjacent to the OPCW property.  Data obtained from at least one item of this equipment confirmed its operational use at multiple locations around the world, including connections to the Wi-Fi network of the CCES official’s hotel in Switzerland (the dates the conspirators conducted the Wi-Fi compromise of the senior CCES official’s laptop at the same hotel), and at another hotel in Kuala Lumpur, Malaysia in December 2017.

***

In connection with the unsealing of the indictment, and in an effort to limit further exposure of the private lives of victim athletes, the FBI seized the fancybears.net and fancybears.org domains pursuant to court orders issued on October 3, 2018, in the Western District of Pennsylvania.

The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.  Moreover, the maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentence of a defendant will be determined by the assigned judge.

The FBI, led by the Pittsburgh and Philadelphia Field Offices, conducted the investigation that resulted in charges announced today.  The FBI’s investigation was assisted by a parallel, independent Royal Canadian Mounted Police investigation. This case is being prosecuted by the U.S. Attorney’s Office for the Western District of Pennsylvania and the National Security Division’s Counterintelligence and Export Control Section.  The Criminal Division’s Office of International Affairs provided assistance throughout this investigation, as did the MIVD, the Government of the Netherlands, Switzerland’s Office of the Attorney General, the U.K.’s National Security and Intelligence Agencies, and many of the FBI’s Legal Attachés and other foreign authorities around the world.

Note: More information can be found at [justice.gov/opa/documents-and-resources-october-4-2018-press-conference]

National Security Division (NSD)
Press Release Number:
18 – 1296






 

 

SCW NEWSWATCH & VIDEO: “Saudis and Russia Open the Oil Taps While the Market Shrugs” – Bloomberg/ Elena Mazneva/ Annmarie Hordern/ Dina Khrennikova/ Grant Smith/ Jack Farchy

Oil Wells and Sunset

“Russia and Saudi Arabia are pumping an extra 1 million barrels a day of oil and could do even more. Yet the market [has had only a muted price reaction]. After their September meeting … spurred prices to a four-year high, the world’s two largest oil exporters sought … to ease … price worries of consumers, and the U.S. president. Russia is pumping record volumes of crude … Saudi Arabia is almost there ….

… Trump has been blaming [OPEC] for rising crude prices ever since he [ended] the [Iran] nuclear agreement … and reimpose[d] sanctions. Last month, the group appeared to rebuff his calls for a rapid production increase to offset the drop in Iranian shipments, prompting a surge in prices and even harsher rhetoric. … Russia … already broke its post-Soviet production record last month [and] could add another 200,000 to 300,000 barrels a day of supply within a ‘few months,’ according to Energy Minister Alexander Novak. The oil price is … probably ‘a bit too high,’ he said ….”

Click here for: “Saudis and Russia Open the Oil Taps While the Market Shrugs” – Bloomberg/ Elena Mazneva/ Annmarie Hordern/ Dina Khrennikova/ Grant Smith/ Jack Farchy










SCW RUSSIAWIRE: “Russia Inc. Isn’t Waiting for Central Bank to Brave a Rate Hike” – Bloomberg/Anna Andrianova

“The cost of money is rising for Russians well ahead of any potential central bank move to lift interest rates for the first time in almost four years amid concern the U.S. may impose fresh sanctions. State-run Sberbank PJSC, which holds almost half of all Russian savings, is increasing rates for ruble accounts for the first time since 2014. … [and] pay[ing] consumers more to keep dollars on deposit to stanch an outflow …. One of the country’s five largest mortgage lenders, Raiffeisenbank JSC, is charging more for home loans …. From sausages to gasoline, inflation is on the march …. with the central bank’s benchmark on hold at 7.25 percent since a quarter-point cut in March, rates adjusted for inflation remain among Europe’s highest …. “

Click here for: “Russia Inc. Isn’t Waiting for Central Bank to Brave a Rate Hike” – Bloomberg/Anna Andrianova

 





SCW RUSSIAWIRE: “In Russia, the Corporate Raiders Are Often Cops; Companies face harassment from law-enforcement officials, according to business owners, lawyers and activists” – Wall Street Journal/James Marson, Thomas Grove

Kremlin and St. Basil's at Night

“… Russian companies routinely face harassment from law-enforcement officials seeking to extort money or expropriate businesses, according to business owners, lawyers and activists. One in six Russian business owners is facing criminal prosecution, according to [a Kremlin-launched agency]. …  weaker prices for oil … and Western sanctions in 2014 sent the economy into a recession that it only emerged from last year. … Putin’s authoritarian rule relies on security officials and political heavyweights who use their authority not only to squash political opponents but also to squeeze companies for payoffs, seize them on behalf of rivals or take them over for themselves, critics say. … mak[ing] changes to the justice system potentially perilous. … [P]eople who should be building Russia’s economy are losing their businesses and their freedom. Russian courts found 99.8% of defendants guilty … and are ripe for hijacking using fabricated cases …. Resisting can be risky and often ends with the company being destroyed anyway. ….”



Click here for: “In Russia, the Corporate Raiders Are Often Cops; Companies face harassment from law-enforcement officials, according to business owners, lawyers and activists” – Wall Street Journal/James Marson, Thomas Grove



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NEWSWATCH: “Putin’s Success Masks Russian Weakness; Things are breaking his way. But if China is a tiger, Russia is a pussycat on stilts” – Wall Street Journal/Walter Russell Mead

“Despite … Putin’s successes, Russia remains weak, and its leverage over other nations is limited. China can woo its neighbors with multibillion-dollar projects like its ‘One Belt, One Road’ trade initiative. Russia has much less to offer: If China is a tiger, Russia is a pussycat on stilts. … Putin can obstruct Germany’s faltering European project, but he lacks the resources to offer an alternative. In the Middle East, the Kremlin’s position depends on American forbearance. If … Trump decides to make opposing the Assad regime a crucial part of his anti-Iran strategy, … Putin may have to stand by and watch his client fall. … developments at home counsel restraint as well. … Putin’s string of dramatic foreign-policy successes has shored up his domestic popularity, [but] Russia’s sclerotic economy and corrupt social order ensure that the foundations of his power remain weak. … Putin has made Russia great again on the international stage, but the Russian people would rather see him use that daring and finesse to improve the situation at home.”

Click here for: “Putin’s Success Masks Russian Weakness; Things are breaking his way. But if China is a tiger, Russia is a pussycat on stilts” – Wall Street Journal/Walter Russell Mead

 







 

NEWSWATCH: “Uber, Yandex combine ridesharing and UberEATS in Russian markets in a $3.72B JV” – TechCrunch

Map of Former Soviet Union, CIS, Western Portion, adapted from image at cia.gov

“As Uber continues to work through a huge amount of internal management turmoil, the company is also consolidating and rationalising more of its international business. Today, the company announced that it will be combining its rides-on-demand business and UberEATS, its food ordering and delivery business, in Russia and neighboring markets with Yandex.Taxi, the ridesharing business built up by the Russian search giant over several years and the current leader in the market, in what will be a separate, joint venture valued at $3.72 billion.

The deal — which will cover operations in Russia, Kazakhstan, Azerbaijan, Armenia, Belarus and Georgia — is expected to close in Q4 of this year and has already been approved by the boards of both companies. It’s a substantial operation. Currently it covers 35 million trips each month across 127 cities, with the bulk of those coming from the Yandex.Taxi part of the JV; Uber was only in 21 cities. …”

Click here for: “Uber, Yandex combine ridesharing and UberEATS in Russian markets in a $3.72B JV” – TechCrunch/ Ingrid Lunden





NEWSWATCH: “Russia squares up to Boeing, Airbus with maiden jet flight” – Reuters

Map of Russia with Russian Flag

“#Russia carried out the maiden flight of its new MS-21 medium-range passenger plane … its first post-Soviet foray into production of a mainline commercial aircraft which it hopes will rival those of its Western competitors. … manufacturer Irkut Corporation … and … state-controlled parent company United Aircraft Corporation (UAC) … [announced] a 30-minute flight at … 1,000 meters … [and] 300 km an hour. Squeezed by Western #sanctions over its role in the #Ukraine crisis, Russia is trying to rejuvenate domestic industrial production to make the country less dependant on foreign firms. …”

Click here for “Russia squares up to Boeing, Airbus with maiden jet flight” – Reuters 







NEWSLINK: “Russia’s Oil Cuts Won’t Be So Easy If OPEC Deal Is Extended; Rosneft and Lukoil plan higher spending and more drilling” – Bloomberg

Oil Wells and Sunset

“For #Russian #oil companies, the historic agreement to boost prices by cutting output in conjunction with [#OPEC] was an easy win. Extending the deal will be less straightforward. Cuts so far this year came alongside the traditional seasonal stagnation in Russian production, meaning the country made relatively few sacrifices in exchange for an increase in crude prices of more than 10 percent. For the powerful Russian oil bosses who plan to discuss the OPEC accord with Energy Minister Alexander Novak this week, a decision by the government to extend the cuts beyond June would stymie plans to boost output, creating many more headaches than the initial agreement. …”

NEWSWATCH: “How to Counter Russia’s Subversive War on the West” – RAND/William Courtney, Martin C. Libicki

Kremlin and Saint Basil's At Night

Russia’s apparent cyberespionage against the Democratic Party … and its state-sponsored doping of Olympic athletes show an obsession with disruptive behavior as a tool of statecraft. … Cyberwar and sports doping are among the arrows in Moscow’s quiver of “active measures,” a triple threat of propaganda, deception and subversion that dates to the Soviet era.



Russia’s subversive and corrupt behavior should have a negative impact on its international stature and perceived suitability for investment.

Moscow’s provocative active measures cause foreign investors and international lenders to see higher risks in doing business with Russia. … it should not be surprised if disregard for others’ interests diminishes the international regard it seeks as an influential great power.

Click here for RAND/William Courtney, Martin C. Libicki: “How to Counter Putin’s Subversive War on the West”