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Is Austria’s capital Vienna really a ‘city of spies’?

A recent Financial Times article has alleged that Vienna is a hub for covert Russian activities, adding to the city’s reputation as a “city of spies”. How true is it?

Is Austria’s capital Vienna really a 'city of spies'?
Is Austria's capital city really a hub for international espionage activity? Photo by Clive Kim on Pexels.

During the Cold War, Vienna was known as an international hotbed of espionage activity due to its neutral status and Central European location, leading to the nickname, “city of spies”.

Today, Austria’s capital city is once again in the spotlight after an article in the Financial Times named the Russian Embassy in Vienna as an important spy hub amid the fallout from Russia’s invasion of Ukraine. 

The article includes interviews with eight serving European intelligence officials and diplomats, with one citing Austria as a “veritable aircraft carrier” of covert Russian activity.

READ MORE: Can Austria reduce its dependency on Russian gas?

Reports of espionage in Vienna

Recent concern about espionage in Vienna started in 2017 when a “friendly partner service” – reportedly British – warned Austria about an outflow of information from the BVT.

This was a time when the ministerial heads of all intelligence services were politicians from the Freedom Party of Austria (FPÖ), which was in a coalition with the Austrian People’s Party (ÖVP). Der Standard reports that the FPÖ signed a friendship treaty with United Russia, Vladimir Putin’s ruling political party.

READ ALSO: Calls for Russian-owned Austrian hotels to be opened to refugees

The following year, rumours began circling around Europe about Austria’s security services being compromised after a police raid on the BVT offices and the suspension of Austria’s anti-terror chief Peter Grindling.

Back in 2018, the BBC also reported on Vienna’s reputation as a “nest of spies” and included a quote from Siegfried Beer, historian and founder of the Austrian Center for Intelligence, Propaganda and Security Studies, who said espionage was still a business in the city.

‘City of spies’: What does Austria think about the moniker?

Austrian newspaper Der Standard wrote that Vienna’s location made it the perfect Russian espionage hub. 

According to the Financial Times, an Austrian chancellery official refused to comment on the allegations, but did say the “current government has been pushing through sweeping reform of its security agencies”.

Russia has used Vienna as a location from which to target other countries. Der Standard reports that although Austria has been aware of the extent of Russian espionage efforts, the focus has been only on activities targeted against Austria rather than other nations. 

The threat reached a head in 2017 when the right-wing Austrian Freedom Party (FPÖ) came into government, which had signed a friendship treaty with United Russia, Vladimir Putin’s party. 

The FPÖ took on leadership roles within all intelligence services, with Herbert Kickl becoming interior minister in 2017, and Mario Kunasek taking over the defence department.

The links between the two parties were so strong that Vladimir Putin attended the wedding of FPÖ foreign minister Karin Kneissl, where he danced with the bride and presented her with the now infamous sapphire earrings worth 50,000 euros. 

Kneissl, for her part, was later awarded a lucrative position on the board of Russian state-owned energy company Rosneft. 

A consequence of these close ties was that Austria’s Federal Agency for State Protection and Counterterrorism (BVT) was excluded from European intelligence sharing for a while because it was considered as deeply compromised.

An anonymous European diplomat added that Austria’s defence ministry is “practically a department of the GRU”. The GRU is the Main Directorate of the General Staff of the Armed Forces of the Russian Federation.

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POLITICS

Austrias far right demands an EU ‘remigration’ commissioner

Austria's far-right Freedom Party (FPOe) on Tuesday called for the government to name an EU "remigration" commissioner after winning the EU elections in the Alpine nation.

Austrias far right demands an EU 'remigration' commissioner

The FPOe espouses the far-right concept of remigration that calls for expelling people of non-European ethnic backgrounds who they say have failed to integrate.

While it is up to the conservative government to nominate any commissioner, the FPOe said its first nationwide win at the ballot box gave it the right to name someone to the role and dictate their portfolio.

In the EU elections, the FPOe took 25.4 percent of the votes, just ahead of the ruling conservative People’s Party (OeVP) on 24.5 percent.

“What I have noticed in the last few weeks during the election campaign is that there is above all a need for sensible migration policy, that there is a need for remigration,” FPOe secretary general Christian Hafenecker told a press conference.

“We need a remigration commissioner,” he added, putting forward an FPOe official to fill the role.

It is not the first time the FPOe has espoused the concept

In 2023, party leader Herbert Kickl said that those who “refuse to integrate” should lose their citizenship and be expelled.

The notion of remigration is associated with white nationalists who champion the great replacement conspiracy theory.

The theory alleges a plot to replace Europe’s so-called native white population with non-white migrants.

The United Nations rights chief warned in March that the conspiracy theories spread are “delusional” and racist and are directly spurring violence.

The FPOe is expected to top the vote in September’s national elections, but will probably need to find willing coalition partners to govern.

The party — founded in the 1950s by former Nazis — has been part of a ruling coalition several times but has never governed the country of nine million.

READ ALSO: ANALYSIS: What does Austria’s far-right win in the EU elections mean for foreigners?

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