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Pentagon plans covert spy network for economic war, Washington Post says; Pentagon denies

🇷🇺 Russia, Washington 09:47 International Business3 Official updated 1 h ago first reported by Коммерсантъ

In short

The Washington Post reported, citing six sources, that the Pentagon plans a next-generation spy programme in which operatives pose as businesspeople to wage economic war against China and other US competitors. The programme is at the planning stage and is led by former CIA officer Tom Rakusan. A Pentagon deputy press secretary said the request appears to rest on information that is not true.

Read the full story 2 min read

The Pentagon intends to create a more reliable spy programme for waging economic war against US competitors, according to a report by The Washington Post carried by Russian outlets on 22 October. RBC and Vedomosti said the programme would involve a network of deep-cover agents and would target China and other US competitors. RIA Novosti referred only to competitors of the United States. [ 1 , 2 , 3 ]

The newspaper described a new, next-generation spy programme in which US operatives would work undercover as businesspeople or other private-sector staff, with no evident link to the government. It was conceived as a covert part of a wider campaign of economic war, the newspaper wrote, as quoted by RIA Novosti. Vedomosti said the newspaper cited six sources. [ 1 , 3 ]

According to the newspaper's sources, the programme is still in development. It is overseen by Tom Rakusan, a former CIA officer who is now a senior adviser to Deputy Secretary Steve Feinberg. Vedomosti said experts from Pentagon security agencies and the office of the deputy defence secretary for intelligence and security have been brought in, along with retired CIA staff, and that the programme has not yet been launched. [ 1 , 3 ]

The Pentagon officially denies that such an initiative exists. RIA Novosti quoted Pentagon deputy press secretary Jacob Bliss as telling the newspaper that the request appears to be based on information that simply does not correspond to reality. [ 1 ]

Vedomosti placed the report against the state of US-China relations. It said Vasily Kashin, director of the Centre for Comprehensive European and International Studies at the Higher School of Economics, told the paper in early October that a limited easing of tensions had begun between the two countries. In Kashin's account, the US side expects the easing to last months, while Beijing hopes it will last years. Kashin also said relations are developing with difficulty and that Xi Jinping's visit to the United States produced only an economic truce of two months. [ 3 ]

Why it matters

RBC and Vedomosti report that the planned network would target China and other US competitors. Vedomosti set the report against a limited easing in US-China relations and a two-month economic truce. The programme has not been launched and the Pentagon denies it exists.

Key facts

  • The Washington Post reported that the Pentagon intends to create a deep-cover spy programme for economic war against China and other US competitors. [ 2 , 3 ]
  • US operatives under the programme would work undercover as businesspeople or other private-sector staff, without an evident link to the government. [ 1 , 3 ]
  • Vedomosti said the Washington Post cited six sources. [ 3 ]
  • The programme is at the planning stage; Vedomosti said it has not been launched. [ 1 , 3 ]
  • The initiative is led by former CIA officer Tom Rakusan (Ракусан), now a senior adviser to Deputy Secretary Steve Feinberg. [ 1 , 3 ]
  • Vedomosti said experts from Pentagon security agencies, the office of the deputy defence secretary for intelligence and security, and retired CIA staff are involved. [ 3 ]
  • Pentagon deputy press secretary Jacob Bliss said the request appears to be based on information that does not correspond to reality. [ 1 ]

Confirmed by several sources

  • The Washington Post reported that the Pentagon plans a covert spy programme using operatives posing as private-sector staff for economic war against US competitors. [ 1 , 2 , 3 ]
  • The programme is led by former CIA officer Tom Rakusan, a senior adviser to Deputy Secretary Steve Feinberg, and is still in development. [ 1 , 3 ]
  • The Pentagon officially denies the initiative exists. [ 1 ]

Still unclear

  • Whether the programme exists in the form described. The Pentagon, through deputy press secretary Jacob Bliss, said the request appears to be based on untrue information; the account comes from the newspaper's sources.
  • Whether China is the programme's main target. RBC and Vedomosti name China and other competitors, while RIA Novosti refers only to competitors of the US.
  • When or whether the programme will be launched. Documents say only that it is at the planning stage.

What local media are saying

Official sourcesRIA Novosti summarised the Washington Post report on the programme, its leader and its development stage, and included the Pentagon's denial. [ 1 ]
Business mediaRBC and Vedomosti named China as a target of the planned network. Vedomosti added details on the six sources, the agencies involved and the planning stage, and an expert view of limited US-China easing. [ 2 , 3 ]

Timeline, local time

  1. RIA Novosti reported the Washington Post story, including the Pentagon's denial. [ 1 ]
  2. RBC reported that the Washington Post learned of Pentagon plans for a network of agents for economic war. [ 2 ]
  3. Vedomosti reported the Washington Post account of a deep-cover spy programme aimed at China. [ 3 ]