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6:00 PM ET, Friday, September 15, 2023

The Cipher Brief curates open source information from around the world that impacts national security. Here's a look at today's headlines, broken down by region of the world:  

The Americas

U.S., Britain, Canada Announce Iran Sanctions on Anniversary of Mahsa Amini’s Death.  The U.S., Britain and Canada imposed new sanctions on Iran ahead of the one-year death anniversary of Mahsa Amini, who was killed while in Iran’s morality police custody.  Her death sparked major anti-government protests last year that was countered by a violent crackdown.  Iran has reportedly deployed security forces to Amini’s hometown in anticipation of unrest on her death anniversary.  The sanctions cover dozens of Iranian individuals and entities accused of supporting the “violent suppression” of protests following Amini’s death.  The U.S. sanctions targeted 29 people and groups, including 18 members of the Islamic Revolutionary Guard Corps (IRGC) and Iran’s Law Enforcement Forces (LEF), as well as the head of Iran’s Prisons Organizations.  Douran Software Technologies CEO Alireza Abedinejad and state-controlled media organizations were also sanctioned.  The British sanctions focused on targeting Iranian decision makers who enforce Iran’s mandatory hijab law.  The Canadian sanctions targeted six individuals, including members of the IRGC and the “Supreme Council for Cultural Revolution.”  Reuters U.S. Department of the Treasury

Central and Eastern Europe

Russia, Ukraine Accuse Each Other of Nova Kakhovka Bombing.  Russia and Ukraine gave conflict accounts of a bombing in Nova Kakhovka, a city in the Russian-occupied part of the Kherson region.  Russian-appointed officials said Ukrainian forces struck a residential part of the city, killing one civilian and injuring twelve others.  Ukrainian officials said that Russian forces dropped a guided aerial bomb on the city on accident when trying to launch an airstrike on Beryslav district.  A Ukrainian defense official said the incident showed the “ineptitude” and “clumsiness” of Russia’s military, acknowledging attempts by Russian-appointed authorities to blame the incident on Ukraine’s military.  The official added that it was not the first such incident of Russia bombing areas it controls, claiming that there was a previous incident in which a Russian fighter jet “unloaded” in the center of Russia’s western city of Belgorod.  CNN

Ukraine Says Russian Drone Strikes Aimed at Ukrainian Warplanes Behind Crimea Attacks.  Ukraine’s air force said Friday that it repelled a Russian drone attack overnight in the central Khmelnytskyi region, where the Starokostiantyniv air base is located.  Officials said all 17 “kamikadze” drones Russia launched in the attack were downed.  Air Force Colonel Yuriy Ihnat said the attack showed that Russia is trying to target Ukrainian bombers that recently attacked Russian-occupied Crimea.  Russia did not immediately respond to his comments, which came after Ukraine said on Wednesday that it conducted a missile strike on a shipyard in Crimea’s port of Sevastopol, the headquarters of Russia’s Black Sea Fleet.  The attack reportedly damaged two Russian ships beyond repair, including a landing ship, which a Ukrainian defense official described as an “irreparable loss.”  CNN Reuters

Ukraine Seeks High Defense Spending in 2024 Budget.  Ukraine’s government approved a draft budget for next year on Friday that includes higher defense spending and plans for Western financial support to cover the expected deficit.  Over half of the planned 2024 budget, or 1.7 trillion hryvnias, is allocated for Ukraine’s defense sector to counter Russia’s invasion, including 48.1 billion hryvnias allocated specifically for drone procurement.  The finance ministry said defense spending will be over 21% of gross domestic product.  The ministry added that the planned budget puts the deficit at 1.548 trillion hryvnias, or around 20.4% of gross domestic product, marking a reduction from 27% in 2023.  Finance Minister Serhiy Marchenko said Ukraine is counting on continued Western financial support to help support spending.  Ukraine has already received nearly $62 billion in foreign aid since the start of Moscow’s invasion in 2022.  Reuters

Lukashenko Visits Russia to Meet With Putin, Proposes Trilateral Cooperation With North Korea.  Belarusian President Alexander Lukashenko met with Russian President Vladimir Putin in the southwestern Russian city of Sochi on Friday.  Russian media report that it was the seventh meeting between the two leaders this year.  Putin opened the meeting by saying he would brief Lukashenko on his recent meeting with North Korean leader Kim Jong Un in eastern Russia, and then move on to cover the Ukraine war.  Lukashenko responded by proposing “three-way cooperation” between Russia, North Korea and Belarus.  Westerns have condemned Belarus for its close ties and cooperation with Russia during its invasion of Ukraine.  The European Parliament this week called Lukashenko “an accomplice” to crimes committed by Russia in Ukraine.  Politico Associated Press CNN

Latvia Approves New Coalition Government.  Latvia’s parliament on Friday voted to confirm Erika Silina as the country's new Prime Minister following the resignation of Krisjanis Karins last month.  Karis is expected to become Latvia’s foreign minister.  She has been a leading supporter of Ukraine amid Russia’s invasion and has called for Kyiv to be admitted into both the European Union and NATO. Silina is expected to follow a similar course in policy.  Silina’s appointment means that all three Baltic states — including Estonia and Lithuania, all EU and NATO members that border Russia — will be led by female prime ministers.  Reuters

Asia and Oceania

China Blacklists U.S. Companies Over Taiwan Arms Sales.  China imposed sanctions on Northrop Grumman and a unit of Lockheed Martin over arms sales to Taiwan.  The Chinese foreign ministry said the companies sold weapons to Taiwan “multiple times” and warned the U.S. to stop such transfers to avoid “forceful countermeasures” from China.  Lockheed Martin and Raytheon Missiles and Defense have already been put on a Chinese Commerce Ministry blacklist for their business with Taiwan.  The State Department recently approved the sale of advanced sensor systems from Lockheed Martin for the island’s F-16 fighter jets.  The Biden administration also recently notified Congress that it approved the first military aid to Taiwan under a program normally used to assist sovereign, independent states.  The U.S. is also reportedly diverting some military aid from Egypt to Taiwan.  The U.S. supports Taiwan’s military to deter China from attempting to attack the island, which Beijing sees as a breakaway province that needs to eventually be “reunified” with the mainland.  South China Morning Post

Middle East and Northern Africa

Mandarin Learning On the Rise in Middle East.  Middle Eastern students are increasingly attending Mandarin language classes as Beijing strengthens its ties in the region.  Saudi Arabia last month mandated Mandarin lessons in all public and private secondary schools.  The move follows a 2019 agreement reached during Crown Prince Mohammed bin Salman’s visit to Beijing to have Mandarin lessons available at all levels of Saudi education, including in universities.  The increasing interest in Mandarin in the Middle East comes amid a reported decline in interest in Chinese language learning in Western countries, which analysts said is linked to heightened tensions between Beijing and the West.  Middle Eastern instructors noted that despite the boost to Mandarin lessons in the region, many students in richer Gulf countries are only attending Chinese classes since it is compulsory and are still more interested in learning English to eventually pursue further studies in the West.  One instructor said that those most interested in learning Mandarin come from countries like Syria, Egypt, Iraq and Palestine because “learning Chinese can literally change their fate.”  South China Morning Post

Sub Saharan Africa

Burkina Faso Orders French Embassy’s Defense Attache to Leave.  Burkina Faso’s military junta ordered the French embassy’s defense attache to leave the country due to “subversive” behavior.  According to a leaked letter seen by Reuters, attache Emmanuel Pasquier and his personnel have two weeks to leave.  The letter did not elaborate on what Pasquier did to prompt his expulsion.  It added that the defense section of the Burkina Faso embassy in Paris has been closed with immediate effect.  France’s foreign ministry said it is looking into reports of the expulsion.  Burkina Faso’s junta has already ordered the departure of France’s ambassador and a senior UN official and has also cracked down on French media.  The moves come amid a wave of anti-French sentiment in coup-hit West Africa.  Reuters

Cyber and Tech

EU Digital Boss to Pitch AI Global Governing Body to China.  EU digital chief Vera Jourova is visiting China on Sunday.  Officials say she will pitch the idea of a global governing body for artificial intelligence (AI) to Beijing on her trip.  European Commission President Ursula von der Leyen first proposed the body on Wednesday, saying that the world needs a “global panel” of experts and technology companies to address challenges from AI.  Officials acknowledged that the EU and China differ drastically in their positions on the use of AI by authorities, especially for surveillance, but they said China should be included in talks on global governance of the technology since it is a major leader on AI.  In May, some Chinese executives, researchers and engineers joined an open letter signed by 350 stakeholders working on AI warning about the existential risk the technology poses.  Beyond the AI body, Jourova is expected to raise EU concerns on China’s use of AI to surveil Uighurs in the Xinjiang region.  South China Morning Post

North Korean Hackers Appear to be Behind CoinEx Cryptocurrency Hack.  Cryptocurrency-tracking company Elliptic reports that North Korean hacking group Lazarus Group was likely behind the recently reported theft of $31 million in cryptocurrency from the CoinEx exchange.  Analysts said funds from the CoinEx theft were sent to an address which was used by the Lazarus Group to launder funds from an earlier attack on online casino Stake.com.  Researchers noted that this mixing of funds was previously observed in the group’s attacks on Stake.com and cryptocurrency wallet service Atomic Wallet.  The conclusion adds to the recent trend of Lazarus Group specifically targeting “centralized” cryptocurrency platforms, which are controlled by a single entity and more vulnerable to social-engineering attacks than decentralized finance (DeFi) services, which distribute authority across several nodes.  The Record 

Read deeply-experienced, expert-driven national security news, analysis and opinion inThe Cipher Brief

Afternoon Report for Friday, September 15, 2023

OSR Full Logo Header 3.0

6:00 PM ET, Friday, September 15, 2023

The Cipher Brief curates open source information from around the world that impacts national security. Here's a look at today's headlines, broken down by region of the world:  

The Americas

U.S., Britain, Canada Announce Iran Sanctions on Anniversary of Mahsa Amini’s Death.  The U.S., Britain and Canada imposed new sanctions on Iran ahead of the one-year death anniversary of Mahsa Amini, who was killed while in Iran’s morality police custody.  Her death sparked major anti-government protests last year that was countered by a violent crackdown.  Iran has reportedly deployed security forces to Amini’s hometown in anticipation of unrest on her death anniversary.  The sanctions cover dozens of Iranian individuals and entities accused of supporting the “violent suppression” of protests following Amini’s death.  The U.S. sanctions targeted 29 people and groups, including 18 members of the Islamic Revolutionary Guard Corps (IRGC) and Iran’s Law Enforcement Forces (LEF), as well as the head of Iran’s Prisons Organizations.  Douran Software Technologies CEO Alireza Abedinejad and state-controlled media organizations were also sanctioned.  The British sanctions focused on targeting Iranian decision makers who enforce Iran’s mandatory hijab law.  The Canadian sanctions targeted six individuals, including members of the IRGC and the “Supreme Council for Cultural Revolution.”  Reuters U.S. Department of the Treasury

Central and Eastern Europe

Russia, Ukraine Accuse Each Other of Nova Kakhovka Bombing.  Russia and Ukraine gave conflict accounts of a bombing in Nova Kakhovka, a city in the Russian-occupied part of the Kherson region.  Russian-appointed officials said Ukrainian forces struck a residential part of the city, killing one civilian and injuring twelve others.  Ukrainian officials said that Russian forces dropped a guided aerial bomb on the city on accident when trying to launch an airstrike on Beryslav district.  A Ukrainian defense official said the incident showed the “ineptitude” and “clumsiness” of Russia’s military, acknowledging attempts by Russian-appointed authorities to blame the incident on Ukraine’s military.  The official added that it was not the first such incident of Russia bombing areas it controls, claiming that there was a previous incident in which a Russian fighter jet “unloaded” in the center of Russia’s western city of Belgorod.  CNN

Ukraine Says Russian Drone Strikes Aimed at Ukrainian Warplanes Behind Crimea Attacks.  Ukraine’s air force said Friday that it repelled a Russian drone attack overnight in the central Khmelnytskyi region, where the Starokostiantyniv air base is located.  Officials said all 17 “kamikadze” drones Russia launched in the attack were downed.  Air Force Colonel Yuriy Ihnat said the attack showed that Russia is trying to target Ukrainian bombers that recently attacked Russian-occupied Crimea.  Russia did not immediately respond to his comments, which came after Ukraine said on Wednesday that it conducted a missile strike on a shipyard in Crimea’s port of Sevastopol, the headquarters of Russia’s Black Sea Fleet.  The attack reportedly damaged two Russian ships beyond repair, including a landing ship, which a Ukrainian defense official described as an “irreparable loss.”  CNN Reuters

Ukraine Seeks High Defense Spending in 2024 Budget.  Ukraine’s government approved a draft budget for next year on Friday that includes higher defense spending and plans for Western financial support to cover the expected deficit.  Over half of the planned 2024 budget, or 1.7 trillion hryvnias, is allocated for Ukraine’s defense sector to counter Russia’s invasion, including 48.1 billion hryvnias allocated specifically for drone procurement.  The finance ministry said defense spending will be over 21% of gross domestic product.  The ministry added that the planned budget puts the deficit at 1.548 trillion hryvnias, or around 20.4% of gross domestic product, marking a reduction from 27% in 2023.  Finance Minister Serhiy Marchenko said Ukraine is counting on continued Western financial support to help support spending.  Ukraine has already received nearly $62 billion in foreign aid since the start of Moscow’s invasion in 2022.  Reuters

Lukashenko Visits Russia to Meet With Putin, Proposes Trilateral Cooperation With North Korea.  Belarusian President Alexander Lukashenko met with Russian President Vladimir Putin in the southwestern Russian city of Sochi on Friday.  Russian media report that it was the seventh meeting between the two leaders this year.  Putin opened the meeting by saying he would brief Lukashenko on his recent meeting with North Korean leader Kim Jong Un in eastern Russia, and then move on to cover the Ukraine war.  Lukashenko responded by proposing “three-way cooperation” between Russia, North Korea and Belarus.  Westerns have condemned Belarus for its close ties and cooperation with Russia during its invasion of Ukraine.  The European Parliament this week called Lukashenko “an accomplice” to crimes committed by Russia in Ukraine.  Politico Associated Press CNN

Latvia Approves New Coalition Government.  Latvia’s parliament on Friday voted to confirm Erika Silina as the country's new Prime Minister following the resignation of Krisjanis Karins last month.  Karis is expected to become Latvia’s foreign minister.  She has been a leading supporter of Ukraine amid Russia’s invasion and has called for Kyiv to be admitted into both the European Union and NATO. Silina is expected to follow a similar course in policy.  Silina’s appointment means that all three Baltic states — including Estonia and Lithuania, all EU and NATO members that border Russia — will be led by female prime ministers.  Reuters

Asia and Oceania

China Blacklists U.S. Companies Over Taiwan Arms Sales.  China imposed sanctions on Northrop Grumman and a unit of Lockheed Martin over arms sales to Taiwan.  The Chinese foreign ministry said the companies sold weapons to Taiwan “multiple times” and warned the U.S. to stop such transfers to avoid “forceful countermeasures” from China.  Lockheed Martin and Raytheon Missiles and Defense have already been put on a Chinese Commerce Ministry blacklist for their business with Taiwan.  The State Department recently approved the sale of advanced sensor systems from Lockheed Martin for the island’s F-16 fighter jets.  The Biden administration also recently notified Congress that it approved the first military aid to Taiwan under a program normally used to assist sovereign, independent states.  The U.S. is also reportedly diverting some military aid from Egypt to Taiwan.  The U.S. supports Taiwan’s military to deter China from attempting to attack the island, which Beijing sees as a breakaway province that needs to eventually be “reunified” with the mainland.  South China Morning Post

Middle East and Northern Africa

Mandarin Learning On the Rise in Middle East.  Middle Eastern students are increasingly attending Mandarin language classes as Beijing strengthens its ties in the region.  Saudi Arabia last month mandated Mandarin lessons in all public and private secondary schools.  The move follows a 2019 agreement reached during Crown Prince Mohammed bin Salman’s visit to Beijing to have Mandarin lessons available at all levels of Saudi education, including in universities.  The increasing interest in Mandarin in the Middle East comes amid a reported decline in interest in Chinese language learning in Western countries, which analysts said is linked to heightened tensions between Beijing and the West.  Middle Eastern instructors noted that despite the boost to Mandarin lessons in the region, many students in richer Gulf countries are only attending Chinese classes since it is compulsory and are still more interested in learning English to eventually pursue further studies in the West.  One instructor said that those most interested in learning Mandarin come from countries like Syria, Egypt, Iraq and Palestine because “learning Chinese can literally change their fate.”  South China Morning Post

Sub Saharan Africa

Burkina Faso Orders French Embassy’s Defense Attache to Leave.  Burkina Faso’s military junta ordered the French embassy’s defense attache to leave the country due to “subversive” behavior.  According to a leaked letter seen by Reuters, attache Emmanuel Pasquier and his personnel have two weeks to leave.  The letter did not elaborate on what Pasquier did to prompt his expulsion.  It added that the defense section of the Burkina Faso embassy in Paris has been closed with immediate effect.  France’s foreign ministry said it is looking into reports of the expulsion.  Burkina Faso’s junta has already ordered the departure of France’s ambassador and a senior UN official and has also cracked down on French media.  The moves come amid a wave of anti-French sentiment in coup-hit West Africa.  Reuters

Cyber and Tech

EU Digital Boss to Pitch AI Global Governing Body to China.  EU digital chief Vera Jourova is visiting China on Sunday.  Officials say she will pitch the idea of a global governing body for artificial intelligence (AI) to Beijing on her trip.  European Commission President Ursula von der Leyen first proposed the body on Wednesday, saying that the world needs a “global panel” of experts and technology companies to address challenges from AI.  Officials acknowledged that the EU and China differ drastically in their positions on the use of AI by authorities, especially for surveillance, but they said China should be included in talks on global governance of the technology since it is a major leader on AI.  In May, some Chinese executives, researchers and engineers joined an open letter signed by 350 stakeholders working on AI warning about the existential risk the technology poses.  Beyond the AI body, Jourova is expected to raise EU concerns on China’s use of AI to surveil Uighurs in the Xinjiang region.  South China Morning Post

North Korean Hackers Appear to be Behind CoinEx Cryptocurrency Hack.  Cryptocurrency-tracking company Elliptic reports that North Korean hacking group Lazarus Group was likely behind the recently reported theft of $31 million in cryptocurrency from the CoinEx exchange.  Analysts said funds from the CoinEx theft were sent to an address which was used by the Lazarus Group to launder funds from an earlier attack on online casino Stake.com.  Researchers noted that this mixing of funds was previously observed in the group’s attacks on Stake.com and cryptocurrency wallet service Atomic Wallet.  The conclusion adds to the recent trend of Lazarus Group specifically targeting “centralized” cryptocurrency platforms, which are controlled by a single entity and more vulnerable to social-engineering attacks than decentralized finance (DeFi) services, which distribute authority across several nodes.  The Record 

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