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What We're Watching: Pentagon leaker suspect arrested, Gershkovich swap chatter, Uruguay’s free trade ambitions
And the suspected leaker is ...
On Thursday afternoon, the FBI arrested a suspect in the most damaging US intel leak in a decade, identifying him as Jack Teixeira, a 21-year-old member of the Massachusetts Air National Guard. Teixeira was reportedly the leader of an online gaming chat group, where he had been allegedly sharing classified files for three years. If convicted of violating the US Espionage Act, he could spend the rest of his life behind bars. Teixeira will appear in a Boston court on Friday.
We know that the chat group was made up of mostly male twentysomethings that loved guns, racist online memes, and, of course, video games. We don’t know what motivated the leaks, what other classified material the leaker had, or whether any of the docs were divulged to a foreign intelligence agency.
Arresting a suspect, though, is just the beginning of damage control for the Pentagon and the Biden administration. Although the content of the leaks surprised few within the broader intel community, many might not have realized the extent to which the US spies on its allies.
Uncle Sam obviously would’ve preferred to have intercepted the message this scandal sends to America’s enemies: US intel is not 100% secure.
Russia is maybe considering swap for Evan Gershkovich
A top Russian diplomat suggested Thursday that Moscow could explore a prisoner swap with the US in order to release American journalist Evan Gershkovich, whom Russian authorities jailed earlier this month on espionage charges.
But first, said Deputy Foreign Minister Sergei Ryabkov, the trial against Gershkovich will have to play out in full. That could take as long as a year.
What might Russia want in exchange? Hard to say. Last year, the Kremlin swapped WNBA star Brittney Griner, convicted of a drug offense while traveling in Russia, for notorious arms dealer Viktor Bout. At the time, the Kremlin also reportedly sought the release of a Russian assassin from a German prison, but that swap broke down when the Kremlin refused to also release Paul Whelan, an American currently serving an espionage sentence in Russia.
A year from now, the world, and the Ukraine war, might look very different. But expect the Kremlin to throw the book at Gershkovich to maximize their leverage ahead of any talks about his release.
Meanwhile, elsewhere in Russia’s prison system, opposition leader Alexei Navalny — currently in solitary confinement — has suffered a fresh health crisis that his spokeswoman says is another attempt to poison him.
For context, see our recent interview with Daniel Roher, director of the Oscar-winning documentary Navalny.
Uruguay’s FTA dream
Uruguay's Foreign Minister Francisco Bustillo will soon meet with Chinese officials to take steps toward establishing a Free Trade Agreement between the two countries. Uruguay has wanted an FTA for three decades, and the timing might finally be right as China seeks to increase its influence in South America.
Getting an FTA with China has been a priority for Uruguay’s President Luis Lacalle Pou's administration. The meeting will come on the heels of trade talks between Brazil and China, countries that saw their two-way trade hit a record $171.5 billion in 2022. Uruguay wants in on the action.
China has deepened its trade relationships in Latin America throughout the 21st century, beating out the US as the region's largest trading partner. Beijing benefits politically from these partnerships, gaining votes at the UN and support for Chinese appointees to multinational institutions, as well as the ability to implement technology standards into regional infrastructure.
But not all of Uruguay's neighbors are comfortable with China's swelling influence in the region, or with Uruguay flying solo. Uruguay is facing resistance from other Mercosur countries that favor negotiating regional trade deals as a bloc. Paraguay, which still recognizes Taipei in lieu of the government in Beijing, is leading the pushback – a conflict that could test one of the bloc’s few rules: a restriction on making preferential agreements with third countries.
What We’re Watching: Moscow’s muscle flex, Bolsonaro’s return, Lasso losing his grip
Russia nabs US journalist
A Wall Street Journal reporter apprehended by Russia’s notorious Federal Security Bureau in the city of Yekaterinburg Thursday has appeared in court in the Russian capital on espionage charges, which the Journal has dismissed as bogus.
Evan Gershkovich, who works out of the Moscow bureau for the New-York based outlet and earlier this week penned a bombshell feature on how sanctions are hurting the Russian economy, was on a reporting trip when he was seen being escorted into an FSB van in scenes reminiscent of the Soviet era. Indeed, he’s the first US journalist to have been arrested by Russian authorities since Ronald Reagan was in the White House. The Committee to Protect Journalists has demanded his immediate and unconditional release.
The Kremlin claims that the 31-year-old reporter was “collecting state secrets” on behalf of the US government. But many analysts say this is likely an attempt by President Vladimir Putin to flex his muscles and gain some leverage amid reports that Russia is stalling in Ukraine, with one US general claiming that ongoing fighting in Bakhmut is a “slaughter-fest” for Moscow.
Putin may be looking to secure some sort of trade deal with the US, like he did last fall when Washington agreed to swap WNBA star Brittney Griner, held in a Russian prison, for Viktor Bout, a Russian citizen and notorious arms dealer held in US custody since 2008. But Griner was held for the lesser offense of possessing a small amount of weed oil. Espionage is a whole other ballgame.
We’ll also be watching to see whether US media outlets now respond by pulling reporters out of Russia. After all, the US State Department has urged all US citizens to leave the country fearing a situation just like this.
Bolsonaro back in Brazil
Brazil’s far-right former President Jair Bolsonaro ended his self-imposed exile in Florida on Thursday, returning home to lead the opposition against his archenemy, leftist President Luiz Inácio “Lula” da Silva. After losing the election to Lula last autumn, he never conceded and skipped town instead of attending the inauguration. Lula was confirmed on New Year’s Day, and a week later Bolsonaro supporters stormed government buildings in the capital in Brazil’s own Jan. 6.
Lula must now decide whether to try to put Bolsonaro behind bars or ban him from politics — both of which could backfire because the former president remains hugely popular among his base. He should know: Lula was imprisoned for corruption in 2018, only to retake the presidency a few years later. Bolsonaro faces a litany of investigations, and while his advisors downplay the risk of him being jailed, the threat of legal action could mobilize his fans.
Bolsonaro’s return comes at a tricky time for Lula. While his approval ratings are higher than Bolsonaro’s, Lula campaigned on eradicating poverty but is struggling to pull the country out of an economic slump. He’s also been tussling with the central bank over high-interest rates, which he says is hurting the poor.
Will Lasso get lassoed?
Ecuador's constitutional court has given the go-ahead for parliament to pursue impeachment proceedings against President Guillermo Lasso over his brother-in-law’s alleged involvement in corruption and drug trafficking. This is only the first step in the process, but once it gets to the legislature, Lasso is in serious trouble: He's widely unpopular, and the opposition likely has enough votes to oust him.
If that happens, there are three possible scenarios. First, the conservative Lasso could step down and call a snap election, with the left-wing party of former President Rafael Correa a clear favorite. The embattled president could also let VP Alfredo Borrero take over, although he’d struggle to finish Lasso's term without making big political concessions and spending money Ecuador can't afford.
But the most likely — and dangerous — option is that Lasso challenges his removal by dissolving parliament before he’s impeached and rules by decree until a fresh election, as the Andean nation's constitution allows him to do. That outcome would trigger "chaos on the streets and maybe even a constitutional crisis," says Eurasia Group analyst Risa Grais-Targow.
Russia won Brittney Griner prisoner swap, Putin still losing
Ian Bremmer's Quick Take: Hi, there. Ian Bremmer here. A Quick Take, wanted to opine for just a couple of minutes on Brittney Griner, who is back in the United States a free woman, and we're of course, happy to be able to announce that. But what do we think about this deal and what it means going forward?
Of course, we're happy whenever an American citizen is released when they've been unjustly held, in this case, essentially hostage for 10 months by an authoritarian Russian government with no rule of law. Yes, she had committed a crime. She brought in some hashish that she was vaping with, and that was a very stupid act in Russia. But the idea that she was going to get nine years in jail for it, no, absolutely not. This was, of course, the Russians making a point with an American celebrity and wanting to juice that orange for as much as they possibly could. And they did.
They got Viktor Bout, who was called the "Merchant of Death," certainly aging at this point, but has been held in the United States. One of the most notorious arms dealers in the world. Do I think this is a fair trade? No, of course I don't. Because the Americans care about the lives of their citizens much more than the Russians do, and it's unacceptable that we should have to negotiate with Russia. On the other hand, I'm glad she's back, and I also feel like the Americans are doing an awful lot to punish the Russians right now, irrespective the specifics of this individual deal. To wit, we're talking about massive military support for Ukraine, which is helping destroy the Russian arms space. Their military has been diminished radically on the back of military support that has been led by the United States, as well as economic sanctions being led by the United States that is taking billions and billions of dollars out of Putin's pocket, the pockets of the oligarchs that have supported him, and, of course, the Russian economy as a whole.
So, the reality is that's far more important than the back and forth of this individual hostage deal. And the fact that an exchange has been made and the Americans now have a citizen, a valued citizen, back in the country is a good thing. Having said that, Paul Whelan is an American citizen who's now been in Russia for over four years, also illegally detained a hostage, and he's not back. And we should not be happy about that. Biden clearly took longer on the Griner deal because he was trying to get Whelan freed, as well. Did not happen. They're clearly disappointed about that. No one more than Whelan's own family.
Also true, under two years of the Trump administration, there was interest from the State Department in securing Whelan's release. Did not happen. It wasn't a huge priority, and they weren't able to secure his release. That is the story here. The fact that Putin is not just a war criminal in Ukraine, but also does not believe in the human rights of, pretty much, any citizens around the world, is indifferent, and plays power politics whenever he has a small piece of leverage. And in this case, he has a couple of small pieces of leverage. But overall, of course, Russia is in very serious decline because of missteps that Putin has made and because of leadership by the United States and American allies in NATO and all over the world in responding to that unjust war.
So, that's where we are. Delighted to see Britney back in the United States. Still have more work to do on Paul Whelan. Still have a lot more work to do on this Russian regime. That's it for me. I'll talk to you all real soon.Meet the Merchant of Death
WNBA star Brittney Griner has now landed in the United States after Russia agreed to free her from a nine-year prison term for drug possession in exchange for Viktor Bout, a Russian citizen and notorious arms dealer known as the "Merchant of Death." Who is he, and why is he worth so much to Moscow that Vladimir Putin agreed to trade such a prized bargaining chip as Griner to get him back?
This dude is perhaps the GOAT of weapons traffickers — even inspiring a (not-so-good) Hollywood film. A Russian national born in Soviet-era Tajikistan, Bout cut his teeth selling old Antonov and Ilyushin airplanes, which offered a bumpy ride yet were perfect for dirt airstrips across conflict-ridden parts of Africa. He later branched out into weapons, becoming the go-to arms dealer for both tin-pot dictators and the rebel groups fighting them.
Couldn't pay in cash? No problem, he accepted blood diamonds. No paperwork? No worries, Bout forged end-user certificates for a fee. Al-Qaida? No way, although he once claimed he flew weapons to Afghanistan in the mid-’90s to fight the Taliban.
In his heyday in the mid-2000s, Bout was the world's top gun-runner. His web of supply routes sourced weapons and ammo from cash-hungry and corrupt former Soviet Bloc states and sent them to war-torn African nations like Angola, Liberia, or Sierra Leone.
Bout got busted in 2008 by American DEA agents masquerading as Colombian FARC buyers in a glitzy Bangkok hotel. Following a lengthy trial, two years later Thailand extradited him to the US, where in 2012 he got 25 years on multiple charges.
What has made Bout so valuable to Russia? His silence.
Since he’s been on US soil, the Merchant of Death has clammed up. Whatever the Feds have tried, he hasn't given them even a nugget of all of the valuable intel he gathered for years while building his global arms-trafficking empire.
Someone who likely had Charles Taylor, Liberia’s former warlord-turned-president, on speed dial probably knows way too much about who illegally bought and sold weapons around the world for more than two decades. And for Putin, ensuring that Bout keeps all that to himself forever is certainly worth one Griner.Griner freed, but in exchange for Merchant of Death — who won?
Russia freed WNBA star Brittney Griner on Thursday in a direct prisoner swap with convicted Russian arms dealer Viktor Bout. Big win for US President Joe Biden, but also for President Vladimir Putin. Who got the shorter end of the stick? On the one hand, the Biden administration could hardly afford the bad optics of allowing a prominent Black female athlete to be locked up in a Russian penal colony for nine years. Still, the US president can say he kept his promise to Griner's family to do everything in his power to get her out of Russia. On the other hand, Putin traded someone who got busted for just carrying a CBD vial in her luggage for someone who deserved to be called the "Merchant of Death." What's more, the Kremlin got Bout without having to give up Paul Whelan, a former US marine who's been behind bars in Russia since 2018 for alleged spying. Also, there are plenty of Americans locked up under awful conditions in other countries around the world.
What do you think? Let us know here.