Austria and Russian intelligence

Austria's moved towards official neutrality in the 1950s, with laws only making espionage a crime if directed against Austria.[2][3] There is also a high concentration of nongovernmental and international organizations in Austria, influencing its attractiveness for foreign intelligence.[2][3] Among others, Vienna is home to the Organization for Security and Co-operation in Europe (OSCE) and one headquarters of the United Nations.[4] In addition to embassies, countries may have up to two additional diplomatic missions to the international organisations, giving diplomatic immunity.[4] Austria's history as a center of espionage is also due to its location centrally in Europe: during the First Cold War, Austria was a neutral state near the Iron Curtain. According to Siegfried Beer, founder of the Austrian Center for Intelligence, Propaganda and Security Studies, "[t]he Austrian government was eager to remain neutral. So it developed an atmosphere in which everybody was pretty cosy and profited from each other. [...] Espionage was a business. It still is. It brings a lot of people with a lot of money and a lot of support into the country."[4] According to New Statesman, "Russian diplomatic presence in Vienna is abnormally large and its enormous permanent mission to the United Nations is, experts believe, a hub of intelligence activity".[5]

In 1968 Austria became the first western European country to import Soviet gas.[5] Austria grew to a major hub for delivering gas to Italy, Germany and France. Austrian companies, especially in the energy sector, have become deeply entwined with Russia; at the end of 2021 Russian companies held $25.5 billion assets in Austria.[2] Russia was per 2022 the second largest investor in Austria, after Germany.[6] According to an estimate from the Bank for International Settlements, Austrian banks in 2022 were exposed to $17.5 billion in Russian debt.[5] Before the 2022 war, Austria got 80% of its natural gas from Russia, while 1/4 of all Russian gas deliveries to the EU flowing through the Austrian Baumgarten hub.[6]

Cultural ties are also close, with a prominent Russian presence in several Austrian cultural institutions.[6] Austria's role in foreign intelligence inspired The Third Man, which was inspired by Austrian journalist Peter Smolka.[4]

After the Russian annexation of Crimea in 2014, Austria was the first Western country to welcome Putin for a visit.[6]

Politically, ties between Austria and Russia have been warm and, to some partners, controversial. Political ties with the far-right Freedom Party have been particularly close.[5] According to The Washington Post, there has been a "revolving door [...] between the highest ranks of the Austrian government and major Russian state companies".[2] High-ranking Austrian officials moving to Russian business include former chancellors Wolfgang Schüssel and Christian Kern, who became members of the boards of Lukoil and Russian Railways respectively. Additionally, former foreign minister Karin Kneissl joined Rosneft, as well as began writing for RT as an opinion columnist.[5][2] Tensions with the West increased after the Kurz government took office in December 2017.[8]

Austria's close relationship with Russia has strained relations and co-operation with several Western countries. New Statesman states that Austria's European partners consider Austria's intelligence services and defense ministry to be "jeopardised" and "unreliable".[5] Financial Times, quoting an anonymous source, referred to Austria as a "veritable aircraft carrier" of Russian intelligence activity, and Austria's defense ministry as "practically a department of the GRU.[7] An Austrian official refused to comment on anonymous allegations, but pointed to an ongoing reform in the security services.[7] Several European intelligence agencies is said to have restricted intelligence-sharing with Austrian intelligence officials.[5] Among others, Reuters reported both British MI5 and the Dutch intelligence agency "heavily restricted" intelligence sharing with Austria, primarily due to the ties between the Freedom Party and Russia.[8] The Freedom Party, a junior coalition partner in the Kurz government, controlled most of the security apparatus, as well as the Defence Ministry and Interior Ministry — and therefore the BVT.[8]

According to Chris Miller, professor at the Fletcher School of Law and Diplomacy at Tufts University, the "Austrian and Hungarian governments are notorious for their open-door attitude toward Russian agents".[1] According to Gerhard Mangott, Professor of International Relations at the University of Innsbruck, it is "common knowledge" that agents often try to recruit Austrian informants, stating "[t]he Secret Services are very active in Austria on a bilateral basis, trying to win over informants from various institutions".[4] In 2018, Siegfried Beer estimated that the amount of spies masquerading as diplomats in Austria was around 7000.[3]

Austria's role as a neutral "spy haven" played a part in it being the setting in 2010 for the largest spy swap between the U.S. and Russia since the First Cold War.[3][4]

NBC reported in 2018 that the pro-Russian Freedom Party's control of intelligence services "led to fears that Western secrets aren't safe any more" in Austria. Gustav Gressel, a former desk officer at the Austrian Ministry of Defense, predicted "Austria is part of the European Union defense policy, and whatever is agreed and discussed there will be leaked to Moscow".[3]

In 2018, an Austrian colonel came under investigation on allegations he had spied for Russia since the 1990s. The case was described as a "particular embarrassment to Austria" by the BBC.[4] In 2020, the man was sentenced for betraying state secrets and spying for the GRU for over 25 years.[9]

In 2019, German federal police (BKA) raised concerns that Austrian intelligence agents aided Russian intelligence services, alleging two Austrian agents – one of the Egisto Ott – had passed on sensitive information to Russia. The German statement came weeks after a Georgian of Chechen descent was assassinated in Berlin, on behalf of Russian authorities.[10]

Also in 2019, the head of BVT informed that despite the agency not taking part in the working groups of the Club of Bern, due to concern from members of leaks, it was still a member.[8] In an annual report, the BVT has itself stated that Austria is a "favored area of operations" for a "high" number of spies. BVT head Peter Gridling estimated it consisted of "a community of hundreds of people".[4]

In the wake of the Skripal poisonings, Austria was one of few EU countries not to expel Russian diplomats.[3][8]

The Kurz government including the Freedom Party collapsed in 2019, after a video emerged showing Heinz-Christian Strache, vice chancellor and Freedom Party leader, apparently accepting an offer of financing from a woman pretending to be the niece of a Russian oligarch.[6]

In June 2020, a retired member of the Austrian military was sentenced to three years in prison after being found guilty of spying for Russian authorities.[11]

In 2021, Austrian diplomat Johannes Peterlik came under investigation for leaking confidential documents related to the Skripal poisonings. Peterlik had been the highest ranking civil servant at the ministry from 2018 to 2020. Die Presse and Der Standard stated Peterlik is suspected of giving classified documents to a former Austrian secret agent accused of spying for Russia.[11]

Christo Grozev, formerly of Bellingcat, has claimed that while doing investigations in Austria, he was surveilled by Austrian intelligence at the explicit order of Russia.[12] Due to Russia's "deep penetration" of Austria, he has called it the least safe European country; he later fled country after being told by Austrian authorities that it was unsafe for him to stay.[12]

• Austria–Russia relations