CIA fingers Russia, Newcastle caves to MBS

From: POLITICO's National Security Daily - Friday Oct 08,2021 07:59 pm
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By Alexander Ward and Quint Forgey

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Newcastle United

Bags of rubbish which have been collected from the celebrations from the previous night, are seen at St. James' Park in Newcastle Upon Tyne, England Friday Oct. 8, 2021. English Premier League club Newcastle has been sold to Saudi Arabia's sovereign wealth fund after a protracted takeover and legal fight. (AP Photo/Scott Heppell) | AP

With help from Daniel Lippman

Welcome to National Security Daily, your guide to the global events roiling Washington and keeping the administration up at night.

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It’s the Friday before a long weekend — and after a long week — so it’s time for NatSec Daily to go a little rogue and talk about the Saudi Arabia-led takeover of the Premier League club Newcastle.

In a deal worth just over $400 million, Saudi Arabia’s sovereign wealth fund (and others) bought the storied team, turning it into the world’s richest in the process . The agreement, in the works since 2017, was greeted cheerfully by fans desperate for some good news after years of woeful performances. As the New York Times’ RORY SMITH noted, the fan sign that most captured the fan’s despair was, “We don’t demand a team that wins, we demand a club that tries.”

More money means better players, so happy days might return to St. James’ Park once again.

Or maybe not — at least not off the field.

Critics say there’s just no way Riyadh’s Public Investment Fund is free from the control of Crown Prince MOHAMMED BIN SALMAN (MBS), the de facto Saudi ruler allegedly responsible for the murder of dissident JAMAL KHASHOGGI, the war in Yemen, and other egregious human rights violations. He chairs the supposedly “sovereign” fund, after all.

Buying a top-tier soccer club is an exercise in reputation-laundering, via the glitz and glamor of one of the world’s most prestigious leagues. “Saudi ownership of St. James’ Park was always as much about image management for Crown Prince Mohammed bin Salman and his government, as it was about football,” SACHA DESMUKH, CEO of Amnesty International U.K., said in a statement . “The Premier League needs to better understand the dynamic of sportswashing and tighten its ownership rules.”

The British government could’ve intervened. But for reasons that remain unclear and yet monumentally obvious, it chose not to: 10 Downing Street is refusing to release details of deliberations with the Premier League for fear of causing “harm” to its relationship with Riyadh. In June, MBS sent a text message to Prime Minister BORIS JOHNSON, warning him that U.K.-Saudi ties would be damaged if the Newcastle deal fell through. And British officials in the Sports and Foreign ministries kept hounding the Premier League throughout the process, asking for updates on its decision.

“The U.K. Government has never had a role at any point in the takeover of Newcastle United. This has been a commercial matter for the Premier League to assess under its owners’ and directors’ test,” a British official told NatSec Daily, referring to the rules that could prohibit an individual from owning a club due to violations such as “criminal convictions.”

Now one of the world’s most brutal despots is inside the crown jewel of British sport. That might be a short-term win for the league and Newcastle, but a long-term loss for the United Kingdom’s own reputation — and the ongoing global tussle between democracies and autocracies.

“Saudi Arabia's takeover of Newcastle United football team is an interesting example of the democracy versus autocracy clash of governance systems in action,” the Brookings Institution’s THOMAS WRIGHT tweeted. “Not only is [MBS] ‘sportswashing’ his reputation, he will also show that he is playing a constructive role in the revitalization of northern England, one of the so-called ‘left behind places’. Harder for UK politicians to criticize him then.”

Wright noted that prominent politicians like Labour leader KEIR STARMER have refused to criticize the takeover. “It’s not for me” to object to the deal, Starmer said. “It is for an independent regulator.”

As a fan of a team in rapid decline , NatSec Daily understands the allure of wanting a rich owner to make the club’s problems disappear. But now Newcastle supporters have a tough choice ahead: keep dressing up as MBS and welcoming the Saudis’ deep pockets to town, or make the moral choice and reject the new owners.

“It puts Newcastle fans in this tremendous bind,” NATE SCOTT , content director for USA Today’s “For the Win” sports blog, told us. “They can point out that the owners of clubs like Manchester City, Chelsea, or Paris Saint-Germain undoubtedly have their own dirty laundry, and why should they not be allowed to succeed as this is the state of the modern game, morality be damned. Or they can just not care at all, and celebrate when the big signings inevitably start coming in.”

 

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The Inbox

CIA SUSPECTS “HAVANA SYNDROME” CAUSED BY DIRECTED-ENERGY ATTACKS: The CIA’s investigation into the mysterious illnesses impacting American personnel overseas and at home is turning up new evidence that the symptoms are the result of directed-energy attacks, five lawmakers and officials briefed on the matter told our own ANDREW DESIDERIO and LARA SELIGMAN.

And it looks like Russia might be to blame: “Behind closed doors, lawmakers are also growing increasingly confident that Russia or another hostile foreign government is behind the suspected attacks, based on regular briefings from administration officials — although there is still no smoking gun linking the incidents to Moscow,” they wrote.

If the investigation does determine that Russia is responsible for the attacks on U.S. personnel around the world, not only will relations plunge quickly, but the administration would have to respond in a major way.

In the meantime, President JOE BIDEN on Friday signed a bill to aid victims of the suspected attacks by expanding access to medical treatment. The legislation, introduced by Intelligence Committee leaders in the House and Senate, cleared both chambers unanimously.

“Addressing these incidents has been a top priority for my administration,” Biden said in a statement. “We are bringing to bear the full resources of the U.S. government to make available first-class medical care to those affected and to get to the bottom of these incidents, including to determine the cause and who is responsible.”

ATTACK AT KUNDUZ MOSQUE: About 50 people were killed in the bombing of a Shitte mosque in Kunduz province during Friday prayers, the deadliest attack in Afghanistan since U.S. and international troops departed the country. Over 100 people were also injured in the blast in Khanabad. It remains unclear who’s responsible for the attack, but terrorist groups like ISIS have claimed similar strikes in the past.

The United Nations Assistance Mission in Afghanistan tweeted “Today’s incident is part of a disturbing pattern of violence: 3rd deadly attack this week apparently targeting a religious institution.”

The spate of violence is problematic for the new rulers of Kabul. “Whatever legitimacy the Taliban enjoy is largely rooted in their promise to provide security,” ANDREW WEINSTEIN , a research fellow at the Quincy Institute for Responsible Statecraft, told NatSec Daily. “So continued terrorist attacks present a real challenge to the Taliban's authority, especially ones by Islamic State Khorasan.”

CHINA WANTS U.S. TROOPS OUT OF TAIWAN: News yesterday that a few dozen U.S. military trainers have been in Taiwan for at least a year earned a harsh rebuke from Beijing today, per the Washington Post’s CHRISTIAN SHEPHERD and MICHAEL E. MILLER.

The U.S. should understand the “high sensitivity” of the issue, Chinese Foreign Ministry spokesperson ZHAO LIJIAN said, adding “China will take all necessary measures to protect its sovereignty and territorial integrity.”

Taiwanese officials won’t comment on the reported deployment, and the Pentagon won’t confirm it — though U.S. defense officials won’t deny it, either. However, the Pentagon’s own personnel website indicates there are U.S. troops on the island. As of June 30, per the latest quarterly report, 23 Marines, two sailors, and five airmen were in Taiwan.

DRINKS WITH NATSEC DAILY: At the end of every long, hard week, we like to highlight how a prominent member of Washington’s national security scene prefers to unwind with a drink.

Today, we’re featuring Rep. MIKE WALTZ (R-Fla.), the first Green Beret in Congress and a House Armed Services Committee member. NatSec Daily fans will remember Waltz as the lawmaker who desperately pushed the Biden administration to recognize the leaders of the armed anti-Taliban movement as the real rulers of Afghanistan.

When he’s not calling for the U.S. government to fund and arm resistance fighters, Waltz said he enjoys “Horse Soldier bourbon and ginger ale consumed anywhere near the water. Florida beaches and bourbon made by veterans keeps my mind right.” Cheers, Congressman!

IT’S FRIDAY. WELCOME TO THE LONG WEEKEND: Thanks for tuning in to NatSec Daily. This space is reserved for the top U.S. and foreign officials, the lawmakers, the lobbyists, the experts and the people like you who care about how the natsec sausage gets made. Aim your tips and comments at award@politico.com and qforgey@politico.com, and follow us on Twitter at @alexbward and @QuintForgey.

While you’re at it, follow the rest of POLITICO’s national security team: @nahaltoosi, @woodruffbets, @politicoryan, @PhelimKine, @BryanDBender, @laraseligman, @connorobrienNH, @paulmccleary, @leehudson, @AndrewDesiderio and @JonnyCustodio.

 

THE MILKEN INSTITUTE GLOBAL CONFERENCE 2021 IS HERE: POLITICO is excited to partner with the Milken Institute to produce a special edition "Global Insider” newsletter featuring exclusive coverage and insights from one of the largest and most influential gatherings of experts reinventing finance, health, technology, philanthropy, industry and media. Don’t miss a thing from the 24th annual Milken Institute Global Conference in Los Angeles, from Oct. 17 to 20. Can't make it? We've got you covered. Planning to attend? Enhance your #MIGlobal experience and subscribe today.

 
 
Flashpoints

SULLIVAN WARNS RUSSIA AGAINST EXPLOITING ENERGY CRISIS: National security adviser JAKE SULLIVAN urged Russia against using its natural gas supply to take advantage of Europe amid a worsening energy crisis on the continent — telling the BBC’s JAMES LANDALE “it would be a mistake” for Moscow “to try to exploit” the situation and warning: “I think that would ultimately backfire on them.”

“We have long been concerned about Russia using energy as a tool of coercion and a political weapon. We have seen it happen before, and we could see it happen again,” Sullivan said. He added: “I believe they should respond to the market demands for increased energy supplies to Europe.”

Sullivan’s remarks come after Russian President VLADIMIR PUTIN said Wednesday “said that Russia could sell more gas to European spot buyers via his country’s domestic exchange,” but noted that “Russia’s state-controlled gas giant Gazprom also needs to fill its own stores to serve domestic needs in anticipation of winter,” per The Associated Press’ VLADIMIR ISACHENKOV.

Kremlin spokesperson DMITRY PESKOV also said yesterday that “there is a potential” for Russia’s existing gas transit routes to boost their supplies to Europe before the completion of the Nord Stream 2 pipeline connecting Russia and Germany, Isachenkov reported.

Keystrokes

RUSSIA HACKS MOST, U.S. MOST TARGETED: The United States was the country that suffered nearly half of all cyberattacks from July 2020 to June 2021, Microsoft detailed in a new Digital Defense Report.

The U.S. was the site of 46 percent of all cyberattacks that Microsoft tracked, followed far behind by Ukraine with 19 percent.

If you’re thinking “those two countries seem like Russian targets,” you’d be right. Russia was the origin site for 58 percent of cyberattacks in that one-year time period, trailed by North Korea at 23 percent. The other global actors, Iran and China, respectively accounted for only 11 percent and 8 percent of hacks, respectively.

The report comes as news breaks that Google stopped a Russian government phishing attack that targeted 14,000 users.

LAWMAKERS CALL FOR MARITIME CYBERSECURITY: Sen. ANGUS KING (I-Maine) and Rep. MIKE GALLAGHER (R-Wis.) co-wrote an op-ed for Cyberscoop arguing a successful cyberattack on the maritime transit system would be catastrophic to the global economy. As such, they argue it’s imperative that U.S. officials help those in the industry to protect themselves.

“One way the federal government can add value to these critical infrastructure owners and operators is through the sharing of critical cyber threat intelligence and information, a common request from nearly all critical infrastructure sectors, but one that the federal government has been slow to answer,” they wrote. “Now is the time for Congress and the executive branch to collaborate with one another and take the steps necessary to help manage the risk to the maritime sector.”

Both lawmakers are members of the Cyberspace Solarium Commission, which King co-chairs.

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The Complex

“FIRST-EVER SYSTEM”: Our friends over at Morning Defense (for Pros!) report that the Army has delivered to a brigade the first prototype ground launch system for the Long-Range Hypersonic Weapon, one of its top modernization priorities.

“Delivering the ground hardware first will allow the soldiers to train on the equipment, create doctrine for this first-ever system, and develop tactics, techniques and procedures,” the Army said.

THE NEXT DRONE: Also from Morning D — General Atomics Aeronautical Systems is developing an updated Gray Eagle Extended Range drone to carry advanced payloads, communication equipment and AI, according to the company.

The original Gray Eagle doesn’t have the processing power needed to take advantage of AI and machine learning. The company plans to begin flight testing the new version in early 2022.

On the Hill

WHITE HOUSE HIGHLIGHTS CHINA’S RISE TO SELL BIDEN’S BILLS: Congressional Democrats should green-light the president’s legislative agenda because of its numerous provisions intended to counter China, top White House officials told lawmakers in a memo Wednesday — a copy of which was obtained by NBC News’ SAHIL KAPUR.

The five-page document disseminated to Senate Democrats — authored by White House economic adviser BRIAN DEESE, climate adviser GINA MCCARTHY and domestic policy adviser SUSAN RICE — makes 12 references to China and describes eight categories of competitiveness in Biden’s massive climate and social spending plan, as well as the bipartisan infrastructure bill, Kapur wrote.

The memo specifically mentions “policies to boost electric vehicles … investments in clean energy to combat China's growing market share in making wind turbines … new child care and paid leave benefits to boost women’s participation in the labor force … universal pre-K to improve early childhood education … [and] cash payments for children to combat child poverty,” according to Kapur.

Broadsides

BACON SIZZLING: Two days ago, NatSec Daily asked House Armed Services Committee Rep. DON BACON (R-Neb.) how he felt about Defense Secretary LLOYD AUSTIN imploring Congress to lift the debt ceiling.

Bacon said he was traveling and so he missed our message. But once he saw it, he unloaded in an email while on the run.

“To answer your question it depends on details. I won’t vote for removing debt limit for 15 months and that’s what last two bills did. And, I won’t facilitate $5.2T in two partisan reconciliation bills that doesn’t garner a single GOP vote. For starters, the Dem leadership need to put a number on the wall to raise debt ceiling not a removal of debt ceiling that clears unlimited spending,” he wrote.

So, don’t count the former airman dazzled by the Pentagon chief.

Transitions

FIRST IN NATSEC DAILY: KATRINA MULLIGAN will be the new principal deputy assistant secretary of Defense for special operations/low-intensity conflict, or the PDASD for SO/LIC. She's currently the acting vice president for national security and international policy at the Center for American Progress. She begins on Nov. 8.

— FIRST IN NATSEC DAILY: Longtime Hill and DHS national security staffer ADAM STAHL has joined Avangrid, a national public utilities and renewable energy company, as chief of staff for its corporate security office. Stahl also will be supporting the company’s policy movements that intersect with supply chain, energy and cybersecurity issues. Stahl supported the most recent supply chain executive order efforts, and when he was deputy chief of staff in the DHS policy office, he led the development of the department’s first-ever China and Arctic strategies.

— ROBERT HOGUE is now acting assistant secretary of the Navy for manpower and reserve affairs. He most recently was the counsel for the commandant of the U.S. Marine Corps.

Lt. Gen. (Ret.) JOHN “JD” JOHNSON has joined GM Defense LLC, a subsidiary of General Motors, as vice president of business development. He served in the U.S. Army for more than 35 years and held numerous senior positions at the Pentagon, including director of the Defense Department’s Joint Improvised Explosive Device Defeat Organization and commander of Eighth Army in the Republic of Korea.

 

BECOME A GLOBAL INSIDER: The world is more connected than ever. It has never been more essential to identify, unpack and analyze important news, trends and decisions shaping our future — and we’ve got you covered! Every Monday, Wednesday and Friday, Global Insider author Ryan Heath navigates the global news maze and connects you to power players and events changing our world. Don’t miss out on this influential global community. Subscribe now.

 
 
What to Read

— MEGAN K. STACK, The New Yorker:The Inconsistency of American Feminism in the Muslim World

— GREG MYRE and JOHN RUWITCH, NPR:Is China a threat or an opportunity? Depends which Americans you ask

— MONDIANT DOGON, Time:The Invisible Tragedy Facing Refugees Like Me

Tuesday Today

— The Middle East Institute, 9 a.m.:The Middle East Futures Forum — with MOATAZ AL RIYAMI, MICHAEL BERKOWITZ, RAYA BIDSHAHRI, FRANCISCO BLANCH, JAMES-CHRISTIAN BLOCKWOOD and more”

— The Center for Strategic and International Studies, 2 p.m.:Opening Doors: Embracing Diversity in National Security — with CATRINA DOXSEE and GRACE HWANG

— The Government Executive Media Group, 2 p.m.:The Emerging Approach to Cyber Situation Awareness: Leveraging AI/ML for Actionable Intelligence — with DONNA S. BENNETT, DAVE KELLY, OKI MEK and DEEPINDER SINGH

— The Israel Policy Forum, 2 p.m.:The New Normal: Arab-Israeli Normalization and the Israeli-Palestinian Conflict — with SHIRA EFRON, EVAN GOTTESMAN and MICHAEL KOPLOW

— Georgetown University’s Center for Security and Emerging Technology, 4 p.m.:Collaborative S&T Development: Creating a NATO Decision Advantage in AI — with MARGARITA KONAEV and BRYAN WELLS

Have a natsec-centric event coming up? Transitioning to a new defense-adjacent or foreign policy-focused gig? Shoot us an email at award@politico.com or qforgey@politico.com to be featured in the next edition of the newsletter.

And thanks to our editor, Ben Pauker, who we want to remain the owner of this club.

 

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