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10:00 AM ET, Wednesday, July 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:  

In the Americas

Chinese Espionage Campaign Hacks U.S. Government Emails.  Suspected Chinese hackers breached email accounts of some 25 organizations, including some U.S. government agencies, according to a statement from Microsoft and the White House. The China-based hackers — which Microsoft is calling Storm-0558 — exploited a vulnerability in Microsoft's cloud computing environment to breach the email accounts, beginning on May 15.  The group had access for more than one month, until June 16, when Microsoft began investigating the matter and mitigated relevant security weaknesses.  U.S. cyber officials say they are still investigating the scope of the attack. Initial findings suggest the Chinese campaign was far narrower and more targeted than the Russian-linked SolarWinds breach in 2020.  Cyber experts note that techniques reportedly used in the hack appear to be “very advanced,” suggesting the Chinese hacking group was after “very high-value targets.”  CNN Wall Street Journal

Explosives Attack in Mexico Kill Three Security Officials.  An explosives attack in Mexico’s western state of Jalisco killed three security officials and injured 10 other people on Tuesday night.  Jalisco Governor Enrique Alfaro said suspected gang members were behind the attack on the state’s police and officials from the state attorney general’s office.  Last month, in neighboring Guanajuato state, a car blast injured four members of the National Guard.  Reuters 

Western Europe

Zelensky Thanks NATO for Support, Moves Past Differences on Timeline for Membership.  Ukrainian President Volodymyr Zelensky on Wednesday praised NATO for its support, signaling that he is taking a more conciliatory approach and moving past disagreements over NATO deciding not to provide a specific timeline for Ukraine’s membership.  Zelensky on Tuesday blasted NATO for its lack of a concrete plan for Ukraine’s accession to the alliance as “unprecedented and absurd.”  He still maintained that Ukraine is seeking membership, but said so more gently, saying that “the results of the summit were good. But if there had been an invitation, that would have been ideal.”  Zelensky said he is now instead focused on planned security assurances from G-7 and acquiring further military aid.  Zelensky attended the inaugural NATO-Ukraine Council, a new group intended to boost Ukraine’s voice on issues alongside NATO member states.  NATO Secretary-General Jens Stoltenberg called the first meeting of the group a “truly historic moment.”  Beyond the NATO-Ukraine Council meeting, Zelensky is meeting with NATO leaders, including a one-on-one meeting with President Joe Biden later on Wednesday.  CNN New York Times Washington Post

UK Pledges $65 Million Military Aid Package for Ukraine.  The British government announced Tuesday that it will be providing a 50 million pound ($64.7 million) aid package to Ukraine to assist in equipment repair and establish a military rehabilitation center. The new support package will also provide Ukraine with thousands of additional rounds of Challenger 2 ammunition and more than 70 military vehicles. The British government stated that this package would be funded through the NATO Comprehensive Assistance Package for Ukraine.  Reuters

Germany Pledges Patriot Missile Defense Systems for Ukraine.  Ukrainian President Volodymyr Zelensky said on Wednesday that Germany has promised to send additional launchers and missiles for Patriot missile defense systems to Kyiv.  Zelensky thanked Germany for its “long-term, multi-year support,” adding that such sustained aid will help ensure European security and peace.  Zelensky’s announcement comes one day after Germany announced a new 700 million euro military aid package for Ukraine.  CNN

Germany Nord Stream Investigation Details Explosives.  Germany reported to the U.N Security Council that it had found traces of subsea explosives in samples taken from the yacht it suspects “may have been used to transport explosives” to blow up the Nord Stream Pipeline. The explosions hit the Nord Stream 1 & 2 pipelines that connect Russia to Germany last September.  Germany, Sweden, and Denmark are investigating the blasts.  Germany has been investigating the yacht, which had been rented in a way to conceal the real identity of the charterer. Moscow has accused the West of being behind the explosions, but Western governments and Ukraine have denied involvement.  Reuters

Central and Eastern Europe

Russia Launches Drone Attack on Kyiv.  Russia attacked Kyiv and other regions of Ukraine with at least 15 drones early on Wednesday, hours before President Volodymyr Zelensky was set to meet with NATO leaders at a summit in Vilnius. The attack wounded two people and ignited a blaze at a non-residential infrastructure facility. The Ukrainian Air Force said that air defenses managed to down 11 of the Iranian-made Shahed drones targeting Kyiv and the Cherkasy region southeast of the capital.  It is unclear at the moment how many drones targeted Kyiv and how many targeted Cherkasy.  It is thought that the attacks may be in retaliation for NATO's summit.  The attacks were “likely intended to discourage NATO members from providing more military aid to Ukraine,” according to analysis from the Institute for the Study of War (ISW), a Washington D.C.-based think-tank.  Al Jazeera

Kremlin Says Putin to Visit China.  Kremlin spokesman Dmitry Peskov said on Wednesday that a visit by Russian President Vladimir Putin to China is on the agenda.  Peskov said details of the trip are still being finalized, adding that “now is an absolutely opportune moment” for the visit to maintain development of bilateral Russian-Chinese relations.  Peskov added that trade and economic cooperation and global issues will be discussed.  He also emphasized that Russia and China have the potential for “constructive interaction” based on their “shared vision of international relations.”  CNN Reuters

Russia’s Medvedev Warns Against Western Support for Ukraine, Cautions of Global War.  Former Russian President Dmitry Medvedev warned late on Tuesday that further military aid from NATO to Ukraine will only intensify the risk of global war, and that no promises of weaponry from the West will prevent a Russian victory.  Medvedev, who is deputy secretary of the Russian Security Council, called Ukraine’s western allies “crazy,” and asserted that because of their actions, “World War Three is getting closer.”  Medvedev also stated that the Ukrainian “neo-Nazi” government must “be eliminated,” because it is too late to stop Kyiv from joining NATO.  Medvedev also spoke out in favor of Russia’s use of controversial cluster munitions in response to reports that the U.S. is sending the controversial weapons to Ukraine.  Al Jazeera Reuters

Ukraine Still Seeking F-16 Fighter Jets by Early 2024.  Ukrainian Foreign Minister Dmytro Kuleba said in an interview with Radio Liberty that Ukraine is wanting to deploy F-16 fighter jets by March 2024.  He added that Ukrainian President Volodymyr Zelensky met with Netherlands Prime Minister Mark Rutte to discuss plans to train Ukrainian pilots on F-16s, which is set to start around August.  Kuleba also noted that training of engineers and technicians, as well as infrastructure building, is needed for Ukraine to start flying the long-requested fighter jets.  So far, no government has formally committed to providing the U.S.-made jets to Ukraine.  CNN

Kosovo Moves to Lower Tensions.  On Tuesday, the Kosovo government said that it would reduce the police presence and enact other measures to reduce tensions in Serb-majority northern regions. Violence erupted last May after an election boycott by Serb voters. On May 29, NATO said 93 of its peacekeeping soldiers were injured in the violence. The Kosovo government stated that “it will not take any action that will escalate the situation in the north.” It also pointed to “a 25 percent reduction of police presence” in these regions. The reduction of police is expected to coincide with a reduction in NATO troops and the EU police mission.  Reuters

Asia and Oceania

Taiwan Reports Massive Chinese Drills Around Island.  The Taiwanese defense ministry said Wednesday that the Chinese navy and air force conducted large-scale drills with warships, fighter jets, and bombers off Taiwan’s south and southwest coasts. Taiwan said that in the past 24 hours, 32 Chinese warplanes, including four nuclear-capable H-6 bombers, penetrated the island’s air defense identification zone (ADIZ).  The ministry added late Tuesday that four Chinese ships were involved in “combat readiness patrols,” and that the Chinese planes were acting in coordination with the warships to perform joint training exercises.  Taiwan deployed aircraft and ships in response to monitor China’s drills.  Beijing has not commented on the military activity.  Taiwan is currently preparing for its annual Han Kuang military drills, which begin on the 24th of July and will center on civil-military coordination, force preservation, and homeland defense.  Al Jazeera Reuters  

North Korea Fires Suspected ICBM.  South Korea and Japan report that North Korea fired a suspected intercontinental ballistic missile (ICBM) on Wednesday.  The missile reportedly flew 620 miles and reached its maximum altitude before landing in waters between Japan and the Korean peninsula. Tokyo said the missile flew for 74 minutes, marking the longest flight by any weapon launched by Pyongyang.  The launch came ahead of a meeting between Japanese Prime Minister Fumio Kishida and South Korean President Yoon Suk-yeol at the sidelines of the NATO summit in Vilnius.  The launch also came after U.S. Chairman of the Joint Chiefs of Staff General Mark Milley met with his South Korean and Japanese counterparts in Hawaii, as well as days after Pyongyang threatened to take action against U.S. spy planes that enter North Korean airspace.  BBC Nikkei Asia Reuters The Hill

Japan, NATO Agree to New Partnership Program.  Japan and NATO have agreed to a new partnership program.  Japanese Prime Minister Fumio Kishida and NATO Secretary-General Jens Stoltenberg jointly announced the program, saying it will bolster cooperation in areas like cybersecurity.  Stoltenberg added in the announcement that NATO is seeking to deepen engagement with Indo-Pacific partners, of which he called Japan one of the closest, amid concerns about China’s military expansion and North Korea’s missile and weapons development.  Reuters

China Speaks Out Against NATO, Cautions Bloc’s Efforts to Spread Influence.  China denounced efforts by NATO to extend its influence into the Indo-Pacific and criticized the military alliance’s allegations that Beijing has challenged the bloc’s safety and interests.  On Tuesday, NATO condemned China in the club’s summit communique for posing a challenge to the alliance with its "ambitions and coercive policies” as it uses economic, military and political tools to ‘increase its global footprint and power.”  The communique also accused China of “malicious hybrid and cyber operations” which threaten NATO security.  The Chinese mission to the EU rebuked NATO’s communique, while Beijing promised a “resolute response” to any move that may threaten the nation’s rights and interests, with the state-backed Xinhua news agency saying that NATO is “spreading its tentacles to the Asia-Pacific region with an express aim of containing China." At the NATO summit in Lithuania, NATO Secretary-General Jens Stoltenberg told journalists that while Beijing is not yet an “adversary,” it challenges “the rules-based international order,” particularly with regard to Taiwan, its refusal to oppose the Russian war, and its significant military expansion.  Al Jazeera Reuters Australian Financial Review

U.S. Climate Envoy John Kerry to Visit China.  U.S. Climate Envoy John Kerry will reportedly visit China next week, which will make him the Biden administration’s third senior official to visit China after trips by Treasury Secretary Janet Yellen and Secretary of State Antony Blinken.  Kerry stated in May that he had been invited by Beijing to come to China “in the near term” for talks on climate change.  He added that a meeting between him and his Chinese counterpart Xie Zhenhua has been months in the making and that their work together has been a relative bright spot in tense U.S.-China relations.  Reuters CNN South China Morning Post

Middle East and Northern Africa

Palestinian President Abbas Visits Jenin After Israeli Operation.  Palestinian President Mahmoud Abbas visited the West Bank city of Jenin on Wednesday.  Abbas’ visit came after three of his senior officials were forced to flee a funeral in the city by mourners angry with the Palestinian Authority’s response to a two-day long Israeli military operation, which killed at least 12 people.  The raid on Jenin, analysts say, seems to have exposed rifts amongst Palestinian factions. Reuters

Sub Saharan Africa

Sudan Foreign Ministry Rejects Regional Peacekeeping Force.  The Sudanese Ministry of Foreign Affairs, widely seen as being aligned with the military, rejected a regional summit’s proposal to consider the deployment of peacekeeping forces to Sudan.  The summit, held by the Intergovernmental Authority on Development (IGAD), an East African regional body, proposed the peacekeeping operation to protect civilians caught in the conflict between Sudan’s army and paramilitary Rapid Support Forces (RSF).  The summit also called for further involvement of civilians in talks to stop the fighting.  The summit represented the first meeting on a Sudan peace process in weeks after the U.S. and Saudi Arabia suspended talks in Jeddah following ceasefire violations.  The Sudanese foreign ministry rejected the IGAD proposal chiefly because it was spearheaded by Kenya, which Sudan’s military has accused of providing a haven for the RSF.  Reuters

Iran’s Raisi Arrives in Kenya.  Iranian President Ebrahim Raisi started his Africa tour on Wednesday with a first stop in Kenya.  Tehran has called the tour a “new beginning” in its relations with Africa as Iran seeks new economic ties to counter U.S. sanctions.  Kenya’s foreign ministry said Raisi’s visit provides an “opportunity to review and re-energize [Iran and Kenya’s] bilateral relations for the mutual benefit of the people of the two countries.”  Raisi is also set to visit Uganda and Zimbabwe.  Al Jazeera CNN Reuters

Cyber and Tech

China Launches World’s First Methane-Liquid Rocket.  Chinese commercial launch company LandSpace successfully launched the world’s first methane-liquid oxygen rocket into orbit on Wednesday.  The Zhuque-2 carrier rocket lifted off from the Jiuquan Satellite Launch Center in northwest China and completed its flight plan, according to Chinese state media.  The launch puts China ahead of U.S. rivals in developing methane-fueled carrier vehicles, which are less polluting, safer, cheaper and better suited for reusable rockets.  LandSpace is the second private Chinese company to launch a liquid-propellant rocket, following Beijing Tianbing Technology’s launch of a kerosene-oxygen rocket in April.  Nikkei Asia Reuters South China Morning Post

Russian Hackers Target Diplomats in Kyiv With Used BMW Advert.  Researchers at cybersecurity firm Palo Alto Networks’ Unit 42 research division report that hackers suspected of working for Russia’s SVR foreign intelligence agency used a fake advertisement for a used BMW to target dozens of diplomats in Ukraine.  The report said the campaign, launched by APT29, or “Cozy Bear”, targeted at least 22 of the around 80 foreign missions in the Ukrainian capital Kyiv.  The hackers used a flier for the fake ad that they had embedded with malicious software.  Diplomats who downloaded the flier would then have the software on their networks.  It is unclear which embassies had been compromised.  The U.S. State Department said analysis showed U.S. networks were not affected.  Reuters

EU Announces Initiative to Shape Content, Governance of Global Metaverse.  The European Commission Tuesday announced an initiative to shape an “open and interoperable metaverse,” which the commission estimates could have a global market of more than 800 billion euros by 2030.  The EU plan involves creating an “industrial ecosystem” of content creators and media companies with regulatory “sandboxes” in which companies can test metaverse products while developing skill development programs and virtual services.  Commission Vice President Margrethe Vestager underscored the goal of shaping the metaverse according to “EU digital rights and principles” and addressing risks related to privacy and disinformation.  She added, “We want to make sure Web 4.0 (the EU term for the metaverse) becomes an open, secure, trustworthy, fair and inclusive digital environment for all."  The Commission envisions “smart cities” with virtual public services, although other details remain sparse.  Observers say the Commission initiative gives the EU the advantage of “prime mover” in shaping the conversation on the offerings and oversight of the metaverse.  Reuters Politico

Anthropic Unveils Chatbot Capable of Large Data Inputs, Responses.  Anthropic, a key rival to OpenAI, unveiled its chatbot, Claude 2, and opened it to public use.  Founded by former OpenAI executives and funded by companies such as Google and Zoom, Anthropic’s chatbot has been undergoing testing over the last two months by online services Slack and Quora while accumulating a waitlist of over 350,000 individuals.  Co-founder Daniela Amodei said Anthropic has been focused on “making Claude as robustly safe as possible” and looks forward to releasing it to “a wider range of both businesses and individual consumers.”   At first Claude 2 will be available only to users in the U.S. and Britain.  According to the company, Claude 2 can summarize up to 75,000 words.  Users can input large data sets, with summary responses in the form of a memo, letter or story.  By comparison, OpenAI’s ChatGPT can handle about 3,000 words.  CNBC

Meta Layoffs in Online Content Monitoring Teams Raise 2024 Election Concerns.  Meta staff layoffs that have extended to teams that monitor online disinformation and harassment campaigns have raised concerns as the U.S. presidential election approaches.  CNN reports that the furloughed staffers worked in a global monitoring effort that flags and counters malicious and misleading online content.  A Meta spokesperson would not specify the number of staff layoffs, while adding that “protecting the U.S. 2024 elections is one of our top priorities, and our integrity efforts continue to lead the industry.”  Meta’s new Threads messaging app gained more than 100 million users in the five days since its launch. CNN

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