The handshake takes place in 2005. It is a moment heavy with symbolism. Gerhard Schröder, having just left his office as Chancellor of Germany, the leader of Europe's most powerful economy, stands next to a smiling Vladimir Putin in St. Petersburg. He is accepting the multi-million-dollar chairmanship of the Nord Stream AG consortium, a subsidiary of the Russian state-owned behemoth Gazprom. He, the man who called Putin a "flawless democrat" and championed the pipelines as a project of peace and prosperity, has seamlessly transitioned from Germany's highest public servant to Russia's highest-profile private beneficiary. The move is not illegal. It is simply the final, public act in a decades-long influence operation, a declaration of ownership, the triumphant culmination of Russia's strategy to turn the leader of its most important European partner into its most powerful lobbyist.
32.1 "Schröderization": The Model of Elite Capture
Germany stands as the premier Western case study of successful, multi-decade Russian elite capture. The embodiment of this strategy is former Chancellor Gerhard Schröder. While in office, he was the chief political sponsor of the Nord Stream pipelines, overriding warnings from Eastern European allies that the project was a tool of Russian geopolitical coercion. [CITATION 1] Immediately upon leaving office, he began a lucrative career serving on the boards of Russian state-owned energy firms, most notably Rosneft and Gazprom's Nord Stream. This practice of "Schröderization"—where senior Western politicians become highly paid lobbyists for Russian state interests after leaving office—has become a textbook example of modern elite capture, blurring the lines between policy, personal enrichment, and strategic corruption. The U.S. government later sanctioned Schröder for his role, officially identifying him as a key enabler of the Russian regime. [CITATION 3]
32.2 The Weaponization of "Ostpolitik
Russia's success in Germany was achieved by skillfully manipulating the country's unique post-World War II political culture. It specifically targeted the Social Democratic Party's noble, decades-old ideology of "Ostpolitik" (Eastern Policy), which held that peace and change could be achieved through engagement and trade with the East. The Kremlin and its German advocates masterfully warped this idea into Wandel durch Handel ("Change through Trade"), a cynical and self-serving doctrine which argued that creating a deep, one-sided dependency on Russian gas would somehow liberalize the Russian state. [CITATION 2] In reality, it achieved the opposite, providing Russia with a massive revenue stream and immense coercive leverage over the German economy, while making the German political and industrial elite willfully blind to the nature of Putin's regime.
32.3 The "Hard" Side: Penetration of the Security State
This "soft" campaign of co-opting elites was paired with a "hard" campaign of classic espionage. In a stunning demonstration of this, a senior official of Germany's foreign intelligence service (the BND), Carsten Linke, was arrested in December 2022 and charged with treason for passing state secrets directly to Russia. [CITATION 4] This proved that Russia's penetration of the German state was not limited to retired politicians and industrialists, but reached into the very heart of its national security apparatus, and continued even after the full-scale invasion of Ukraine. It revealed a systemic vulnerability born from decades of calculated political and economic engagement that had lowered the nation's guard against a determined adversary.
Wagstyl, Stefan. "How Gerhard Schröder became Putin's man in Germany." Financial Times, February 10, 2017. https://www.ft.com/content/380a14e0-ee12-11e6-ba01-119a44939bb6
Bennhold, Katrin, and Eric Schmitt. "How Germany’s Dependence on Russia Explains Its Ukraine Stance." The New York Times, March 12, 2022. https://www.nytimes.com/2022/03/12/world/europe/germany-russia-ukraine.html
U.S. Department of the Treasury. "Treasury Targets Key Members of Russia’s CRI Network and International Sanctions Evaders." Press Release, February 24, 2023. https://home.treasury.gov/news/press-releases/jy1300
Kirschbaum, Erik. "He’s accused of being a Russian spy. In his German town, he was just a ‘friendly’ dad." Los Angeles Times, December 23, 2022. https://www.latimes.com/world-nation/story/2022-12-23/german-intelligence-agent-accused-of-spying-for-russia-treason