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Islamic State No Threat to the West? Think Again

In America, we cannot know just in fact how many are under the influence is Islam or where they are across the country. We may never know how many travel to the Middle East to join Boko Harem, al Shabaab, al Qaeda, al Nusra or Daesh. We also cannot be confident that these self proclaimed jihadist have not traveled back to their home base in the United States. Relying on media, the State Department, the FBI or DHS to warn us is a fool’s errand.

In the event you are still not convinced, to examine this particular person in Great Britain who was a banker in the City of London, which is no different than New York City.

RT exclusive: From London banker to ISIS militant – one man’s terror trail

“I look forward to death with a smile.”

These words come from a British militant in western Iraq who is fighting for the Islamic State (ISIS) under the nom de guerre Abu A’ntaar.

But one thing separates him from the majority of his comrades; Before his life as a jihadist, A’ntaar claims to have been a business analyst working in the City of London.

For the past month, RT UK has been speaking exclusively to A’ntaar via an encrypted instant messenger popular amongst the social media savvy Western fighters in the region. A’ntaar’s penchant for propaganda made him no different than most western fighters ostentatiously trumpeting their messages via social media. But behind the standard ISIS rhetoric, he does provide glimpses into his daily life, what was expected of him as a fighter, and whether he would consider returning home in the future.

RT did request a video or audio interview with A’ntaar. He refused after the ISIS media department and his higher ranking Emirs (regional leaders) nixed the idea outright.

Reuters/Stringer

A’ntaar is among approximately 500-1000 other Britons currently fighting in the region, according to the British governments’ official estimates. Most Britons enter through the Turkish border into Syria and Iraq, where border guards are willing to ‘turn a blind eye’ for a small fee. In June this year, British intelligence service MI5 said that tracking British jihadis waging war in Syria was now its ‘top priority’ following a recruitment video released by ISIS in which British fighters urged Muslims to come join the fight.

More recently, British foreign fighters made headlines after slickly produced videos were published online, showing the beheading of US journalists James Foley and Steven Sotloff. In both videos, a man dubbed ‘Jihadi John’ by the British media threatens Britain and the United States in what analysts believe is a distinctive London accent. The idea of relatively privileged American and European Muslims leaving home to fight and die under the ISIS flag in a foreign land has captivated the media and public alike. The question is always the same: what makes them do it?

Democracy, Palestine & tyranny

A’ntaar does not reveal too much about his personal life, cagily avoiding any revelatory comments which could have pointed towards his true identity. Answering to why he chose to join the Islamic State, he says he hated “being ruled by laws other than Allah’s” and that the territories currently controlled by ISIS are “the only place where the shari’a of Allah is applied fully.”

“I hate democracy and the self- indulgence of the rich….I hate inequality…I hate the corporations who are trying to destroy this world because of tyranny,” he tells us.

A’ntaar is derisive towards the notion of using the British democratic process to protest against injustices in the Muslim world. For him, peaceful protest is not an option. “I hate that Palestine was never freed for 70+ years whilst we ‘peacefully’ held placards on the street”. But now, according to A’ntaar’s sacred belief, “IS are leading the way as how we should have acted from the beginning.”

Reuters/Thaier Al-Sudani

A’ntaar refused to say whether he had been on any operations, but he did say that as well as being a “soldier,” he is a “suicide bomber” and could ‘destroy’ enemies “at will”.

“I am a walking device,” he told us.

As far as his experiences with combat, few details were forthcoming, apart from the fact that he was constantly armed, “even when in sleep.”

‘They’re not disposable’

Earlier this year, British born Abdul Waheed Majeed made headlines for apparently blowing himself up in an Aleppo Prison, allowing hundreds of detainees- many of whom were high ranking Al-Qaeda operatives, to flee. And while no Britons have been linked to further suicide bombings as of yet, the social media accounts of other suspected Britons such as ‘Usama-al-Britani’ indicate that more are willing to sacrifice their lives if ordered to do so.

The designation “suicide bomber,” however, could in fact be a means of establishing the pecking order of fighters.

“Britons don’t tend to be used on frontlines as suicide bombers” Mark Stephens, deputy director of the Royal United Services Institute (RUSI) in Qatar told RT.

“They’re not disposable. They are mainly being used to do menial tasks [as] most of them don’t speak Arabic,” he said.

Stephens adds that foreign fighters may also be used to provide intelligence and infrastructure to ISIS, which has been as adamant about logistical structures and providing public services as it has been about conducting military operations.

“If one is educated for example and has an engineering degree, then he is not being used as a suicide bomber. You need educated people to run your organization. ISIS isn’t just a terrorist group, it runs cities in the area it controls.”

As more Brits heading to Syria, politicians are currently discussing how to deal with the fighters and the risks they pose to their home countries. In June, Prime Minister David Cameron said that foreign fighters posed ‘the biggest threat’ to Britain’s’ national security, warning that ISIS militants could conduct terror operations on home soil.

Other politicians are calling for jihadis to be offered amnesty like that offered in Denmark, or be subject to ‘deradicalization programs’. The British Home Office, however, has opted instead to take the most hard line approaches in all of Europe. It includes stripping suspected ISIS recruits of their passports, an all out travel ban, and freezing their assets and bank accounts if necessary.

“People seeking to travel to engage in terrorist activity in Syria or Iraq should be in no doubt we will take the strongest possible action to protect our national security, including prosecuting those who break the law,” a Home Office spokesperson told RT.

To A’ntaar, however, the warnings are meaningless. “I do not care for a passport of citizenship or living in the UK. I do not want it at all and the only way I’ll return to the UK is when they get into fight with us, and my leader sends me on a mission to cause destruction from within the enemy,” he says, adding that he would attack Britain only if commanded to do so.

“I want to fight for the khilafah (caliphate) and want to die protecting it so long as it is ruling by Allahs laws. Britain right now is the enemy but its not up to me when to strike them.

“It is up to our leaders how to decide when and how. But we are ready,” he warned.

A’ntaars attitude is similar to that of other ISIS fighters, who, despite pleas from their parents and relatives, express no desire to return home.

“Most fighters don’t want to go back,” Stephens says.

“Family pressure doesn’t do anything to change that. Foreign fighters will never be sent back. The moment he comes back into the country, he [A’ntaar] will be spotted in a second.”

Stephens also tells us that even if there are fighters who want to return home, they would find problems in doing so; “It is difficult to get out of Syria, to get across the border, so it’s unlikely that foreign fighters would go back,” he says.

‘More ruthless than Al-Qaeda’

ISIS is so hardline that it was expelled by al Qaeda’s leader Ayman al-Zawahiri in February this year. Led by an Iraqi called Abu Bakr al-Baghdadi, ISIS was originally an al-Qaeda group in Iraq. Within just a few months, ISIS launched an aggressive expansion campaign, seized key territory, gained thousands of followers and spread fear and terror across Iraq and Syria, so that now experts argue that ISIS eclipsed al Qaeda and made it seem virtually irrelevant.

A’ntaar for his part believes that ISIS is now the global leader in Jihad and that “nothing, absolutely nothing can get rid of it.” He argues that ISIS is stronger than Al Qaeda, because it managed to achieve something the latter never could – establishing a ‘caliphate’.

Reuters/Stringer

“The Islamic State is more advanced, more sufficient in self-finance and more ruthless on enemies than AQ,” he says. While praising the group formerly led by Osama bin Laden, he argues that the group have ‘run out of ideas’ without their leader.

While the skill in which ISIS disseminate their propaganda through videos and social networks is well documented, foreign fighters also assist in spreading it, especially to potential new recruits. Most of the English speaking fighters tend to be active on social media sites including Twitter and ask.fm, where they praise the ‘just actions’ taken by militants, whom they refer to as ‘mujahideen’.

Fighters, both men and women, praise ISIS, citing examples in which it has allegedly rebuilt bridges and schools, and stopped activities including drinking and gambling, that they see as ‘Haraam’ or impermissible.

A’ntaar assures us that he has support from local Iraqis and Syrians, saying that “They hate the Americans, and have long been afraid of the Shi’a government” under former Prime Minister Nouri al-Maliki. He also rejects reports of forced conversions of Yazidis and other minorities, dismissing them as ‘lies’. According to A’ntaar, Yazidis converted out of “their own will,” despite claims made by the United Nations and a number of human rights NGOs.

“It is unquestionably the case that English speakers have a great amount of propaganda potential,” says Tom Keatinge, an associate fellow at RUSI.

Keatinge emphasises how effective English speaking is to Islamist ideology, citing the example of radical preacher Anwar al-Awlaki, who was killed by US drone strikes in 2011. By using familiar terminology and phrases, the English language “can be manipulated to make Jihad appear more appealing than it in reality is,” Keatinge suggests.

This tendency was clear throughout our interview with A’ntaar.

In our attempts to garner insight into his actual life as an ISIS fighter, much of what he imparted concealed in the all too familiar veil of propaganda.

Indeed, the extent to which ISIS is obsessively on point regarding its media message may also be evident in the videos depicting the murder of western hostages, such as James Foley and most recently, David Haines, by suspected British ISIS militant ‘Jihadi John’.

Stephens told us that despite claims that the individual killed the hostages, “Jihadi John was just put out for propaganda purposes, as a direct message to Obama”

“Islam breeds lions…..the West breeds rabbits”

As President Obama announces a new bombing campaign against ISIS fighters in Syria, A’ntaar seemed unfazed when asked whether such action could eliminate the organization. “No problem,” he said. “They can kill 95 percent of us if they are capable but this movement will breed new leaders every time and our enemy will never be [as] relentless as us in pursuing our goals.”

Reuters/Jason Reed

A’ntaar provided no answer when asked how ISIS would go about fighting American-led forces in the event of a strike.

Although few details were forthcoming regarding the groups ability to counter aerial assaults, he implied the militants were undergoing training to manage airstrikes.

Our conversation with A’antaar ended soon thereafter, following “orders” that he was no longer allowed to talk to journalists. Whether he was taking orders from the IS media department or in fact an integral part of it is a matter of pure speculation.

One thing, however, remains certain. Authorized to speak to us or not, he did not miss a beat in communicating a well formulated message- a message, incidentally, which foreign fighters like him have proved indispensable in providing.

In one of the last messages A’antaar sent to us, he says: “Islam breeds lions who can never be defeated in the fields, while the West breeds rabbits.”

“We want American and west to come to Syria and fight us. We want to strike the jugular vein of the kuffar (infidel) and the jugular vien [sic] of the kuffar is America.”

 

Charges Against Mubarak Dropped

IN the last few days there have been deadly demonstrations in Cairo. Egypt and Israel appear to be the only two countries working to establish peace and stability in the Middle East.

Cairo (CNN) — Three people were killed, 20 others were injured and dozens were arrested during limited anti-government protests calling for the preservation of Egypt’s Islamic identity Friday, a Health Ministry spokesman told CNN.

Today there are more.

Egypt Court Drops Murder Charges Against Mubarak

Ousted Leader Remains in Jail on Separate, Three-Year Sentence

CAIRO—An Egyptian court dismissed murder charges against former Egyptian President Hosni Mubarak on Saturday in the killing of hundreds of protesters during a 2011 uprising against his autocratic rule, a decision that comes after the nation has shifted back toward authoritarianism.

The decision, read by the judge presiding over a panel of jurists who were considering the charges of culpability in the murder of the protesters, in addition to charges of corruption, caps a nearly four-year process that saw the former dictator sentenced to life in prison in 2012. The previous verdict, on the same charges, was overturned on a technicality in 2013.

Mr. Mubarak, 86 years old, is currently serving a three-year prison term after being found guilty on separate corruption charges this year. It was unclear Saturday if he would complete that sentence in a military hospital, where he is being held because of his frail health, or be released, officials said.

In addition to dismissing the charges against the former president on Saturday, the judge announced that Mr. Mubarak and his two sons, Alaa and Gamal, were found not guilty of corruption. Habib Al Adly, who served as interior minister under Mr. Mubarak, and six aides, were also found not guilty in the murder of protesters during clashes with police.

It was the final legal hurdle Mr. Mubarak faced after he was detained following his ouster on Feb. 11, 2012 after nearly 30 years in office. Legal experts said judicial authorities could rule that his detention could count as time served, raising the possibility that Mr. Mubarak could be freed in the coming weeks, despite his conviction on embezzlement charges in May.

Reaction to the court’s decision was muted. The courtroom erupted in cheers after chief judge Mahmoud al-Rashidi finished reading the verdicts. Mr. Mubarak smiled and embraced his sons inside the defendants’ cage.

Later, speaking to a private satellite news program by telephone, Mr. Mubarak was defiant, suggesting the criminal proceedings against him were politically motivated.

“I did not do anything at all,” he said.

In Tahrir Square, the telegenic epicenter of the 2011 revolt, a handful of supporters applauded the decision while others stood in silence holding placards denouncing the verdicts as a travesty of justice.

But in dozens of homes, families of the protesters who were killed expressed agony.

“Today, we were killed again,” Amal Shaker, the mother of Ahmed Zain El Abedin, who was killed during the 18 days of demonstrations against Mr. Mubarak, said through tears. “They acquitted the officers who followed the orders and killed our sons and now they acquit their superiors—the ones who gave the order to kill.”

As Egypt’s political transition stumbled under pressure from the military, families seeking justice for the deaths of their relatives have had no relief. Nearly 200 police officers who faced charges for killing of protesters were acquitted or had their cases dismissed for lack of evidence.

Mr. Mubarak’s 2012 conviction was thrown out on appeal because of a procedural error.

Once billed as the trial of the century in Egypt, public interest in Mr. Mubarak’s journey through the legal system has waned since the nation underwent seismic political changes after the January 2011 uprising that unseated him.

Egypt held its first democratic presidential elections in June 2012, which Mohammed Morsi, a leader of the Muslim Brotherhood, won. He was then ousted by the military in July 2013, following large street demonstrations denouncing his rule.

Mr. Morsi was imprisoned and is currently facing a number of charges in separate trials, including treason and murder, which rights groups have characterized as politically motivated.

The former general who carried out the coup, Abdel Fattah Al Sisi, nominated himself for president in March and months later won against a weak opponent—reviving draconian laws against dissent as he presided over a fierce crackdown on Islamists and many of the figures who drove the uprising against Mr. Mubarak.

Legal experts said Saturday’s verdicts relating to Mr. Mubarak and the other defendants could be appealed, but there was little political will to do so.

The case had been mired in confusion and lacked transparency. Though a government sanctioned study found that nearly 900 people were killed during the 2011 uprising, the judge said on Saturday only 239 of the victims had been named in the case.

Mr. al-Rashidi, the judge, suggested during his reading of the verdict that prosecutors had erred in bringing a criminal case against the former president and that a criminal court didn’t have legal jurisdiction, leading him to dismiss the charges of murder.

He also said because of Mr. Mubarak’s advanced age and years of “public service,” it would best be left for history and god to judge him. He denied that the decision had “anything do with politics.”

The corruption charges Mr. Mubarak and his sons, along with a longtime associate, fugitive businessman Hussein Salem, were acquitted for involved the illegal sale of natural gas to Israel at reduced rates and for allegedly receiving vacation homes in exchange for political favors.

Write to Tamer El-Ghobashy at [email protected]

Ayatollah Rebukes Kerry on Nuclear Talks

The New York Times reported that Khamenei posted a statement on his personal website attacking America but approving of the decision to continue negotiations with world leaders on his country’s nuclear program.

“I do not disagree with the extension of the negotiations, as I have not disagreed with negotiations in the first place,” the ayatollah said in speech published on Khamenei.ir.

Western negotiators – the five permanent members of the United Nations Security Council and Germany (P5+1) – and Iran failed to meet the second deadline for a comprehensive nuclear agreement on Monday, announcing an extension of talks that started last year.

During that time, the parties have operated under an interim agreement that has limited Iran’s production of enriched uranium, imposed stricter international inspections of the current nuclear program and stopped the country from firing up unused centrifuges. In exchange, the United States and European Union have scaled back sanctions on Iran and released portions of frozen assets.

America is a chameleon, and every day makes new statements,” he said in comments that were to be delivered to an audience of paramilitary Basij forces, according to his website, Khamenei.ir. “It also says different things in public and in private.”

 

Iran’s Supreme Leader Ayatollah Ali Khamenei, in his first response to the extension of talks over the country’s nuclear program, said world powers have failed to humiliate the Islamic Republic.

“The U.S. and all the European colonialist countries gathered together and tried everything to bring the Islamic Republic of Iran to its knees, but they couldn’t and they never will,” Khamenei said today, according to state-run media.

Diplomats from Iran and the so-called P5+1 group — the U.S., Germany, France, the U.K., Russia and China — gave themselves until March to come up with a political framework and July to spell out technical steps needed for a final accord.

Where does this leave John Kerry and his reputation in Washington for failing to get a deal?

But after having preached patience for a long time, Kerry, the designated defender of the talks, is coming under increasing pressure to deliver an agreement or give up.

Although he has never said a deal with Iran would be easy, Kerry has sometimes raised expectations—as he did in September of last year, when he told “60 Minutes” that a nuclear deal might be reached in less than three to six months.

That was fourteen months ago.

In comments from Vienna Monday, Kerry dangled new hope that a long-term nuclear agreement is close at hand. “[I]n these last days in Vienna, we have made real and substantial progress, and we have seen new ideas surface,” Kerry said, expressing hope that a broad framework could be completed in just four more months.

But administration allies are beginning to worry that Kerry is chasing an ever-moving rainbow’s end.

Shortly after the announcement of the deadline extension, GOP Senate foreign policy figures John McCain, Lindsey Graham and Kelly Ayotte in a joint statement said, “We believe this latest extension of talks should be coupled with increased sanctions and a requirement that any final deal between Iran and the United States be sent to Congress for approval.”

Interestingly, the presidential waiver authorities that are included in the relevant acts have been ratified by the Congress, yet now that Obama is likely to use them, fierce Congressional opposition has emerged.

Under the Joint Plan of Action agreed between Iran and the P5+1, the US should refrain from imposing new nuclear-related sanctions. In January, Obama explicitly threatened a veto on any new Iran sanction bill. Any new sanction bill would be considered as a violation of the JPOA on the part of the United States.

 

Fading List to Replace Hagel

SecDef Chuck Hagel has an on camera reputation of being slow and lagging in control. But more that comes out since his termination that tells us otherwise. The position of Secretary of Defense is the least sought position in the Obama administration due in part to two wars, the Guantanamo detainee release program and most of all the shrinking budget for defense.

Politico explains why no one wants the job. Then there is the matter of releasing more detainees from Gitmo which is under the full authority of the Pentagon, and Hagel fought back hard under pressure from the White House to apply his signature for releases. More detainees are slated for release, trade or transfer.

Deputy Defense Secretary Work flew to Afghanistan to spend Thanksgiving with the troops and for meetings on the matter of recent Taliban attacks on ISAF. It was only yesterday that the Taliban attacked a NATO base. Matters in Afghanistan are sliding south and the Pentagon officials went to the White House demanding immediate action to prevent a rise in the Taliban and al Qaeda. Simply put a military leadership revolt occurred a few weeks ago such that Obama finally got the message and secretly approved an extended operation in Afghanistan including more aggressive operations.

Sequestration is the biggest threat to protecting national security at home and globally. If sequestration continues, Hagel said last week when he presented his “Strategic Choices and Management Review,” DOD might try to end civilian pensions for retired military troops who work for DOD, or cut unemployment payments.

Carter said changes in pensions, health care and other benefits would likely be grandfathered. Still, a $100 million dollar cut would do damage to DOD and its personnel that officials currently can’t calculate.

The Daesh containment strategy which is to manage the terror group to Iraq and Syria has already failed as Islamic State has moved into North Africa and Libya has fallen.

Little support and attention has been paid to NATO, Poland, Ukraine and the Baltic States except to throw money at building defenses. President Barack Obama, Secretary of State John Kerry and Defense Secretary Chuck Hagel pledged to defend the continent and announced $1 billion in additional military measures aimed at deterring Russia. They also pleaded with NATO members to use their bully pulpits to convince their governments  to boost defense spending. U.S. leaders promised that America would fulfill its obligations to protect Europe and urged other NATO members to do to the same. Obama cited the U.S. Article 5 commitment to Poland – referring to the portion of the NATO charter which states that a threat against one nation is a threat against all.  “As president, I’ve made sure that the United States is upholding that commitment.”

So who will approve staying on the list to replace SefDef Hagel? There are rumors that include Colin Powel and Tom Donilon, beyond that others are being considered. None of them frankly will have the military in their best interest and national security will likely continue to suffer.

Obama proposed his Pentagon budget for 2015 and it is less than 2014 while the global threat matrix increases. Another matter of great importance is keeping pace of the higher quality, readiness and assets of adversaries of the United States, those countries like China and Russia who are both jointly cooperating in military advancements.

Putin, Oligarchs, Wealth and More

While there is so much going on globally, in recent weeks very little has been said about Russia, Putin and his aggressions.

Creating global wealth undercover to the masses does not go without recognition to many of the worldwide elite class and Russian collusion is no exception. You may very well know the names and locations. The list is fascinating.

 

The Russian Foreign Ministry has taken a jab at its U.S. counterpart by uploading a picture of U.S. Secretary of State John Kerry and his predecessors “digging out trenches of the Cold War.”

The loaded comment was made alongside a picture of the politicians holding spades at a construction site, taken last Thursday at a ceremony for a future museum at the U.S. Diplomacy Center in Washington.

“Let’s hope that this is not the mobilization of veterans on digging out trenches of the Cold War,” the Russian Foreign Ministry said Monday on its Facebook account.

Also pictured in the photograph are former state secretaries Hillary Clinton, Colin Powell, Henry Kissinger, James Baker and Madeleine Albright.

Then comes Ukraine and why it has been rather easy for Putin’s aggressions going unchallenged by the West.

SPECIAL REPORT-Putin’s allies channelled billions to Ukraine oligarch

By Stephen Grey, Tom Bergin, Sevgil Musaieva and Roman Anin

MOSCOW/KIEV Nov 26 (Reuters) – In Russia, powerful friends helped him make a fortune. In the United States, officials want him extradited and put behind bars. In Austria, where he is currently free on bail of $155 million, authorities have yet to decide what to do with him.

He is Dmitry Firtash, a former fireman and soldier. In little more than a decade, the Ukrainian went from obscurity to wealth and renown, largely by buying gas from Russia and selling it in his home country. His success was built on remarkable sweetheart deals brokered by associates of Russian leader Vladimir Putin, at immense cost to Russian taxpayers, a Reuters investigation shows.

Russian government records reviewed for this article reveal for the first time the terms of recent deals between Firtash and Russia’s Gazprom, a giant gas company majority owned by the state.

According to Russian customs documents detailing the trades, Gazprom sold more than 20 billion cubic metres of gas well below market prices to Firtash over the past four years – about four times more than the Russian government has publicly acknowledged. The price Firtash paid was so low, Reuters calculates, that companies he controlled made more than $3 billion on the arrangement.

Over the same time period, other documents show, bankers close to Putin granted Firtash credit lines of up to $11 billion. That credit helped Firtash, who backed pro-Russian Viktor Yanukovich’s successful 2010 bid to become Ukraine’s president, to buy a dominant position in the country’s chemical and fertiliser industry and expand his influence.

The Firtash story is more than one man’s grab for riches. It demonstrates how Putin uses Russian state assets to create streams of cash for political allies, and how he exported this model to Ukraine in an attempt to dominate his neighbour, which he sees as vital to Russia’s strategic interests. With the help of Firtash, Yanukovich won power and went on to rule Ukraine for four years. The relationship had great geopolitical value for Putin: Yanukovich ended up steering the nation of more than 44 million away from the West’s orbit and towards Moscow’s until he was overthrown in February.

“Firtash has always been an intermediary,” said Viktor Chumak, chairman of the anti-corruption committee in the previous Ukrainian parliament. “He is a political person representing Russia’s interests in Ukraine.”

A spokesman for Putin rejected claims that Firtash acted on behalf of Russia. “Firtash is an independent businessman and he pursues his own interests, I don’t believe he represents anyone else’s interests,” said Dmitry Peskov.

The findings are the latest in a Reuters examination of how elites favoured by the Kremlin profit from the state in the Putin era. In the wild years after the fall of the Soviet Union, state assets were seized or bought cheaply by the well connected. Today, resources and cash flows from public enterprises are diverted to private individuals with links to Putin, whether in Russia or abroad.

Putin’s system of comrade capitalism has had huge costs for the ordinary people of Russia: By granting special cheap deals to Firtash, Gazprom missed out on about $2 billion in revenue it could have made by selling that gas at market prices, according to European gas price data collected by Reuters. Four industry analysts said that Gazprom could have sold the gas at substantially higher prices to other customers in Europe.

At the same time, the citizens of both Russia and Ukraine have seen unelected oligarchs wield political influence.

Firtash, whose main company, Group DF, describes him as one of Ukraine’s leading entrepreneurs and philanthropists, was arrested in Austria on March 12 at the request of U.S. authorities. The Americans accuse him of bribery over a business deal in India unrelated to events examined in this article. Firtash denies those allegations and is currently free on bail.

Firtash imported the cheap Russian gas through a Cypriot company of which he is sole director, and a Swiss one set up by Group DF. He and Group DF declined to answer questions about those two companies and their gas dealings. A spokesman said Firtash was not available to discuss his business operations, and that Group DF did not wish to comment on “any of the questions you put forth.”

The Kremlin spokesman Peskov said Putin has met Firtash but that they are not close acquaintances. He said Russia supplied gas at “lower prices” to Ukraine because Yanukovich had asked for it and Russia wanted to help Ukraine’s petrochemical industry. Peskov said the deals were arranged through Firtash because “the Ukrainian government asked for it to be that way.”

Yanukovich, who fled to Russia in February after mass demonstrations against his government, could not be reached for comment.

THE MIDDLEMAN

From the moment he first became Russia’s president, Putin moved to take control of his country’s most valuable resource: natural gas. After assuming power in 2000, he replaced the management of Gazprom, put trusted allies in charge, and ensured the Russian state controlled more than half the shares.

The corporate behemoth now supplies about a third of Europe’s gas, generating vital revenue for Russia and giving Putin a powerful economic lever. “Gazprom is very much a tool of Russian foreign policy,” says Rem Korteweg, senior research fellow at the Centre for European Reform. Every major deal that Gazprom signs is approved by Putin, people in the energy industry say.

Putin’s spokesman rejected such assertions: Gazprom, he said, “is a commercial, public company, which has international shareholders. It acts in the interests of its shareholders, which also include the Russian state.”

In normal times, Gazprom’s second biggest customer in Europe is Ukraine; Russian gas was piped directly across the border between the two countries until Russia cut off supplies earlier this year.

In the 2000s, though, Gazprom decided to sell gas not directly to Ukraine’s state gas company Naftogaz, but to intermediaries – in particular Firtash, an international gas dealer who had risen from humble origins.

Firtash grew up in west Ukraine, where his father worked in education and his mother in a sugar factory, according to an account Firtash gave during a meeting with the U.S. ambassador in Kiev in 2008. Both his parents disdained communism and lacked the contacts needed to get their son into university, he said.

He joined the army in 1986, then trained to be a fireman. When the Soviet Union collapsed, leading to Ukraine’s independence in 1991, Firtash found himself having to make a living in an uncertain world, according to his account to the ambassador. With his first wife, he set up a business in west Ukraine shipping canned goods to Uzbekistan, according to local media reports researched by the U.S. embassy.

A U.S. diplomatic cable, which summarised Firtash’s discussion with the ambassador, drily noted: “Due to his commodities business, (Firtash) became acquainted with several powerful business figures from the former Soviet Union.”

According to the cable, Firtash told the U.S. ambassador he had been forced to deal with suspected criminals because at that time it was impossible to do business in Ukraine cleanly. He said he had needed and received permission from a man named Semion Mogilevich to establish various businesses. Mogilevich, an alleged boss of organised crime in eastern Europe, is wanted by the U.S. Federal Bureau of Investigation for an alleged multi-million-dollar fraud in the 1990s involving a company headquartered in the United States. He was indicted in 2003, and described by the FBI in 2009 as having an “extensive international criminal network.”

Firtash has repeatedly denied having any close relationship with Mogilevich. Mogilevich could not be contacted for comment. He has previously denied any wrongdoing or any connection to the gas trade in Ukraine.

By 2002, a company called Eural Trans Gas, registered in Hungary, was transporting gas from Turkmenistan through Russia to Ukraine. Its ownership was unclear, but Firtash represented it. In July 2004, a new company, RosUkrEnergo, became the intermediary for gas deals between Russia and Ukraine. The owners of RUE were unknown at first, but it later emerged that nearly all of the company was owned by Firtash and Gazprom.

RUE bought gas cheaply and sold it on at a higher price in Ukraine and Europe. This arrangement guaranteed profits for RUE and was hugely controversial among Ukrainians who saw RUE as an unnecessary intermediary. Another U.S. diplomatic cable, from March 2009, described RUE as a “cash cow” and a “serious source of … political patronage.” In a website posting, RUE said that in 2007 it sold nearly $10 billion worth of gas and had net income of $795 million.

After Yulia Tymoshenko, herself a former gas trader, became prime minister of Ukraine in 2008, she reacted to public anger about the gas trade and moved to cut Firtash and RUE out of the business. She struck her own gas deal with Putin in 2009.

By that time, Firtash was rich. In the country’s 2010 presidential election, Firtash, by his own admission, aided the pro-Russian Yanukovich. A U.S. diplomatic cable described Firtash as a “major financial backer” of Yanukovich.

“Firtash supported Yanukovich in various ways,” said Vadym Karasiov, an aide to Viktor Yuschenko, Ukraine’s president from 2005 to 2010, in an interview. Karasiov said the mogul used his influence in the media to promote Yanukovich. In April 2010, in the aftermath of the election, Karasiov told the Kiev Post: “Without Dmitry Firtash there wouldn’t have been a (Yanukovich) victory.”

With Yanukovich president, Tymoshenko stepped down as prime minister. Business associates of Firtash were appointed to influential positions in the new administration. He had allies in the corridors of power, and ambitious plans to expand his business empire and get back into the gas trade. His friends in Russia were happy to help him.

THE LOANS

Tucked away in Nicosia, Cyprus, a bundle of tattered papers wrapped in string records Russian credit agreements made to Firtash companies. The documents, reviewed by Reuters, detail a series of financing deals worth billions of dollars.

The deals were arranged by a Russian lender called Gazprombank. Despite its name, the bank is not controlled by Gazprom, which holds only a minority stake. It is a separate business, overseen by people linked to Putin. They include Yuri Kovalchuk, a banker who until March 2014 controlled an investment firm that manages a majority stake in Gazprombank.

In a statement, Gazprombank said: “We do not receive any instructions from the Kremlin … The strategy of the bank is developed by its management board and approved by the board of directors. No other influence is possible.”

Asked whether Putin had any role in issuing the loans to Firtash companies, Kremlin spokesman Peskov said: “Putin, as president, does not have anything to do with this.”

Gazprombank began lending money to Firtash companies soon after Yanukovich took power in Ukraine in February 2010.

In June that year, Firtash established a company called Ostchem Investments in Cyprus. A month later, Gazprombank registered a credit line to the company of $815 million, according to the Cyprus documents. In September, Ostchem Investments bought a 90 percent stake in the Stirol fertiliser plant in Ukraine. It was perfect synergy: Firtash knew the gas business, and natural gas is a major feedstock for making fertiliser.

Further loans and deals with Firtash companies followed.

Reuters found that by March 2011, Gazprombank had registered credit lines of up to $11.15 billion to Firtash companies. The companies may not have borrowed that whole sum, but the documents indicate that loans up to that amount were available, according to Cyprus lawyers.

In the space of seven months in 2011 alone, Firtash acquired control of two more fertiliser plants in Ukraine, Severodonetsk Azot and Rivne Azot. He also bought the Nika Tera sea port, through which fertiliser and other dry bulk goods are shipped. He acquired a lender called Nadra Bank and invested in the titanium processing industry.

Such was his expansion that Firtash became the fifth largest fertiliser producer in Europe. Being a large employer brought not just potential profits but also political clout, he boasted. “We have relations with MPs,” Firtash told Die Presse in Austria in May. “We are big employers in the regions that they represent. Entire cities live on our factories. Election candidates seek our support.”

When asked in 2011 where the money came from to pay for his acquisitions, Firtash was coy. At a press conference called to announce his purchase of the Severdonetsk plant, he declined to name his major lenders. “It’s a secret,” he told Ukrainian journalists.

But a Gazprombank manager told Reuters that the Russian bank had led a consortium of lenders which in 2011 agreed to lend about $7 billion to Firtash. The official said Gazprombank itself lent Firtash $2.2 billion, and that Firtash still owed the bank $2.08 billion. The official declined to name other lenders in the consortium.

A $2.2 billion loan was a big commitment for Gazprombank: It amounted to nearly a quarter of the bank’s total capital, the maximum loan allowed by Russian banking rules for any single client or group. Based on regulatory filings, the loan facility made Firtash the biggest single borrower from Gazprombank.

Reuters was unable to establish exactly how much in total the Gazprombank consortium lent to Firtash companies.

In a statement, Gazprombank said that “the aggregate amount of loans disbursed to Ostchem Group” was “several times lower” than $11 billion. “And all capital requirements and limitations of the Central Bank of Russia in respect of loans granted have always been complied with by Gazprombank, including loans to Ostchem Group,” the statement said.

The bank declined to give any further details, saying it had to protect client confidentiality. The central bank had no comment.

GAS PROFITS

Firtash now had money, political connections and businesses that relied on large supplies of gas. What he needed next was fuel.

In January 2011, Firtash signed an unpublished agreement, seen by Reuters, with Gazprom to buy gas through a company called Ostchem Holding in Cyprus, where he is the sole director listed.

The gas deal was later extended to include sales to Ostchem Gas Trading AG in Switzerland. It was also agreed by Naftogaz, Ukraine’s state-owned gas firm, where Yanukovich had installed new senior management. Firtash needed Naftogaz’s sign-off because it controlled pipelines delivering gas and, until that point, had an exclusive deal to import gas from Gazprom.

Naftogaz’s decision to agree to the deal was an odd one. Not only did it mean Naftogaz would surrender its monopoly on Russian gas imports, but the deal could also potentially damage the state firm. Naftogaz had previously agreed with Gazprom to pay for a set amount of gas whether it could sell it in Ukraine or not. Firtash’s deal could leave the Ukrainian state firm buying gas it would struggle to sell.

Firtash’s return to importing gas became public knowledge after Yanukovich’s election victory. But the price he paid Moscow, and how much cheap gas he bought, remained unclear. An Ostchem spokesman told Reuters the price was “confidential information.”

Russian customs records seen by Reuters show that in 2012, Moscow sold the gas to Firtash for $230 per 1,000 cubic metres (the standard unit used in gas sales). In 2013 the average cost was $267 per unit. Those prices were at least one-third less than those paid by Ukraine’s Naftogaz.

Ukrainian customs documents and corporate filings show that Firtash’s Ostchem companies in Cyprus and Switzerland resold the gas to his chemical plants in Ukraine for $430 per unit. The prices and volumes suggest that the two offshore Ostchem companies made an operating profit of approximately $3.7 billion in two years.

Naftogaz’s current management is highly critical of the way in which Gazprom favoured Firtash’s companies. Aliona Osmolovska, chief of press relations, said: “These special deals for Ostchem were not in the interest of Ukraine.”

The real loser in the deal, though, was Gazprom. The arrangement, which Putin described during a press conference as having been made with the “input of the Russian leadership,” meant Russia sold its gas to Firtash for at least $100 per unit less than it could have made in Western Europe, according to Emily Stromquist, head of Russian energy analysis at Eurasia Group, a political risk research firm.

In addition, the profits from the subsequent resale of the gas were all reaped offshore by companies that did not benefit the Russian taxpayer. Those profits in 2012 and 2013 would have meant an additional $2 billion for Gazprom, whose ultimate majority owners are Russia’s citizens.

Gazprom declined to comment on its sales to Firtash’s companies.

Putin’s spokesman Peskov said Naftogaz agreed to Firtash receiving gas at low prices because the deal was intended to help Ukraine’s petrochemical industry. Asked why the gas was sold to companies in Cyprus and Switzerland, Peskov said: “Putin doesn’t need to approve this action. These operations are technical and were made by Gazprom according to the structures which are always used by its Ukrainian partners.”

Neither of the two Firtash companies that bought gas from Russia publishes accounts. Firtash declined to comment on the firms or their results.

UNEASY STANDOFF

The new government in Ukraine alleges that Yanukovich had allowed corruption to flourish and stolen millions of dollars. In the longer term, the new government says it wants to forge closer ties with the European Union and reduce its dependence on Russian gas.

In June, Moscow cut off supplies of gas to Kiev, claiming that it was owed billions of dollars by Ukraine’s state-owned Naftogaz. Late last month, the two countries struck a deal allowing supplies to resume, but the agreement runs only until March. Firtash retains large stocks of gas but has not imported new supplies since Yanukovich was ousted.

Firtash remains in Austria awaiting the outcome of extradition hearings. According to a U.S. indictment unsealed in April, he is suspected of a scheme to bribe Indian government officials to procure titanium. Two U.S. government officials said the American investigation into Firtash is continuing; they declined to give further details.

The Ukrainian oligarch has said the allegations are “without foundation” and has accused Washington of acting for “purely political reasons.” He has hired an all-star legal defence team. It includes Lanny Davis, who helped President Bill Clinton weather a series of White House scandals in the 1990s.

In his time of trouble Firtash has not been deserted by the Russians. Since his arrest he has received another loan in order to pay his bail: $155 million from Vasily Anisimov, the billionaire who heads the Russian Judo Federation, the governing body in Russia of Putin’s beloved sport.

“I have known Mr. Firtash for a number of years, though he is neither my friend nor business partner,” Anisimov told Reuters in an email. “I confirm that I loaned 125 million euros to him. This was a purely business transaction.” (Additional reporting by Michele Kambas in Cyprus, Elizabeth Piper and Jason Bush in Moscow, Oleksandr Akymenko and Pavel Polityuk in Kiev, Jack Stubbs in London, Warren Strobel in Washington and Michele Martin in Berlin; Edited by Richard Woods and Michael Williams)