Morning Report for Wednesday, July 26, 2023
10:00 AM ET, Wednesday, July 26, 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 Nominates Next National Cyber Director. President Joe Biden on Wednesday nominated Harry Coker, a four-decade veteran of the CIA and NSA, as the next national cyber director. If confirmed, Coker will succeed Chris Inglis, who led the Office of the National Cyber Director and led efforts to draft the Biden administration’s cybersecurity strategy until his retirement in February. Kemba Walden, who has been serving as acting director and was Inglis’s deputy, was a favorite for the nomination, but was reportedly not considered due to personal financial circumstances. Coker is currently a senior fellow at Auburn University’s McCrary Institute for Cyber and Critical Infrastructure Security. While at the CIA, he headed efforts to incorporate open-source intelligence into the Agency’s work. He also served as the NSA’s executive director from 2017 to 2019. CyberScoop Breaking Defense Bloomberg
Biden Nominates New Undersecretary of Defense for Policy. U.S President Joe Biden announced Wednesday that he is nominating Derek Chollet, a current counselor at the State Department, for Undersecretary of Defense for Policy. The former Undersecretary of Defense for Policy Colin Kahl announced in May that he would be returning to teaching at Stanford University in the fall. Prior to his work at the State Department, Chollet served as the Assistant Secretary of Defense for International Security Affairs and worked as the executive vice president of the German Marshall Fund. This comes as Senator Tommy Tuberville continues to place holds on all uniformed and civilian Pentagon nominees over the Defense Department’s abortion policy for service members who reside in states where abortion is restricted. Tuberville has so far blocked more than 250 military nominations. Defense News
Blinken Warns of China’s ‘Problematic Behavior’ During Visit to Tonga. U.S. Secretary of State Antony Blinken kicked off a South Pacific tour with a visit to the Pacific island nation of Tonga on Wednesday. Blinken opened a new U.S. embassy in the Tongan capital Nuku’alofa before heading to New Zealand and Australia. Blinken told reporters in Tonga that while the U.S. does not object to China engaging with the region, Beijing has conducted “increasingly problematic behavior” in regards to untransparent and unsustainable investments. A major Western concern for Tonga is its high debt level to China. Reuters NPR U.S. Department of State
U,S. Federal Judge Blocks Biden’s Asylum Policy. A U.S. federal judge on Tuesday blocked the Biden administration’s ruling that restricts some asylum-seekers. The policy barred some migrants from applying for asylum if they entered the U.S. illegally or failed to apply for safe harbor in a country they passed through on their way to the U.S. The judge argued that the restrictions were “arbitrary and capricious” and based on inaccurate or outdated assumptions, specifically targeting the requirement for asylum seekers to enter at ports of entry rather than claim asylum at border posts. The Department of Justice said it intends to appeal the decision. The White House and Department of Homeland Security did not comment on the matter. The Biden administration has credited the asylum rule with the recent drop in border crossings, though experts argue that the new CBP One smartphone app for appointment applications has played a larger role. Politico NPR Washington Post
Bowe Bergdahl’s Military Conviction Overturned by Federal Judge. A US federal judge has vacated a military conviction for Bowe Bergdahl, the former Army soldier who pled guilty to desertion after he left his base and was captured by the Taliban in Afghanistan. He had been convicted on two charges of desertion and misbehavior before the enemy in 2017. Federal judge Reggie Walter in his ruling said that the military judge in the Bergdahl case, Jeffrey Nance, failed to disclose that he had applied to the executive branch for a job as an immigration judge, creating a potential conflict of interest. A report by the Guardian says that the Justice Department did not respond to a request for comment, but that a lawyer for Bergdahl says that he was ‘gratified’ by the ruling. The Guardian
Western Europe
Britain Criticized for Slow Action on Wagner Group. A new report by the UK Parliament’s Foreign Affairs Committee is sharply critical of the British government for what the report says was a failure to properly understand the Wagner Group and for underestimating the growth and security risks the Russian private military company represented. The report cites the British government’s failure to consider Wagner operations in countries outside of Ukraine, and says the Wagner’s operations in at least 7 countries for the last decade should have been a concern before the Ukraine war. The report calls on the British government to improve its intelligence gathering operations on Wagner and to move faster to sanction individuals who are connected to the group. CNN
Six Found Guilty of Murder after 2016 Brussels Terrorist Attack. Six men were found guilty by a Belgian court of being behind the 2017 Brussels terror attack that killed 32 people. The men were charged with attempted murder in a terrorist context for the twin bombing attacks that took place at the Brussels airport as well as on the city’s metro system. Additionally, two others along with the six were found guilty of participating in the activities of a terrorism organization, while two other men were acquitted. Separate hearings will be held in September to determine sentences. Associated Press CNN Reuters
Central and Eastern Europe
Ukraine Launches Major Offensive on Southern Front. Russian-installed officials and military bloggers claim that Ukrainian forces have launched a massive offensive in the Zaporizhzhia region towards the Orikhiv direction. The officials and military bloggers reported massive artillery and air strikes in the area and Ukrainian attacks with armored vehicles on Russian positions near Robotyne. Russian military blogger Rybar said Ukraine “managed to penetrate in three areas,” and that “fierce battles” are ongoing. Ukraine has not commented on the reported offensive, with the Ukrainian military’s General Staff only saying that Ukrainian troops continue attacks towards Bakhmut, Melitopol and Berdiansk; Russia failed to regain lost positions northeast of Robotyne; and that Ukraine continues to make progress in the Staromaiorske area. CNN
British Intelligence Says Russia May Be Preparing Black Sea Blockade. British military intelligence warned on Wednesday that Russia may be preparing to enforce a blockade in the Black Sea against Ukraine. British intelligence noted changes in Russian naval activity in the region. Britain specifically noted that the Sergey Kotov patrol ship — which Russia said was targeted in a repulsed attack by Ukrainian drone boats — has changed movements around Black Sea shipping lanes and could potentially join “a task group to intercept commercial vessels Russia believes are heading to Ukraine.” The warning came after Russia withdrew from the Black Sea grain deal and began major attacks on Ukrainian ports with critical grain terminals, as well as after Moscow said it would view Ukraine-bound ships as potential carriers of military equipment. New York Times VOA News
UN Refutes Russian Claims About Deaths at Ukrainian POW Facility. On Tuesday, U.N Human Rights Chief Volker Turk called for accountability of the deaths of more than 50 Ukrainian prisoners of war killed in an explosion in a Donetsk region detention facility, rejecting Russia’s claim that they had been killed by a rocket. The prisoners that were being held in the Russian-controlled facility in Olenivka were killed by an apparent explosion July 28-29 of 2022. At the time, Russia’s ministry of defense said that the explosion came from a U.S.-made HIMARS rocket. Ukraine has long maintained that Russia detonated explosives at the prison to hide the mistreatment of the POWs inside. Turk said in a statement to journalists “the prisoners of war who were injured or died at Olenivka, and their family members, deserve the truth to be known, and for those responsible for breaches of international law to be held accountable”. The statement further said that UN investigators had not identified the source of the explosion but that it “was not caused by a HIMARS rocket”. Reuters
Russian Attacks on Danube Impact Romania, Other Ukrainian Neighbors. Russian drone strikes on the Ukrainian port of Reni on the Danube River came within 200 meters of Romanian territory, which lies on the other side of the critical waterway. The strikes, which added to recent Russian strikes on Ukrainian ports with key grain and food-export facilities, were the closest attacks to Romania since the start of Moscow’s invasion in 2022. Analysts say the attacks could be aimed at forcing cargo shipments from Romanian ports to rail and road infrastructure. Analysts say this will not only limit and congest routes to send fuel and military aid to Kyiv but may also potentially stress relations between Ukraine and Central and Eastern European EU states which have sought restrictions on Ukrainian grain to avoid disruptions to their own domestic agricultural markets. One analyst described the Black Sea developments as an effort by Russia to use food to project global influence and pressure Ukraine’s allies in the same way it used energy at the start of the war. RFE/RL
Moldova Reducing Number of Russian Diplomats. Moldovan Foreign Minister Nicu Popescu announced on Wednesday that Moldova is reducing the number of Russian diplomats in Chisinau in response to years of “hostile actions” by Moscow and a media report on potential increased surveillance operations at the Russian embassy in the Moldovan capital. Moldova’s foreign ministry said the number of accredited Russian diplomats will be reduced from 80 to 25, which Popescu said was needed to lessen the number of people “trying to destabilize” the country. A Russian foreign ministry spokesperson said Moldova’s decision will “not go unanswered” and rejected accusations of wrongdoing. The media report on surveillance operations focused on surveillance equipment and people linked to Russian intelligence being seen on the roof of the Russian embassy in Chisinau. Reuters Deutsche Welle
Russia Increases Military Conscription Age to 30. Russia’s lower house of parliament voted on Tuesday to raise the top age of military conscription for compulsory military service from 27 to 30. The measure, which is expected to pass the upper house of Parliament and be approved by Russian President Vladimir Putin, will also ban men summoned to a conscription office from leaving Russia. The legislation, which is set to go into effect on January 1, is seen as an effort by Russia to bolster its military without resorting to a general mobilization, in which Russian men up to the age of 70 who have served in the military are called up for service. Separately, Parliament also passed legislation that gives Russian governors the authority to establish regional paramilitary units during mobilization or martial law periods. The move will essentially formalize the creation of militias, which will be funded and armed by the state and given the power to down drones and combat enemy sabotage groups and terrorists. New York Times Reuters
Russian Cybersecurity Executive Sentenced to Jail for Treason. A Russian court on Wednesday convicted top cybersecurity executive Ilya Sachkov of treason and sentenced him to jail for 14 years. Sachkov, who has denied wrongdoing, helped found Group-IB, which was one of Russia’s most prominent cybersecurity firms and just this year cut ties with the Russian market. Russia’s Federal Security Service (FSB) arrested Sachkov in September 2021 on treason charges in a classified case. Sachkov previously criticized Russian authorities for allegedly allowing a prominent Russian criminal hacker to operate freely, criticized Russia’s move to appoint an alleged former spy to a body overseeing the export of advanced technologies, and accused the Kremlin’s cybersecurity envoy of making toxic statements. Reuters
Asia and Oceania
Russian Military Delegation Arrives in North Korea. A Russian military delegation led by Russian Defense Minister Sergei Shoigu arrived in North Korea Tuesday, joining a Chinese group as the first public visitors since the country shut down during the Covid-19 pandemic. According to KCNA, North Korean state media, the Russian and Chinese delegations will take part in the celebration of the 70th anniversary of “Victory Day” this Thursday. The Russian Defense Ministry said “this visit will help strengthen Russian-North Korean military ties and will be an important stage in the development of cooperation between the two countries”. In 2020, North Korea closed its borders to all trade and diplomatic exchanges including China and Russia. The state media did not say if these visits marked a change in policy. The United States had accused North Korea of providing military aid to Russia in its war against Ukraine, something both states have denied. U.S. State Department deputy spokesperson Vedant Patel said Tuesday that both Russia and China “can use their influence over the DPRK (North Korea) to encourage them to refrain from threatening, unlawful behavior. They also have a potential role to play in encouraging the DPRK to return to the negotiating table”. Reuters
North Korea to Set Up Military Display to Welcome China and Russia. North Korea has invited top Chinese and Russian delegations to the nation for the 70th anniversary of the Korean War and the conflict against the US-led allied forces. After years of pandemic seclusion, Pyongyang will welcome the dignitaries, including Chinese Communist Party Politburo member Li Hongzhong and Russian Defense Minister Sergei Shoigu, with a giant military parade displaying its latest advanced weaponry and involving 15,000 personnel. Analysts believe the show will exhibit North Korea’s nuclear-tipped missiles, which are prohibited by the United Nations Security Council, where Moscow and Beijing are permanent member states. Thursday’s holiday commemoration celebrates the “defeat” of the US and its allies during the Korean War, and shows Pyongyang’s desire to strengthen its ties with China and Russia. Reuters Associated Press
China Analysts Say Qin Gang’s Removal Demonstrates Internal Turmoil in Beijing. Some analysts say that China’s decision to remove foreign minister Qin Gang from his position and replace him with his predecessor Wang Yi reflects internal turmoil in China’s diplomatic system and wider leadership. Qin had been absent from public view for around a month before his sudden ousting, which analysts say creates an impression of a lack of process, uncertainty and general arbitrariness in the formation of China’s leadership. It also casts doubt on Chinese President Xi Jinping’s “one-man politics” since Qin rapidly rose to power in part due to his closeness with the Chinese leader, signaling a less-than-robust review process for personnel appointments. Analysts add that Wang’s reappointment is likely aimed at minimizing the impact of the personnel shakeup and presenting a level of continuity with a familiar figure. Despite this, analysts said the removal of Qin will have some negative impact on China’s diplomatic efforts and underscores uncertainty in predicting engagement with Beijing. VOA News
Japan, France Hold First Joint Air Drills. A contingent from the French Air and Space Force (FASF) arrived in Japan on Wednesday for the first joint air exercises between France and Japan. The French contingent includes two Rafale fighter jets, Dassault Aviation’s delta-wing jets, a refueling aircraft and a tactical transport aircraft. Japan will contribute three F-15 and two F-2 fighter jets and its own tanker and transport aircraft to the drills. Paris and Tokyo say the drills, which come amid China’s military assertiveness in the region, aim to improve tactical skills and cooperation. The move is also part of the FASF’s Pegase 23 mission, which includes joint activities with 14 partner air forces across the Indo-Pacific. Japan Times Nikkei Asia
Myanmar’s Suu Kyi to be Moved to House Arrest. Myanmar’s military government will transfer expelled leader Aung San Suu Kyi, who was detained in 2021 when the military seized power from her elected government, from a prison in the capital of Naypyitaw to home arrest ahead of a religious ceremony next week. There has not yet been a formal confirmation of the transfer, as the government tightly controls news about Suu Kyi, and her attorneys are prohibited from speaking to the media by a gag order. Western nations such as the US have sanctioned Myanmar’s military rule and ordered the release of Nobel Peace Prize laureate Suu Kyi, who was sentenced to 33 years in prison, and other imprisoned political figures. Thai Foreign Minister Don Pramudwinai, the first foreign visitor to meet with Suu Kyi since her arrest, spoke to her in prison two weeks ago and said she was in good health. Associated Press ABC News
Former Pakistani Prime Minister Imran Khan Faces New Charges. Former Pakistani Prime Minister Imran Khan will be indicted next week on charges of publicly insulting officials of Pakistan’s election oversight body last year, according to the Election Commission on Tuesday. After a hearing in Islamabad, one of Khan’s lawyers, Shoaib Shaheen, reported that the tribunal resolved to charge him with contempt on Aug. 2. Khan allegedly called the chief of the electoral commision, Sikandar Sultan Rajaa, and several of its authorities “personal servants” to Prime Minister Shehbaz Sharif multiple times. Since being expelled from power, Khan has been handed more than more than 150 legal cases, including charges on terrorism, corruption, and inciting people to violence. Associated Press ABC News
New Zealand Establishes Lead Cyber Agency to Enhance Online Security. New Zealand on Wednesday announced the establishment of a lead cyber agency to enhance online security and simplify the process of seeking aid during network intrusions for businesses and the public. The government plans to bring New Zealand's Computer Emergency Response Team into its National Cyber Security Centre to refine the response to online incidents, as the “cyber security threats New Zealand faces are growing in scale and sophistication," according to a statement by Public Service Minister Andrew Little. Little said that employing a “single agency to provide authoritative advice and respond to incidents across every threat level is international best practice." The nation has experienced an increase in cyber break-ins, and official data shows that around $3.61 million of financial losses from cyber incidents were reported in the first quarter of 2023. Reuters
Middle East and Northern Africa
Continued Fallout Over Israeli Judiciary Reform. Anti-government protesters in Israel say they will continue demonstrations against Israeli Prime Minister Benjamin Netanyahu’s government’s judicial reform plans. The Knesset passed the first major piece of the legislation on Monday, limiting the Israeli judiciary’s ability to reject government decisions on the standard of reasonability. Supporters of the measure say it will reign in the unchecked power of judges, while critics say it will lessen government oversight and damage Israel’s democratic rule. Thousands of military reservists have threatened to stop reporting for duty with the passage of the first law, key sectors of the Israeli economy have pledged strikes, and foreign investors and governments are raising concerns over the legislation. Palestinians are also criticizing the measure, saying it will remove checks on Israeli government actions in occupied territory, such as the expansion of settlements. Associated Press Al Jazeera
Sub Saharan Africa
Niger Soldiers, Presidential Guards Blockade Presidential Palace. Soldiers and presidential guards in Niger have blockaded the presidential palace and are reportedly holding President Mohamed Bazoum and his family there. Niger troops have also blocked off several ministry buildings in the capital of Niamey. There are no reports of abnormal military activity or sounds of gunfire in the area. It is unclear if the troops and presidential guards are attempting to seize power in the unstable West African country. Niger has experienced four coups and several other attempts on power since gaining independence from France in 1960. Barron’s BBC Reuters
Allegations of Atrocities Conducted by Mali Army and Suspected Wagner Group. Mali’s army, along with mercenaries from Russia’s Wagner Group operating in Africa, have allegedly committed executions, forced disappearances, lootings, and other atrocities and abuses, according to a Monday report by leading humanitarian group Human Rights Watch (HRW). HRW said that since December 2022, several dozen Malian civilians have been executed or disappeared and that interviews with witnesses and footage showed “evidence of abuses by Malian soldiers and associated foreign fighters.” Much of the violence took place in Mali’s center regions of Mopti and Segou during military activities responding to the operations of Islamist extremist groups. People interviewed by HRW said that “scores of Malian and ‘white’ foreign soldiers” killed at least 20 civilians in the Mopti district. Most of the victims who were forcibly disappeared, arrested or killed belonged to the Fulani ethnic group. Mali’s Foreign Affairs Ministry claimed to be unaware of any abuses and said that an investigation would be opened into the suspected war crimes. Associated Press Al Jazeera Eurasia Review
Cyber and Tech
U.S. Senate Backs Requiring Reporting on China Technology Investments. The U.S. Senate on Tuesday voted overwhelmingly in favor of an amendment to the National Defense Authorization Act that will require U.S. companies to notify federal agencies of investments in Chinese technologies. The amendment seeks to monitor outbound investment that could potentially help China develop critical technologies. Separately, the Senate also passed an amendment to the NDAA that will increase federal reviews of foreign purchases of U.S. farmland and will bar some Chinese, Iranian, Russian and North Korean purchases. Reuters
IBM Reports Cost Of Data Breaches Hit Average of $4.5 Million. A new IBM report estimates that organizations are paying an average of $4.5 million to deal with data breaches, marking an all-time high in costs and a 15 percent increase over the last three years. According to an analysis of data breaches across 553 organizations across sectors and countries between March 2022 and March 2023, the top expenses included costs for investigating breaches, which reached $1.6 million on average, and costs from business disruptions and post-breach response, which added an additional $1.4 million to $1.3 million on average. The U.S., Middle East and Canada were the top regions and countries with highest costs per breach, with the U.S. suffering $9.5 million in costs per breach. The financial, pharmaceuticals, energy and industrial sectors were the main sectors targeted for data breaches. Additionally, the report said that almost 60 percent of respondents said their organizations increased prices for consumers to pay for costs from responses to breaches. The report did point out positives of shorter times to identify and contain breaches thanks to threat intelligence, artificial intelligence and incident response tools, as well as benefits from high-data regulation. The Record
Intel, Ericsson Building Custom 5G Chip. Intel Corp and Swedish telecommunications equipment maker Ericsson are collaborating to create a custom chip for Ericsson’s 5G networking gear. The new Ericsson chip will use Intel’s “18A” manufacturing technology — the most advanced that the company has disclosed. Neither company said when the chip will be put on the market, though Intel said its 18A manufacturing technology will be ready by 2025. Reuters
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