Archive for the ‘Ukraine’ Category

Don’t Ignore Ukraine: Lessons From the Borderland of the Internet – Lawfare (blog)

Most Americans might consider the events occurring in Ukrainea distant conflict somewhere along the border between the Russian Federation and Western Europeto be someone elses problem. What that perspective fails to appreciate, however, is how these seemingly distant events set the stage for a new form of hybrid warfare that is already targeting Western citizens. Many of the techniques we are observing in Ukraine, especially those in the digital realm, are not meaningfully constrained by international borders; if left unchecked they could significantly undermine Western digital, physical, and political structures.

The characteristics of hybrid warfare are the flexible use of conventional, unconventional, political, and economic means to achieve strategic ends while avoiding broader international conflict. Ukraines experiences places it on the front lines of this new form of conflictit has seen kinetic operations in Crimea and the Donbas; cyber attacks; unconventional tactics like targeted assassinations; distributed hit lists against Ukrainian officials, officers, and soldiers; and information operations directed against the population.

For the past ten days, our research team from the Army Cyber Institute has been on the ground in Ukraine meeting with NGOs, businesses, journalists, government ministries, universities, the army staff, and individual soldiers and civilians across the country. When the Petya cyber attacks began to wreak havoc across Ukraines civilian and business infrastructure, we were traveling on a rail line affected by the attack.While our travel was not interrupted, the incident dominated Ukrainian news outlets, radio, and conversation, providing an indication of the psychological impact of these events. This illustrates one of the central lessons of the conflict in Ukraine: individual cyber attacks may not cause devastating physical damage, but the toll they wage on the consciousness of a nation suffering under the weight of inflation, economic stagnation, and an ongoing conventional conflict combine to create a siege mentality. What we have found illustrates how cyber attacks, as an element of hybrid warfare create effects felt broadly requiring a response that integrates multiple actors across public and private spheres.

Ukraine has experienced an impressive number of cyber attacks. In the last two years, the Ukrainian energy grid has been attacked twice. Rail, financial, aviation, security, and civilian business sectors have also sustained robust attacks. These events significantly affect the everyday lives of the countrys citizens. Cyber attacks cut off electricity to hundreds of thousands of customers, rendered ATMs inoperative, and interfered with access to medical records. In one especially disruptive incident, millions of Ukrainians were unable to access their bank accounts during the New Year holiday, one of the most important celebrations in the country. While Ukraine has been able to limit the permanent physical damage caused by these attacks, they have eroded confidence in Ukrainian President Poroshenkos administration as it tries to build democratic institutions in the midst of an ongoing conflict.

Nevertheless, Ukraine is resilient. It suffered immeasurably in the last century under the dual onslaught of Soviet and Nazi forces, losing nearly 16 million citizens to war and famine, the nuclear disaster at Chernobyl, two political revolutions, and the ongoing economic depression. Adding to its historic fortitude, polling indicates that the majority of Ukrainians possess a desirefor a Western leaning national identity. These factors indicate that Ukraine is likely to weather the current crisis as well. However, the West should not and cannot afford to ignore the reality of what is happening in Ukraine, especially within its digital infrastructure.

Its psychological fortitude notwithstanding, Ukraines resilience to recent cyber attacks also stems from its relatively early stage of digital development. When our lead researcher served as a Peace Corps volunteer in Kupiyansk Region of Kharkiv Oblast from 2005 until 2007, Ukraine had a rudimentary internet infrastructure. Over the past decade, Ukraines digital connectivity has improved from very low penetration dial-up internet and GPRS/EDGE mobile networks to high-speed cable and 3G connectivity. Despite these technological leaps, Ukraines digital infrastructure pales in comparison with that of most Western countries, including the United States. Many of Ukraines critical infrastructure systems still feature non-digital fallbacks or bypass digital systems altogether. For example, when hackers disabled seven substations during a 2015 cyber attack on the regional electricity distribution company Ukrainian Kyivoblenergo, operators were able to manually override the digital SCADA systems to restore power to approximately 225,000 customers. These analog capabilities are not intentional, but they provide Ukraine with options in the face of a digital onslaught.

We are in the process of learning the myriad ways digital weapons can achieve political effects and manipulate the digital and physical environments within nations. The United States and many Western nations lack similar analog systems to fall back on in the event of an equivalent sustained attack. Long ago, we traded the resilience of non-digital back-up systems for digital convenience and modernization. This has resulted in substantial returns on investment and created new markets and efficiencies that propel our economies and societies forward. However, we must also realize that the internet in Ukraine and the internet in America are one and the same. The very same skills and tools, whether technical or informational, being used on foreign networks are also appearing in the United States and Western Europe. And yet our systemic vulnerabilities are far more expansive.

Ukrainea nation whose name translates to on the borderland or borderlandis once again the frontier of a conflict that threatens to engulf the West. Unlike Ukraines absorption of the Mongol invasions in the 13th century, the digital invasions of the 20th century are being honed against Ukraine and then spreading into global networks. If we ignore the plight of Ukraine, we miss the opportunity to prepare to defend ourselves against future challenges that will substantially impact the political, economic, and societal structures that lie at the foundation of western culture.

The views expressed are those of the author and do not reflect the official policy or position of West Point, the Department of the Army, the Department of Defense, or the U.S. Government.

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Don't Ignore Ukraine: Lessons From the Borderland of the Internet - Lawfare (blog)

Ukraine Needs to Privatise State Companies-IMF – New York Times

LONDON It is time for Kiev to show political will and privatise state-owned companies, the International Monetary Fund's (IMF) mission chief to the country said on Friday, though land reform needs more discussion and it could wait until the next review.

Kiev has been trying to push contested legislation through parliament, including raising the pension age and lifting a ban on land sales, as part of a $17.5 billion bailout agreed with the IMF in 2015.

The IMF's Ron van Rooden said after adopting the new privatisation law, it was time to act.

"They have not sold any companies in the past three years so it's time to show political will and bring some state-owned enterprises to sale," he said, speaking at a conference in London.

On the land reform, he added the fund would be willing to let that go to the next review.

"We think a bit more time and discussion is needed to come up with (a solution) on how to proceed."

(Reporting by Sujata Rao, writing by Karin Strohecker, editing by Nigel Stephenson)

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Ukraine Needs to Privatise State Companies-IMF - New York Times

Ukraine official: Worm likely hit 1 in 10 state, company PCs – News & Observer


U.S. News & World Report
Ukraine official: Worm likely hit 1 in 10 state, company PCs
News & Observer
A Ukrainian government official estimates that as many as one in 10 personal computers at companies and government offices across the country may have been compromised in the cyberattack that erupted on June 27. Dmytro Shymkiv, the deputy head of ...
Ukraine Scrambles to Contain New Cyber Threat After 'NotPetya' AttackU.S. News & World Report
Ukraine says it foiled 2nd cyberattack after police raidWichita Eagle
Ukrainian Software Firm's Servers Seized After Cyber AttackNBCNews.com
TheSpec.com -AP News -Reuters
all 215 news articles »

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Ukraine official: Worm likely hit 1 in 10 state, company PCs - News & Observer

Trump Hands a Trade Victory to Putin at Ukraine’s Expense – Newsweek

This article first appeared on the Atlantic Council site.

As President Donald Trump prepares for his first meeting with Russian President Vladimir Putin tomorrow at the G-20 in Hamburg, Germany, the US Department of Commerce is making two important trade decisions that threaten the economic and geopolitical stability of Ukraine.

In 2014, as Ukraine was reeling from the annexation of Crimea, and as Russian-backed separatists were battling in the Donbas, the US International Trade Commission and the Department of Commerce handed down decisions that added antidumping duties on the importation of steel oil country tubular goods, a category of steel pipes important in the drilling industry.

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Because of the extraordinary circumstances in Ukraine, the Department of Commerce issued a suspension agreement in September 2014 that has allowed Ukraine to make limited sales of these pipes in the United States at fair prices determined by the Department of Commerce.

These prices are set high enough in advance so as to eliminate any possibility of dumping, which takes place when the Department of Commerce concludes that the import price is less than home market price or when the import price is less than the cost of production.

The suspension agreement has provided Ukraine the ability to plan and predict its US sales, bringing stability that is not present under an antidumping order, especially during this perilous period in Ukraine.

Commerce Secretary Wilbur Ross at the Bipartisan Policy Institute May 31, 2017 in Washington, DC. Win McNamee/Getty

But even as the Ukraine crisis continues and despite the small volume of Ukrainian produced steel oil country tubular goods which make up less than one percent of exports to the United States, the Department of Commerce has announced that it intends to let the US-Ukraine antidumping suspension agreement expire on July 10 and in doing sever an important lifeline for Ukraine to the West.

In addition, Commerce Secretary Wilbur Ross has also triggered a sweeping Section 232 national security investigation of all steel imports into the United States, which threatens to further restrict Ukrainian steel imports. A similar case was brought in 2001, and the Department of Commerce concluded that steel imports had no detrimental effect on national security.

Adding insult to injury for Ukrainian steel, a major benefactor of Commerce's protectionism is the Russian steel company TMK and its US subsidiary TMK IPSCO.

According to the US International Trade Commission in 2014, TMK IPSCO is, along with US Steel, one of the two leading US mills producing steel oil country tubular goods and supplied 16 percent of the US domestic market. TMK IPSCO is owned by Dmitry Pumpyansky, a Russian oligarch and Putin ally.

In 2008, TMK acquired IPSCO from the Swedish firm SSAB. In this period, there was a massive flight of oligarchs and their money from Russia with many taking up residence in the United Kingdom, leading some writers and commentators to bill London as " Londongrad."

Pumpyansky did not leave Russia and instead sold his majority share in TMK as security for a $1.85 billion loan from Russian state banks. As of May 2017, he is back in control of TMK.

All the world will be watching when Trump and Putin hold their first meeting. It would be tragic if the Trump administrations dual steel trade decisions that have such potentially harsh consequences for Ukraine are not properly factored into US policy preparation.

The combination of the looming suspension agreement deadline and the upcoming presidential meeting has prompted Ukraines Prime Minister Volodymyr Groisman and Minister of Economic Development and Trade Stepan Kubiv to send formal letters to the US Secretaries of State and Commerce as well as the US Trade Representative requesting a continuation of the suspension agreement and an exemption from any 232 barriers that Commerce might recommend to Trump.

Contrary to the intent of US sanctions against Russia, which in the past few weeks the Senate has voted to tighten, the Trump administration's Department of Commerce decision could punish Ukraine while advancing the business interests of Putins close ally.

If this administration goes through with its plans to restrict Ukrainian steel shipments to the United States and further weaken Ukraines economy, Trump would be handling Putin a great gift at Ukraines grave expense.

Daniel Valk is the president of North American Interpipe.

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Trump Hands a Trade Victory to Putin at Ukraine's Expense - Newsweek

Trump: Russia must stop ‘destabilizing activities in Ukraine and elsewhere’ – Politico

Ahead of a scheduled bilateral meeting with Russian President Vladimir Putin, President Donald Trump on Thursday called on Russia to cease its destabilizing activities in Ukraine and elsewhere and to end its support for hostile governments in Syria and Iran.

Western nations, he added, must also be vigilant against terrorism and keep their borders closed to those who reject our values, and who use hatred to justify violence against the innocent.

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Trump spoke at Warsaws Krasinski Square, near a monument to the Warsaw Uprising, where a crowd waving American and Polish flags repeatedly interrupted his speech to chant "Don-ald Trump." Before his speech, Trump laid flowers at the monument, which commemorates a 1944 uprising against the Nazis, as the crowd shouted "glory to the heroes."

During his speech, the president heaped praise upon Poland as a longtime U.S. ally, holding it up as an example of resilient Western democracy and warning against a trio of threats such democracies face today: terrorism, Russian aggression and the steady creep of government bureaucracy.

Of the latter, a threat Trump said is invisible to some but familiar to the Poles, Western nations must remember that they became great not because of paperwork and regulations but because people were allowed to chase their dreams and pursue their destinies.

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The fundamental question of our time is, whether the West has the will to survive. Do we have the confidence in our values to defend them at any cost? Trump said. Do we have enough respect for our citizens to protect our borders? Do we have the desire and the courage to preserve our civilization in the face of those who would subvert and destroy it?

The trans-Atlantic alliance between the U.S. and Western Europe is as strong as ever and maybe, in some ways, even stronger, Trump said. And while the Soviet Union no longer threatens Europe, Russia continues to loom, the president said.

"Today, the West is also confronted by the powers that seek to test our will, undermine our confidence and challenge our interests," Trump said, perhaps alluding to Russian efforts to interfere in the 2016 U.S. presidential election. "To meet new forms of aggression, including propaganda, financial crimes and cyberwarfare, we must adapt our alliance to compete effectively, in new ways and on all new battlefields."

Trump, who conspicuously made no mention of the U.S. commitment to NATOs mutual defense agreement during a visit to the treaty organizations headquarters in May, said Thursday that the U.S. has demonstrated not merely with words, but with its actions that we stand firmly behind Article 5, the all-for-one, one-for-all collective defense provision. He also praised Poland for its defense spending, an issue on which Trump has been insistent with NATO members.

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Trump: Russia must stop 'destabilizing activities in Ukraine and elsewhere' - Politico