Key Takeaways:
- Ukrainian intelligence faked the death of Denis Kapustin, a prominent anti-Putin commander.
- Russia paid a $500,000 bounty for the assassination, which was funneled directly to Ukraine's war effort.
- The operation highlights Ukraine's sophisticated intelligence capabilities against Russia's FSB and GRU.
- Kapustin, banned from the Schengen Area for neo-Nazi ties, leads the Russian Volunteer Corps (RDK) fighting for Ukraine.
In a stunning intelligence coup, Ukraine has tricked Russia into funding its own war effort. The operation centered on faking the death of Denis Kapustin, the founder of the pro-Ukrainian Russian Volunteer Corps (RDK).
Russia had placed a $500,000 bounty on Kapustin's head. On December 27, reports surfaced that he had been killed by a drone on the southern front. Russian intelligence services promptly paid the reward. What they didn't know was that they were handing the money directly to Ukraine.
The Morale-Boosting Ruse
On New Year's Day, Kapustin reappeared—alive and well—in a video released by Ukraine's military intelligence agency, the HUR. The agency's chief, General Kyrylo Budanov, congratulated Kapustin on a successful deception.
"Welcome back to life," Gen. Budanov said with a wry smile. "I am glad that the money allocated for your assassination was used to support our struggle."
The HUR and the RDK had orchestrated the entire scheme to claim the Russian bounty. The funds are now being used to support Ukraine's defense against the ongoing invasion.
A Pattern of Outsmarting the FSB
This operation fits a consistent pattern. Throughout the nearly four-year war, Ukrainian intelligence has repeatedly outmaneuvered its Russian counterparts. Their successes include:
- Recruiting Russian double-agents to sabotage FSB missions.
- Orchestrating high-profile assassinations of Russian generals on home soil.
- Executing deep-strike sabotage operations like Operation Spiderweb, which destroyed strategic Russian aircraft in 2025.
Recent high-profile targets eliminated in suspected Ukrainian operations include:
- Lt. Gen. Igor Kirillov (killed by a bomb in an e-scooter in 2024).
- Lt. Gen. Fanil Sarvarov (killed by a car bomb in Moscow in December 2025).
- Yaroslav Moskalik, a deputy army chief (killed by a car bomb in April 2025).
The Controversial Commander: Denis 'White Rex' Kapustin
The man at the center of the bounty scam is a complex and controversial figure. Denis Kapustin, known by his call sign "White Rex," is a Russian national fighting for Ukraine.
- Background: His family moved from Moscow to Germany when he was 17. He relocated to Ukraine in 2017.
- Schengen Ban: Since 2019, he has been banned from entering the Schengen Area for promoting neo-Nazi ideology.
- Military Role: He helped form units that became Ukraine's famed 3rd Assault Brigade early in the full-scale invasion.
In 2022, he founded the RDK, a militia of Russian citizens aiming to overthrow Vladimir Putin. The group has conducted cross-border raids into Russia's Belgorod and Kursk regions, humiliating the Kremlin. Russia has labeled it a terrorist organization and sentenced Kapustin to life in prison in absentia.
Implications for European Security
The case underscores the blurred lines and extraterritorial nature of the conflict. Key points for European observers:
- Shadow War in Europe: The 2025 assassination of pro-Russian Ukrainian politician Andriy Portnov in Madrid demonstrates how the conflict can spill onto EU soil.
- Travel Restrictions: Kapustin's Schengen ban highlights how individuals involved in the conflict can be subject to EU travel sanctions based on ideology or activities, separate from the war itself.
- Intelligence Landscape: Ukraine's successful deception reinforces a shift in the intelligence balance, challenging long-held perceptions of Russian invincibility in covert operations.
For now, Kapustin remains in Ukraine, "preparing to continue carrying out assigned tasks," according to a Ukrainian commander. The half-million dollars Russia paid for his ghost will now haunt its own military efforts.