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From the SitRoom to the E-Ring, the inside scoop on defense, national security and foreign policy. | | | | |  | | By Nahal Toosi, Alexander Ward and Quint Forgey | | 
A view of the yacht "Lady M," owned by Russian oligarch Alexei Mordashov, at it is docked at Imperia's harbor, Italy, Saturday, March 5, 2022. | Antonio Calanni, File/AP Photo | With help from Lara Seligman and Daniel Lippman Send tips | Subscribe here | Email Alex | Email Quint ANDREW ADAMS, the federal prosecutor leading Task Force KleptoCapture, has a broad definition of success in his mission to take down oligarchs and other corrupt actors linked to the Kremlin — and it’s about much more than just seizing yachts. He and his team want to make Russian President VLADIMIR PUTIN ’s cronies too nervous to travel. They want to make them so radioactive that insurance companies, banks and other private firms won’t do business with them. They want to find the assets their wealthy targets have hidden in obscure realms few would even imagine. “Those are the quieter actions that we take,” Adams told NatSec Daily this week. “It’s not something that we can trumpet in a public way. But if you pull insurance on a boat, the boat doesn’t go anywhere. And you have largely the same impact that you would with a seizure.” Adams’ task force, based at the Justice Department, isa key piece of President JOE BIDEN’s effort to punish Russia for invading Ukraine. It has grabbed early public attention due largely to its seizures of oligarchs’ super-yachts. But, as Adams sees it, the task force’s work builds on years of Justice Department efforts to root out money laundering and other financial corruption. Here are some highlights from our own NAHAL TOOSI’s conversation with Adams: — Adams’ biggest reservation about leading the task force turned into the nicest surprise. He worried other countries wouldn’t be helpful. Instead, many governments, especially in Europe, have worked in tandem to impose sanctions and make it easier to crack down on oligarchs and other Kremlin-linked figures. “Even in cases where there is robust cooperation, there are linguistic hurdles, there are bureaucratic hurdles, there are just differences in sort of legal cultures that are challenging,” Adams noted. Still, for now, “what you really do see, again, is an alignment of foreign partners that makes that effort tangible. It makes it something that can be capitalized on in a way that it could not be capitalized on six months ago.” — It might seem like it took a war for America to crack down on Russia’s corruption, but Adams says that’s not a fair assertion. Adams, who hails from the Southern District of New York and has spent years pursuing money laundering and transnational crime cases, insists it’s always been a priority. He also points out, however, that it’s hard work: the uber-wealthy often bury their assets under numerous layers of shell companies and through other individuals, and that just takes time to sift through. “It is the case that this is a new context in which we’re operating,” Adams said. “But although the task force as it exists today didn’t exist four months ago, it is certainly the case that major parts of the U.S. law enforcement community including the largest prosecutor’s office in the country … have been intensely focused on [fighting corruption] for years.” — The U.S. attracts its share of illicit funds, but Adams says it’s not as safe a haven as many other countries, especially amid crackdowns in recent years. “The U.S. is not a very attractive market to be an ostentatious oligarch in,” the prosecutor said. “It is an extremely attractive place if you want to find high-value assets in a stable economy where you can take advantage of the rule of law that doesn’t exist in your home country to protect assets, to protect value over the long term. But in part because of the focus on sanctions and sanctions evasion, and, specifically, sanctions in the context of traditional financial institutions in the U.S., there has been a culture of compliance largely instilled, I think, through the predominant percentage of U.S. financial institutions, such that it’s harder to operate in the U.S. than it has been historically in other parts of the world where you may find a similar kind of economic situation.” — Adams hopes the Justice Department will create “a sort of permanent DOJ clearinghouse for thinking about sanctions.” Essentially, a single point of contact that can coordinate the work of multiple units within the department, some of whom are targeting Russia in their own ways. “I think it’s useful, essentially, to leverage conversations with foreign partners,” he said. “A major part of the work in the first several months of the task force has been coordination, and coordination of foreign partners and essentially giving them an outlet to plug into for their own efforts. Going forward that should, that can, exist, and I think people understand that that should just exist as easy as plug and play for the next kind of crisis that exists in this space.” — Will the task force broaden its mission beyond Russians? Adams wouldn’t exactly commit to that, and in fairness, it’s probably not his decision. He indicated, though, that the growth of public awareness about international corruption due to the Ukraine war would help keep the issue a priority. “This task force exists in response to a particular crisis and particular time, but it’s not the end of the story for what the DOJ has done or can do or is doing today,” he said.
| | | RUSSIA CONTROLS ONE-FIFTH OF UKRAINE: Russia is now in control of roughly 20 percent of Ukrainian lands, Ukrainian President VOLODYMYR ZELENSKYY told Luxembourg’s Parliament in a video address this morning. “If you look at the entire front line, and it is, of course, not straight, this line is more than a thousand kilometers,” he said. “Just imagine! Constant fighting, which stretched along the front line for more than a thousand kilometers.” That doesn’t mean Russia took one-fifth of Ukraine’s territory since the invasion began on Feb. 24. Russia controlled a decent chunk following the annexation of Crimea and parts of the Donbas. Zelenskyy didn’t detail the extent to Russia’s extra seizures over the past 100 days. But, per The New York Times: “Mr. Zelensky said that Russian troops have occupied a total of 3,620 population settlements, which includes cities, towns and villages, but, in a sign of the war’s shifting dynamics, he said that Ukraine has ‘liberated’ 1,017 of those places.” He added that 14,000 Ukrainian citizens and civilians have been killed while 1.5 million have been internally displaced. Another 5 million have fled abroad as refugees. UKRAINE SECURITY SERVICES HUNTING PRO-RUSSIA SUPPORTERS: Some sections of Russian-speaking Ukraine continue to support Moscow over Kyiv. Ukraine’s security services aren’t having it, tracking down citizens they believe might be aiding the Russian cause. “That involves active pursuit of collaborators in Russian-held territory, some of whom have been targeted in recent assassination attempts, and detentions of suspected Russian agents,” The Wall Street Journal’s YAROSLAV TROFIMOV reported. “Many of those arrested are posting pro-Kremlin messages on social media, driven by loyalties to Russia and without any contact by the government in Moscow, the SBU [Ukraine’s domestic intelligence agency] says. Some take money from the Russians to do so. A handful were actively passing military information, such as Ukrainian artillery positions, to the enemy, according to the SBU.” In one such instance, the SBU arrested IGOR POPOV for posting pro-Russia content on social media and hoping Moscow prevailed in the war. Per Trofimov: “Mr. Popov was detained on suspicion of violating article 436-2 of Ukraine’s criminal code, which punishes with up to five years in prison the production and distribution of materials that publicly support and glorify the enemy in wartime. He remains behind bars, awaiting a trial, according to the SBU, and couldn’t be reached for comment.” It’s unclear if there’s more to Popov’s actions that required his detainment. But he was arrested solely for sharing his views, even if they are critical of Kyiv and flattering to Moscow, it harms Ukraine’s narrative of fighting for democracy. BIDEN APPLAUDS YEMEN TRUCE EXTENSION: A two-month truce in the Yemen war brokered in April has been extended for another two months, but President JOE BIDEN wants this one to stick. “[I]t’s important that we work from here to make it permanent,” he said about the newest U.N.-negotiated truce between the Saudi-led coalition and the Iran-backed Houthis. “I urge all parties to move expeditiously towards a comprehensive and inclusive peace process. Our diplomacy will not rest until a permanent settlement is in place.” The war in Yemen has raged since 2015, killing nearly 400,000 people, displacing 4 million and pushing 5 million to the brink of famine. The U.S. says it only provides defensive support to the Saudi-led coalition, though critics contend that helping to keep the Royal Saudi Air Force in the skies and providing intelligence could be considered offensive. Thanks to the ceasefire, the first commercial flight in years took off from Sana’a earlier this month. “Egypt and Jordan opened their airports to flights from Yemen over the past month thereby enabling a key component of the truce process,” Biden noted in his statement. MEA CULPA: POLITICO wrote a story Wednesday about the U.K. preparing to send U.S.-made M270 Multiple Launch Rocket Systems to Ukraine featuring a detail about a high-level conversation between the two countries. After the story ran, we learned that the information provided to POLITICO was incorrect. The piece is now updated. IT’S THURSDAY: 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, @ChristopherJM, @BryanDBender, @laraseligman, @connorobrienNH, @paulmcleary, @leehudson, @AndrewDesiderio and @JGedeon1.
| | A message from Lockheed Martin: Our mission is to prepare you for the future by engineering advanced capabilities today.
Many of today’s military systems and platforms were designed to operate independently. Through our 21st Century Security vision, Lockheed Martin is accelerating innovation, connecting defense and digital to enhance the performance of major platforms, to equip customers to stay ahead of emerging threats. Learn more. | | | | | | CHINA TO LAUNCH AIRCRAFT CARRIER: Satellite images appear to show China preparing to launch its newest and most advanced aircraft carrier, The Wall Street Journal’s GORDON LUBOLD and WARREN STROBEL reported. “[A]fter several years of work in the Jiangnan Shipyard in Shanghai, China’s third carrier, known as a Type 003, may be afloat in coming weeks or even days , analysts said. The Type 003 is China’s third aircraft carrier, and its largest and most advanced. It uses new electromagnetic catapult technology akin to what the U.S. and French carriers have to launch aircraft, analysts said,” they wrote. “Once operational, China’s third carrier will greatly expand its ability to secure its near-sea interests while also enabling the [Chinese Navy] to project power further away from the Chinese mainland,” MATTHEW FUNAIOLE , a senior fellow with the China Power Project at the Center for Strategic and International Studies who provided the Journal the images, told the reporters. “The satellite imagery taken May 31 by Maxar Technologies shows that the drydock where the ship had been under construction has been cleared of smaller ships and boatyard work that previous imagery showed had been there just 10 days ago,” the WSJ continued. “The removal of that work would enable the Chinese navy to launch the carrier into the Yangtze River, said Mr. Funaiole, who noted that Beijing could launch the ship on a national holiday, the Dragon Boat Festival, which begins on Friday. It could still be years before the carrier is fully operational, Mr. Funaiole added.” IS PUTIN SICK?: Speculation about the Russian president’s health has run rampant for years, but it’s picked up steam in recent days — especially after the Kremin officially denied the dictator was sick. “You know, President Putin appears in public every day. You can see him on the screens, read his speeches, listen to his speeches,” Russian Foreign Minister SERGEI LAVROV told French media TF1. “I don’t think sane people can discern any sort of symptom of disease in this man.” As POLITICO Europe’s VICTOR JACK noted: Kremlinologists (and certainly Western intelligence officials) are “interpreting everything from his bloated appearance as a sign of steroid-use, to implying the Russian leader has Parkinson’s and cancer. Video footage showing Putin fiercely gripping a table while looking uncomfortable during a recent meeting, making twitchy hand gestures and seeming to limp during Russia’s Victory Day parade, have only added to this free-for-all among armchair physicians.” But importantly, “Doctors have so far argued none of this is strong enough to indicate Putin is ill, and only an up-close diagnosis could verify the rumors. Intelligence experts have largely agreed.” Still, Putin likes to present himself as a strong man’s strongman. To know there are whispers about his frailty — and not for the first time in his many years in power — must be annoying. Newsweek's WILLIAM ARKIN reported today that Putin was treated for cancer in April, citing three unnamed U.S. intelligence officials with access to the assessment.
| | | | INTRODUCING DIGITAL FUTURE DAILY - OUR TECHNOLOGY NEWSLETTER, RE-IMAGINED: Technology is always evolving, and our new tech-obsessed newsletter is too! Digital Future Daily unlocks the most important stories determining the future of technology, from Washington to Silicon Valley and innovation power centers around the world. Readers get an in-depth look at how the next wave of tech will reshape civic and political life, including activism, fundraising, lobbying and legislating. Go inside the minds of the biggest tech players, policymakers and regulators to learn how their decisions affect our lives. Don't miss out, subscribe today. | | | | | | | | ZELENSKYY WANTS BIG TECH OUT OF RUSSIA: Some of the world’s biggest technology companies should rethink their decision to continue doing business in Russia, Zelenskyy told Wired’s GEOFFREY CAIN in an interview. “Unfortunately, there are many other companies still operating there. When we have recovered Russian weapons during or after battles, we’ve found that many shells and parts of weapons were made by Western companies. So, in fact, we are fighting not only against Russia but against all those companies as well. We have appealed to those countries to stop such cooperation,” he said, unwilling to name the firms. He further castigated certain unnamed companies for failing to break through Russia’s control of information. “Some big, cool platforms—despite being blocked in Russia—should find a technological, ideological, or some kind of creative way to show them the truth of our reality so that Russian people would understand that they live in another world,” he said. Zelenskyy was complimentary of Starlink, which has enabled certain parts of Ukraine to remain online even during the war.
| | | NAVY SPOX RETWEETS STORY ABOUT HOLLYWOOD PUSHING BACK ON CHINA: Bloomberg News wrote a Tuesday story about how TOM CRUISE’s “Maverick” character wrote a jacket featuring Taiwan’s flag (Japan’s, too). The piece features a quote from CHRIS FENTON, a former movie executive: “Hollywood is now pushing back,” he said, “The market is simply not worth the aggravation anymore in attempting to please Chinese censors.” The Navy Chief of Information retweeted someone who posted the quote , which caught NatSec Daily’s collective eye. The retweet is still live, though CHINFO notes on its feed that retweets don’t necessarily equal endorsements. Still, it’s worth noting that the Navy decided to signal boost a piece about a military movie that doesn’t bend to China’s will. But the Navy contends that isn’t the takeaway. "When I retweet something, it's not endorsement," said the Navy’s top spokesperson, Rear Adm. CHARLIE BROWN , who personally handles the Twitter account. "I am sharing news about Top Gun since there were a lot of comments about the movie and the decision to change the patches in the trailer." Fine, but that doesn’t completely add up. For starters, there are many tweets linking to stories on the issue — like this one — that don’t highlight the Fenton quote. But Brown chose the one where the only text above the link was Fenton’s comment about why it wasn’t worth “attempting to please China.” Brown may not have meant to send a signal, then, but one was still conveyed. TURKEY GIVES BAYRAKTAR FOR FREE: Turkey is donating its effective Bayraktar drone to Lithuania, per Lithaunian Minister of National Defense ARVYDAS ANUŠAUSKAS. “It is amazing! For the gathered money we will buy the needed ammunition for the Bayraktar and the rest of money will also go for support of [Ukrainian flag emoji],” he tweeted this morning. The Turkish drone has proven incredibly effective against Russian forces in Ukraine, as well as other battlefields. It’s thus no surprise that other countries, namely those on Russia’s doorstep, might want to acquire the drones. Also, we can’t pass up the opportunity to once again point you to the world’s greatest song. SWEDEN SENDS WEAPONS TO UKRAINE: The Swedish government has announced that it will send anti-ship and anti-tank weapons along with 12.7 mm rifles and ammunition. This is the fourth package Stockholm has sent Kyiv’s way, including a total of 95 million euros of financial assistance.
| | | CONGRESS WANTS UKRAINE AID OVERSIGHT: “The Pentagon was already struggling to keep up with Congress’ demands for oversight of its spending. Then, lawmakers earmarked an extra $40 billion for Ukraine,” our own ANDREW DESIDERIO, LARA SELIGMAN and CONNOR O’BRIEN reported. Even though there’s widespread support for continued military and economic assistance to Ukraine, there are growing concerns that DOD can’t account for it all. How it does with the latest tranche will determine how lawmakers will view the next aid package. “The U.S. government is sending billions in humanitarian, economic, and military assistance to help the Ukrainian people overcome Putin’s brutal war, and the American people expect strong oversight by Congress and full accounting from the Department of Defense,” said Sen. ELIZABETH WARREN (D-Mass.), a member of the Senate Armed Services Committee. “The $40 billion legislation includes several measures aimed at beefing up oversight of the cash. It requires the Pentagon inspector general’s office to review how the Defense Department spends the emergency funding. It also requires the Pentagon, in coordination with the State Department, to report to Congress on how weapons and equipment sent to Ukraine are being accounted for,” Desiderio, Seligman and O’Brien wrote.
| | | |   | | | | | | 9/11 FAMILIES FUME AT MBS MEETING: As Biden weighs a meeting with Saudi Arabia’s Crown Prince MOHAMMED BIN SALMAN, 9/11 families are telling him not to go through with it. Biden must “prioritize accountability for 9/11 in any conversations between members of your administration and Saudi officials up to and including your own with the Crown Prince or any other members of the Saudi royal family,” 9/11 Families United wrote in a letter to the president, exclusively obtained by our friends at POLITICO Playbook . If 9/11 isn’t a major discussion point, “it would signal to the world that you are willing to indulge years more of Saudi obfuscation and obstruction, and that America prioritizes the interests of foreign powers and economics more than the lives of its citizenry.” On the 20th anniversary of the terrorist attack, Biden declassified FBI files about Saudi Arabians’ connections to the plot, granting a long-term request from 9/11 families. But they still want more — much more — from the president. “You don’t just release the documents and then say ‘we do nothing.’This is the second half. Now you have to help facilitate the kingdom coming to grips with what they did and admitting it and stop — stop lying about it,” TERRY STRADA, the group’s national chair, told Playbook. “It has to be part of resetting the relationship.”
| | | — NATE FICK has been selected as the State Department’s inaugural ambassador-at-large for cyberspace and digital policy. However, the appointment could still fall through during the vetting process. — BRETT FREEDMAN is now chief of staff to MATT OLSEN, assistant attorney general for the national security division at the Justice Department. He most recently was a lawyer on the Senate Intelligence Committee, serving as general counsel to Chair MARK WARNER (D-Va.). — MORGAN KAPLAN is now a communications specialist at Palantir Technologies. He most recently was a fellow with the American Statecraft Program at the Carnegie Endowment for International Peace.
| | | | STEP INSIDE THE WEST WING: What's really happening in West Wing offices? Find out who's up, who's down, and who really has the president’s ear in our West Wing Playbook newsletter, the insider's guide to the Biden White House and Cabinet. For buzzy nuggets and details that you won't find anywhere else, subscribe today. | | | | | | | | — MARK TREVELYAN, Reuters: “Putin Clings to Semblance of Normality as His War Grinds On” — MICHAEL KOFMAN and ROB LEE, War on the Rocks: “Not Built for Purpose: The Russian Military’s Ill-Fated Force Design” — KAROUN DEMIRJIAN, The Washington Post: “ Private Groups Work to Bring Specialized Combat Gear to Ukraine”
| | | — The United States Institute of Peace, 9 a.m.: “Preventing Mass Atrocities in Afghanistan — with FARKHONDEH AKBARI, RINA AMIRI, LAUREN BAILLIE, SHUKRIA DELLAWAR, NAOMI KIKOLER and SCOTT WORDEN” — Friends of the National World War II Memorial, 10 a.m.: “ Battle of Midway 80th Anniversary Reading of the Names and Wreath Presentation at the World War II Memorial” 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, John Yearwood, who similarly wishes he could get free drones. | | A message from Lockheed Martin: Our mission is to prepare you for the future by engineering advanced capabilities today.
Many of today’s military systems and platforms were designed to operate independently. Through our 21st Century Security vision, Lockheed Martin is accelerating innovation, connecting defense and digital to enhance the performance of major platforms, to equip customers to stay ahead of emerging threats. Learn more. | | | | | | | Follow us on Twitter | | | | Follow us | | | | |  |
