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6:00 PM ET, Tuesday, September 12, 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

Senate Minority Leader Says U.S. Conducts Strong Oversight of Ukraine Aid.  Senate Minority Leader Mitch McConnell on Tuesday said that the U.S. has subjected aid for Ukraine to “unprecedented” oversight, countering what he called the “misconception” that support for Kyiv lacks necessary accountability.  He emphasized that Ukraine is a “modern democracy,” unlike Iraq or Afghanistan, and is committed to transparency and integration with the West.  He also noted that Ukraine has taken steps to reduce corruption amid Russia’s invasion to ensure Western support is properly used.  He also said that U.S. diplomats, military personnel and USAID employees are returning to Kyiv, which allows for even stronger oversight.  McConnell added that inspector generals for the Pentagon, State Department and USAID will further brief Republican Senators on oversight activities on Wednesday.  CNN Ukrinform Senate Republican Leader’s Office

UN Says US-Mexico Border is World’s Deadliest Land Route.  The International Organization for Migration (IOM) reports that the U.S.-Mexico border is now the world’s deadliest land migration route.  The U.N. migration agency recorded 686 migrant deaths and disappearances along the border last year, approximately half of which were linked to the crossing of the Sonoran and Chihuahuan Deserts.  The agency noted that the actual figure is likely higher due to missing data, including from the Texas border county coroner’s office and the Mexican search and rescue agency.  IOM spokesperson Paul Dillon said that the figures “represent the lowest estimates available” and that “the alarming figures are a stark reminder of the need for decisive action to create regular legal migration pathways.”  This comes as Panama announced new measures last week to combat rising migrant crossing through the Darien Gap, which reached a record high this year.  Deutsche Welle Reuters

Western Europe

Sweden Considers Sending Gripen Fighter Jets to Ukraine.  The Swedish government is reportedly considering donating Gripen fighter jets to Ukraine to assist in its fight against Russia. Swedish public radio (SR) reported that Ukraine is hoping to receive 16-18 of the Gripen jets, which are produced by Sweden’s Saab.  Sweden said earlier this year that it would give Ukrainian pilots the opportunity to test the Gripen, but has also said it needs to assess the impact sending the jets to Ukraine will have on Sweden’s armed forces and how quickly it could replace the jets before it commits to any transfer.  Reuters

Denmark Donating $833 Million Ukraine Military Aid Package.  Denmark is donating a 5.8 billion Danish crown ($833 million) military package to Ukraine.  The Danish defense ministry said the aid will be Denmark’s twelfth and largest package for Ukraine since Russia’s invasion in 2022.  The ministry added that the package will include tanks, infantry fighting vehicles, tank ammunition and anti-aircraft guns.  The ministry also said the aid will be distributed over rounds — 4.3 billion Danish crowns worth of aid this year, 1.4 billion in 2024 and 52 million in 2025.  Danish foreign minister Lars Løkke Rasmussen said that support for Ukraine over the last year and a half has “almost exhausted” Danish defense stocks, so Denmark will focus on “more targeted joint procurement and international cooperation, tailored to Ukraine’s needs here and now.”  Reuters

UK, Japan, Italy Agree to Next Steps on Fighter Jet.  Britain’s BAE Systems (BAE) said it has agreed with Japan’s Mitsubishi Heavy Industries and Italy’s Leonardo on next steps for the development of their next-gen combat aircraft.  Britain, Japan and Italy agreed on the Global Combat Air Programme in December 2022 to collaborate on building a next generation front-line fighter jet.  BAE said that the three countries will give an update on their progress at London’s DSEI international arms fair this week.  Richard Berthon, Director of UK future combat air at the British Ministry of Defense, added that there is no set timeline for a decision on Saudi Arabia’s participation in the project, though a feasibility study set for early next year could advance discussions on the matter.  Breaking Defense Reuters

Airbus Merging Fighter Businesses.  Airbus is planning to combine two separate fighter businesses as part of its ATMO reorganization of its Defense and Space division, according to union sources.  The merge will bring together Military Air Systems — which includes Airbus’s share of Eurofighter as well as other transporter, aerial tanker and unmanned vehicle programs — and the businesses overseeing Airbus’s share of the Franco-German-Spanish FCAS/SCAF project that will replace Eurofighters and French Rafales.  An Airbus spokesperson said the move is still under discussion and that it is focused on improving “governance, process and ways of working.”  Airbus has said the ATOM reorganization aims to make the business more agile, though it has not provided many details on the revamp.  Airbus’s Defense and Space division is the company’s second-biggest activity in terms of revenues but the least profitable.  Reuters

Central and Eastern Europe

Ukraine Says Russian Naval Vessels Unable to Operate Around Recaptured Drilling Platforms in Black Sea.  The Ukrainian Navy says the Russian Black Sea fleet is unable to operate in the area around drilling platforms near Crimea that were seized by Ukraine earlier this week.  A spokesperson for the Ukrainian Navy said that the presence of Ukrainian coastal artillery and man-portable air defense systems (MANPADS) prevents Russian naval assets in the area from approaching the platforms, which are called the Boyko Towers.  However, the spokesman noted that “there is still a threat from the air” around the platforms.  Ukrainian military intelligence has said that the Boyko Towers were used by Russian forces for helicopter landings and the deployment of radar equipment.  CNN

Russia Says Ukraine Launched Drone Strike Near Zaporizhzhia Nuclear Plant.  The head of Russia’s state nuclear corporation Rosatom, Alexei Likhachev, on Tuesday claimed that Ukraine launched six drones in an attack on the Russian-occupied city of Enerhodar near the Zaporizhzhia nuclear power plant on Monday.  Likhachev said all six drones were destroyed in the attack.  Ukraine’s GUR military intelligence later released footage of drone attacks that it said damaged a building where Russian passports are being issued and locations where Russian officers were present in Enerhodar.  The GUR said a radio communication point was also “neutralized” in the attack.  Reuters could not verify the reports or the video footage.  Reuters

Russia, China to Build Grain Hub on Border.  Russia and China agreed at the Eastern Economic Forum to build a new grain hub at their border to facilitate grain trade and bolster food security.  The “Grain Terminal Nizhneleninskoye-Tongjiang” will be built between Russia’s Pacific port of Vladivostok and China’s northeastern Heilongjiang province.  The New Land Grain Corridor — a group of Russian grain production and infrastructure companies — and China Chengtong International Investment plan to spend $159 million on the new hub.  A New Land Grain Corridor affiliated facility also signed a contract with a Chinese counterpart on Monday to establish the first specialized land grain fleet in Russia, which could serve as an alternative to sea routes.  The deals add to efforts by Russia and China to expand bilateral strategic cooperation and trade, especially amid tensions with the West.  South China Morning Post

Asia and Oceania

Japan’s Foreign, Defense Ministers Replaced in Cabinet Reshuffle.  Japanese Prime Minister Fumio Kishida is replacing his foreign and defense ministers in a cabinet reshuffle on Wednesday.  Yoko Kamikawa, former minister of justice, will replace Yoshimasa Hayashi as foreign minister.  She will reportedly be one of five women in the new government.  Minoru Kihara, who currently heads a Japan-Taiwan interparliamentary group, will replace Yasukazu Hamada as defense minister.  Nikkei Asia Reuters

Middle East and Northern Africa

Iran’s Raisi Says Detained U.S. Citizens in ‘Full Health.’  Iranian President Ebrahim Raisi said Tuesday that the five U.S. citizens detained in Iran who are expected to be swapped for five Iranians imprisoned in the U.S. are “in full health”.  According to eight Iranian and other sources, the prisoner exchange could take place as early as next week.  As a part of the prisoner swap, Washington has agreed to transfer $6 billion in Iranian funds from South Korea to Qatar, which will oversee the funds and ensure they are only spent on humanitarian goods.  While Raisi has acknowledged the restrictions on the funds, he said in an NBC interview that “this money belongs to the Iranian people, the Iranian government, so the Islamic Republic of Iran will decide on what to do with this money”.  Reuters

Sub Saharan Africa

France Urges Release of French Official in Niger.  France’s Foreign Ministry on Tuesday called for the release of a French official held by security forces in Niger.  Nigerien security forces reportedly arrested a "conseiller des Français de l’étranger" — an elected official who represents French expatriates and works with the country’s diplomatic missions — on September 8th.  The French foreign ministry said it is working to “guarantee consular protection” for the official.  France reportedly has 442 such advisors worldwide.  Last month, Niger’s junta ordered its police to expel the French ambassador, a move which France claimed the Nigerien military does not have authority to do so.  Reuters

Northern Mali Rebels Claim Control of Military Camp.  Members of the Coordination of Azawad Movements (CMA) rebel alliance in Mali on Tuesday claimed that they have seized control of a military camp in the northern Mali town of Bourem.  A CMA spokesperson confirmed there were casualties but said he did not yet know a death toll.  Mali’s army did not comment on the matter.  The CMA rebel group has been fighting with the Malian army since August following the departure of UN peacekeepers who had helped to broker a peace for several years.  Both sides appear to be competing for control of territories recently vacated by the UN.  CMA was formed by semi-nomadic Tuareg people who have complained of neglect by the Mali government and have sought autonomy for a region they call Azawad.  Al Jazeera Africanews Reuters

Cyber and Tech

Asian National Power Grid Suffers Multiple Cyberespionage Malware Compromises.  Hackers with possible links to China have repeatedly penetrated the power grid of an Asian country in an apparent cyberespionage operation.  Symantec reports that a group it calls “Redfly” was able to deploy ShadowPad malware, used in the past by the APT41 threat actor associated with China’s security agency, in a six-month campaign to steal credentials and attack multiple computer systems.  The Asian nation was not identified by Symantec.  The malware was first detected on the power grid network in February, followed by a second instance in May, suggesting that the hackers were able to persist in their penetration.  The threat group expanded its access to include storage devices while extracting system credentials and masking its presence.  Symantec researchers said “malicious activity” at first appeared to end in July, only to recur in August.  Dick O’Brien, Symantec’s principal intelligence analyst, told Recorded Future News that the most alarming aspect of the penetration is threat actors’ readiness to deploy malware against critical national infrastructure.  Cybersecurity experts have noted that hacking groups sustaining a long-term presence on national grids demonstrates the ongoing risk “of attacks designed to disrupt power supplies and other vital services in other states during times of increased political tension.”  The Record BleepingComputer Symantec

DoD Releases Cyber Strategy Summary Underscoring Lessons Learned in Ukraine.  The Pentagon has released an unclassified update to the military’s cyber strategy that describes the priorities detailed in the classified version provided to Congress in May.  According to Mieke Eoyang, the deputy assistant defense secretary for cyber policy, the strategy “draws from our experience conducting offensive and defensive operations” and reflects the department’s analysis of the incorporation of cyber as an element of warfare in Ukraine.  Eoyang underscored that the strategy “is not an aspirational document, it reflects hard won lessons and truths.”  While the Defense Department may have expected cyber to be a much more decisive battlefield factor, Eoyang explained, “what this conflict is showing us is the importance of integrated cyber capabilities in and alongside other warfighting capabilities.”  The new strategy, she said, is different from previous versions in its commitment to partnering with global allies to “increase our collective resilience against cyberattack.”  One of the key lessons the Pentagon has learned over the last several years, the strategy summary states, is that the effectiveness of military cyber operations is enhanced “when used in concert with other instruments of national power, creating a deterrent greater than the sum of its parts.”  The Record DefenseScoop DefenseNews

Leading Tech Firms Join White House Voluntary AI Governance Pledge.  A wave of tech companies have joined the White House’s voluntary pledge first made by Google, OpenAI, Microsoft, and others in July to manage AI development and applications.  IBM, Adobe, Nvidia, and Palintir are among the new tech leaders to join the pledge.  The thrust of the companies’ commitment is to ensure that AI’s capabilities will not be employed in destructive or manipulative ways, and include measures such as “watermarking” AI-produced content.  White House Chief of Staff Jeff Zients released a statement reiterating President Biden’s goal of capitalizing on AI benefits and managing risks, adding "we are doing just that by partnering with the private sector and pulling every lever we have to get this done."  A discussion hosted by Zients is scheduled for Tuesday with representatives of several companies and is expected to cover topics taken up in the White House’s July AI summit with tech firm CEO’s.  A total of 15 major companies have now subscribed to the pledge, including a commitment to share safety data with the government and academics.  The expansion of the AI pledge coincides with the administration’s continuing development of an AI executive order and multiple congressional efforts to shape legislation to regulate the technology.  Washington Post Reuters

New Alibaba CEO Commits to AI-Driven Strategy for Internet, Commerce Sectors.  Alibaba’s new CEO, Eddie Wu Yongming, has set out the strategic principles of “user first” and “AI-driven” as imperatives for the tech giant going forward.  In an internal document, Wu declared that “we will recalibrate our operations around these two core strategies and reshape our business priorities.”  He noted that technologies such as AI “are emerging as the new engine of global business growth.”  Alibaba’s business transformation will revolve around strategic investments in Internet platforms, AI-enhanced tech businesses, and global commerce networks. “Driving breakthrough user experiences” was cited in Wu’s letter to employees as a goal of integrating AI innovations into the company’s operations.  Returning to the company’s origins with a “start-up mindset,” Wu said, would result in substantial growth “and create even greater value in the era of AI.”  Toward that end, Wu said the company would concentrate on promoting young employees to create the core of its business management teams over the next four years.  This approach will prevent the company getting "stuck in our old ways,” Wu said.  Chen Jia, an independent researcher in global strategy, pointed to evolving technologies and regulation as Alibaba’s “biggest challenges” in achieving its strategic transformation.  South China Morning Post Reuters Bloomberg

Iran Threat Actor Compromises Business Systems in Israel, UAE, Brazil.  An Iran-linked hacking group known as Ballistic Bobcat has launched cyberattacks on 32 Israeli companies as well as firms in the United Arab Emirates and Brazil.  The hackers gained access to company systems through a “backdoor” vulnerability that allowed them to conduct “scan and exploit” cyberespionage operations.  Rather than honing in on predetermined sources of value, the Bobcat group exploited unpatched vulnerabilities in internet-exposed Microsoft Exchange servers to identify targets of opportunity.  According to ESET researcher Adam Burgher, Bobcat employs an open-source tool set with several custom applications,” including a new backdoor called Sponsor.  ESET said it was not at liberty to identify the affected companies but noted they represented manufacturing, financial, telecommunications, healthcare, and technology sectors.  Israel’s National Cyber Directorate has provided companies with an attack-identifying update that will protect them from Sponsor intrusions.  ESET recommends that targeted organizations patch Internet-exposed devices and carefully monitor for new malware applications.  Haaretz

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