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Russian intelligence services aggressively steal Western technology and classified information

Strengthened international sanctions over the past four years have largely deprived Moscow of access to machinery and technology

Снимка: БГНЕС/ EPA

Russian intelligence services have become more aggressive in their attempts to steal Western technology and classified defense information as sanctions put pressure on their wartime economy, three senior European intelligence officials told The Associated Press, BTA reported.

Moscow's agents are creating shell companies, recruiting intermediaries and using cyberspies and hackers to gather information that could also be used to attack strategic infrastructure, they said.

Strengthened international sanctions over the past four years have largely deprived Moscow of access to machinery, technology and scientific research exchanges with Europe, at a time when the debilitating war in Ukraine is taking a heavy toll on key sectors of the Russian economy and confronting the country with a potential financial crisis.

“They really know what they need“ and are making “serious efforts“ to acquire advanced machine tools, factory equipment, research data and dual-use technologies, said Kristofer Wedelin, deputy chief of operations at the Swedish Security Police (SEPO, the counterintelligence agency).

In Sweden, Russia is targeting the defense industry and high-tech research and development and their implementation in state-of-the-art military equipment such as the Gripen fighter jet, Wedelin said. It is also trying to acquire cameras and laser technology designed for civilian purposes that could be integrated into Russian weapons systems, he added.

Moscow is also trying to steal technology that will help it keep up - or give it an advantage - to the West in the coming decades, said Juha Martelius, director of the Finnish Security Intelligence Service (SSI). “This includes space and quantum technologies, as well as those that can be used in the development of the Arctic and shipping“, Martelius said. He added that space technologies are something Russia needs “right now”, without giving details. They are used for satellite imagery, communications and navigation.

Russia also needs embargoed computer technology and software updates for metalworking machines that are subject to sanctions, Martelius added.

Last Wednesday, Anne Keest-Butler, the director of Britain's Radio Electronic Intelligence Service, accused Russia of “continuously attacking” Britain and its European allies by stealing technology and planning sabotage and assassination attempts.

In May, Swedish police arrested two people on suspicion of violating sanctions related to a company in Turkey that made dozens of deliveries of metal-cutting machines and lathes to Russia.

As technology acquisition schemes become increasingly sophisticated, companies need to be more aware that they could unwittingly become part of Russia’s war supply chain, Wedelin said. “All of Russia’s security and intelligence services are supporting the state’s efforts in this direction,” he said.

Moscow has also been orchestrating cyberattacks on European companies and critical infrastructure in an attempt to gather information that it could use “when the opportunity arises and when it serves its purposes,” Wedelin said. He cited an attack on a Swedish power plant last year as an example. Russian-linked entities attempted to "destroy" the power plant, but failed because the system detected the intrusion. Vedelin said the attack was partly aimed at undermining Western support for Ukraine.

Previously, Swedish security services have mostly identified targets for reconnaissance, intelligence gathering or cybercriminal activity. But the attack marks a "change" in Russia's modus operandi, Vedelin said. "They are no longer so concerned about whether their actions will be traced back to them, so they are taking greater risks to achieve their goals," he said.

Russia's increasingly aggressive tactics may reflect growing concerns at home about its economy, which "is not doing well at all," said Kaupo Rozin, the head of Estonia's Foreign Intelligence Service.

About a third of Russia's gross domestic product currently goes to military spending, Martelius said.

The war and subsequent sanctions have slowed economic growth and fueled inflation. Russian authorities had planned a budget deficit of 3.7 trillion rubles ($52.1 billion) for the whole of 2026, and by the end of February it had already reached about 3.4 trillion rubles ($47.9 billion), Rozin said.

The war in Iran, which broke out on February 28, has given the economy a boost due to a sharp rise in oil prices. The United States has made some exceptions to sanctions on the sale of Russian oil, and Britain has also eased its embargo in an attempt to lower global fuel prices.

Increased revenues since then have probably improved Russia's budget situation, but "it is not saving it," Rozin said. He specified that if the Western pressure continues, Moscow could face a financial crisis by the end of the year.

Rozin said that the intelligence information available to his service shows that over the past six months, Russian officials have had darker expectations for the future, with the narrative of “complete victory” in Ukraine has disappeared.

Keast-Butler of British intelligence said that almost 500,000 Russian soldiers have been killed in Ukraine since the start of the large-scale invasion in 2022.

Russia and Ukraine have generally kept their casualty figures secret.

The lack of progress on the battlefield and the economic problems have many Russian officials asking privately "what is it all about," Rozin said, citing intelligence reports.

Martelius of the Finnish intelligence service said that while some reports on the war in Ukraine were "sanitized" before reaching President Vladimir Putin's desk, he believes the Russian leader has a fairly clear picture of the economic challenges. But that doesn't mean there will be political change.

“It's very dangerous to start analyzing Russia as if it were a country like ours,“ said Martelius. “It's not.“