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10:00 AM ET, Thursday, September 7, 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. Announces $1 Billion in Ukraine Aid.  U.S. Secretary of State Antony Blinken announced $1 billion in new aid for Ukraine on Wednesday during a trip to Kyiv.  Part of the aid is a $175 million military assistance package drawn from Pentagon stockpiles that includes air defense system components, Guided Multiple Launch Rocket Systems for HIMARS, Javelin anti-tank missiles, and other ammunition.  The military aid also includes depleted uranium munitions for U.S.-supplied Abrams tanks for the first time.  The munitions can pierce Russian armor but have been criticized by some arms control groups who say they could spread uranium dust.  The UK has provided the munitions, and the White House maintains that the ammunition is not radioactive.  Russia’s embassy in Washington said the supply of the munitions shows U.S. “inhumanity” and will “fight not only to the last Ukrainian but [also] do away with entire generations.”  Beyond the immediate military package, the aid also includes $100 million in long-term military support through the foreign military financing program.  Ukrainian Foreign Minister Dmytro Kuleba called the military support “the most profitable investment into the world’s security.”  Over $200 million of the aid will go towards transparency and anti-graft efforts, the investigation of war crimes, reconstruction, and financial management support.  For humanitarian assistance, $206 million is allocated toward providing basic necessities to Ukrainians displaced by the war and over $90 million specifically for demining.  Notably, the aid also includes $5.4 million in seized assets from sanctioned Russian oligarchs, which will go towards support for Ukrainian veterans.  Al Jazeera BBC Bloomberg CNN Ukrinform U.S. Department of State

U.S. Extends Tariff Exclusions on Some Chinese Goods.  The office of U.S. Trade Representative Katherine Tai extended tariff exemptions on 352 Chinese imports and 77 Covid-19-related goods until the end of December 31, 2023.   The exclusions were set to expire on September 30. The exemptions cover industrial components like pumps and electric motors, some car parts and chemicals, bicycles, and vacuum cleaners.  The Covid-related exclusions cover examination gloves, face masks, and hand sanitizing wipes.  Tai’s office said that the extension will allow for extra consideration under a statutory four-year review of the measures.  After a "Section 301" investigation found that Beijing was forcing American businesses to hand over sensitive technology and misappropriating U.S. intellectual property, former President Donald Trump placed tariffs on $370 billion worth of imports from China in 2018 and 2019.  Barron’s Reuters

U.S. Judge Orders Texas to Move Rio Grande Buoys.  U.S. District Court Judge David Ezra on Wednesday ordered Texas to dismantle and move river buoys that it installed in the Rio Grande River to prevent migrant crossings from Mexico into the U.S.  Ezra ruled that Texan officials must relocate the buoys from the middle of the Rio Grande to the riverbank on the Texas side by September 15, at the state’s expense.  Texas is also barred from erecting similar structures in the center of the river without permission from the U.S. Army Corps of Engineers. Ezra wrote, “Texas's conduct irreparably harms the public safety, navigation, and the operations of federal agency officials in and around the Rio Grande.”  The decision aligns with the Biden administration, which sued Texas over the barriers in July, arguing that the state required permission from the federal government to set up the buoys.  Texas Governor Greg Abbott said his state will appeal the ruling, calling it “incorrect” and accusing Washington of failing to address illegal border crossings.  Mexico’s government, which has publicly condemned the barriers for violating the nation’s sovereignty and for threatening migrants’ human rights, released a statement emphasizing the "urgency of permanently removing the buoys on our shared border.”  CBS Reuters Al Jazeera New York Times

House Speaker McCarthy Calls China's Position on Fukushima Discharge 'Unfair.’  U.S. House of Representatives Speaker Kevin McCarthy, who is visiting Tokyo, said China’s opposition to Japan’s release of treated radioactive water from the Fukushima nuclear power plant into the Pacific Ocean is "unfair.”  He argued that the Chinese position is aimed at “putting falsities out there [and] trying to divide.”  Japan initiated its discharges of the water, which it says have been treated to internationally accepted levels, last month.  China has imposed a blanket ban on all aquatic imports from Japan in retaliation.  Neighboring South Korea has also expressed concern over the release of the water.  Reuters

Western Europe

UK Authorities Searching for Escaped Ex-Soldier Terror Suspect.  The UK has launched a massive, nationwide manhunt for former soldier Daniel Abed Khalife, who was awaiting trial in relation to terrorism and Official Secrets Act offenses, after he escaped from a London prison on Wednesday morning.  Khalife has been accused of leaving fake bombs at a military base and is suspected of “eliciting” personal information from soldiers that could be useful for a terror act.  Authorities say he was allegedly working for a hostile state.  Officials believe he escaped by attaching himself to the bottom of a food delivery van.  Police say he poses a “low risk” to the public.  BBC NBC

Central and Eastern Europe

Russia Reports More Ukrainian Drone Attacks.  Russian authorities reported several Ukrainian drone attacks early Thursday.  Moscow Mayor Sergei Sobyanin said a drone was downed over the town of Ramenskoye southeast of the Russian capital.  In the southern Rostov region, state media cited officials who said drones crashed into the downtown area of Rostov-on-Don, injuring one person and damaging three buildings.  Another drone was reportedly downed outside the city.  In the western Bryansk region, state media reported debris from one of two destroyed drones hit buildings, including a railway station.  And Russian-appointed officials in the occupied area of Ukraine’s southern Zaporizhzhia region said drones hit a residential building in the city of Enerhodar, which is adjacent to the Zaporizhzhia nuclear power plant.  There were no reported casualties.  CNN Reuters

Ukraine Preparing Air Defenses for Russian Winter Attack on Energy Infrastructure.  Ukraine is hoping newer and stronger air defense systems will better protect the country’s energy systems in the upcoming second winter of Russia’s invasion.  Russian cruise missiles and Iranian-made Shahed drones damaged nearly half of Ukraine’s power grid last winter.  The threat continues to this year as Russia has reportedly established facilities to produce its own Shahed-based assault drones.  Ukrainian officials say they are aware that Russia will continue to target Ukrainian critical infrastructure and that they have prepared.  There is much optimism over the newly donated German-made Gepard systems, which have already downed several Shaheds and are more cost-effective, since each round fired by Gepard flak guns costs less than $1,000.  Ukraine does not have enough Gepards to cover its entire territory and is filling gaps with large-caliber machine guns like the U.S.-made M2 Browning.  Reuters

NATO Says No Indication that Russian Drone Debris in Romania Part of Intentional Attack.  NATO Secretary General Jens Stoltenberg told EU legislators that the alliance has no information indicating that the reported Russian drone debris that fell into Romanian territory was part of an “intentional attack.”  Romania, which is a NATO member, says it is analyzing whether wreckage found on its side of the Danube River came from a Russian drone that was launched in an attack on a Ukrainian port on the opposite bank.  Stoltenberg emphasized that the Russian attack in such close proximity to NATO territory “demonstrates the risks of incidents and accidents” and adds to the high level of fighting and air attacks near NATO borders.  Al Jazeera Reuters

Asia and Oceania

Japan Successfully Launches Rocket with SLIM Moon Lander.  Japan on Thursday launched an unmanned lunar exploration spacecraft aboard a homegrown H-IIA rocket in hopes of becoming the world's fifth nation to land on the moon. Japan’s Aerospace Exploration Agency (JAXA) announced that the rocket took off from the Tanegashima Space Center in the south of the country and successfully released the Smart Lander for Investigating Moon (SLIM).  Tokyo hopes to land the SLIM, nicknamed “moon sniper”, on the lunar surface in February next year to demonstrate high-precision landing technology.  The mission comes after India successfully landed its Chandrayaan-3 craft on the moon’s south pole and after Russia’s Luna 25 spacecraft crashed into the moon.  Reuters Washington Post

Chinese Delegation Expected to Visit North Korea.  A delegation from the Chinese government led by Vice Premier Liu Guozhong is expected to visit North Korea this week to participate in the country’s founding day celebrations on September 9.  The Chinese delegation is attending at the invitation of the Central Committee of the North Korean Workers Party of Korea.  This year’s founding day will mark the 75th anniversary of the Korean peninsula’s freedom from Japanese occupation.  Reuters

Australian PM Albanese to Visit China This Year.  Australian Prime Minister Anthony Albanese announced on Thursday that he intends to visit China this year, which will mark the first visit by an Australian leader since 2016.  Albanese announced the planned visit while meeting with Chinese Premier Li Qiang at the ASEAN summit in Jakarta, where he added that Australia and China have made advancements in returning to "unimpeded trade” and that progress should continue.  Li agreed, saying that "relations have maintained a positive momentum of improvement thanks to the concerted efforts of both sides over the past year.”  China-Australian relations have suffered in recent years over trade, national security and human rights  issues.  The news of improving ties came as the two nations held their first high-level talks in three years in Beijing.  The dialogue, which does not include government officials, included former Australian trade minister Craig Emerson and former Chinese foreign minister Li Zhaoxing, who told the Australian delegation that “China has not posed any threat to Australia, and will not do so in the future.”  Reuters Barron's Reuters

Indonesia Proposes Trade Deal with U.S. on Critical Minerals.  Indonesian President Joko Widodo and Vice President Kamala Harris met on the sidelines of the ASEAN meeting this week, where Widodo reportedly asked if the U.S. would be interested in beginning talks on a critical minerals trade deal, with a focus on Indonesia’s nickel reserves.  An Indonesian ministry said it hopes a deal will allow Indonesian mineral exports to be considered for “green subsidies” under the U.S. Inflation Reduction Act.  The two countries do not currently have a free trade agreement with one another.  Reuters

Middle East and Northern Africa

Greek Shipping Company Pleads Guilty to Smuggling Iranian Crude Oil.  Greek shipping company Empire Navigation pleaded guilty to smuggling sanctioned Iranian crude oil and has agreed to pay a $2.4 million fine, according to newly unsealed U.S. court documents.  The case marks the first acknowledgment by U.S. prosecutors that the U.S. seized around 1 million barrels of oil from the tanker Suez Rajan, which was flagged for carrying Iranian crude in February 2022.  The tanker eventually made its way to the Texas coast and discharged its cargo to another tanker, which recently released its oil in Houston.  A lawyer for Empire Navigation pleaded guilty to violating sanctions related to Iran over the matter.  Associated Press

Sub Saharan Africa

G20 Reportedly Agrees to Give African Union Permanent Membership.  The Group of 20 has reportedly agreed to grant membership to the African Union.  Sources said the G20 will elevate the African Union up from its current designation of “invited international organization” to full membership, on par with the European Union.  An AU official said language to make the group a permanent member is still being discussed.  However, a South African official said there may still be a chance someone will veto the move.  Indian sources said there is no objection from G20 members, though they said the African Union’s membership is expected to be formalized next year, when Brazil takes over the G20 presidency from India.  Indian Prime Minister Narendra Modi proposed in June that the African Union be given full, permanent membership in the bloc at the G20 summit in New Delhi.  Bloomberg Reuters

UN Offers Support for Gabon as Country Transfers Back to Civilian Rule.  A UN representative has reportedly told Gabon’s military leader that the UN is prepared to help the country transition back to constitutional order once Gabon appoints a government and sets a “roadmap” and “timetable” for the transition.  The UN representative also reportedly met ousted President Ali Bongo, who has been under house arrest since the military coup on August 30.  The representative did not provide details on Bongo’s state.  Gabon military leaders seized power after Bongo won a third term in an election the opposition said was not credible.  Reuters

Al Qaeda Affiliate Claims Responsibility for Burkina Faso Attack.  Al Qaeda affiliate Jama'a Nusrat ul-Islam wa al-Muslimin (JNIM) group claimed responsibility for an attack that killed 17 soldiers and 36 volunteer fighters in Burkina Faso on Tuesday.  The attack was the country’s worst in months.  Burkina Faso has been battling militants, some of whom have links to al Qaeda and Islamic State, in its desert north since 2015.  Reuters 

Cyber and Tech

UK Says Government Message App Scanning Not ‘Technically Feasible’ at this Time.  The British government has put on hold a controversial provision in the Online Safety Bill that would have allowed scanning of messaging apps for harmful content, noting that it is not yet “technically feasible” to conduct such operations.  Clause 122 was added to the Online Safety Bill by British parliamentarians last year and was about to move to final stages of approval in the House of Lords.  Arts and Heritage Minister Lord Stephen Parkinson said that the UK tech regulator, the Office of Communications, would proceed with a requirement for companies to scan their networks only when a mature technology was capable of doing so.  Parkinson remarked, “a notice can only be issued…where technology has been accredited as meeting minimum standards of accuracy in detecting only child sexual abuse and exploitation content.”  Rasha Abdul Rahim, Amnesty International’s tech director, commented, “it remains undeniably true that it is not possible to create a technological system that can scan the contents of private electronic communication while preserving the right to privacy.”  Critics of the online bill objected especially to the Clause 122 authority that would force social media and messaging operators to scan encrypted data for content promoting terrorism, disseminating child pornography, or encouraging suicide and self-harm.   Rahim said the provisions “would leave everybody in the UK – including human rights organizations and activists – vulnerable to malicious hacking attacks and targeted surveillance campaigns.”  As has been noted by various sources, there are no guarantees that Clause 122 will not be reintroduced by legislators.  UK officials have said the government's position on the issue “has not changed.”  Financial Times Cybernews CyberScoop

U.S. and U.K. Sanction More Members of Russian ‘Trickbot’ Cyber Gang.  The U.S. and Britain sanctioned 11 more members of the Russian hacking group “Trickbot.”  The two countries sanctioned seven leading members of the group in February over their role in targeting hospitals during the Covid-19 pandemic and the U.S. government and American firms.  The U.S. Treasury said the latest sanctions target key members in charge of management and procurement for the group.  The sanctions are largely symbolic but could make it more difficult for those targeted to launder money.  Additionally, the U.S. has also indicted nine individuals tied to the gang’s malware and the Conti ransomware schemes.  Reuters

Cybercrime Group Phishing Toolkit Used in Microsoft 365 Hacks across Europe, U.S.  Phishing applications marketed by a cybercrime group identified as “W3LL” have been used in attacks on about 56,000 Microsoft 365 accounts, according to the Group-IB cybersecurity firm.  Researchers report that W3LL “created their own private ecosystem of highly effective phishing tools for compromising corporate email accounts.”  Indications are that hackers using the phishing software compromised 8,000 Microsoft email accounts, with the majority of targets in the U.S., Britain, Australia, Germany, France, Italy, Switzerland and the Netherlands.  Targeted systems were spread over a number of industries, including manufacturing, IT, financial services, and healthcare.  Group-IB reports that W3LL earned at least $500,000 in phishing toolkit sales. Researchers described W3LL’s 16 products as “fully customized tools entirely compatible with each other.”  Attackers successfully employed the phishing tools in conducting data theft, fake invoice scam, email owner impersonation, and malware distribution operations.  CyberScoop The Record BleepingComputer

AI Pioneer Calls for ‘Containment Strategy’ To Govern Ongoing Development.  The co-founder of Google’s DeepMind AI research center, Mustafa Suleyman, believes that “containment” is the key to safe development and deployment of AI technologies.  He said in an Axios interview that he believes AI calls for a similar, long-range strategy as the West developed to prevail in the Cold War against the Soviet Union.  Suleyman said an effective balance of human and machine decision-making requires "an overarching lock uniting cutting-edge engineering, ethical values, and government regulation."  He illustrated this by pointing to the successful governance of aircraft technologies by “an extremely strict licensing regime.”  Controls such as those imposed on exports of sensitive technology to China could be extended to domestic distribution to limit the entities allowed to develop the most powerful AI applications.  Suleyman hailed OpenAI CEO Sam Altman and himself as dedicated to “the precautionary principle” that has resulted in the creation of “public benefit corporations to experiment with incentivization structures, governance structures."  He also credits governments, including the White House he has visited twice for AI discussions, for "moving faster than they've really ever moved in response to a new technology."  Suleyman followed up DeepMind by co-founding Inflection AI, which produces the Pi AI chatbot.  The disruptive impact of AI innovations, Suleyman says, is different from earlier technology waves in that "the entirety of the human world depends on either living systems or our intelligence,” which are now open to unprecedented "exponential innovation and upheaval."  Axios

New Google Policy To Require Labels on AI-Generated Election Ads Content.  Beginning in November, Google will require ads placed by election campaigns to alert users if content has been modified or created by AI applications.  Election-related images, video, or audio produced by generative AI will need to display cautions such as “this image does not depict real events,” with exceptions made for minor changes such as image resizing.  Google pointed to the policy change as an improvement on transparency for election ads that will “help support responsible political advertising,” according to a Google spokesperson.  The labeling policy does not apply to YouTube videos that are not paid advertising.  Among other measures Google has taken to improve content verification is its ads transparency center, which allows users to identify purchasers of election ads and their “impressions” performance across its platforms.  YouTube’s community guidelines ban digitally manipulated content posing “a serious risk of public harm,” a standard that applies to all video content uploaded to the platform.  Bloomberg

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