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10:00 AM ET, Thursday, August 10, 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:  

In the Americas

Biden Signs Order Restricting Chinese Investment.  President Joe Biden signed an executive order on Wednesday that authorizes the U.S. Treasury to ban or restrict any future investments from US venture capitalist and private equity firms into the Chinese high-tech industry in three sectors. The restricted sectors include semiconductors and microelectronics, quantum information technologies, and artificial intelligence systems. US officials say that the ban is part of US efforts to guard national security, but Chinese officials are likely to see it as an anti-Chinese move to contain the country’s continued global rise.  The move comes at a time when some analysts say the US-China tension is at its most critical moment in decades.  US officials say the new order is part of a US effort to “de-risk” the US relationship with China, without decoupling from it.  A spokesperson for China’s embassy in the US said that the move would “seriously undermine” the interests of both Chinese and US companies and investors.   New York Times Reuters 

FBI Kills Utah Man Linked to Alleged Threats Against Biden and Harris.  FBI agents on Wednesday shot and killed a Utah man who was accused of making online threats against President Joe Biden, Vice President Kamala Harris, and other law enforcement officials. The Salt Lake City FBI said in a statement that the shooting occurred early Wednesday as agents attempted to serve an arrest warrant to the individual. The FBI did not specify why they were seeking an arrest.  A White House official said that Biden, who was scheduled to visit Utah on Wednesday, was briefed on the incident. The U.S. Attorney's Office in Utah named the suspect as Craig Robertson.  A Reuters report says he posted messages on social media calling for the assassination of Biden and Harris in September.  The Secret Service said that they were “aware of the FBI investigation involving an individual in Utah who has exhibited threats towards a protectee.”  Reuters

U.S. Says 460 Companies Interested in $52 Billion of Semiconductor Funding.  More than 460 companies and businesses have shown interest in securing government semiconductor subsidies aimed at bolstering U.S. science and technological development to compete with China, the Commerce Department said Wednesday.  Wednesday marked the one-year anniversary of the "Chips for America" Act, which committed $52.7 billion in subsidies for U.S. semiconductor production, workforce development, and research.  President Joe Biden said that in the last year, businesses announced $166 billion in new semiconductor and electronics manufacturing.  He also said the legislation will "make America once again a leader in semiconductor manufacturing and less dependent on other countries for our electronics or clean energy supply chains." Though the Commerce Department has not yet issued any funding awards, it began accepting applications in June for the subsidy program. U.S. officials say talks have begun between the departments of Energy, Defense, and Commerce, as well as the National Science Foundation to set up a center "to better integrate research and development and workforce efforts across the semiconductor ecosystem."  Reuters 

Ecuadorian Presidential Candidate Killed at Campaign Event. Fernando Villavicencio, a former Ecuadorian lawmaker and current presidential candidate, was killed by gunmen at a campaign event on Wednesday.  President Guillermo Lasso confirmed the killing, which took place in Quito, Ecuador.  Villavicencio, a former journalist, was an outspoken critic of the alleged connection between organized crime and the government. He was killed outside of a high school after speaking to a group of youths.  One suspect was reportedly killed in a shootout with security forces.  President Lasso blamed the incident on organized crime elements and said the government will find whoever was responsible for the shooting.  Reuters Al Jazeera  NY Times

Western Europe

Germany Shuts Down Projects in Bosnia’s Serb Republic over Secessionist Aims.  A statement by the German embassy on Wednesday says that Berlin has closed four infrastructure projects in Bosnia and Herzegovina’s sovereign Republika Srpska due to the secessionist goals of President Milorad Dodik.  The projects were worth a combined 105 million euros ($115m), and were suspended in April of last year after Dodick made efforts to remove the Serb region from state institutions, fueling Bosnia’s most severe political crisis since its war in the late-1990’s. The German embassy said that “the withdrawal of secessionist measures requested by the German government has not occurred. Instead, [Dodik] . . . and the government have continued to escalate the political crisis.” The canceled projects included the construction of a wastewater management program, a wind park, and two related to the remodeling of a hydropower plant. The EU has also repeatedly warned Dodik to cease his secessionist rhetoric and actions threatening the Bosnian state, while the US has sanctioned top Bosnian Serb officials.  Al Jazeera  

Some European Countries Crack Down on Climate Protesters.  Authorities in France and Germany are using legal authorities typically reserved to combat organized crime or extremist groups to try and stem the rise of ‘direct action’ climate protests that have been sweeping across parts of Europe.  A Reuters report says that German authorities are particularly focused on the groups "The Last Generation" and "Extinction Rebellion," which together have 4,500 registered incidents that police are investigating.  Officials in France and Britain have also recently passed new laws increasing the use of surveillance and detention over actions related to climate protests.  Reuters says it could not determine if European authorities were cooperating in an extraordinary manner on battling the rise in protests, but a French government source reportedly says that European intelligence agencies are coordinating to “monitor” protesters plans and activities.  Reuters

Central and Eastern Europe

Explosion at Plant Near Moscow Injures 60.  A powerful explosion occurred at a plant near Moscow on Wednesday, injuring at least 60 people and leaving 8 people unaccounted for according to Russian officials.  The blast, which officials say originated at a nearby pyrotechnics facility, also damaged a nearby facility that reportedly makes optical equipment for the Russian military.  Russian officials say that there is no evidence that the plant was hit by a Ukrainian drone, but that an official investigation has been launched.  CNN New York Times

Russia Claims it Downed 13 Ukrainian Drones Heading Towards Moscow.  Russia’s defense ministry says its forces shot down 13 Ukrainian drones heading towards Moscow and the city of Sevastopol on Thursday, the latest in a series of attacks against the Russian capital. In a statement, the ministry said that two attack drones “flying in the direction of the city of Moscow were destroyed” while 11 others were intercepted close to Sevastopol. Two of the drones were reportedly “hit by on-duty anti-aircraft defense equipment, another nine were suppressed by means of electronic warfare and crashed in the Black Sea before reaching the target.” Ukraine has not yet commented on the incident. The incident comes one day after Russia claimed to have shot down two Ukrainian combat drones near Moscow. Al Jazeera

Zelensky Has “No Doubt” About F16’s for Ukraine.  After a deadly attack on Zaporizhzhia that killed two, Ukrainian President Volodymyr Zelensky has reiterated his call for more air defenses.  In his evening address, Zelensky said “today, Russian terrorists hit Zaporizhzhia again — an ordinary building was hit, a church and a residential building were damaged, our entire territory needs much more air defense systems than we have now”. He also said that the Ukrainian military is working to expand its Air Force capabilities and added “I have no doubt that F-16s will be in our skies."  CNN

Co-Founder of Russian Tech Giant Yandex Condemns Russia's Invasion of Ukraine.  The co-founder of Russian tech giant Yandex called Russia’s invasion of Ukraine “barbaric” on Thursday.  Arkady Volozh’s comments came just days after he received criticism for downplaying his Russia connections in an online post.  Volozh described himself as a "Kazakhstan-born, Israeli tech entrepreneur" on a website post drawing criticism from Russian media and some on Telegram.  Volozh, who holds both Russian and Israeli passports, responded by calling the Russian invasion of Ukraine ‘barbaric’ and says he is categorically against it.  He also says he is horrified by the fate of those in Ukraine, many of whom he referred to as “personal friends and relatives.”  Reuters

Kremlin Official Linked to Online Neo-Nazism and White Supremacy Groups in Reuters Report.   Reuters is out with a report that claims 27-year-old Alexei Petrov, a Kremlin official involved in what international prosecutors have referred to as the illegal deportation of Ukrainian children to Russia, was involved with online support and connections to neo-Nazi and white supremacist movements. After Reuters began to investigate claims about Petrov related to material he allegedly posted online between 2011 and 2014, he reportedly made one of his accounts private, deleted some videos, and unsubscribed from more than 150 far-right groups. Petrov works as an advisor in the office of Russia's presidential commissioner for children's rights, Maria Lvova-Belova, who has been charged by the International Criminal Court (ICC), along with Russian President Vladimir Putin, with committing war crimes by forcibly deporting hundreds of children from Ukraine to Russia. Lvova-Belova has denied the charges, claiming she took endangered children to Russia to protect them from violence and Ukrainian leadership, which she has called “fascist.” In a response to inquiries from Reuters, Petrov said in a statement, "unequivocally, I never had, nor do I have, any links to neo-Nazi organizations. I have never been a member of, and did not have social network accounts linked to or relating to, Nazi organizations." Neither the Kremlin nor the office of Russia's presidential commissioner for children's rights has responded to questions.  Reuters

Asia and Oceania

North Korea's Kim Replaces Top Military General.  North Korean state media reported on Thursday that Kim Jong Un had “dismissed” the military’s top general, Chief of the General Staff Pak Su Il.  Pak was reportedly replaced by the country’s former Defense Minister, General Ri Yong Gil.  No reason was given for Pak’s removal.  Kim made the announcement at a meeting of the Central Military Commission, where he also called for a boost in weapons production and an expansion of military drills. This comes as North Korea is scheduled to stage a military parade September 9 to celebrate the 75th anniversary of the Day of the Foundation of the Republic. The U.S., which says North Korea is supplying Russia with ammunition for its war in Ukraine, is scheduled to conduct military exercises with South Korea between August 21-24.  Reuters

Ex-PM Imran Khan Appeals Prison Sentence, Initiating Legal Struggle.  Former Pakistani Prime Minister Imran Khan on Wednesday appealed his three-year prison sentence, launching a legal battle that could impact the country’s political environment as the general elections approach. On Saturday, Khan was detained and imprisoned after being found guilty on corruption charges. His legal team argued Wednesday at the Islamabad High Court that the conviction was a infringement on Khan’s “fundamental right to due process and fair trial.” His lawyers also asked that he be moved from the infamously harsh Attock prison to Adiala Jail in Rawalpindi. The court adjourned the hearing on Khan’s prison conditions until Friday. He is the third ex-Prime Minister to be detained in recent years, following Nawaz Sharif and Shahid Khaqan Abbasi.  All three leaders have claimed to be victims of political grudges and hostilities by the nation’s military leaders. New York Times 

Middle East and Northern Africa

Five Turkish Soldiers Killed in Iraq.  Turkey’s defense ministry said on Thursday that five Turkish soldiers were killed in a clash with militants from the Kurdistan Workers Party (PKK) in northern Iraq.  The ministry said the clash took place in Zap region, where Ankara is conducting a cross-border operation called “Claw-Lock” against armed groups.  Turkey, the U.S. and EU designate the PKK as a terrorist group.  Reuters

Sub Saharan Africa

Niger Junta Meets with Nigerian Envoys.  Niger’s military junta met with Nigerian envoys on Wednesday, sparking hope for potential dialogue among regional leaders.  The junta has previously resisted diplomatic negotiations and communications but made an exception this Wednesday with the Nigerian envoys.  Nigeria sent two envoys — traditional leaders Lamido Muhammad Sanusi and Abdullsalami Abubarkar.  Only Sanusi was allowed to meet with military leader General Abdourahamane Tiani, while Abubarkar met with other Niger representatives at the airport in the country’s capital of Niamey.  This comes as the West African regional economic bloc ECOWAS is scheduled to meet on Thursday to discuss options to address the Niger crisis, including military intervention.  Additionally, the party of deposed Niger president Mohamed Bazoum accused the junta of “cruel” and “inhumane” detention of Bazoum.  U.S. State Department spokesperson Matthew Miller said the U.S. was greatly worried about Bazoum's safety and reiterated calls for the reversal of the military takeover.  Reuters

Uncertainty Clouds U.S. Military Mission in Niger After Coup.  The future of the U.S. military mission in Niger is in question amid the ongoing political crisis in the country resulting from the July coup that ousted President Mohamed Bazoum.  The U.S. currently has approximately 1,100 military personnel stationed in the country on two bases, including a strategically important drone base.  So far, U.S. officials say they have not received any requests by the junta to withdraw U.S. forces from the country like France.  Officials also say that U.S. troops are remaining on their bases, though normal activity such as the U.S.-Niger training mission has been paused.  A Reuters report notes that the threat of military intervention by regional economic bloc ECOWAS and Russia’s Wagner Group’s offer of assistance to the junta could complicate U.S. efforts to maintain a presence in the country.  One U.S. official told Reuters that the U.S. drone base, known as Base 201, is “extremely important in countering terrorism in the region," and that it would be a “huge blow” to U.S. interests in the region if the base were to close.  Reuters 

Cyber and Tech

White House Launches ‘AI Challenge’ To Spur Cyber Defenses for National Infrastructure.  Noting that "cybersecurity is a race between offense and defense," Anne Neuberger, deputy security advisor for cyber, announced a multimillion-dollar competition to employ AI in identifying and repairing security flaws in U.S. government infrastructure.  Neuberger told Reuters “we know malicious actors are already using AI to accelerate identifying vulnerabilities or build malicious software." The national cyber advisor’s remarks come on the heels of similar thoughts concerning AI by Samy Khoury, Canada’s cybersecurity chief.  Canada’s cyber agency has observed AI use in a wide range of criminal applications, from phishing emails to creating malware to spreading disinformation.  The two-year competition will be led by the Defense Advanced Research Projects Agency (DARPA), which will administer $20 million in rewards.  Google, Anthropic, Microsoft, and OpenAI have indicated the competition will be able to make use of their systems.  Neuberger described the AI challenge as an effort “to catalyze a larger community of cyber defenders who use the participating AI models to race faster – using generative AI to bolster our cyber defenses.”  The White House said that a group of experts from the Open Source Security Foundation (OpenSSF) will lead efforts to ensure the "winning software code is put to use right away.”  Reuters

U.S., Polish Law Enforcement Shut Down ‘Bulletproof’ Cybercrime Website.  A so-called “bulletproof” hosting platform was taken down by U.S. and Polish law enforcement this week in a continuing effort to restrict cybercriminals’ anonymous access to cyber tools.  The Lolek Hosted website yesterday began displaying an FBI-IRS banner declaring that the domain had been seized as part of “coordinated law enforcement action.”  Poland’s Katowice prosecutor’s office and Krakow’s cybercrime bureau reportedly provided substantial assistance to the operation.  Bulletproof hosts ignore content posted by clients and promise to shield their identities.  Over the last several years, U.S. authorities have intensified actions and arrests against owners and administrators running bulletproof hosting services, including extraditions and lengthy prison sentences.  The Record

UK ‘Risk Register’ Outlines Potential Threats To Government, Commercial, Social Sectors.  Britain has published a National Risk Register, based on the country’s classified National Security Risk Assessment, that lays out scenarios ranging from a civilian nuclear accident to a malicious chemical-biological-radiological-nuclear attack by a foreign power.  Cyberattacks on critical sectors also receive coverage in the register.  As The Record notes in its lengthy report, “the most likely risks are not the most impactful, and the most impactful are not very likely.”  Nevertheless, the new government document explores the ways in which Britain is vulnerable to hostile states, terrorists, and profit-seeking criminals.  Among the “catastrophic” threats outlined is a failure of the national electrical grid — National Electricity Transmission System (NETS) — which could be brought about by an attack resulting in “encrypting, stealing or destroying data upon which critical systems depend or disruption to operational systems leading to the failure of the NETS.”  In contrast to a potential NETS failure, the risk register categorizes all other cyberattacks on different infrastructure sectors as having a “moderate” impact.  The severity of the NETS impact is explained by its immediate and downstream effects, which could extend to other critical systems, “including mobile and internet telecommunications, water, sewage, fuel and gas.”  Failures on that scale could lead to prolonged disruption and loss of public services, commercial entities, and communities “as well as loss of life.”  More than a dozen specific sector risk assessments are described in the register, including health and social care systems, telecommunications, financial networks, underseas transatlantic cable systems, autonomous weapons attacks, and space and satellite operations.  The Record

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