SOURCE COMPANY INTELLIGENCE REPORT 2016/080 ECTION: REPUBLICAN CANDIDATE DONALD US PRESIDENTIAL EL ACTIVITIES IN RUSSIA AND COMPROMISING RELATIONSHIP WITH THE KREMLIN Summary RUMP for Russian regime has been cultivating, supporting and assisting at least 5 years. Aim, endorsed by PUTIN, has been to encourage 5 divisions in western alliance plits and So far TRUMP has declined various sweetener real estate business deals offered him in Russia in order to further the Kremlin?s cultivation of him. However he and his inner circle have accepted a regular ?ow of intelligence from the Kremlin, including on his Democratic and other political rivals Former top Russian intelligence officer claims FSB has compromised TRUMP through his activities in Moscow sufficiently to be able to blackmail him. According to several knowledgeable sources, his conduct in Moscow has included perverted sexual acts which have been arranged/ monitored by the FSB A dossier of compromising material on Hillary CLINTON has been collated by the Russian Intelligence Services over many years and mainly comprises bugged conversations she had on various visits to Russia and intercepted phone calls rather than any embarrassing conduct. The dossier is controlled by Kremlin spokesman, PESKOV, directly on orders. However it has not as yet been distributed abroad, including to TRUMP. Russian intentions for its deployment still unclear Detail 1. Speaking to a trusted compatriot in June 2016 sources A and B, a senior Russian Foreign Ministry figure and a former top level Russian intelligence officer still active inside the Kremlin respectively, the Russian authorities had been cultivating and supporting US Republican presidential candidate, Donald TRUMP for at least 5 years. Source asserted that the TRUMP operation was both supported and directed by Russian President Vladimir PUTIN. Its aim was to sow discord and CONF SENSITIVE SOURCE SOURCE both within the US itself, but more especially Within the Transatlantic alliance which was Viewed as inimical to Russia's inte Source c, a senior Russian financial olricial said the Tltqu operation should be seen in terms oi desire to return to Nineteenth Century 'Great Power' politlL'S anchored upon countries' interests rather than the idealsrbased international order established after World War Two, S/he had overheard talking In way to close associates on several occasions. disunity res . in terms oispecihcs, Source A confided that the Kremlin had been ieedmg TRUMP and his team valuable intelligence on lus opponents, including Democratic presidential candidate Hillary CLINTON, for several years [see more below]. This was confirmed by Source a close associate of TRUMP who had organized and managed his recent trips to Moscow, and who reported, also in Tune 2016, that this Russian intelligence had been "very helpful". The Kremlln's cultivation operation on TRUMP also had comprised offering him various lucrative real estate development business deals in Russia, especially in relation to the ongoing 2018 World Cup soccer tournament, However, so far, for reasons unknown, TRUMP had not taken up any ofthese. However, there were other aspects to TRUMP's engagement with the Russian authorities. One which had borne fruit for them was to exploit personal obsesslons and sexual perversion in order to obtain suitable 'kompromat' [compromising material] on him. According to Source D, where s/he had been present, (perverted) conduct in Moscow included hiring the presidential suite ofthe Ritz Carlton Hotel, where he knew President and OBAMA {whom he hated] had stayed on one ottherr orhcial trips to Russia, and deriling the bed where they had slept by employing a number of prostitutes to perform a 'golden showers' (urination) show in front of him. The hotel was known to be under FSE control with microphones and concealed cameras in all the main rooms to record anything they wanted to. The Moscow Ritz Carlt involvin TRUMP re orted above was confirmed by who said that s/he and several ofthe Staffwere aware ofit att time and subsequently. S/he believed it had happened in 2013. Source provided an introduction for a company ethnic Russian operative to Source F, a female staffer at the hotel when TRUMP had stayed there, who also confirmed the story. Speaking separately in lune 2016, Source [the former top level Russian intelligence officer) asserted that unorthodox behavior in Russia over the years had provided the authorities there with enough embarrassing material on the now Republican presidential candidate to be able to blackmail him if they so wished Asked about the Kremlin's reported intelligence feed to TRUMP over recent years and rumours about a Russian dossier of'kornpromat' on SENSITIVE SOURCE SOURCE Hillary CLINTON (being circulated), Source confirmed the file's existence. S/he confided in a trusted compatriot that it had been collated by Department ofthe FSB for many years, dating back to her husband Bill?s presidency, and comprised mainly eavesdropped conversations of various sorts rather than details/evidence of unorthodox or embarrassing behavior. Some ofthe conversations were from bugged comments CLINTON had made on her various trips to Russia and focused 'tion on various on things she had said which contradicted her current p051 issues. Others were most probably from phone intercepts. or Kremlin official, confided 6. Continuing on this theme, Source G, a seni remlin that the CLINTON dossier was controlled exclusively by chief spokesman, Dmitriy PESKOV, who was responsible for compiling/handling it on the explicit instructions of PUTIN himself. The dossier however had not as yet been made available abroad, including to TRUMP or his campaign team. At present it was unclear what intentions were in this regard. 20 June 2016 SOURCE SOURCE COMPANY INTELLIGENCE REPORT 2016/086 CRIME: A SYNOPSIS OF RUSSIAN STATE SPONSORED AND OTHER CYBER OFFENSIVE (CRIMINAL) OPERATIONS Summary - Russia has extensive programme of state-sponsored offensive cyber operations. External targets include foreign governments and big corporations, especially banks. FSB leads on cyber within Russian apparatus. Limited success in attacking top foreign targets like G7 governments, security services and but much more on second tier ones through IT back doors, using corporate and other visitors to Russia - FSB often uses coercion and blackmail to recruit most capable cyber operatives in Russia into its state?sponsored programmes. Heavy use also, both wittingly and unwittingly, of CIS emigres working in western corporations and ethnic Russians employed by neighbouring governments e.g. Latvia - Example cited of successful Russian cyber operation targeting senior Western business visitor. Provided back door into important Western institutions. - Example given of US citizen of Russian origin approached by FSB and offered incentive of "investment" in his business when visiting Moscow. - Problems however for Russian authorities themselves in countering local hackers and cyber criminals, operating outside state control. Central Bank claims there were over 20 serious attacks on correspondent accounts held by CBR in 2015, comprising Roubles several billion in fraud - Some details given of leading non-state Russian cyber criminal groups Details 1. Speaking in June 2016, a number of Russian figures with a detailed knowledge of national cyber crime, both state-sponsored and otherwise, outlined the current situation in this area. A former senior intelligence of?cer divided Russian state-sponsored offensive cyber operations into four categories (in order of priority):- targeting foreign, especially SENSITIVE SOURCE SOURCE penetrating leading foreign business corporations, monitoring of the elite; and attacking political fficer western governments; especially banks; domesti opponents both at home and abroad. The former intelligence 0 reported that the Federal Security Service (FSB) was the lead I organization within the Russian state apparatus for cyber operations. In terms ofthe success of Russian offensive cyber operations to date, a that there had been only limited foreign targets. These comprised ty and intelligence for this shortfall, in attacking senior government figure reported success in penetrating the ?first tier' western (especially G7 and NATO) governments, securi services and central banks, and the lFls. To compensate massive effort had been invested, with much greater success, the "secondary targets", particularly western private banks and the governments of smaller states allied to the West. S/he mentioned Latvxa in this regard. Hundreds ofagents, either consciously cooperating with the FSB or whose personal and professional IT systems had been unwittingly compromised, were recruited. Many were people who had ethnic and family ties to Russia and or had been incentivized financially to cooperate. Such people often would receive monetary inducements or contractual favours from the Russian state or its agents in return. This had created dif?culties for parts of the Russian state apparatus in obliging/indulging them e.g. the Central Bank of Russia knowingly having to cover up for such agents' money laundering operations through the Russian financial system. In terms of the SB's recruitment of capable cyber operatives to carry out its, ideally deniable, offensive cyber operations, a Russian IT specialist with direct knowledge reported in June 2016 that this was often done using coercion and blackmail. In terms of ?foreign' agents, the FSB was approaching US citizens of Russian (Jewish) origin on business trips to Russia. In one case a US citizen of Russian ethnicity had been visiting Moscow to attract investors in his new information technology program. The FSB clearly knew this and had offered to provide seed capital to this person in return for them being able to access and modify his IP, with a view to targeting priority foreign targets by planting a Trojan virus in the software. The US visitor was told this was common practice. The FSB also had implied significant operational success as a result of installing cheap Russian IT games containing their own malware unwittingly by targets on their PCs and other platforms. In a more advanced and successful FSB operation, an IT operator inside a leading Russian SOE, who previously had been employed on conventional (defensive) IT work there, had been under instruction for the last year to conduct an offensive cyber operation against a foreign director of the company. Although the latter was apparently an infrequent visitor to Russia, the FSB now successfully had penetrated his personal IT and through this had managed to access various important institutions in the West through the back door. SOURCE SOURCE 5. In terms ofother technical IT platforms, an FSB cyber operative flagged up the 'Telegram' enciphered commercial system as having been of especial concern and therefore heavily targeted by the FSB, not least because it was used frequently by Russian internal political activists and oppositionists. His/her understanding was that the FSB now successfully had cracked this communications software and therefore it was no longer secure to use. 6. The senior Russian government figure cited above also reported that non-state sponsored cyber crime was becoming an increasing problem inside Russia for the government and authorities there. The Central Bank of Russia claimed that in 2015 alone there had been more than 20 attempts at serious cyber embezzlement of money from corresponding accounts held there, comprising several billions Roubles. More generally, s/he understood there were circa 15 major organised crime groups in the country involved in cyber crime, all ofwhich continued to operate largely outside state and FSB control. These included the so-called ?Anunak?, 'Buktrap' and ?Metel? organisations. 26 July 2015 SENSITIVE SOURCE COMPANY INTELLIGENCE REPORT 2016/095 PRESIDENTIAL ELECTION: FURTHER INDICATIONS OF EXTENSIVE CONSPIRACY BETWEEN CAMPAIGN TEAM AND THE KREMLIN Summary - Further evidence of extensive conspiracy between campaign team and Kremlin, sanctioned at highest levels and involving Russian diplomatic staffbased in the US - TRUMP associate admits Kremlin behind recent appearance of DNC e- mails on WikiLeaks, as means of maintaining plausible deniability - Agreed exchange of information established in both directions. team using moles within DNC and hackers in the US as well as outside in Russia. PUTIN motivated by fear and hatred of Hillary CLINTON. Russians receiving intel from team on Russian oligarchs and their families in US - Mechanism for transmitting this intelligence involves ?pension? disbursements to Russian emigres living in US as cover, using consular officials in New York, DC and Miami - Suggestion from source close to TRUMP and MANAFORT that Republican campaign team happy to have Russia as media bogeyman to mask more extensive corrupt business ties to China and other emerging countries Detail 1. Speaking in con?dence to a compatriot in late July 2016, Source B, an ethnic Russian close associate of Republican US presidential candidate Donald TRUMP, admitted that there was a well-developed conspiracy of co-operation between them and the Russian leadership. This was managed on the TRUMP side by the Republican candidate?s campaign manager, Paul MANAFORT, who was using foreign policy advisor, Carter PAGE, and others as intermediaries. The two sides had a mutual interest in defeating Democratic presidential candidate Hillary CLINTON, whom President PUTIN apparently both hated and feared. 2. Inter alia, Source E, acknowledged that the Russian regime had been behind the recent leak of embarrassing e-mail messages, emanating from the Democratic National Committee (DNC), to the WikiLeaks platform. SENSITIVE SOURCE SOURCE The reason for using WikiLeaks was "plausible deniability? and the operation had been conducted with the full knowledge and support of TRUMP and senior members of his campaign team. In return the TRUMP team had agreed to sideline Russian intervention in Ukraine as a campaign issue and to raise defence commitments in the Baltics and Eastern Europe to de?ect attention away from Ukraine, 3 priority for PUTIN who needed to cauterise the subject. In the wider context campaign/Kremlin co-operation, Source claimed that the intelligence network being used against CLINTON comprised three elements. there were agents/facilitators within the Democratic Party structure itself; secondly Russian ?migr? and associated offensive cyber operators based in the and thirdly, state- sponsored cyber operatives working in Russia. All three elements had played an important role to date. On the mechanism for rewarding relevant assets based in the US, and effecting a two-way ?ow of intelligence and other useful information, Source claimed that Russian diplomatic staff in key cities such as New York, Washington DC and Miami were using the ?migr? ?pension? distribution system as cover. The operation therefore depended on key people in the US Russian ?migr? community for its success. Tens ofthousands of dollars were involved. In terms of the intelligence ?ow from the TRUMP team to Russia, Source reported that much of this concerned the activities of business oligarchs and their families? activities and assets in the US, with which PUTIN and the Kremlin seemed preoccupied. Commenting on the negative media publicity surrounding alleged Russian interference in the US election campaign in support of TRUMP, Source said he understood that the Republican candidate and his team were relatively relaxed about this because it de?ected media and the Democrats? attention away from TRUMP's business dealings in China and other emerging markets. Unlike in Russia, these were substantial and involved the payment of large bribes and kickbacks which, were they to become public, would be potentially very damaging to their campaign. Finally, regarding claimed minimal investment profile in Russia, a separate source with direct knowledge said this had not been for want of trying. previous efforts had included exploring the real estate sector in St Petersburg as well as Moscow but in the end TRUMP had had to settle for the use of extensive sexual services there from local prostitutes rather than business success. SENSITIVE SOURCE COMPANY INTELLIGENCE REPORT 2016/94 RUSSIA: SECRET KREMLIN MEETINGS ATTENDED BY TRUMP ADVISOR, CARTER PAGE IN MOSCOW (JULY 2016) Summary Detail TRUMP advisor Carter PAGE holds secret meetings in Moscow with SECHIN and senior Kremlin Internal Affairs official, DIVYEKIN raises issues of future bilateral US-Russia energy co-operation and associated lifting ofwestern sanctions against Russia over Ukraine. PAGE non-committal in response DIVEYKIN discusses release of Russian dossier of'kompromat? on TRUMP's opponent, Hillary CLINTON, but also hints at Kremlin possession ofsuch material on TRUMP 1. Speaking in July 2016, a Russian source close to Rosneft President, PUTIN close associate and US-sanctioned individual, Igor SECHIN, confided the details of a recent secret meeting between him and visiting Foreign Affairs Advisor to Republican presidential candidate Donald TRUMP, Carter PAGE. According to SECHIN's associate, the Rosneft President (CEO) had raised with PAGE the issues of future bilateral energy cooperation and prospects for an associated move to lift Ukraine-related western sanctions against Russia. PAGE had reacted positively to this demarche by SECHIN but had been generally non-committal in response. Speaking separately, also in July 2016, an of?cial close to Presidential Administration Head, S. IVANOV, con?ded in a compatriot that a senior colleague in the Internal Political Department of the PA, DIVYEKIN (nfd) also had met secretly with PAGE on his recent visit. Their agenda had included DIVEYKIN raising a dossier of ?kompromat? the Kremlin possessed on Democratic presidential rival, Hillary CLINTON, and its possible release to the Republican?s campaign team. However, the Kremlin of?cial close to S. added that s/he believed DIVEYKIN also had hinted (or indicated more strongly) that the Russian leadership also had ?kompromat? on TRUMP which the latter should bear in mind in his dealings with them. 19 luly 2016 [l9 COMPANY INTELLIGENCE REPORT 2016/097 RUSSIA-US PRESIDENTIAL ELECTION: KREMLIN CONCERN THAT POLITICAL FALLOUT FROM DNC E-MAIL HACKING AFFAIR SPIRALLING OUT OF CONTROL Summary Detail 1. 2. 3. Kremlin concerned that political fallout from DNC e-mail hacking operation is spiralling out of control. Extreme nervousness among associates as result of negative media attention/accusations Russians meanwhile keen to cool situation and maintain ?plausible deniability? of existing /ongoing and operations. Therefore unlikely to be any ratcheting up offensive plays in immediate future Source close to TRUMP campaign however confirms regular exchange with Kremlin has existed for at least 8 years, including intelligence fed back to Russia on oligarchs? activities in US Russians apparently have promised not to use ?kompromat? they hold on TRUMP as leverage, given high levels of voluntary co-operation forthcoming from his team Speaking in confidence to a trusted associate in late July 2016, a Russian ?migr? figure close to the Republican US presidential candidate Donald campaign team commented on the fallout from publicity surrounding the Democratic National Committee (DNC) e-mail hacking scandal. The ?migr? said there was a high level of anxiety within the TRUMP team as a result of various accusations levelled against them and indications from the Kremlin that President PUTIN and others in the leadership thought things had gone too far now and risked spiralling out of control. Continuing on this theme, the ?migr? associate of TRUMP opined that the Kremlin wanted the situation to calm but for ?plausible deniability? to be maintained concerning its (extensive) and operations. S/he therefore judged that it was unlikely these would be ratcheted up, at least for the time being. However, in terms of established operational liaison between the TRUMP team and the Kremlin, the ?migr? confirmed that an intelligence exchange had been running between them for at least 8 years. Within this context priority requirement had been for intelligence on the activities, business and otherwise, in the US of leading Russian oligarchs and their families. TRUMP and his associates duly had obtained and supplied the Kremlin with this information. ll 4. Finally, the ?migr? said s/he understood the Kremlin had more intelligence on CLINTON and her campaign but he did not know the details or when or if it would be released. As far as 'kompromat? (compromising information) on TRUMP were concerned, although there was plenty of this, he understood the Kremlin had given its word that it would not be deployed against the Republican presidential candidate given how helpful and co-operative his team had been over several years, and particularly of late. 30 July 2016 COMPANY INTELLIGENCE REPORT 2016/100 GROWING BACKLASH IN KREMLIN TO DNC HACKING AND TRUMP SUPPORT OPERATIONS Summary Head of PA IVANOV laments Russian intervention in US presidential election and black PR against CLINTON and the DNC. Vows not to supply intelligence to Kremlin PR operatives again. Advocates now sitting tight and denying everything Presidential spokesman PESKOV the main protagonist in Kremlin campaign to aid TRUMP and damage CLINTON. He is now scared and fears being made scapegoat by leadership for backlash in US. Problem compounded by his botched intervention in recent Turkish crisis Premier of?ce furious over DNC hacking and associated anti-Russian publicity. Want good relations with US and ability to travel there. Refusing to support or help cover up after PESKOV Talk now in Kremlin withdrawing from presidential race altogether, but this still largely wishful thinking by more liberal elements in Moscow Detail 1. Speaking in early August 2016, two well-placed and established Kremlin sources outlined the divisions and backlash in Moscow arising from the leaking of Democratic National Committee (DNC) e-mails and the wider operation being conducted in the US. Head of Presidential Administration, Sergei IVANOV, was angry at the recent turn of events. He believed the Kremlin "team" involved, led by presidential spokesman Dmitriy PESKOV, had gone too far in interfering in foreign affairs with their "elephant in a china shop black IVANOV claimed always to have opposed the handling and exploitation of intelligence by this PR ?team?. Following the backlash against such foreign interference in US politics, IVAN CV was advocating that the only sensible course of action now for the Russian leadership was to ?sit tight and deny everything?. 2. Continuing on this theme the source close to IVANOV reported that PESKOV now was ?scared shitless? that he would be scapegoated by PUTIN and the Kremlin and held responsible for the backlash against Russian political interference in the US election. IVANOV was determined (3 to stop PESKOV playing an independent role in relation to the US going forward and the source fully expected the presidential spokesman now to lay low. position was not helped by a botched attempt by him also to interfere in the recent failed coup in Turkey from a government relations (GR) perspective (no further details). 3. The extent of disquiet and division within Moscow caused by the backlash against Russian interference in the US election was underlined by a second source, close to premier Dmitriy MEDVEDEV (DAM). S/he said the Russian prime minister and his colleagues wanted to have good relations with the US, regardless ofwho was in power there, and not least so as to be able to travel there in future, either officially or privately. They were openly refusing to cover up for PESKOV and others involved in the operations or to support his counter-attack ofallegations against the USG for its alleged hacking ofthe Russian government and state agencies. 4. According to the first source, close to IVANOV, there had been talk in the Kremlin of TRUMP being forced to withdraw from the presidential race altogether as a result of recent events, ostensibly on grounds of his state and unsuitability for high office. This might not be so bad for Russia in the circumstances but in the View of the source, it remained largely wishful thinking on the part ofthose in the regime opposed to PESKOV and his "botched" operations, at least for the time being. 5 August 2016 COMPANY INTELLIGENCE REPORT 2016/101 PRESIDENTIAL ELECTION: SENIOR KREMLIN FIGURE OUTLINES EVOLVING RUSSIAN TACTICS IN PRO-TRUMP, ANTI-CLINTON OPERATION Summary - Head of PA, IVANOV assesses Kremlin intervention in US presidential electionand outlines leadership thinkingon operational wayforwa rd - No new lea ks envisaged, as too politically risky, but rather further exploitation of (Wiki Lea ks) material already disseminated to exacerbate divisions - Educated US youth to be targeted as and swing vote in attempt to turn them over to TRUMP - Russian leadership, including N, celebrating perceived success to date in splitting US hawks and elite - Kremlin engaging with several high profile US players, including STEIN, PAGE and (former DIA Director Michael and funding their recent visits to Moscow Details 1. Speaking in confidence to a close colleague in early August 2016, Head of the Russian Presidential Administration (PA), Sergei IVANOV, assessed the impactand results of Kremlin intervention in the US presidential election to date. Although most commentators believed that the Kremlin was behind the leaked e-mails, this remained technically deniable. Therefore the Russians would not risk their position for the time being with new leaked material, even to a third party like WikiLeaks. Rather the tactics would be to spread rumours and misinformation about the content of what already had been leaked and make up new content. 2. Continuing on this theme, IVANOV said that the audience to be targeted by such operations was the educated youth in America as the PA assessed thatthere was still a chancethey could be persuaded to vote for Republican candidate Donald TRUMP as a protest against the Washington establishment (in the form of Democratic candidate Hillary CLINTON). The hope was that even if she won, as a resultof this CLINTON in power would be bogged down in working for internal reconciliation in the US, rather than being ableto focus on foreign policy which would damage Russia?s interests.This also should give President PUTIN more room for manoeuvre in the run-upto Russia?s own presidential election i 2018. 3. IVANOV reported that although the Kremlin had underestimated the strength of US media and liberal reaction to the DNC hackand links to Russia, PUTIN was generally satisfied with the progress ofthe anti operation to date. He recently had had a drinkwith PUTIN to markthis. In view, the US had tried to dividethe Russian elite with sanctions butfailed,whiistthey, by contrast, had succeeded in splittingthe US hawks inimical to Russia and the Washington elite more generally, half of whom had refused to endorse any presidential ca ndidateas a resultof Russian intervention. 4. Speaking separately, also in early August 2016, a Kremlin official involved in US relations commented on aspects ofthe Russian operation to date. its goals ha been threefold- USactors how Moscow could help them,- gathering relevant intelligence; and creating and disseminating compromisinginformation (?kompromat?). This had involved the Kremlin supporting various US political figures, including funding indirectly their recent visits to Moscow. S/he named a delegation from Lyndon presidential candidateiill STEIN of the Green Party; TRUMP foreign policy adviser Carter and former DIA Director Michael in this regard and as successful In terms of perceived outcomes. 10 August 2016 u: . .5. 2s :3 3 $7333?; ?zma35? Mitigr WE ma COMPANY INTELLIGENCE REPORT 2016/102 PRESIDENTIAL ELECTION: REACTION IN TRUMP CAMP TO RECENT NEGATIVE PUBLICITY ABOUT RUSSIAN INTERFERENCE AND LIKELY RESULTING TACTICS GOING FORWARD Summary - TRUMP campaign insider reports recent DNC e-mail lea ks were aimed at switching SANDERS (protest) voters awayfrom CLINTON and over to TRUMP Admits Republican campaign underestimated resulting negative reaction from US liberals, elite and media and forced to change courseas result - Need now to turn tables on use of PUTIN as bogeyman in election, although some resentment at Russian president?s perceived attempt to undermine U56 and system over and above swinging presidential election Detail 1. Speaking in confidence on 9 August 2016, an ethnic Russian associate of Republican US presidential candidate Donald TRUMP discussed the reaction inside his ca mp, and revised tactics therein resulting from recent negative publicity concerning Moscow?s clandestine involvement in the campaign. associate reported that the a i oflea ki ngthe DNC e-mails to Wi ki Lea ks duringthe Democratic Convention had been to swingsupporters of Bernie SANDERS awayfrom Hillary CLINTON and across to TRUMP. These voters were perceived as activistand anti -status quo and anti -esta blishmentand in that regard sharing ma nyfeatures with the TRUMP campaign, includinga visceral dislike of Hillary CLINTON. This objective had been conceived and promoted, inter alia, foreign policy adviser Carter PAGE who had discussed itdirectly with the ethnic Russian associate. 2. Continuing on this theme, the ethnic Russian associate of TRUMP assessed that the problem was that the TRUMP campaign had underestimated the strength of the negative reaction from liberals and especially the conservative elite to Russian interference. This was forcinga rethink and a likely change of tactics. The main objective in the short term was to check Democratic candidate Hillary successful exploitation of the PUTIN as bogeyman/Russian interference story to tarnish TRUMP and bolster her own (patriotic) credentials.The TRUMP campaign was focusing on tapping into supportin the American television media to achievethis, as they reckoned this resource had been underused by them to date. 3. However, associate also admitted that there was a fair amount of anger and resentment within the Republican ca ndidate?s team at what was perceived by PUTIN as going beyond the objective of weakening CLINTON and bolstering TRUMP, by attempting to exploit the situation to undermine the US government and democratic system more generally. It was unclear at present how this aspect of the situation would play out inthe weeks to come. 10 August 2016 COMPANY INTELLIGENCE REPORT 2016/136 PRESIDENTIAL ELECTION: FURTHER DETAILS OF TRUMP LAWYER SECRET LIAISON WITH THE KREMLIN Summary - Kremlin insider reports TRUMP lawyer secret meeting/ 3 with Kremlin officials in August 2016 was/ were held in Prague - Russian parastatal organisation Rossotrudnichestvo used as cover for this liaison and premises in Czech capital may have been used for the meeting/s - leading Duma ?gure, KOSACHEV, reportedly involved as ?plausibly deniable" facilitator and may have participated in the August meeting with COHEN Detail Speaking to a compatriot and friend on 19 October 2016, a Kremlin insider provided further details of reported clandestine meeting/ 5 between Republican presidential candidate, Donald lawyer Michael COHEN and Kremlin representatives in August 2016. Although the communication between them had to be for security reasons, the Kremlin insider clearly indicated to his/ her friend that the reported contact/ 3 took place in Prague, Czech 1. Republic. Continuing on this theme, the Kremlin insider highlighted the importance of the Russian parastatal organisation, Rossotrudnichestvo, in this contact between TRUMP campaign representative/ 3 and Kremlin of?cials. Rossotrudnichestvo was being used as cover for this relationship and its office in Prague may well have been used to host the COHEN Russian Presidential Administration (PA) meeting/ 3. It was considered a "plausibly deniable? vehicle for this, whilst remaining entirely under Kremlin control. The Kremlin insider went on to identify leading Duma ?gure, Konstantin KOSACHEV (Head of the Foreign Relations Committee) as an important figure in the TRUMP campaign-Kremlin liaison operation. KOSACHEV, also "plausibly deniable? being part of the Russian legislature rather than executive, had facilitated the contact in Prague and by implication, may have attended the meeting/ 5 with COHEN there in August. Company Comment We reported previously, in our Company Intelligence Report 2016/ 135 of 19 October 2016 from the same source, that COHEN met of?cials from the PA Legal Department clandestinely in an EU country in August 2016. This was in order to clean up the mess left behind by western media revelations of TRUMP ex-campaign manager corrupt relationship with the former pro-Russian YANUKOVYCH regime in Ukraine and TRUMP foreign policy advisor, Carter secret meetings in Moscow with senior regime ?gures in July 2016. According to the Kremlin advisor, these meeting/ 3 were originally scheduled for COHEN in Moscow but shifted to 12 what was considered an operationally ?soft? EU country when it was judged too compromising for him to travel to the Russian capital. 20 October 2016 COMPANY INTELLIGENCE REPORT 2016/105 THE DEMISE 0F CAMPAIGN MANAGER PAUL MANAFORT Summary Detail 1. Ex-Ukrainian President YANUKOVYCH confides directly to PUTIN that he authorised kick-back payments to MANAFORT, as alleged in western media. Assures Russian President however there is no documentary evidence/trail PUTIN and Russian leadership remain worried however and sceptical that YANUKOVYCH has fully covered the traces of these payments to former campaign manager Close associate explains reasoning behind recent resignation. Ukraine revelations played part but others wanted MANAFORT out for various reasons, especially LEWANDOWSKI who remains in?uential Speaking in late August 2016, in the immediate aftermath of Paul resignation as campaign manager for US Republican presidential candidate Donald TRUMP, a well-placed Russian figure reported on a recent meeting between President PUTIN and ex-President YANUKOVYCH of Ukraine. This had been held in secret on 15 August near Volgograd, Russia and the western media revelations about MANAFORT and Ukraine had featured prominently on the agenda. YANUKOVYCH had con?ded in PUTIN that he did authorise and order substantial kick-back payments to MANAFORT as alleged but sought to reassure him that there was no documentary trail left behind which could provide clear evidence of this. Given (unimpressive) record in covering up his own corrupt tracks in the past, PUTIN and others in the Russian leadership were sceptical about the ex-Ukrainian president?s reassurances on this as relating to MANAFORT. They therefore still feared the scandal had legs, especially as MANAFORT had been commercially active in Ukraine right up to the time (in March 2016) when he joined campaign team. For them it therefore remained a point of potential political vulnerability and embarrassment. 3. Speaking separately, also in late August 2016, an American political ?gure associated with Donald TRUMP and his campaign outlined the reasons behind MANAFORT's recent demise. /he said it was true that the Ukraine corruption revelations had played a part in this but also, several senior players close to TRUMP had wanted MANAFORT out. primarily to loosen his control on strategy and policy formulation. Of particular importance in this regard was predecessor as campaign manager, Corey LEWANDOWSKI, who hated MANAFORT personally and remained close to TRUMP with whom he discussed the presidential campaign on a regular basis. 22 August 2016 COMPANY INTELLIGENCE REPORT 2016/111 KREMLIN FALLOUT FROM MEDIA EXPOSURE 0F INTERFERENCE IN THE US PRESIDENTIAL CAMPAIGN Summary Kremlin orders senior staff to remain silent in media and private on allegations of Russian interference in US presidential campaign - Senior figure however confirms gist ofallegations and reports IVANOV sacked as Head ofAdministration on account of giving PUTIN poor advice on issue. VAINO selected as his replacement partly because he was not involved in operation/s Russians do have further ?kompromat? on CLINTON (e-mails) and considering disseminating it after Duma (legislative elections) in late September. Presidential spokesman PESKOV continues to lead on this - However, equally important is Kremlin objective to shift policy consensus favourably to Russia in US whoever wins. Both presidential candidates' opposition to TPP and TTIP viewed as a result in this respect - Senior Russian diplomat withdrawn from Washington embassy on account of potential exposure in US presidential election operation 5 Detail 1. Speaking in confidence to a trusted compatriot in mid-September 2016, a senior member of the Russian Presidential Administration (PA) commented on the political fallout from recent western media revelations about Moscow?s intervention, in favour of Donald TRUMP and against Hillary CLINTON, in the US presidential election. The PA official reported that the issue had become incredibly sensitive and that President PUTIN had issued direct orders that Kremlin and government insiders should not discuss it in public or even in private. 2. Despite this, the PA of?cial confirmed, from direct knowledge, that the gist of the allegations was true. PUTIN had been receiving con?icting advice on interfering from three separate and expert groups. On one side had been the Russian ambassador to the US, Sergei and the Ministry of Foreign Affairs, together with an independent and informal network run by presidential foreign policy advisor, Yuri predecessor in Washington) who had urged caution and the potential negative impact on Russia from the operation/s. On the other side was former PA Head, Sergei IVANOV, backed by Russian Foreign Intelligence (SVR), who had advised PUTIN that the anti- CLINTON operation/s would be both effective and plausibly deniable with little blowback. The first group/s had been proven right and this had been the catalyst in PUTIN's decision to sack IVANOV (unexpectedly) as PA Head in August. His successor, Anton VAINO, had been selected for the job partly because he had not been involved in the US presidential election operation/s. Continuing on this theme, the senior PA official said the situation now was that the Kremlin had further ?kompromat? on candidate CLINTON and had been considering releasing this via ?plausibly deniable" channels after the Duma (legislative) elections were out ofthe way in mid- September. There was however a growing train of thought and associated lobby, arguing that the Russians could still make candidate CLINTON look ?weak and stupid? by provoking her into railing against PUTIN and Russia without the need to release more of her e-mails. Presidential Spokesman, Dmitriy PESKOV remained a key figure in the operation, although any final decision on dissemination of further material would be taken by PUTIN himself. The senior PA official also reported that a growing element in Moscow?s intervention in the US presidential election campaign was the objective of shifting the US political consensus in Russia?s perceived interests regardless of who won. It basically comprised of pushing candidate CLINTON away from President policies. The best example of this was that both candidates now openly opposed the draft trade agreements, TPP and TTIP, which were assessed by Moscow as detrimental to Russian interests. Other issues where the Kremlin was looking to shift the US policy consensus were Ukraine and Syria. Overall however, the presidential election was considered still to be too close to call. Finally, speaking separately to the same compatriot, a senior Russian MFA official reported that as a prophylactic measure, a leading Russian diplomat, Mikhail KULAGIN, had been withdrawn from Washington at short notice because Moscow feared his heavy involvement-in the US presidential election operation, including the so-called veterans? pensions ruse (reported previously), would be exposed in the media there. His replacement, Andrei BONDAREV however was clean in this regard. Z9 Company Comment The substance of what was reported by the senior Russian PA of?cial in paras 1 and 2 above, including the reasons for Sergei dismissal, was corroborated independently by a former top level Russian intelligence officer and Kremlin insider, also in mid-September. 14 September 2016 - xi; . "Kn" 1- Bl. Ix "1 . an; 3.. COMPANY INTELLIGENCE REPORT 2016/112 PRESIDENTIAL ELECTION: KREMLIN-ALPHA GROUP co- OPERATION Summary Top level Russian official confirms current closeness OfAlpha Group- PUTIN relationship. Significant favours continue to be done in both directions and FRIDMAN and AVEN still giving informal advice to PUTIN, especially on the US - Key intermediary in relationship identified as Oleg GOVORUN, currently Head Ofa Presidential Administration department but throughout the 1990s, the Alpha executive who delivered illicit cash directly to PUTIN PUTIN personally unbothered about Alpha?s current lack Of investment in Russia but under pressure from colleagues over this and able to exploit it as lever over Alpha interlocutors Detail 1. Speaking to a trusted compatriot in mid-September 2016, a top level Russian government Official commented on the history and current state Of relations between President PUTIN and the Alpha Group Of businesses led by oligarchs Mikhail RIDMAN, Petr AVEN and German KHAN. The Russian government figure reported that although they had had their ups and downs, the leading figures in Alpha currently were on very good terms with PUTIN. Significant favours continued to be done in both directions, primarily political ones for PUTIN and business/legal ones for Alpha. Also, RIDMAN and AVEN continued to give informal advice tO PUTIN on foreign policy, and especially about the US where he distrusted advice being given to him by officials. 2. Although RIDMAN recently had met directly with PUTIN in Russia, much Of the dialogue and business between them was mediated through a senior Presidential Administration Official, Oleg GOVORUN, who currently headed the department therein responsible for Social CO-operation With the CIS. GOVORUN was trusted by PUTIN and recently had accompanied him to Uzbekistan to pay respects at the tomb of former president KARIMOV. However according to the top level Russian government official, during the 19905 GOVORUN had been Head Of Government Relations at Alpha Group and in reality, the ?driver? and ?bag carrier? used by FRIDMAN and AVEN to deliver large amounts of illicit cash to the Russian president, at that time deputy Mayor of St Petersburg. Given that and the continuing sensitivity of the relationship, and need for plausible deniability, much ofthe contact between them was now indirect and entrusted to the relatively low profile GOVORUN. 3. The top level Russian government official described the PUTlN-Alpha relationship as both carrot and stick. Alpha held ?kompromat' on PUTIN and his corrupt business activities from the 19905 whilst although nOt personally overly bothered by Alpha's failure to reinvest the proceeds 0f its TNK oil company sale into the Russian economy Since, the president was able to use pressure on this count from senior Kremlin colleagues as a lever on FRIDMAN and AVEN to make them do his political bidding. 14 September 2016 COMPANY INTELLIGENCE REPORT 2016/113 PRESIDENTIAL ELECTION- REPUBLICAN CANDIDATE PRIOR ACTIVITIES IN ST PETERSBURG Summary - Two knowledgeable St Petersburg sources claim Republican candidate TRUMP has paid bribes and engaged in sexual activities there but key witnesses silenced and evidence hard to obtain - Both believe Azeri business associate of TRUMP, Araz AGALAROV will know the details Detail 1. Speaking to a trusted compatriot in September 2016, two well-placed sources based in St Petersburg, one in the political/business elite and the other involved in the local services and tourist industry, commented on Republican US presidential candidate Donald prior activities in the city. 2. Both knew TRUMP had visited St Petersburg on several occasions in the past and had been interested in doing business deals there involving real estate. The local business/ political elite figure reported that TRUMP had paid bribes there to further his interests but very discreetly and only through affiliated companies, making it very hard to prove. The local services industry source reported that TRUMP had participated in sex parties in the city too, but that all direct witnesses to this recently had been ?silenced? i.e. bribed or coerced to disappear. 3. The two St Petersburg figures cited believed an Azeri business figure, Araz AGALAROV (with offices in Baku and London) had been closely involved with TRUMP in Russia and would know most of the details of what the Republican presidential candidate had got up to there. 14 September 2016 7/1 COMPANY INTELLIGENCE REPORT 201 @130 RUSSIA: KREMLIN ASSESSMENT OF TRU MP AND RUSSIAN INTERFERENCE IN US PRESIDENTIAL ELECTION Summary Buyer's remorse sets In with Kremlin over TRUMP support operation In US presidential election. Russian leadership disappointed that leaked e-malls on CLINTON have not had greater impact in campaign Russians have. Injected further material into the plausibly deniable' leaks pipeline which will continue to surface, but best material already In public domain angry with senior officials who ?ouerpromised' on TRUMP and turther heads likely to roll as result. Foreign Minister LAVROV may be next TRUMP supported by Kremlin because seen as divisive. anti-establishment candidate who would shake up current International status quo In Russia's favor. Lead on TRUMP operation moved from Foreign Ministry to F83 and then to presidential administration where it now sits Detail 1. Speaking separater in con?dence to a trusted compatriot In early October 2016. a senior Russian leadership figure and a Foreign Ministry official reported on recent developments concerning the Kremlin's operation to support Republican candidate Donald TRUMP in the US presidential election. The senior leadership figure said that a degree of buyer's remorse was setting in among Russian leaders concerning TRUMP. PUTIN and his colleagues were surprised and disappointed that leaks ot Democratic candidate. Hillary CLINTON's hacked e-mails had not had greater impact on the campaign. Continuing on this theme. the senior leadership llgure commented that a stream of further hacked CLINTON material already had been injected by the Kremlin Into compliant western media outlets like Wlkileaks. which remained at least ?plausibly deniable', so the stream of these would continue through October and up to the election. However sr'he understood that the best material the Russians had already was out and there were no real game-changers to come. The Russian Foreign Ministry official, who had direct access to the TRUMP support operation, reported that PUTIN was angry at his subordhate's ?over-promising? on the Republican presidential candidate, both in terms of his chances and reliability and being able to cover andr'or contain the US backlash over Kremlin lnterlerenoe. More heads therefore were likely to roll, with the MFA the easiest target. Ironically, despite his consistent urging of caution on the Issue, Foreign Minister LAVRIOV could be the next one to go. 4. Asked to explain why PUTIN and the Kremlin had launched such an aggressive TRUMP support operation in the first place, the MFA official said that Russia needed to meet the liberal intematlonal status quo. Including on Ukraine-related sanctions. which was serioust deedventayng the country. TRUMP was viewed as divisive In dlstupting the whole US tioai system; anti-Establishment: and a pragmatlsl whom they could do business. As the TRUMP support operation had gained momentum. control ol? it had passed tram the MFA to the F88 and than Into the presidential ministration whore It remained. a renoclion of its growing signi?cance me: time. There was still a view in tho Kremlin that TRUMP would continue as a {divisive} political I'oroe own If he lost the presidency and may run for and be elected to another public otitce. 12 October 2016 COMPANY INTELLIGENCE REPORT 2016/13.] PRESIDENTIAL ELECTION: FURTHER DETAILS OF KREMLIN LIAISON WITH TRUMP CAMPAIGN Summary in July Close associate 01' SLCI confirms his. xterm mvtvimg Mmcow Cline-r PA Substance included Ufer (if large elalte in Ronnt'ik In return for lifting on Russia PAGE confirms this is lRUMl"s intention - SECHIN continued to think TRUMP t'tvuld Vim plt'udl'nt'y up to l7 ot-lober Now liloking to reorientnte his engagement the Us - Kremlin insiderhighlights importance lawyer, Michael ('01 HEN in cover! relationship Russia COHEN's wile is of Russian descent and her tather a leading pruperty developer in Moscow Detail Speaking to a trusted compatriot in mid October 2015, a close associate of Rbsnett President and PUTIN ally Igur' SECHIN elaborated on the reported secret meeting between the latter and Carter PAGE, of us Republican presidential candidate's foreign policy team, in Moscow in July 2016. The secret had been confirmed to him/her by a senior member of staff, in addition to by the Rbsneft President himself It (oak place on either 7 or 8 July, the same day or the one after Carter PAGE made a public speech to the Higher Economic School in 1, Moscow. In terms of the substance of their disc SECI-IIN's associate said that the Rosneft President was so keen to lift personal and corporate western sanctions imposed on the company, that he offered PAGE associates the brokerage of up to a 19 per cent (privatised) stake in Rosnett in return PAGE had expressed interest and confirmed that were TRUMP elected US preSIde-nl, then sanctions on Russia would be lifted. According to SECHIN's close associate, the Rosnett President had continued to believe that TRUMP could win the us presidency right up to I7 October, when he assessed this was no longer possible, SECHIN was keen to readapt accordingly and put teelers out to other business and political contacts in the US instead. Speaking separately to the same compatriot in mid-October 2016, a Kremlin insider with direct access to the leadership confirmed that a key role in the seclet TRUMP campaign/ Kremlin la ed the Re ublican candida '5 personal Law er Michael relationship was beln COHEN 770 Scum: a 5 dmv' \mphed mm tomum lwu'mnum'm on mtcnunn 1m Ruskth \mumm elected pee-mm, he We uh me Repubhmu nnlholnv Cumpany Commem 15 Onober 2016 COMPANY INTELLIGENCE REPORT 2016/135 PRESIDENTIAL ELECTION: THE IMPORTANT ROLE OF TRUMP LAWYER, COHEN IN SECRET LIAISON WITH THE KREMLIN Summary - Kremlin insider outlines important role played by lawyer COHEN in secret liaison with Russian leadership - COHEN engaged with Russians in trying to cover up scandal of I MANAFORT and exposure of PAGE and meets Kremlin of?cials secretly 1n the EU in August in pursuit of this goal - These secret contacts continue but are now farmed out to trusted agents in Kremlin?linked institutes so as to remain "plausibly deniable" for Russian regime - Further con?rmation that sacking of and appointments of VAINO and KIRIYENKO linked to need to cover up Kremlin?s TRUMP support operation Detail 1. Speaking in con?dence to a longstanding compatriot friend in mid- October 2016, a Kremlin insider highlighted the importance of Republican presidential candidate Donald TRUMP's lawyer, Michael COHEN, in the ongoing secret liaison relationship between the New York tycoon's campaign and the Russian leadership. role had grown following the departure of Paul MANNAFORT as campaign manager in August 2016. Prior to that MANNAFORT had led for the TRUMP side. 2. According to the Kremlin insider, COHEN now was heavily engaged in a cover up and damage limitation operation in the attempt to prevent the full details of relationship with Russia being exposed. In pursuit of this aim, COHEN had met secretly with several Russian Presidential Administration (PA) Legal Department of?cials in an EU country in August 2016. The immediate issues had been to contain further scandals involving MANNAFORT's commercial and political role in Russia/Ukraine and to limit the damage arising from exposure of former TRUMP foreign policy advisor, Carter PAGE's secret meetings with Russian leadership ?gures in Moscow the previous month. The 1L overall objective had been to "to sweep it all under the carpet and make sure no connections could be fully established or proven" 3. Things had become even "hotter" since August on the track. According to the Kremlin insider, this had meant that direct contact between the TRUMP team and Russia had been farmed out by the Kremlin to trusted agents of in?uence working in pro-government policy institutes like that of Law and Comparative Jurisprudence. COHEN however continued to lead for the TRUMP team. 4. Referring back to the (surprise) sacking of Sergei IVAN OV as Head of PA in August 2016, his replacement by Anton and the appointment of former Russian premier Sergei KIRIYENKO to another senior position in the PA, the Kremlin insider repeated that this had been directly connected to the TRUMP support operation and the need to cover up now that it was being exposed by the USO and in the western media. Company Comment The Kremlin insider was unsure of the identities of the PA of?cials with whom COHEN met secretly in August, or the exact date/s and locations of the meeting/s. There were signi?cant internal security barriers being erected in the PA as the TRUMP issue became more controversial and damaging. However s/he continued to try to obtain these. 19 October 2016 COMPANY INTELLIGENCE REPORT 2016 166 FURTHER DETAILS OF SECRET DIALOGUE BETWEEN TRUMP CAMPAIGN TEAM. KREMLIN AND ASSOCIATED HACKERS IN PRAGUE Summary Detail 1. We reported previously (2016/135 and /136) on secret meeting/s held in Prague, Czech Republic in August 2016 between then Republican presidential candidate Donald TRUMP's representative, Michael COHEN and his interlocutors from the Kremlin working under cover of Russian Rossotrudnichestvo. TRUMP's representative COHEN accompanied to Prague in August/September 2016 by 3 colleagues for secret discussions with Kremlin representatives and associated operators/hackers Agenda included how to process deniable cash payments to operatives; contingency plans for covering up operations; and action in event ofa election victory Some further details of Russian representatives/operatives involved; Romanian hackers employed; and use ofBulgaria as bolt hole to ?lie low? hackers and other operatives paid by both TRUMP team and Kremlin, but with ultimate loyalty to Head of PA, and his successor/s provided further details of these meeting/s and associated anti- TON /Democratic Party operations. COHEN had been accompanied to Prague by 3 colleagues and the timing of the visit was either in the last week of August or the first week of September. One of their main Russian interlocutors was Oleg SOLODUKHIN operating under Rossotrudnichestvo cover. According the agenda comprised questions on how deniable cash payments were to be made to hackers who had worked in Europe under Kremlin direction against the CLINTON campaign and various contingencies for covering up these operations and Moscow's secret liaison with the TRUMP team more generally. 2N 1 WI over the pertnd 2016 a cutnpany ("1le and Its Affiliates had been uslng hornets and punt traffic to viruses, plant hug steal data and remind 'altetlng Ilw Demtluntlt' Party leadership Entities that mime "mind an. mm min hackm ex II. bolh I'eLrulied uuttut- duress by flwere players in tlus operatlun In Prague, COHEN agreed plans for vartuus sccnanns to protect the operatton, but tn wlt.tt was to be done in the event that! Htiittry CLINTON won the presidency. [t was In this event that all cash payments owed were .ttut anti that and othcropcraluls were Mood down/ahlt- in go crructtvuly to ground [0 covertheir traces [We repurled author that the orputittcai opemtives Paul MANAFORT and Cdl'lcr PAGE In the set-rat TRUMFV Kremlin llalson had been Exposed In the medta ut the run-up to Prague and that damltgo limitation also was dtscusscd by COHEN with [he representatives). 4, In terms of practical measures to be taken, tt was agreed by the two sides in Prague to stand down various "anantan hackers" (presumably based in their homeland or neighbouring eastern Europe) and that other operatives should head {or a bait-hole In Plavdiv, Bulgaria where they should "by low' 0n payments, associate sud that the operatlves Involved had been paid by huth team and the Kremim, though lhelr orders and loyalty lay lwlNov, as Head orthe and thus ultimately respunsible tor the operation, and his designated successor/s alter he was by president PUTIN connection with theanti-CLINTON operation in mid August. 13 December 2016