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Vienna's staples -

Vienna, Austria's capital, is both beautiful and safe. Its rich history, world-class operas, cozy cafes, renowned museums, and connections to figures like Freud and Mozart attract numerous visitors.

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Spy invasion -

However, in the past 20 years, Vienna has acquired a more sinister reputation. Lawmakers and political leaders have indicated that the city has become a hotbed for foreign espionage services.

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Who are they? -

Hundreds of spies are currently estimated to be operating in the European capital. They hail from all corners of the globe, primarily from states with significant anti-Western political stances. But how did this come to pass?

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The Cold War's legacy -

Vienna's dark side emerged after World War II. The city, divided and filled with black market offenders, became a hub for espionage during the Cold War. Classic films like 'The Third Man' (1949) drew inspiration from the city's legacy of intrigue.

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Neutral country - The answer lies in Austria's history of neutrality and its resulting murky laws on espionage and counter-espionage.

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Benefiting the West... -

Vienna hosts numerous important global non-governmental organizations, including The Organization of the Petroleum Exporting Countries (OPEC) and branches of the United Nations. As a democratic state, Austria is generally not perceived as a threat to the West, thanks in part to its shared values.

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...and anti-Western nations -

However, Austria also maintains a neutral stance towards states considered anti-Western. This neutrality means that the country doesn't hinder the activities of such states, even if they operate within its borders.

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Austrian Constitution -

Austria is one of just three EU countries that claims geopolitical neutrality. This neutrality, enshrined in the country's 1955 Constitution, was specifically demanded by Russia.

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Land division -

For a decade after World War II, Austria was divided among the Soviet Union, the US, the UK, and France. This division, shaped largely by Soviet influence, was a result of negotiations between the occupying powers.

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Neutral state -

Unlike Germany, clearly divided post-war, Austria was designated a neutral buffer state between the West and the Soviet Union. This arrangement suited all parties, especially Austrian nationalists who sought independence.

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Soviet Union pressure -

Stalin feared a Western-aligned Austria, so he insisted on strict neutrality. The West agreed, and Austria's neutrality was enshrined in its constitution, prohibiting military alliances and foreign bases on Austrian territory.

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Attracting spies -

But how did a neutral country transition into a haven for spies? The answer lies in a loophole within its counter-espionage laws.

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Loophole in the law -

Austria largely upholds its neutrality, with laws prohibiting the establishment of foreign intelligence agencies on its soil. However, a crucial loophole allows such agencies to operate as long as their activities don't directly harm Austria.

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Way in -

Austria's limited counter-espionage measures have led to a high influx of foreign intelligence services, according to the country's Office for the Protection of the Constitution. This permissive stance makes Austria one of Europe's most spy-friendly nations.

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Undercover -

A senior Western intelligence official estimates that over 180 Russian diplomats in Vienna are actually intelligence officers. Many more Russian agents likely operate illegally, exploiting Austria's lax counterintelligence measures.

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Free for all -

While agents from China, Iran, Russia, and Turkey seem to be primary concerns for Austrian officials, nations like the US reportedly also have a significant intelligence presence in Vienna, with an estimated 80 American spies operating in the city.

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Still neutral? -

Some argue that Austria's neutral stance is fair, as it allows all countries, friend or foe, to operate within its borders. This open policy, while potentially increasing espionage, ensures neutrality and avoids taking sides in global conflicts.

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The Russian interest -

Russia has been one of the primary beneficiaries of Vienna's permissive espionage environment. Since the end of the Cold War, Russia's influence in Europe has significantly diminished, with its former satellite states largely joining Western institutions.

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The Russian interest -

Initially, Russia was less concerned about this decline. However, under Vladimir Putin's presidency, NATO's eastward expansion has been viewed as a significant threat to Russia's interests in Europe.

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Less strict -

Following Russia's invasion of Ukraine, European countries have expelled over 400 Russian spies operating under diplomatic cover. In contrast, Austria has only expelled four.

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Intelligence collection -

Russia's primary intelligence function in Vienna is intelligence collection, according to Austrian intelligence historian Thomas Riegler. He calls it "the most important of the whole network in Europe."

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Intelligence collection -

Riegler points to the numerous satellite dishes on Russian diplomatic buildings as evidence of this extensive surveillance.

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Other possible reasons -

The Kremlin's espionage objectives in Vienna can be categorized into three main areas, according to journalists and media analysts.

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Preservation of Russian interests -

From Vienna, Russian spies would target former Soviet states like Ukraine, Moldova, Georgia, and the Baltic states. This espionage network aims to support potential territorial expansion or protect Russian minorities in these regions.

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Keeping ties with European states -

These include countries like Hungary, Slovakia, and Bulgaria, which are currently aligned with Moscow or could potentially be swayed. Unlike former Soviet states, these countries weren't historically considered Russian territory.

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Disruption of westernized ideology -

While Western Europe and Scandinavia aren't primary targets for Russian influence, espionage in these regions can still benefit Russia by laying the groundwork for future operations and gathering intelligence.

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Espionage scandal -

Recently, Austria faced its biggest espionage scandal in decades. In March 2024, former intelligence official Egisto Ott was arrested on suspicion of spying for Russia.

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Espionage scandal -

A recent report by a group of European newspapers alleges that Ott was recruited by Russian agents in 2014. Austrian police believe that Ott, along with another Austrian security officer, was commissioned by the former Wirecard CEO to pass sensitive information to Russia from 2017 onward.

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Espionage scandal -

Ott is also suspected of illegally obtaining the Vienna address of Bulgarian journalist Christo Grozev, known for his investigations into Russian intelligence activities, including the poisoning of late Russian opposition leader Alexei Navalny.

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What's being done? -

In 2023, the liberal Neos party proposed criminalizing espionage against foreign states or international organizations. However, the Austrian government has twice blocked votes on the issue, citing the need for further bureaucratic consultations.

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Future perspective -

The recent victory of the far-right Freedom Party (FPÖ) in the September 2024 Austrian elections has further diminished hopes for any changes in anti-espionage laws, as the party is known to have ties to Putin's United Russia party.

Sources: (The Wall Street Journal) (Bloomberg) (Financial Times) (BBC) (Versed YouTube)

See also: Eyes in the sky: how the US, Russia, and China are using space spies

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