Report for Friday, January 26, 2024

THE TOP STORIES

CIA’s Burns, Mossad’s Barnea heading for hostage talks.

NSC’s Sullivan to meet Chinese foreign minister on Red Sea conflict.

Kyiv working to organize Hungary’s Orban trip to Ukraine

EU hopeful on reaching an agreement on Ukraine Aid Next Week while in the U.S., Senate deal on Ukraine aid, border security at risk

THE ISRAEL AND HAMAS WAR

CIA’s Burns, Mossad’s Barnea heading for hostage talks.  CIA Director William Burns and Mossad chief David Barnea, who helped broker last year’s deal that traded more than 100 Gaza hostages for hundreds of Palestinian prisoners, are heading for an undisclosed location in Europe to try again. According to the Washington Post, which broke the story, they’ll meet with Egypt intelligence chief Abbas Kamel and Qatari Prime Minister Mohammed bin Abdulrahman Al Thani, who played key roles as intermediaries with Hamas in earlier talks. Burns, a master diplomat, will need all his skills. Hamas wants a permanent cease-fire and Israeli Prime Minister Benjamin Netanyahu has promised “total victory,” meaning the complete destruction of Hamas.  Both can’t happen.  Netanyahu’s mouth is also a problem for Burns and  his negotiating partners.  In a recording broadcast by an Israel news outlet, Netanyahu can be heard telling hostage families that Qatar’s role was “problematic” and criticizing the U.S. for extending its agreement with Qatar to use Al Udeid Air Base, in the desert south of Doha, the largest U.S. military base in the Middle East.  “These remarks, if validated, are irresponsible and destructive to the efforts to save innocent lives, but are not surprising,” Qatari foreign ministry spokesman Majed Al Ansari said Wednesday.  Washington Post Wall Street Journal New York Times Reuters

China rejects Israeli claim that Beijing gave Hamas ‘top-grade weaponry.’  China's defense ministry has denied providing weapons to conflict areas, including in the Israel-Gaza war, marking the first time Beijing has refuted arming Hamas militants during the conflict. Colonel Wu Qian, the ministry's spokesperson, stated that China has only supplied food, medical aid, and emergency assistance to Palestinians, emphasizing Beijing’s adherence to strict arms export control principles. The denial comes in response to earlier claims by the Israel Defense Forces (IDF) about the discovery of a “massive” stockpile of Chinese-made weapons and communication equipment being used by Hamas. China, while refraining from taking sides in the Israel-Gaza war, has called for a two-state solution and an international peace conference to end the war.  South China Morning Post 

Gaza health ministry says Israeli troops kill 20 Palestinians, wound 150 in food line.  The ministry and witnesses said Israeli soldiers opened fire on a crowd of Palestinians in Gaza City gathered for humanitarian aid.  A World Health Organization official described the food situation as "absolutely horrific."  Humanitarian workers said aid deliveries of aid were mobbed by starving people. Separately, in central Gaza, Palestinian health officials said an Israeli air strike at nightfall on Al-Nusseirat refugee camp killed six people. In Khan Younis, Israeli tanks battered areas around two hospitals, sending civilians seeking shelter fleeing. The Israeli military says it is looking into the allegations.  Associated Press Reuters 

U.S. and Israel create channel to discuss concerns over civilian casualties in Gaza. Officials said the communication channel was set up after Secretary of State Antony Blinken’s meeting with Israel’s war cabinet earlier this month, when Blinken expressed concern over “constant” reports of Israeli strikes that hit humanitarian operations or caused significant civilian casualties. The U.S. has reportedly used the channel over the last few weeks to raise “every specific incident of concern.” Officials said Israel has provided information on incidents that show some are accidents and others are cases in which Israeli forces “made a mistake,” without clarifying.  The U.S. State Department did not directly confirm the existence of the channel.  Reuters 

The International Court of Justice orders Israel to take measures to prevent its forces from committing acts of genocide in Gaza, but does not order a full cease-fire in the enclave. The court added that Israel must report within a month on what it is doing to prevent acts of genocide in Gaza.  The court confirmed in this preliminary decision that it has jurisdiction to rule in the case, brought by South Africa.  The court also said more aid is needed for Gaza. The ruling does not decide whether Israel has committed genocide in Gaza, but is a provisional measure aimed to prevent the situation from worsening as the case proceeds. Israel has rejected accusations that it is committing genocidal acts in its military campaign in Gaza. The Palestinian foreign ministry welcomed the ruling as an “important reminder” that no state is above the law.  Reuters Associated Press Washington Post Al Jazeera

Families of Israeli hostages protest at border crossing to block aid to Gaza.  Families of Israelis being held hostage in Gaza continued their protest at the Kerem Shalom border crossing today in an effort to block aid from entering the territory. The U.N. humanitarian aid office said demonstrations there yesterday forced more than 100 aid trucks to be rerouted.  New York Times

THE RED SEA

NSC’s Sullivan to meet Chinese foreign minister on Red Sea conflict.  U.S. national security adviser Jake Sullivan is en route to Thailand for talks with China’s foreign minister Wang Yi on Houthi attacks on Red Sea shipping and other issues.  Another likely topic: efforts to persuade  Iran to stop supplying the Houthis with weapons and money.  Biden administration officials say they’ve asked Beijing to urge Iran to stay out of the broadening conflict.  “China has influence over Tehran; they have influence in Iran. And they have the ability to have conversations with Iranian leaders that—that we can’t,” White House National Security Council spokesman John Kirby told reporters Tuesday, with evident frustration. “And so, what we’ve said repeatedly is: We would welcome a constructive role by China, using the influence and the access that we know they have, to try to help stem the flow of weapons and munitions to the Houthis.”  Chinese officials have complied, to some extent.  Reuters reports that Chinese officials have met with their Iranian counterparts in a series of meetings in Beijing and Tehran.  During these talks, Chinese officials have asked Iranian representatives to rein in the Houthis or risk undermining Iran’s trade relations with China.  Reuters  Bloomberg  South China Morning Post  Nikkei Asia  Barrons  Wall Street Journal Reuters

Freight through Suez Canal down 45% since Houthi attacks.  The U.N. Conference on Trade and Development (UNCTAD) says freight traveling through the Suez Canal has decreased by 45% in the two months since the Houthi attacks began. UNCTAD said the disruption risks higher inflation, uncertain food security, and increased greenhouse gas emissions from longer shipping routes. Reuters

U.S. and U.K. blacklist Houthi VIPs  U.S. and U.K. officials piled another round of financial sanctions on the Houthis yesterday, this time blacklisting four Houthi leaders from the international banking system.  The move follows the U.S. State Department’s Jan. 17 designation of the Houthis as an international terrorist group. Al Jazeera Bloomberg Reuters Treasury.com Associated Press 

THE UKRAINE UPDATE

Russia says Ukraine had 15-minute warning on PoW flight, while Kyiv denies and casts doubt on passenger list.  Russian lawmaker Andrei Kartapolov claims that Ukrainian military intelligence received a 15-minute warning before the Russian military plane carrying Ukrainian prisoners of war entered the Belgorod region before it crashed. He added that Russia received confirmation that the message was received. Kartaplov did not provide evidence for his claim, and a Ukrainian military intelligence spokesperson said that Ukraine did not receive a request to secure the airspace. Meanwhile, Ukraine’s chief Ombudsman Dmytro Lubinets said that the list of prisoners of war on the plane included people previously exchanged in earlier swaps. He also claimed that photos and footage of the plane crash do not indicate that a large number of people were aboard the plane. The reports continue conflicting claims by Moscow and Kyiv on the crash. Russia claims the plane was downed by a Ukrainian missile, which Kyiv denies. Both sides are calling for investigations. The U.N. Security Council discussed the incident and called against further escalatory actions.  Reuters South China Morning Post RFE/RL Kyiv Independent Kyiv Independent 

Hague judge to rule on 2014 downing of Malaysia Airlines Flight MH17. In the case before the International Court of Justice, Kyiv charged that Moscow armed pro-Russian militia bands in eastern Ukraine, including militias that shot down Malaysia Airlines Flight MH17, killing 298 passengers and crew in 2014.  Reuters

Analysis:  Putin puts out feelers for Ukraine peace talks.  Putin is floating trial balloons that  he’s ready to talk about wrapping up the war, which has reached a costly stalemate, Bloomberg reports, according to two unnamed “people close to the Kremlin.” U.S. officials denied receiving any such signals.  Or are the trial balloons a trap?  Is Putin trying to split Kyiv from allies weary of Ukraine’s unending pleas for more arms? President Volodymyr Zelensky has insisted on full Russian withdrawal.  Bloomberg

Russia imported over $1 billion of U.S., European chips last year.  Despite sanctions aimed at restricting technology access for Russia's military, classified Russian customs data reveals that the country imported over $1 billion worth of advanced U.S. and European chips in 2023. Over half of the semiconductors and integrated circuits Russia imported in the first nine months of 2023 were made by Western companies, including Intel, Advanced Micro Devices, Infineon Technologies, and others. The customs data does not specify the source or the routes through which the chips were acquired, but much of the restricted technologies that reach Russia enter through re-exports from third countries like China, Turkey, and the United Arab Emirates.  Bloomberg Kyiv Independent 

Zelensky says EU begins screening of Ukrainian legislation in first step toward accession talks.  Ukrainian President Volodymyr Zelensky said yesterday that the European Commission has begun assessing Ukrainian legislation for compliance with EU laws, laying the groundwork for membership negotiations. A Ukrainian delegation led by Deputy Prime Minister for European and Euro-Atlantic integration Olha Stefanishyna met with EU officials in Brussels yesterday to start the screening process. Kyiv Independent

German defense minister doesn’t ‘know anything’ about UK missile swap to aid Ukraine.  The German newspaper Handelsblatt reports that the U.K. recently offered Germany a deal under which the U.K. would provide Storm Shadow cruise missiles to Ukraine and Germany would send Taurus missiles to Britain, but German Defense Minister Boris Pistorius said he doesn’t know anything about such a deal. Ukraine asked Germany for Taurus missiles in May, but Chancellor Olaf Scholz declined the request, saying it would escalate the war. Pistorius said that before Germany accepts any agreement with the U.K., it must examine whether such a deal would be feasible. He explained that the Taurus is “a highly technical system,” not comparable to the weapons of other countries. While the Storm Shadow is similar, the Taurus is said to be better suited to attacking targets such as the Kerch Strait Bridge linking Russia with occupied Crimea. Politico 

Kyiv working to organize Orban’s trip to Ukraine.  Ukrainian officials are working to arrange Hungarian Prime Minister Viktor Orban's official visit to the country, the first in 14 years, after he accepted an invitation from President Volodymyr Zelensky in late December 2023. Deputy Prime Minister Olha Stefanishyna emphasized the importance of Orban's visit, highlighting his role in significant decisions for Ukraine. The meeting aims to improve relations and address critical issues, despite Hungary's previous blocking of an EU financial aid package for Ukraine and its warming ties with Russia. A separate meeting between the foreign ministers of both countries is scheduled for January 29 to prepare for the high-level talks.  Kyiv Independent

EU hopeful on reaching an agreement on Ukraine Aid Next Week.  European Union leaders are nearing an agreement to provide approximately €50 billion ($54.1 billion) in aid to Ukraine, with an upcoming summit on February 1 set to finalize the deal. The aid has been stalled due to political infighting, blocking some $110 billion in aid from the US and EU. Hungary's demand for an annual review of the aid deal remains a key point of negotiation, as Prime Minister Viktor Orban insists on veto rights. Ukraine urgently requires ammunition and weapons to confront Russia's ongoing invasion, while Western leaders seek Russia's total withdrawal from Ukrainian territory.  Bloomberg 

IAEA chief to visit Zaporizhzhia nuclear plant, Kyiv, and Moscow.  IAEA Director General Rafael Mariano Grossi and other experts from the nuclear watchdog will visit the Russian-occupied Zaporizhzhia nuclear power plant to monitor safety concerns. Grossi said the visit will focus on the issue of supplying water to cool the plant’s reactors, which has become a critical concern since the destruction of the Kakhovka Hydroelectric Power Plant in June 2023 depleted the nearby Kakhovka Reservoir, which the plant relied on. Ukraine and many experts have accused Russia of blowing up the dam, which Moscow denies. Also, Grossi said he will discuss long-term plans for the plant, namely about whether reactors will be restarted. He will additionally visit Kyiv and Moscow to discuss nuclear safety.  Kyiv Independent 

HBO casts pro-Putin Serb in The White Lotus.  Kyiv says,“Seriously?” After Serbian actor Miloš Biković was hired for the hit series about a resort for the obnoxious rich, Ukraine’s foreign ministry put out a sarcastic press release: “HBO, is it all right for you to work with a person who supports genocide & violates international law?”  Politico reports that Biković gained stardom in Russia and has supported Putin’s occupation of Crimea and invasion of Ukraine. Politico

ELSEWHERE IN THE WORLD

The Americas

Senate deal on Ukraine aid, border security at risk.  A bipartisan Senate deal aiming to pair border enforcement policy and Ukraine aid faces potential collapse as Senate Republicans and former President Trump continue to oppose reaching a deal. The compromise deal aims to address border and immigration policies while securing wartime aid for Ukraine. Trump labeled the proposal "meaningless" and a "gift to the Radical Left Democrats," urging Senate Republicans not to make a deal. He did not propose alternative policy options. The plan's collapse could jeopardize crucial aid for Ukraine and further exacerbate election-year politics.  Reuters Politico Kyiv Independent Associated Press Bloomberg

DOD Inspector General knocks Pentagon’s UFO-tracking project as “uncoordinated.”  The IG’s report, released Thursday, complained that “DoD has no overarching UAP policy and, as a result, it lacks assurance that national security and flight safety threats to the United States from UAP have been identified and mitigated.” The acronym UAP stands for “unidentified anomalous phenomena,” because somebody at the Pentagon decided for some unknown reason that the world’s only remaining superpower wasn’t cool with saying “UFO,” for “unidentified flying” – you know.  Politico Bloomberg

U.S. warns of risk from China and Russia’s dual-use satellites.  China and Russia have launched satellites with dual-use capabilities that are meant for inspecting and repairing spacecraft but could potentially be used to attack U.S. assets, according to a report from the US Space Force. The report highlights the challenges in detecting, attributing, and mitigating the dual-use nature of these spacecraft. It also notes that China is developing ground-based lasers capable of damaging US satellite sensors. The report emphasizes the need for vigilance and countermeasures to address the evolving threats in space.  Bloomberg

U.S. secretly warned Iran about imminent ISIS attack.  U.S. officials say they secretly warned Tehran of an imminent ISIS attack in early January.  Despite Washington’s alert, Tehran failed to prevent a spectacular attack on a crowd gathered in Kerman on Jan. 3, to commemorate Revolutionary Guard Corps leader Maj. Gen. Qassem Soleimani, killed by a U.S. airstrike in January 2020. The Wall Street Journal, CBS and other news outlets reported that shortly before the attack, U.S. intelligence picked up word of a plot by Islamic State’s Afghanistan branch, known as ISIS-Khorasan or ISIS-K.  The reports said that U.S intelligence information shared with Tehran was “specific enough about the location and sufficiently timely that it might have proved useful to Tehran in thwarting the attack on Jan. 3 or at least mitigating the casualty toll.”   An official said Washington reached out to Tehran because of a longstanding ”‘duty to warn” policy meant to save innocent liyves. The news reports did not say how the U.S. communicated with the Iranian regime.  Wall Street Journal  CBS News Reuters 

U.S., Iraq to consider ending the U.S.-led coalition in Iraq.  The talks, to be announced tomorrow (Saturday) in Baghdad, could lead to the withdrawal of U.S. troops posted to Iraq for Operation Inherent Resolve, an initiative launched in 2014 to advise Iraqi forces and fight the Sunni terrorist group ISIS.   Wall Street Journal

USAF, Japan creating new AI drone. The U.S. Air Force  and Japan are launching a project to create an AI-driven drone. The device will be called a collaborative combat aircraft or CCA, U.S. Secretary of the Air Force Frank Kendall told Nikkei Asia. It will perform strikes, intelligence gathering, jamming and decoys. The first CCAs will be fielded late this decade. The Air Force will acquire at least 1,000 of them. Nikkei Asia

ANALYSIS — Defense startups seek contracts. The Pentagon gives cool reception.  Venture capitalists have invested over $100 billion in U.S. defense-technology startups since 2021, aiming to capitalize on military modernization efforts. However, it has proven difficult for these startups to win contracts from the Department of Defense (DoD), receiving less than 1% of the $411 billion DoD contracts awarded in the last fiscal year. While the Pentagon has expressed the need for innovation, it has moved slowly to recognize the potential of startups due to cultural and bureaucratic challenges. Many startups must compete for inclusion in the department's five-year budget plan, and if their products are not part of the plan, it becomes significantly more challenging for them to secure contracts. To navigate these challenges, startups are increasing their presence in Washington, hiring lobbyists and seeking opportunities to engage with defense officials and policymakers.  Wall Street Journal

US overtakes China in GDP growth, pulling further ahead in race for biggest economy.  The US has surpassed China in nominal GDP growth, with a 6.3% increase in 2023, outpacing China's 4.6% gain. This economic outperformance reflects a strong U.S. consumer base and U.S.’s ability to recover from the Covid-19 pandemic more effectively than China. The U.S. stock market has reached all-time highs, while Chinese equities face a significant bear-market downturn. China is also grappling with a real estate downturn and deflation. The turn of fortunes challenges earlier predictions that China's GDP would eventually surpass that of the U.S.  Bloomberg

Senate Republicans demand evidence against Maduro fixer pardoned by Biden.  Alex Saab, a Colombian citizen and ally of Venezuelan president Nicolás Maduro, was charged in Miami in a $350 million money-laundering case, arrested in Cabo Verde in 2020, and swapped last month for 10 American prisoners and Leonard “Fat Leonard” Francis, a notorious defense contractor accused of bribing U.S. Navy officers.  Sen. Chuck Grassley, R-Iowa, ranking Republican on the Senate Judiciary Committee,  Sen. Jim Risch, R-Idaho, top Republican on the Senate Foreign Relations Committee, and Sen. Marco Rubio, R-Fla, Republican vice chairman of the Select Committee on Intelligence, are protesting that Saab helped Iran evade sanctions on its oil exports and also laundered hundreds of millions of dollars for corrupt officials. AP Reuters

Mexico’s protection rackets are flourishing. Critics blame President Andrés Manuel López Obrador for going soft on organized crime. "Burgeoning extortion has not grabbed the headlines, but it's been the all-the-more corrosive fallout of a security strategy that never merited the label," said Falko Ernst, a senior analyst at the International Crisis Group. Reuters

OPINION — For the U.S., going it alone is not an option.  Cipher Brief Expert former CIA senior officer Daniel Hoffman writes in The Washington Times about calls for the U.S. to avoid international entanglements after recent conflicts in Afghanistan and Iraq, similar to interwar sentiments after World War I. Hoffman says that while this mood is understandable, it does not consider rising threats from the “axis of tyranny” consisting of China, Russia, Iran, and North Korea. Hoffman advocates for a realistic assessment of these threats and policies that protect national security interests, such as supporting allies, deterring aggression, defending free trade, and punishing military aggression.  Hoffman highlights the importance of U.S. leadership, commitment to common values, and the historical futility of appeasement as key factors to consider.  Washington Times

Asia and Oceania

China’s vice foreign minister visits Pyongyang.  North Korea announced that it is hosting a Chinese government delegation led by Vice Foreign Minister Sun Weidong. North Korean state media did not give further details about Sun’s visit, which came after he met his North Korean counterpart in Beijing, where they discussed bilateral ties and common interests. North Korean leader Kim Jong Un has sought stronger ties with China and Russia amid increasing confrontation with the U.S. and South Korea.  Associated Press Barron's RFA Korea Times Bloomberg

ANALYSIS — U.S. wary of lethal military action from North Korea.  U.S. officials have expressed concern that North Korea's leader Kim Jong-un may resort to lethal military actions against South Korea in the coming months. While officials don't see an imminent full-scale war, they highlight the potential for limited aggressive actions that could destabilize the region. North Korea has recently fired cruise missiles; claimed to test a hypersonic warhead; abandoned a goal of peaceful reunification with South Korea; and denounced a security pact between the South, the U.S., and Japan. The developments suggest a closing window for diplomatic engagement. U.S. officials have reportedly called on Chinese counterparts to dissuade North Korea from missile tests and other military actions, but experts say Beijing’s influence may be limited due to Kim’s effort to forge closer ties with Russia.  New York Times Reuters

Secrecy around British businessman’s detention underscores risks to business in China.  British business executive Ian J. Stones, who worked in China for four decades, has been detained since 2018. China's Ministry of Foreign Affairs said that Stones was sentenced to five years in prison for illegally selling intelligence to overseas parties. Stones's daughter, Laura, stated that the family and British embassy staff haven't seen legal documents related to the case. The secrecy surrounding Stones's detention suggests that other foreign businesspeople may be held in China without public knowledge, raising concerns about the safety of operating in the country. The U.S. and the U.K. don't publicly disclose the number of citizens detained in China, adding to challenges and fears about operating in the country, especially with Beijing’s increased control over data and heightened crackdown on espionage.  Wall Street Journal

China, France mark 60th anniversary of diplomatic relations.  Chinese President Xi Jinping and his French counterpart Emmanuel Macron delivered video speeches hailing 60 years of bilateral relations between their countries. Xi called on France to join in advocating for a multipolar world and economic globalization.  Macron reportedly said France is open to joining China to address global challenges and international crises. The anniversary of relations comes amid trade tensions, with France sponsoring an E.U. investigation into China’s electric vehicle industry and China investigating subsides in the French brandy industry.  South China Morning Post

China, Uzbekistan upgrade relations.  China and Uzbekistan agreed to upgrade relations to an “all-weather comprehensive strategic partnership” during Uzbek President Shavkat Mirziyoyev’s visit to China. The move aims to bolster trade between the two countries, including via a new railway that will run through Kyrgyzstan, and increase China’s technological and development support for Uzbekistan. Both countries also agreed to increase counterterrorism cooperation.  South China Morning Post

Pakistan accuses India of orchestrating killings on Pakistani soil.  Pakistan accused India's intelligence agency of involvement in the extrajudicial killings of two Pakistani citizens, providing what it claims to be credible evidence linking two Indian agents, Yogesh Kumar and Ashok Kumar, to the deaths. The victims, both anti-India militants, were killed in separate mosque attacks in Pakistan. Pakistan's Foreign Secretary Sajjad Qazi called the alleged Indian network of extrajudicial and extraterritorial killings a global phenomenon. India denied the accusations, labeling them as false and malicious propaganda.  Reuters Associated Press BBC Al Jazeera CNN The Guardian Bloomberg

Strategic Tuvalu holds key elections.  The Pacific Island nation of Tuvalu is holding a national election that is being closely watched by China, Taiwan, the U.S. and Australia. The election could determine whether Tuvalu remains a diplomatic ally of Taiwan, accepts a U.S. proposal to connect the country by undersea cable to global telecommunications, and continues with a security and migration agreement signed with Australia in November. The election comes amid heightened competition between the U.S. and China in the region.  Reuters The Guardian Associated Press 

Europe

Turkey approves Sweden’s NATO membership bid; Stockholm now focuses on Hungary.  Turkish President Recep Tayyip Erdogan formally approved Sweden’s NATO membership bid on Thursday. Sweden now turns its attention to Hungary, the only remaining holdout. Swedish Prime Minister Ulf Kristersson agreed to meet with Hungarian President Viktor Orban in Budapest, a reversal of his previous positon that Swedish membership in NATO was not something to be negotiated with Hungary. Hungarian Parliament Speaker Laszlo Kover, an Orban ally, said that it is not urgent that the matter be voted on quickly, and Hungary’s parliament is in recess until February 15. Kover said he remains opposed to Sweden’s bid because “they refuse to show the slightest respect” and had accused Hungary of backsliding on democracy, but he said he could change his mind if Sweden shows more respect.  Bloomberg New York Times Politico Reuters France 24 Kyiv Independent Associated Press  

Russian court jails women convicted of explosion that killed pro-war blogger, former separatist-leader critical of Putin.  A Russian court sentenced Darya Trepova to 27 years in prison for a terrorist attack at a cafe in St. Petersburg that killed pro-war blogger Vladlen Tatarsky and injured 52 others. Trepova, 26, presented Tatarsky with a bust that contained a bomb moments before the blast, but she claimed she didn't know about the explosive. Russian authorities blamed Ukrainian intelligence for the bombing. In a separate case, a Moscow court sentenced Igor Girkin, a former leader of Russian-backed separatist fighters in Ukraine, to four years in prison for extremism. Girkin had criticized President Vladimir Putin and Russian authorities for being inept and indecisive in the invasion of Ukraine.  Associated Press Wall Street Journal

Russian court extends pre-trial detention of WSJ reporter Gershkovich by two months.  A Moscow court extended the pre-trial custody of Wall Street Journal reporter Evan Gershkovich by two months, until March 30.  He has the right to appeal within three days. Gershkovich was arrested on March 29, 2023 on spying charges that he, the Journal and the U.S. deny.  Reuters Wall Street Journal

Middle East

Drone attack hits northern Iraqi gas field.  A drone attack at the Khor Mor gas field in northern Iraq led to a temporary suspension of production, causing major power cuts across Iraq’s northern Kurdistan region. The field’s UAE-based operator Dana Gas said the attack damaged a liquid gas storage tank but caused no injuries and that operations are expected to resume soon. No group claimed responsibility for the drone attack. The incident came amid a series of drone and rocket attacks in Iraq since October, which have mostly targeted bases housing troops from the U.S.-led military coalition. Reuters 

Kuwait says it stopped terror plot against Shiite targets.  Kuwait said it arrested three suspected members of a terrorist organization plotting to attack Shiite places of worship.  The alleged terrorists, of an undisclosed Arab nationality, have referred to the public prosecution.  Bloomberg

Africa

New report says at least 60 civilians killed in Burkina Faso in 2023 in army drone strikes. Human Rights Watch (HRW) has accused the Burkina Faso army of conducting drone strikes that killed at least 60 civilians. These strikes, which the government claimed targeted armed groups, occurred in three incidents since August. HRW interviewed witnesses and analyzed evidence, concluding that the drone strikes violated the laws of war by causing civilian casualties. The group called for an urgent and impartial investigation into these apparent war crimes and criticized the government's heavy-handed approach in its fight against armed groups.  Associated Press Al Jazeera HRW

Gunmen murder at least 50 Nigerian villagers in northern state of Plateau over 48 hours.  Gunmen killed over 50 villagers in Nigeria's Plateau state, leading to a 24-hour curfew and calls for an end to violence between nomadic cattle herders and farming communities. The attacks occurred in remote villages over two days, marking the second such incident in less than a month, with more than 140 people killed in December. While no group claimed responsibility, locals blamed Fulani herders. Nigerian authorities have faced criticism for their response to such attacks, with calls for justice for the victims and a resolution to the conflict over land and water access between different communities.  Associated Press

After Red Sea Threats, Ships Now Face Rise in Somali Piracy.  There has been a reported increase in piracy off Somalia's coast, attributed to disruptions in maritime security caused by Houthi militants' attacks on ships in the Red Sea in response to the Israel-Hamas war. There have been five reported assaults on commercial ships off Somalia's coast since November, leading to growing concerns of safety across the global shipping industry. Some of these incidents involved hostage-taking and successful hijackings, marking the first such incidents in several years. The surge in piracy is partly attributed to the departure of European naval forces from the area and U.S. forces being preoccupied with other threats.   Bloomberg 

THE CYBER AND TECH RUNDOWN

NASA announces end of history-making Mars helicopter mission.  NASA announced the end of the Mars helicopter, Ingenuity, after its 72nd and final flight revealed damage to one of its rotor blades. Originally designed for a 30-day technology demonstration with no more than five flights, Ingenuity exceeded expectations by flying over 10.5 miles in 72 flights, far surpassing its planned altitude and distance. The 4-pound rotorcraft, carried to Mars by NASA's Perseverance rover, marked a historic achievement in interplanetary aviation and paved the way for future aerial exploration on Mars and other celestial bodies. Ingenuity will remain idle on Mars, emitting periodic data blips before NASA eventually loses contact with the rover.  Reuters BBC NASA.gov Associated Press

North Korean crypto hacks increase in 2023, but value of stolen assets declines.  North Korean hacks of cryptocurrency trading platforms reached a record high in 2023, totaling 20 cyberattacks.  The total in 2022 was 15.  The Chainalysis blockchain analysis group said North Korea-linked hacks have risen for several years, although the estimated value of thefts fell in 2023 to $1 billion from $1.7 billion in 2022.  Analysts note that hackers continue to increase the sophistication of attack tools to exploit smart contracts and to launder proceeds through mixer platforms.  According to Chainalysis, the drop in value of crypto stolen by North Korean hackers follows a larger trend in cryptocurrency security overall.  In 2023, the total amount stolen from DeFi (decentralized finance) protocols was $1.1 billion, down 64 percent from the $3.1 billion taken in 2022.  Nikkei Asia Bloomberg CNBC

Hewlett Packard email accounts breached by Russia-linked 'Cozy Bear' hackers.  The Russia-affiliated hacking group, Cozy Bear, accessed Hewlett Packard’s (HP) cloud-based email system and exfiltrated data over a months-long period.  Cozy Bear, tracked as APT29, reportedly is affiliated with Russia’s Foreign Intelligence Service (SVR).  The company said in an SEC filing that the group breached “a small percentage of HPE mailboxes” associated with cybersecurity, market, and business components.  According to HP, the accessed data was limited to information contained in users’ mailboxes.  The HP filing explained that the breach has not had a “material impact” on operations.”   The company did not disclose who notified them of the system compromise but said that with assistance from cybersecurity experts the breach has been remediated, “eradicating the activity.”  The Record BleepingComputer

Ukrainian energy, postal service, transport enterprises hit by cyberattacks.  Cyberattacks were launched against several Ukrainian infrastructure enterprises on Thursday, including the country’s largest state-owned oil and gas company, Naftogaz.  The company’s website and call centers are not operating as of Thursday evening.  Ukraine’s postal company, Ukrposhta, also was hit by a cyberattack on Thursday that resulted in disruptions to postal services.  Ukrposhta has restored payment processing, access to users' personal accounts, and the application programming interface.  Ukraine’s transport safety agency, DSBT, and state railway, Ukrzaliznytsia, also reported cyber disruptions to websites and certain online services.  A Russian hacktivist group, the National Cyber Army, claimed responsibility for the DSBT attack but threat actors behind the other enterprise hacks have not been identified.  The Record

Hackers deploy spyware in legitimate software updates in China, Japan.  A new China-linked hacking group, dubbed Blackwood, is suspected of incorporating sophisticated spyware into authentic software updates for several years.  The malware called NSPX30 has been implanted in updates for WPS Office, Sogou Pinyin, and Tencent QQ software, targeting engineering and manufacturing entities in the U.K., Japan, and China.  ESET researchers report that Blackwood has been active in cyberespionage attacks against Chinese and Japanese targets since at least 2018.  The researchers explain that the malware implants take place when targeted devices attempt to download updates from legitimate servers.  The malware intercepts packets, gaining access for the threat actors who hide in target infrastructure.  ESET’s report explains that “NSPX30 is a multistage implant” using components such as a dropper, installer, loaders, orchestrator, and a backdoor.  Victims of the cyberespionage operations include individuals in China and Japan, a person connected with a U.K. public research university, a Chinese manufacturing and trading company, and a Japanese corporation office in China.  Cybernews

Chinese IT ministry announces pilot projects to link R&D with manufacturing.  A series of pilot projects aiming to boost China’s hi-tech competitiveness was announced this week by the Ministry of Industry and Information Technology (MIIT).  The new strategy seeks to transform domestic innovations into commercial products that can compete on international markets.  Through five advanced pilot-scale trial projects that link laboratory research with production facilities, the MIIT hopes to reinforce the country’s supply chains and its global competitiveness in AI, quantum computing, and biomedical manufacturing.  The ministry plans to provide precise measuring instruments, high-end testing equipment, and design simulation software to the pilot efforts.  Peng Peng, executive chairman of the Guangdong Society of Reform, described the pilots as “a crucial step toward converting scientific research into real-life production.”  Peng noted that most Chinese manufacturers lack patience with pilot research and do not make adequate investments in R&D programs.  South China Morning Post

US Spies Want AI as Tool Against China If Tech Can Be Trusted.  US intelligence agencies are grappling with the challenge of ensuring that rapidly developing AI technology is reliable and secure. Agencies are looking to harness AI technology without opening backdoors into national secrets or generating fake data. Concerns mainly revolve around large-language models, with doubts about their reliability. To address these issues, programs like Bengal, run by the Intelligence Advanced Research Projects Activity, are working to develop ways to deal with potential biases and toxic outputs in AI models. The US intelligence community aims to use AI to enhance productivity, sift through vast data, and compete with global competitors like China.  Bloomberg 

Microsoft Warns Other Firms of Russian-Sponsored Group in Email Hacking.  Microsoft has begun warning organizations that they were targets of the Russian-sponsored group Midnight Blizzard (also known as Cozy Bear) that hacked into its executives' emails late last year. Microsoft's Threat Intelligence team has identified this group as the same actor targeting other organizations. Hewlett Packard Enterprise also reported a breach of its cloud-based email system likely caused by Midnight Blizzard. This disclosure indicates that the group's recent activities have expanded beyond Microsoft. Midnight Blizzard has been previously linked to Russia and was responsible for breaching SolarWinds Corp. in a major cyber-espionage campaign against several US federal agencies.  Bloomberg 

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Brad Christian, Ethan Masucol, Bruce Wilmot, Elaine Shannon, Ken Hughes, Katharine Campbell, Leighton Durham, Ryan Simons, and Tiffany Krueger contributed to this report.

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