American Foreign Policy Council

Russia Policy Monitor No. 2735

July 22, 2026 Ian Matthews, Anna Harvey, Ilan I. Berman
Related Categories: Cybersecurity and Cyberwarfare; Intelligence and Counterintelligence; Public Diplomacy and Information Operations; Science and Technology; Corruption; Japan; Russia

RUSSIAN SPIES ARE STEALING JAPANESE TECH
The Russian military has been operating an intelligence unit known as the 20th Directorate in Tokyo for years, according to a new investigative report by the New York Times. The Russian government has never publicly disclosed the 20th Directorate's role, but its officers reportedly pose as diplomats and businesspeople to buy and steal battlefield technology and smuggle it into Russia. Maksim Filchenkov, a veteran officer of Russia's GRU military intelligence agency, is said to lead the Directorate from the regional office of Russian state airline Aeroflot. Aeroflot has served as a cover for GRU spies since the Soviet era, but is now believed to be central to Russia's efforts to build international business relationships to purchase sensitive technology and ship it to Russia.

The connection with Russia's war on Ukraine is clear. Ukraine's government has repeatedly reported that its investigators have found Japanese components in Russian missiles — an indication that the Directorate has been successful in exporting technology back to Russia. Meanwhile, Russia's espionage actions are facilitated by a permissive environment in Japan. Due to post-World War II restrictions, the country has weak anti-espionage laws and lax enforcement of them, attributes that have allowed Russian spies to set up camp on its soil. (New York Times, July 12, 2026)

RUSSIAN ELITES ARE HIDING THEIR WEALTH OFFSHORE
Russian elites have moved billions of dollars abroad as Russia's economy flags and President Vladimir Putin's regime increasingly seizes high-value assets, say sources cited by Bloomberg. Russian billionaires are particularly concerned about Russia's banking sector, but the country's dramatic economic slowdown since 2025 has also reduced wealth-building opportunities for elites. One businessman stated that he is moving money to Cyprus and the United Arab Emirates due to concerns about the state's pressure on billionaires, while the Dubai property market has seen multiple recent high-end purchases by Russians looking to store their wealth abroad.

This capital flight is not without its hurdles, however. Western sanctions constrain the ability of Russian elites to shift their wealth, forcing them into crypto markets and other informal and under-regulated modes of commerce. (Bloomberg, July 16, 2026)

CRIMEA IS NOT THE VACATION DESTINATION IT USED TO BE
Ukraine has been intensely targeting Crimea recently in order to isolate the peninsula and undermine Russian supply routes to the southern axis of its front line. It is now virtually impossible for the peninsula's 2.5 million residents to leave, and they are living with frequent power and water cuts, little to no supplies or fuel, and limited access to basic services like internet and public transit. Ukraine has destroyed or threatened many routes, creating a massive backup of thousands of vehicles queued to exit the territory via the Kerch bridge, which remains operational.

Recently, Ukraine has come to see Crimea as the key to defeating Russia, especially as its mid-range drone strike capabilities have improved. Ukraine's campaign against Crimea seeks to disrupt the logistics of the southern front, prevent units here from functioning, and force the Russian military to redeploy forces from other parts of the front in order to force a change in the momentum of the conflict. Crimea is also personally significant to Putin, whose popularity skyrocketed after the annexation of the peninsula back in 2014, and losing it would likely have significant domestic repercussions for the Russian president. (Politico, July 14, 2026)

INDUSTRY TARGETED BY RUSSIAN CYBER ATTACKS
The National Security Agency and equivalent agencies in nearly two dozen western nations have issued a joint warning that Russia's Federal Security Service, or FSB, is targeting critical infrastructure around the globe. The FSB uses poorly protected routers and guesses default router passwords to infiltrate private networks and steal sensitive information. State and local government agencies are said to be particularly vulnerable to these attacks. The relevant security agencies have suggested that organizations conduct basic network updates, secure network devices, and improve passwords to protect themselves from Russian cyberattacks. (ABC Australia, July 14, 2026)

© 2026 - American Foreign Policy Council