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6:00 PM ET, Thursday, August 31, 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. Charges Man for Smuggling Microelectronics with Military Uses to Russia.  A New York court charged a Russian-German national with violating U.S. export controls by allegedly facilitating the transfer of U.S.-sourced microelectronics with military applications to Russia.  The defendant Arthur Petrov faces charges over export control, smuggling, wire fraud and money laundering offenses.  Petrov was arrested on August 26 in Cyprus at the U.S. government’s request.  Reuters U.S. Department of Justice

Car Bombings Rock Ecuador.  Four car bombs exploded in Ecuador on Wednesday without causing casualties.  Ecuador’s National Police said two bombs exploded in the capital of Quito and two others detonated in the southern El Oro province which borders Peru.  Authorities said the explosions in Quito were likely related to “several transfers of inmates” since the bombs went off outside the former and current offices of Ecuador’s prison agency SNAI.  Police did not provide a possible motive for the El Oro explosions.  Authorities have arrested six suspects over the Quito bombings.  These attacks follow a steep rise in violence and crime since the pandemic, which the government has blamed on drug gangs.  The explosions also followed the recent assassination of anti-corruption presidential candidate Fernando Villavicencio.  Associated Press Reuters

Western Europe

British Royal Navy Tracks Russian Warships Near UK Waters.  Britain’s Royal Navy said Thursday that its submarine hunting frigates and P8 Poseidon patrol aircraft tracked a number of Russian vessels near British waters in what it called “a concerted monitoring operation.”  The Royal Navy said the operation monitored movements of the Russian Navy in the Channel, North Sea and North Atlantic.  Russian vessels monitored in the operation included corvettes Boikiy and Grad, cruiser Marshal Ustinov, the Udaloy-class destroyer Severomorsk and others.  The Royal Navy did not provide details on where the Russian ships were monitored.  Reuters

Central and Eastern Europe

Ukraine Penetrating Russia’s Southern Defensive Lines.  Ukraine has reportedly penetrated the “first line” of Russian defenses in the Zaporizhzhia region.  The Ukrainian military said it had successes towards the Novodanylivka-Novoprokopivka direction to the south and east of the recently-liberated village of Robotyne.  The progress puts Ukraine closer to the southern strategic town of Tokmak, a rail hub that is a key logistics center for Russian forces in the region.  Senior Western intelligence officials say that these recent advances have made Western intelligence services cautiously optimistic that Ukrainian troops can retake Tokmak.  Intense fighting is also continuing at the western flank of the nearby town of Verbove.  Ukraine still has much to do to turn this initial penetration into a full-fledged breach, especially as Russia puts up fierce resistance with artillery fire and reinforcements.  Elsewhere, Ukraine’s military said it is continuing offensive operations in the Bakhmut area and that there is heavy fighting at the villages of Klishchiivka, Kurdyumivka and Andriivka.  CNN Reuters Wall Street Journal 

Ukraine’s Kuleba Says Critics of Counteroffensive Should ‘Shut Up.’  Ukrainian Foreign Minister Dmytro Kuleba told critics of Ukraine’s three-month counteroffensive to “shut up,” expressing frustration following reports that Western officials are concerned that the counteroffensive is moving too slowly.  Ukraine has liberated over a dozen villages in its counteroffensive but has yet to make a significant breach into Russian-occupied territory.  Some Western officials have questioned Ukraine’s strategy in response.  Kuleba said critics are “spitting into the face of (the) Ukrainian soldier who sacrifices his life every day” adding that critics should “come to Ukraine and try to liberate one square centimeter by themselves.”  Ukrainian commanders have said that they are moving intentionally slow to degrade Russia’s defenses and logistics for when they make a full push.  NATO Secretary-General Jens Stoltenberg, who had more positive things to say of the counteroffensive, “Ukrainians have exceeded expectations again and again. We need to trust them.”  Reuters

Russia’s FSB Says Ukrainian Sabotage Group Thwarted in Bryansk.  Russia’s Federal Security Service (FSB) said it thwarted a Ukrainian sabotage and reconnaissance group in the western Bryansk region.  The agency said two fighters in the group were killed and another five were detained on Wednesday in the Navlinsky district south of the regional capital.  The FSB alleged that the group was equipped with American firearms and explosives and NATO-style grenades and cartridges.  It also said the group included members of Ukraine’s intelligence services and military special forces.  Reuters could not confirm the FSB report and Ukraine did not comment on the matter.  Bryansk and Russia’s other western border regions have been subject to drone and missile attacks and armed incursions over recent months, which Moscow blames on Ukraine.  CNN Reuters

UN Chief Sends Black Sea Grain Deal Proposals to Russian FM.  UN Secretary General Antonio Guterres said Thursday that he sent “a set of concrete proposals” aimed at reviving the Black Sea grain deal to Russian Foreign Minister Sergei Lavrov.  The move comes ahead of a meeting between Russian President Vladimir Putin and Turkish President Recep Tayyip Erdogan which will reportedly take place on Monday and focus on Black Sea grain exports.  Guterres said he is seeking “a renewal that must be stable” and cannot “move from crisis to crisis, from suspension to suspension.”  A Russian diplomat suggested to Reuters that the proposal won’t be warmly received in Moscow, saying that it just “sums up previous UN ideas, which didn’t fly.”  Lavrov said earlier Thursday during a meeting with Turkish Foreign Minister Hakan Fidan that Russia saw no sign it will receive the guarantees it is seeking in exchange for the resumption of the deal.  Russia withdrew from the deal in July after its demands to rejoin include better facilitation of its food and fertilizer exports and the reconnection of its main agricultural bank to the SWIFT international payment system.  Reuters

Asia and Oceania

China Outlines ‘Obstacles’ to Talks With U.S. Military.  Chinese defense ministry spokesman and senior colonel Wu Qian outlined several issues Beijing says are preventing the resumption of high-level military talks with the U.S.  Wu cited the Biden administration’s recent approval of arms sales to Taiwan, continued sanctions against Chinese defense chief General Li Shangfu, and the “provocative” U.S. aircraft and warships reconnaissance missions and movements in the Taiwan Strait and South China Sea as “difficulties and obstacles” faced by the two militaries.  He added that the U.S. “should mind its own business” if it wants to improve the situation.  However, he clarified that communication through military and diplomatic channels has not stopped entirely, noting that Chinese military officers took part in a U.S.-hosted conference of defense chiefs in Fiji earlier this month.  The U.S. says resuming military-to-military dialogue is key in managing risks and managing relations, though it is unlikely to drop the sanctions against Li or shift its security policy towards East Asia and Taiwan.  South China Morning Post

China Vows Retaliatory Visa Curbs Over Tibet-Related Sanctions.  China’s foreign ministry said Beijing will impose “reciprocal visa restrictions” on U.S. personnel in a tit-for-tat retaliation against U.S. visa curbs on Chinese officials accused of “forced assimilation” in Tibet.  U.S. Secretary of State Antony Blinken said the U.S. measure targets Chinese officials suspected of involvement in state-run boarding schools attended by over 1 million Tibetan children that aim to “eliminate Tibet’s distinct linguistic, cultural and religious traditions among younger generations of Tibetans.”  He did not specify individuals or organizations targeted by the sanctions.  A Chinese foreign ministry spokesperson called the accusations lies used as an excuse to impose illegal sanctions on Chinese officials and interfere in China’s internal affairs.  The UN previously reported that Tibetan children are forced into “compulsory education” at the schools with no access to traditional or culturally relevant learning.  China says the schools are part of efforts to provide education to remote underserved areas.  South China Morning Post

Chinese City Implements Local Version of China’s Anti-Espionage Law.  The southwestern Chinese city of Chongqing is implementing the first local version of China’s anti-espionage law.  The local version goes beyond the national regulation, imposing security clearance requirements on courier services, ordering government departments to closely monitor employees involved in overseas-exchanges, mandating strict oversight of cooperative projects with foreign entities, and requiring anti-spying training in school and civil service curricula.  The Ministry of State Security in Beijing welcomed the move as an important “first.”  The wider national security law greatly expanded the definition of acts of espionage and gave greater power to national security law enforcement authorities.  South China Morning Post

Analysis: BRICS Expansion Poses Opportunities for China, Could Also Increase Tensions.  Analysts say the expansion of BRICS could offer opportunities to improve economic coordination between members and allow China to expand its influence as a challenge to the U.S.  However, it could also lead to more tensions for those in the bloc. BRICS members invited Argentina, Egypt, Ethiopia, Iran, Saudi Arabia and the UAE to join at the start of next year.  The addition of African and Middle Eastern states adds to China’s existing outreach to those countries through the Belt and Road Initiative and Middle East-specific diplomatic initiatives, including the inclusion of Iran in the Shanghai Cooperation Organization and the Beijing-brokered rapprochement deal between Tehran and Riyadh earlier this year.  The new members also increase the share of major oil producers in BRICS, pointing to opportunities for coordination on energy policies, which could help the bloc lessen reliance on the U.S. dollar and promote the use of local currencies.  Despite these positives, analysts note that the bloc currently looks like other multilateral groupings meant for occasional consultations rather than pursuing a common agenda, and broadening the group could make it even harder to reach consensus.  This is further demonstrated by the fact that several members, new and old, don’t have the most stable relations with each other, such as China and India, and especially Iran and Saudi Arabia.  One analyst said BRICS does not come with the expectation for solidarity that could lead to collective action and that it lacks “clearly defined adversaries” that could unite the group’s members.  South China Morning Post The Cipher Brief

Middle East and Northern Africa

Iran Accuses Israel of Failed Plot to Sabotage Missile Production.  Iran reportedly believes Israel was behind a failed plot to sabotage its defense industry and missile production.  Iranian state TV reported that the Iranian Defense Ministry thwarted efforts by Israeli intelligence agents to conduct “one of the largest sabotage plots targeting Iran's missile, aviation and airspace military industry.”  The report cited an unnamed Iranian defense ministry official who said the saboteurs intended to introduce defective parts into the production of missiles.  Israel did not respond to comment.  Reuters

UN Renews Lebanon Peacekeeping Mission.  The U.N Security Council voted to extend the peacekeeping mission to Lebanon for another year after France and the U.S. reached a compromise.  The U.N. Interim Force in Lebanon (UNIFIL) patrols the border between Israel and Lebanon and needs to be renewed annually.  The original vote planned for Wednesday was delayed as France, the U.S., and the United Arab Emirates disputed the language concerning U.N. freedom of movement.  A French-drafted version of the text was eventually adopted with 13 votes in favor and abstentions from Russia and China.  Reuters

U.S. Expresses Interest in Helping Resolve Israel-Lebanon Border Dispute.  The U.S. is reportedly exploring finding a resolution to the long-standing border dispute between Lebanon and Israel.  White House advisor Amos Hochstein said Thursday that after the specification in 2022 of a maritime border between the two countries, it was “natural” to seek a resolution to the border dispute.  Lebanese caretaker foreign minister Abdallah Bou Habib said that Hochstein promised to speak with Israel on the matter and that if both nations agreed, “America would be ready to work with us.”  The current demarcation line between Israel and Lebanon is known as the Blue Line, which Israeli forces withdrew to after leaving southern Lebanon in 2000.  The U.S. interest in resolving the border dispute comes amid tensions in the region, including Israeli-Palestinian violence and confrontations between Lebanon’s Hezbollah and Israeli forces.  Reuters

Sub Saharan Africa

Niger Junta Orders Police to Expel French Ambassador.  The junta in Niger has ordered its police to expel the French ambassador, a move Paris had previously said the junta government was not authorized to do. The junta said in a statement Thursday that the visas of French ambassador Sylbain Itte and his family have been canceled and police were instructed to expel the envoy.  Last Friday, the junta ordered Itte to leave the country within 48 hours in response to actions taken by France that were “contrary to the interests of Niger.”  Niger’s junta leaders are following similar steps the military governments in Mali and Burkina Faso took after they seized power to distance themselves from the region’s former colonial power amid a wave of anti-French sentiment.  This comes as EU foreign ministers agreed Thursday to start drafting individual sanctions on those responsible for the coup.  French President Emmanuel Macron said Monday that the French ambassador would stay in Niger and reiterated France’s support for Mohamed Bazoum, Niger’s ousted president.  Reuters

Norway to Close Mali Embassy.  Norway’s foreign ministry said Thursday that it has decided to close its embassy in Mali by the end of the year, citing a deteriorating security situation in the country.  This decision came after the U.N. Security Council ended its peacekeeping mission in Mali, MINUSMA, after the junta there asked for its withdrawal.  The Norwegian foreign ministry said MINUSMA’s departure “will have consequences for the security of Norwegian and other diplomatic missions and international organizations in Mali,” thus necessitating the embassy closure.  Reuters

Cyber and Tech

Commerce Department Denies Ban on Nvidia, AMD Chip Sales to Middle East Countries.  A Commerce Department spokesperson said the Biden administration “has not blocked chip sales to the Middle East,” contradicting a reported regulatory filing by the Nvidia chip manufacturer that government restrictions had been placed on its AI chip exports to unidentified Middle East countries.  A source said on Wednesday that Advanced Micro Devices (AMD) semiconductor producer also is affected by the restriction.  The Commerce Department declined to comment on any new requirements imposed on specific U.S. companies, and neither Nvidia nor AMD immediately returned requests for comment on Thursday.  Reportedly, the new requirements on Nvidia would require the firm to obtain licenses before selling its most advanced chips to some Middle Eastern countries.  Nvidia and AMD have not reported applying for such licenses and whether they have been approved or denied.  Reuters

‘Five Eyes’ Intelligence Report Details GRU Malware Targeting Ukraine Android Devices.  The UK’s National Cyber Security Center (NCSC) on Thursday released a report jointly prepared by the “Five Eyes” intelligence agencies focused on hacking tools used by Russian military intelligence (GRU) to penetrate Android devices used by Ukrainian forces.  The GRU operation employed malware that the report calls “Infamous Chisel” to gain access to compromised devices from which it can scan files, monitor traffic, and extract sensitive information.  The malware actually has several components that enable persistent access to an infected Android device over the Tor network, and which periodically collates and exfiltrates victim information from compromised devices, according to the report.  Ukraine’s security service discovered the GRU campaign in early August when it announced that it had shielded Ukrainian battlefield management systems from penetration efforts by Russian hackers.  The Five Eyes report notes that the components making up “Infamous Chisel” are of low-to-medium sophistications and apparently were developed without measures to evade system defenses or to conceal attacks.  The report highlights the malware’s ability to maintain a persistent presence and to enable remote hacker access.  The Record CISA NCSC

China-Linked Hackers Deploy Data Theft Malware Using Fake Telegram, Signal Apps.  Malware implanted in fake Signal and Telegram apps distributed through Google and Samsung app stores is suspected to be part of two active data theft campaigns by hackers linked to China.  The ESET cybersecurity firm reported Wednesday that “BadBazaar” malware, previously used by the GREF hacking group affiliated with China, was integrated into two apps, Signal Plus Messenger and FlyGram.  The malware is capable of stealing device data as well as user contact lists and call records.  If users unwittingly activate a specific hacker-implanted feature, full access to Telegram backups would be enabled, which occurred on almost 14,000 user accounts.  Google has removed the malicious apps from Google Play, but both apps are still available on Samsung’s app store.  According to ESET, targets of the malware campaign are scattered across the world, including users in Australia, Germany, Hong Kong, Poland, Ukraine, and the U.S.  Researchers noted that some of the victims are from China’s Uyghur ethnic group, who were lured to install the malicious FlyGram app through a Uyghur Telegram group.  The Record Cybernews

Chinese Media View New Huawei Smartphone as Triumph Over U.S. Tech Bans.  Chinese state media are hailing the release of a new Huawei smartphone supposedly equipped with 5G capabilities as a victory for Beijing over the U.S.-led efforts to stifle China’s technological advance.  An editorial in the state-controlled newspaper, Global Times, described the new Huawei offering as proof “that the U.S.’ extreme suppression has failed,” adding that the achievement is “a microcosm of the US-China tech war, reflecting the entire process and foreshadowing the final outcome.”  Huawei itself has not described the embedded technology or capabilities of the new Mate 60 Pro smartphone although online speculation has suggested that the device boasts 5G capabilities.  The Chinese benchmarking website, AnTuTu, identified the central Mate 60 Pro’s CPU as the Kirin 9000, which supports 5G connectivity and AI applications, and is built using the advanced 5-nanometer manufacturing process.  Huawei was barred from acquiring advanced integrated circuits from major foreign contract chipmakers in 2020.  The Huawei smartphone debuted without warning on online malls as U.S. Commerce Secretary Gina Raimondo visited Beijing and Shanghai.  Many in China saw the release as deliberately timed to coincide with Raimondo’s visit.  Bloomberg South China Morning Post

Czech Bank, Stock Exchange Websites Hit by ‘NoName’ DDoS Attacks.  The websites of Czech banks and the Prague stock exchange were disrupted on Wednesday and again on Thursday by distributed-denial-of service (DDoS) attacks launched by the Russia-linked hacktivist group, NoName.  Officials from affected banks confirmed that no internal systems or client accounts have been compromised during the incidents.  The Prague stock exchange website still was unavailable on Thursday.  A CheckPoint threat analyst, Miloslav Lujka, noted that the Czech disruptions follow on the heels of NoName’s DDoS attacks last week against Poland’s stock exchange and several banks. He said, “Russian hacking groups regularly attack countries and organizations around the world that they suppose are somehow supporting Ukraine.  This is a massive campaign to spread fear and disinformation.”  NoName communicates through its Russian-language Telegram channel, which has more than 20,000 members, as well as an English-language channel.  NoName’s tactics include appeals to social media users to join as hacktivists and download the group’s DDosia chatbot tool to attack sites deemed hostile to Russia.  BrnoDaily Radio Prague International

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