The conversation between Heinz-Christian Strache, leader of the Austrian Freedom Party and the alleged Russian niece has cost him his position of vice-chancellor and triggered a political crisis in the country.

The leader of Austrian Freedom Party became the hero of the scandal

Prime Minister of Austria and leader of the center-right Austrian People’s Party Sebastian Kurz announced on Saturday, May 18, that he broke off his coalition with the far-right Austrian Freedom Party (APS). The reason was the publication by the German publications Suddeutsche Zeitung and Spiegel of a video of Heinz-Christian Strache, leader of the APS, made with a hidden camera in July 2017, a few months before the parliamentary elections in Austria. In that election, the APS came in third and joined the first-place ANP in the governing coalition, with Strache as vice-chancellor.

The video shows Strache and his associate Johann Goodenus talking to a woman whom Suddeutsche Zeitung describes as “an elegant, slender woman” who was “introduced to them as Alena Makarova, supposedly the niece of Igor Makarov, an oligarch of Russian origin who is close to Putin. The paper noted that the Austrian counterpart also holds a passport from a European Union country, Latvia, and that her handler is Irena Markovich, the scandalous owner of Lifestyle Properties.

The conversation took place at the villa in Ibiza and concerned Makarova’s opportunities to invest in Austria. Strache and Gudenus discuss with her the possibility of buying 50% of the Austrian newspaper Kronen Zeitung. Strache points out in the conversation that shortly before the election, the newspaper could emphasize several politicians in his party, which could end up increasing the party’s final result by a few percent. In exchange for media support, Strache promised access to government construction contracts, particularly contracts with Austrian construction firm Strabag. During the conversation, Strache also talks about the possibility of material support for his party, pointing out that few donors donate openly, many transfer money to nongovernmental organizations. Among the sponsors, he names the Austrian gun manufacturer Glock (the company denied this allegation after the video was published).

The conversation lasted about six hours, according to the media, which published the recording. According to Spiegel, Strache and Goodenus, having agreed to negotiate with the “Russian woman,” fell into a trap – the villa was equipped with cameras. The source who provided the video is known to the editors of Spiegel and Suddeutsche Zeitung, but wishes to remain anonymous. “It is unclear who framed the APS politicians and in whose interests,” Spiegel specifies.

Igor Makarov, president of the international group of companies Areti, told Forbes that he is an only child in the family, accordingly, he cannot have a niece.