U.S. helping Ukraine investigate December power grid hack

WASHINGTON (Reuters) – The U.S. Department of Homeland Security said on Tuesday it was helping Ukraine investigate an apparent attack last month on the country’s power grid that caused a blackout for 80,000 customers.

Experts have widely described the Dec. 23 incident at western Ukraine’s Prykarpattyaoblenergo utility as the first known power outage caused by a cyber attack. Ukraine’s SBU state security service has blamed Russia for the incident, while U.S. cyber firm iSight Partners linked it to a Russian hacking group known as “Sandworm.”

In an advisory, DHS said they had linked the blackout to malicious code detected in 2014 within industrial control systems used to operate U.S. critical infrastructure. There was no known successful disruption to the U.S. grid, however.

DHS said the “BlackEnergy Malware” appears to have infected Ukraine’s systems with a spear phishing attack via a corrupted Microsoft Word attachment.

The DHS bulletin from the agency’s Industrial Control Systems Cyber Emergency Response Team, or ICS-CERT, is the first public comment about the Ukraine incident.

A report released by Washington-based SANS Inc over the weekend concluded hackers likely caused Ukraine’s six-hour outage by remotely switching breakers in a way that cut power, after installing malware that prevented technicians from detecting the intrusion. The attackers are also believed to have spammed the Ukraine utility’s customer-service center with phone calls in order to prevent real customers from communicating about their downed power.

DHS and the FBI did not immediately respond to requests for additional comment.

(Reporting by Dustin Volz and Jim Finkle; Editing by Doina Chiacu and Andrew Hay)

Ukraine Power Outage Appears to be Work of Hackers

Some Ukrainians were without power for hours last month after hackers infiltrated the power grid and were able to turn off the lights, according to a report in The Washington Post.

An official with the cybersecurity company iSIGHT Partners told the newspaper that the Dec. 23 cyber attack appeared to be the first documented time that hackers successfully shut off power.

The official told The Washington Post that the group believed to be responsible for turning off the lights was Russian, and had at one point tried to attack targets in the United States and Europe. But another cyber security expert told the paper it could be difficult to determine the exact circumstances about the breach, including if the alleged hackers were even responsible.

Russia Planning to Sue Ukraine Over $3 Billion Bond Default

The Russian government is gearing up for a potential court battle with Ukraine after Kiev failed to repay a $3 billion bond debt, according to official statements from Russia’s prime minister.

Speaking at a meeting with his deputy prime ministers on Monday, Dmitry Medvedev said that Ukraine failed to repay the debt by a Dec. 20 deadline. While Ukraine can still repay the debt without any penalties in the next 10 days, there’s been no indication the nation plans do so.

Medvedev told his cabinet that the Russian government “must hire lawyers and start the procedure to make Ukraine pay everything, including fines,” adding that Ukraine’s failure to pay “amounts to manipulation and violation of its international commitments.”

Relations between Russia and Ukraine have been deteriorating in recent months, fueled in large part by Russia annexing the Ukrainian territory of Crimea in February 2014 amid the Ukrainian revolution. The European Union issued a host of sanctions against Russia in the wake of the Crimean crisis, and announced Monday those sanctions would be extended through July 2016.

While it’s not a member of the European Union, the Ukraine has signed an economic agreement with the group. Speaking to his cabinet, Medvedev said that Ukraine implementing that pact “impinges on our interests and creates risk to our economic security.” Medvedev said he had signed a decree to enact “reciprocal economic measures” against the Ukraine beginning January 1, when the Ukraine’s revised economic agreement with the European Union goes into effect.

Bloomberg reported that Ukraine’s former president, Viktor Yanukovych, sold the debt to Russia in December 2013, weeks before Yanukovych was ousted. Ukraine’s new leader, Petro Poroshenko, has called that payment a bribe Russian President Vladimir Putin used to reward Yanukovych for shying away from closer trade ties with the European Union, which helped ignite the revolution.

The conflict has wreaked havoc on Ukraine’s bank accounts, and the International Monetary Fund (IMF) loaned the country $17 billion in April 2014 to help the nation reform its economy.

Bloomberg reported the Ukraine had to restructure billions of dollars in debt to obtain the IMF money, but Russia refused to participate and countered with its own proposed payment plan.

Ukraine’s finance minister, Natalie Jaresko, told Bloomberg that the decision to halt bond payments to Russia was made to remain compliant with IMF requirements, and that paying Russia “would have breached the contractual obligations that we have to our other creditors.”

Jaresko told Bloomberg she remained hopeful that an out-of-court settlement could be reached.

Russia-Ukraine tensions rise as Crimea is still without power

Russia is cutting off gas supplies to Ukraine this week and could also stop providing coal to the nation as a dispute over a blackout in Crimea escalates.

Crimea, the subject of an ongoing quarrel between the countries, has been relying on emergency power generators since its main supply was attacked over the weekend, Reuters reported. It’s not known who was responsible for attacking the power supply, and the New York Times reported that millions of residents of the peninsula are still without electricity.

The BBC reported there are also water shortages in Crimea, and the Ukraine has stopped delivering goods to the peninsula in the Black Sea.

Tensions between the two nations have been high since Russia annexed the peninsula last year. Russia doesn’t border the territory by land. Ukraine does.

Protesters are preventing repair work from being done. The New York Times report indicates the activists — Crimean Tatars and Ukranian nationalists — want Russia to release political prisoners and permit global organizations to review human rights in the territory.

According to Reuters, Russian Energy Minister Alexander Novak claimed that the Ukraine was not doing enough to help crews restore power to the territory. He called the inaction a crime and politically motivated.

Ukraine lawmakers, speaking to Reuters, called suggestions that the government was backing the protesters “absolutely groundless.”

Crimea in State of Emergency after Explosion Knocks Out Power for 1.6 Million People

The Russian-annexed nation of Crimea is under a state of emergency after four electricity transmission towers located in Ukraine were damaged by bombs in two different attacks. Approximately 1.6 million people are without power.

At this time, officials are unclear on who attacked the pylons, but Russian authorities stated it was “an act of terrorism,” according to Voice of America News. And while Russian officials didn’t directly place blame, they implied Ukrainian nationalists may have been behind the attacks. The attacked pylons are located in Ukraine, where Crimea gets the majority of its electricity supplies.

The attacks were a couple days apart with two of the pylons being hit on Friday and the next two being hit Sunday. The Washington Post reports that more than a quarter of the population, mostly in major cities, had their power restored through the use of mobile gas turbine generators by Sunday afternoon. However, there are still many without power, and the Crimean government said it would come up with a schedule for supplying electricity and water to homes without power.

But repairs were delayed when Ukrainian activists took the roads on Saturday and attempted to block the trucks from getting to the damaged towers. However, they retreated after clashes with the police, according to Voice of America News.

Crimea was annexed in 2014 by Russia after pro-Western Ukrainian protests forced President Viktor Yanukovych from office. Weeks later, a rebel group that wanted to separate from Russia, launched a large enough rebellion that trade and travel sanctions were placed on key Russian officials. Voice of America News reports that the U.N. announced in September that nearly 8,000 people, mostly civilians, have been killed in the conflict.

NATO Chief Raises Alarm over Russia’s Buildup from Baltic to Mediterranean

NATO’s secretary-general Jens Stoltenberg is shouting the alarm over Russia’s recent buildup of military forces from the Mediterranean to the Baltic Sea and is wanting the U.S.-led alliance to respond.

Stoltenberg addressed the issue at a news conference in Portugal during NATO war games. He stated that he is worried that Russia’s military could limit access to those regions for the United States and its allies, according to Fox News.

“We have to be sure that we are able to overcome these capabilities, so we can reinforce, so we can move and we can deploy forces if needed,” said Stoltenberg.

Leaders and representatives of nine Eastern European NATO member nations met on Wednesday. Due to Russia’s annexation of Crimea from Ukraine and threats from ISIS, NATO leaders called for an increased alliance presence in Europe.

In the past, NATO has refrained from deploying permanent substantial combat forces due to an agreement with Russia that dates back to 1997. However, this year NATO has been deploying small military units in and out of countries that they feel is at risk from Russia. NATO has been careful not to make it appear to the Kremlin as if they are deploying permanent reinforcements, according to the Associated Press. Although, Stoltenberg’s comments hint that NATO might be rethinking this agreement.

Meanwhile, Russia continues to build upon their current military presence in Syria. CBS News reports that Russia has recently brought in anti-aircraft missiles to Syria to protect their jets from being attacked or hijacked. Russian military officials did not specify how many missiles or what type of missiles were brought into Syria.

Ukrainian Warhead Brought Down Malaysian Airlines Flight 17

The mystery of what brought down Malaysian Airlines Flight 17 that killed 298 people has been solved according to the Dutch Safety Board (DSB). The Boeing 777 was heading from Amsterdam to Malaysia when it was shot down by a Russian developed BUK missile on July 17, 2014, over Ukrainian territory controlled by pro-Russian separatists.

According to the DSB the missile detonated less than a yard away from Flight 17’s cockpit, caused the plane to break up in midair and scatter over a 20-square-mile area over eastern Ukraine.  The Board cannot assign blame for the bombing so who actually fired at the plane has not yet been established.  

The West and Ukraine say Russian-backed rebels brought down the Boeing 777, but Russia blames Ukrainian forces. The safety board’s chairman told the press conference that because of the armed conflict in Ukraine, there would have been “sufficient reason to close the airspace as a precaution” but “the Ukraine authorities failed to do so.”

Tjibbe Joustra, chairman of the Dutch Safety Board, said the explosion killed the plane’s three crew members in the cockpit and that investigators had found “high energy fragments” in their bodies. Whatever happened to the plane happened quickly, leaving the passengers dazed or unconscious. And while it’s not clear if anyone died in mid air, no one could have survived the plane’s impact with the ground, the DSB said.

The disaster and its aftermath — when armed men initially prevented international monitors from reaching the crash site and recovering the scattered bodies — shocked the world.

U.S. Considers Talks with Russia over Syria

The Obama administration has confirmed they are considering having talks with Russia over their build up in Syria and the future of the Syrian state.

Secretary of State John Kerry said that U.S. officials continue to voice concerns with Russia about their military buildup in support of embattled Syrian President Bashir al-Assad.

Kerry told reporters that Russian Foreign Minister Sergey Lavrov suggested “military-to-military conversation and meeting in order to discuss the issue of precisely what will be done to de-conflict with respect to any potential risks that might be run and have a complete and clear understanding as to the road ahead and what the intentions are.”

“You have to have a conversation in order to do that,” Kerry told reporters. “It is vital to avoid misunderstandings, miscalculations (and) not to put ourselves in a predicament where we are supposing something and the supposition is wrong.”

Defense Secretary Ashton Carter said through a spokesman that because of the close relationship between Kerry and his counterpart he would be deferring the military discussions to Kerry.

The move comes amid criticism that Russia is trying to exploit the U.S.’s lack of action in Syria.

“Into this vacuum has now stepped Vladimir Putin,” Sen. John McCain, the committee chairman, said of Russia’s president. “As in Ukraine and elsewhere, he perceives the administration’s inaction and caution as weakness, and he is taking advantage.”

Ten Killed in Ukrainian Violence

Ten people are dead in eastern Ukraine after pro-Russian rebels opened fire on government forces and buildings.

The attacks by the Russian proxies killed two Ukrainian soldiers and eight civilians.

“We really strongly condemn this escalation of fighting and we call all sides to cease it and to observe the ceasefire,” European Commission spokeswoman Catherine Ray told journalists in Brussels.

Ukrainian military officials say that pro-Russian forces are continually violating the cease-fire agreed to in the Minsk II accord.

“This war looks like a war of attrition,” Gen. Viktor Muzhenko, the chief of staff of Ukraine’s armed forces, told the Wall Street Journal. “It’s Russia’s intent to demoralize our forces, and using that mechanism they want to influence Ukraine’s military leadership as well as the state leadership.”

The United Nations says the conflict in Ukraine has killed over 6,000 people since April 2014.  At least 1.4 million people have been forced to leave their homes.

Russian Planes Practice Bombing Runs On United States

Two Russian bombers carried out a series of practice cruise missile attacks on the United States last week during the NATO summit in Wales.

The bombers were identified as Russian Tu-95 Bear bombers.  They flew over Iceland, Greenland and dipped over northeast Canada.  The flights approached was is called a “launch box”, the optimum point for firing a nuclear weapon at the United States.

The test runs come as a Russian general is calling for the country to change their policies to make pre-emptive nuclear strikes on the United States and Europe the default position.  Gen. Yuri Yakubov has been calling on Russia to classify the U.S. and NATO as “enemies” and that they need to “hash out conditions” where Russia could launch missiles.

The Russian aircraft stayed just outside of the North American Air Defense Identification Zone so the U.S. and Canadian Air Force did not send jets to intercept.

NATO officials held a summit last week to discuss Russia and their hostile actions toward Ukraine.