Putin calls U.S. ransomware allegations an attempt to stir pre-summit trouble

MOSCOW (Reuters) – President Vladimir Putin said on Friday that suggestions the Russian state was linked to high profile ransomware attacks in the United States were absurd and an attempt to stir trouble ahead of his summit this month with U.S. President Joe Biden.

A hack of Brazilian meatpacker JBS’s facilities in the United States, reported this week, is the third such ransomware hack in the country since Biden took office in January.

JBS told the White House it originated from a criminal organization likely based in Russia.

The White House said on Wednesday that Biden, who is due to hold talks with Putin in Geneva on June 16, was expected to discuss the hacking attacks with the Russian leader to see what Moscow could do to prevent such cyber assaults.

U.S. officials have spoken of criminal gangs based in eastern Europe or Russia as the probable culprits. But Kremlin critics have pointed the finger at the Russian state itself, saying it must have had knowledge of the attacks and possibly even be directing them.

Putin, speaking on the sidelines of the St Petersburg Economic Forum, told Russia’s state TV Channel One that the idea of Russian state involvement was absurd.

“It’s just nonsense, it’s funny,” said Putin. “It’s absurd to accuse Russia of this.”

He said he was encouraged however, by what he said were efforts by some people in the United States to question the substance of such allegations and try to work out what is really going on.

“Thank goodness there are people with common sense who are asking (themselves) this question and are putting the question to those who are trying to provoke a new conflict before our meeting with Biden,” said Putin.

Praising Biden as an experienced politician, Putin said he expected the Geneva summit to be held in a positive atmosphere, but did not anticipate any breakthroughs.

The meeting would be more about trying to chart a path to restore battered U.S.-Russia ties which are strained by everything from Russia’s jailing of Kremlin critic Alexei Navalny to Ukraine to Syria, he said.

Earlier on Friday, Putin told the same economic forum that the United States was openly trying to hold back Russia’s development and accused Washington of wielding the dollar as a tool of economic and political competition.

“We have no disagreement with the United States. They only have one point of disagreement – they want to hold back our development, they talk about this publicly,” Putin told the forum.

“Everything else stems from this position,” he said.

Putin also questioned what he said was the harsh way U.S. authorities had dealt with some people detained during the storming of the Capitol in January by supporters of Donald Trump.

(Reporting by Maria Tsvetkova and Tom Balmforth; editing by Andrew Osborn)

MH17 plane crash families prepare for critical trial phase

By Stephanie van den Berg

AMSTERDAM (Reuters) – Families of people who died in the 2014 downing of Malaysia Airlines flight MH17 said they were preparing to hear painful details when a critical stage of a trial over the crash starts on Monday.

MH17 was flying from Amsterdam to Kuala Lumpur when it was shot down by a missile fired from territory held by pro-Russian rebels during fighting with Ukrainian government troops, international investigators say.

All 298 people on board were killed, two-thirds of them Dutch nationals.

Dutch judges overseeing the murder trial of three Russians and a Ukrainian man accused of having responsibility for the downing will summarize evidence at the hearing in a high-security courtroom next to Amsterdam’s Schiphol airport.

“On the one hand we want to know exactly what happened, why it happened and who was responsible, but the price you pay for that is that there is also information released that could be shocking,” Piet Ploeg, a spokesman for the relatives, said.

“Eventually that should lead to getting justice and justice includes at least that we have an independent court rule on who was responsible,” he told Reuters. Ploeg lost his brother, sister-in-law and nephew in the crash.

After years of collecting evidence, a team of international investigators concluded in May 2018 that the missile launcher used to shoot down the aircraft belonged to Russia’s 53rd Anti-Aircraft Missile Brigade.

The Dutch government holds Moscow responsible. Russia denies any involvement.

Prosecutors, who say the four defendants all held leading positions in pro-Russian militias operating in Ukraine, will present evidence and may call witnesses, court officials said.

None of the defendants are in custody. One, Russian Oleg Pulatov, is represented in the proceedings and has said he had no involvement in the crash.

The other three are being tried in absentia and have not appointed lawyers to represent them during the proceedings.

Prosecutors say the investigation into MH17 is still ongoing and they are looking at other possible suspects, including the people who manned the missile system and ordered its firing.

After the prosecution presents its view on the judges’ summary of the case file on June 17 and 18, the defense will have an opportunity to respond.

No date has yet been set for closing arguments, but the court said that victims’ families could address the judges directly about the impact of the crash on their lives in hearings in September.

(Reporting by Stephanie van den Berg; Editing by Anthony Deutsch and Andrew Heavens)

White House warns companies to step up cybersecurity

By Doina Chiacu

WASHINGTON (Reuters) – The White House warned corporate executives and business leaders on Thursday to step up security measures to protect against ransomware attacks after intrusions disrupted operations at a meatpacking company and a southeastern oil pipeline.

There has been a significant hike in the frequency and size of ransomware attacks, Anne Neuberger, cybersecurity adviser at the National Security Council, said in a letter.

“The threats are serious and they are increasing. We urge you to take these critical steps to protect your organizations and the American public,” she added.

The recent cyberattacks have forced companies to see ransomware as a threat to core business operations and not just data theft, as ransomware attacks have shifted from stealing to disrupting operations, she said.

Strengthening the country’s resilience to cyberattacks was one of President Joe Biden’s top priorities, she added.

“The private sector also has a critical responsibility to protect against these threats. All organizations must recognize that no company is safe from being targeted by ransomware, regardless of size or location,” Neuberger wrote.

The letter came after a major meatpacker resumed U.S. operations on Wednesday following a ransomware attack that disrupted meat production in North America and Australia.

A Russia-linked hacking group that goes by the name of REvil and Sodinokibi was behind the cyberattack against JBS SA, a source familiar with the matter told Reuters.

The cyberattack followed one last month by a group with ties to Russia on Colonial Pipeline, the largest fuel pipeline in the United States, which crippled fuel delivery for several days in the U.S. Southeast.

Biden believes Russian President Vladimir Putin has a role to play in preventing these attacks and planned to bring up the issue during their summit this month, White House press secretary Jen Psaki said on Wednesday.

Neuberger’s letter outlined immediate steps companies can take to protect themselves from ransomware attacks, which can have ripple effects far beyond the company and its customers.

Those include best practices such as multifactor authentication, endpoint detection and response, encryption and a skilled security team. Companies should back up data and regularly test systems, as well as update and patch systems promptly.

Neuberger advised that companies test incident response plans and use a third party to test the security team’s work.

She said it was critical that corporate business functions and production operations be run on separate networks.

(Reporting by Doina Chiacu; Editing by David Holmes and Steve Orlofsky)

Analysis: Hacks force Biden into more aggressive stance on Russia

By Andrea Shalal

WASHINGTON (Reuters) – A ransomware attack on JBS, the world’s largest meatpacker, by a criminal group likely based in Russia has strengthened the Biden administration’s resolve to hold Moscow responsible for costly cyber assaults – even if they are not directly linked to the Kremlin.

U.S. President Joe Biden has launched a review of the threat posed by ransomware attacks and he will discuss the issue of harboring such hackers with Russian President Vladimir Putin this month, the White House said on Wednesday.

“President Biden certainly thinks that President Putin and the Russian government has a role to play in stopping and preventing these attacks,” White House press secretary Jen Psaki said Wednesday.

The JBS hack is the third major cyberattack linked to hackers from Russia since Biden took office in January, following attacks aimed at Colonial Pipeline Co and software made by SolarWinds Corp. JBS is a Brazilian company with extensive U.S. operations.

“Biden has indicated his willingness to hold Russia accountable in some way for the pipeline attack, even though it was carried out by a criminal organization,” said Tom Bossert, a top homeland security adviser to former President Donald Trump. “That’s a big leap forward.”

The White House plans to use a June 16 summit between Biden and Russian President Vladimir Putin to deliver a clear message to the Russian leader, officials said. A next step could be destabilization of the computer servers used to carry out such hacks, some cyber experts say.

Biden has launched a review of the threat posed by ransomware attacks and he will discuss the issue of harboring such hackers with Russian President Vladimir Putin this month, the White House said on Wednesday.

Russia joined U.N. member states in endorsing a March report agreeing to voluntary norms around cyber crime, including a pledge to not conduct or knowingly support cyberattacks in violation of international law that intentionally damage or impairs critical infrastructure.

Biden, who has repeatedly taken aim at Russia for its jailing of Kremlin critic Alexei Navalny and a military buildup near Ukraine, will urge NATO allies, EU leaders and the Group of Seven rich countries to back a strong, unified stance on Russia at separate summits before he meets Putin, U.S. officials say.

Consensus is growing among Western allies that stronger action is needed, they say.

The White House said Tuesday it was engaging directly with the Russian government. The statement marks a clear shift toward a new and more assertive U.S. policy against Russia on hacking, say former and current U.S. security officials and analysts.

The White House response came after Senator Lindsey Graham and other Republicans criticized the Biden administration for a “weak” response to last month’s ransomware attack on Colonial Pipeline, the largest fuel pipeline in the United States, by DarkSide, a group with ties to Russia.

U.S. officials said they sprang into action after both incidents. The White House also started a review of ransomware attacks, including a push to work with allies to “hold countries who harbor ransom actors accountable.”

James Lewis, a cyber expert at the Center for Strategic and International Studies think tank, said people who brief Biden had told him they expect strong language from Biden at the meeting.

“Biden is tough. He’s going to tell Putin, ‘This is enough. You’ve got to stop or we’ll do something back,'” Lewis said.

DISABLING HACKER INFRASTRUCTURE

The U.S. intelligence and military community has long had the capability to damage computer servers used by private hackers in other countries, but largely refrained, given diplomatic concerns about the consequences.

The JBS hack could signal a turning point.

Lewis said a surge in ransomware attacks had overshadowed diplomatic concerns in recent months.

“The Russians don’t see any reason to stop. Until we do something, this is going to keep happening,” he said. Biden’s experts are working on a new doctrine.

Bossert said Russian-based hackers could well increase their attacks on U.S. companies in response to any foreign policy decisions taken at the upcoming G7, NATO and EU summits. That would give the United States more reasons to take down the infrastructure used to launch such attacks.

“The U.S. government should be prepared to use its capabilities to directly take down the infrastructure that would be used – whether belonging to a government or a proxy group – should cyber attacks escalate,” he said.

(Reporting by Andrea Shalal; Editing by Heather Timmons and Nick Zieminski)

Microsoft says group behind SolarWinds hack now targeting government agencies, NGOs

By Kanishka Singh and Raphael Satter

WASHINGTON (Reuters) -The group behind the SolarWinds cyber attack identified late last year is now targeting government agencies, think tanks, consultants, and non-governmental organizations, Microsoft Corp said on Thursday.

“This week we observed cyberattacks by the threat actor Nobelium targeting government agencies, think tanks, consultants, and non-governmental organizations,” Microsoft said in a blog.

Nobelium, originating from Russia, is the same actor behind the attacks on SolarWinds customers in 2020, according to Microsoft.

The comments come weeks after a May 7 ransomware attack on Colonial Pipeline shut the United States’ largest fuel pipeline network for several days, disrupting the country’s supply.

“This wave of attacks targeted approximately 3,000 email accounts at more than 150 different organizations,” Microsoft said on Thursday.

While organizations in the United States received the largest share of attacks, targeted victims came from at least 24 countries, Microsoft said.

At least a quarter of the targeted organizations were involved in international development, humanitarian issues and human rights work, Microsoft said in the blog.

Nobelium launched this week’s attacks by breaking into an email marketing account used by the United States Agency For International Development (USAID) and from there launching phishing attacks on many other organizations, Microsoft said.

In statements issued Friday, the Department of Homeland Security and USAID both said they were aware of the hacking and were investigating.

The hack of information technology company SolarWinds, which was identified in December, gave access to thousands of companies and government offices that used its products. Microsoft President Brad Smith described the attack as “the largest and most sophisticated attack the world has ever seen”.

This month, Russia’s spy chief denied responsibility for the SolarWinds cyber attack but said he was “flattered” by the accusations from the United States and Britain that Russian foreign intelligence was behind such a sophisticated hack.

The United States and Britain have blamed Russia’s Foreign Intelligence Service (SVR), successor to the foreign spying operations of the KGB, for the hack which compromised nine U.S. federal agencies and hundreds of private sector companies.

The attacks disclosed by Microsoft on Thursday appeared to be a continuation of multiple efforts to target government agencies involved in foreign policy as part of intelligence gathering efforts, Microsoft said.

The company said it was in the process of notifying all of its targeted customers and had “no reason to believe” these attacks involved any exploitation or vulnerability in Microsoft’s products or services.

(Reporting by Kanishka Singh and Sabahatjahan Contractor in Bengaluru; additional reporting by Raphael Satter in Washington; Editing by Robert Birsel and Clarence Fernandez)

U.S. tells Russia it will not rejoin Open Skies arms control pact

WASHINGTON (Reuters) -The United States told Russia on Thursday it will not rejoin the Open Skies arms control pact, which allows unarmed surveillance flights over member countries, a U.S. official said.

The official, who spoke on condition of anonymity, was confirming a report by the Associated Press.

U.S. Deputy Secretary of State Wendy Sherman conveyed the decision to her Russian counterpart the official said, saying U.S. allies in the NATO Western security alliance and other partners had been informed.

The United States left the Open Skies arms control and verification treaty in November, accusing Russia of violating it, something Moscow denied.

The Russian government, which in January announced plans to leave the pact, on May 11 submitted legislation to parliament to formalize its departure. At that time, a Kremlin spokesman said one reason was that the United States was still able to receive information acquired via the treaty from its NATO allies.

The treaty, which was signed in 1992 and entered into force in 2002, permits nations to carry out short-notice, unarmed surveillance flights over the entire territory of the other parties.

The purpose of the treaty, which allows nations to collect information on one another’s military forces, is to increase transparency and build confidence among countries.

(Writing by Arshad Mohammed and Susan Heavey; Editing by Alistair Bell)

Brazilian drugmaker completes first batch of Russian COVID-19 vaccine

By Leonardo Benassatto

GUARULHOS, Brazil (Reuters) -Brazilian pharmaceutical company União Quimica completed production of its first batch of the Sputnik V coronavirus vaccine with active ingredients and technology supplied by Russia, the company said on Thursday.

The vaccine will be exported to neighboring countries in South America, since Brazil has not yet approved the Russian shot for domestic use.

Moscow’s Gamaleya Institute, which developed the vaccine, said it had seen to quality control of the vaccine ingredients, which were put into vials and packaged for shipping – a process known as fill and finish – at the União Quimica plant in Guarulhos, just outside the city of São Paulo.

The factory’s first batch of 100,000 doses were packed into boxes labeled in Spanish, although the countries receiving them have not been decided yet by the Russian Direct Investment Fund (RDIF), executives said.

Fernando Marques, chief executive of the family-owned firm, said Paraguay, Uruguay and Argentina are interested in buying the vaccine. União Quimica will have a capacity for 8 million doses a month, when Brazil’s health regulator Anvisa approves its use in Brazil, he told Reuters.

Anvisa approval has been delayed after the agency took issue with some documents and missing trial data that the RDIF, which is marketing the shot, has been asked to provide.

Marques hopes approval will be given by June and his company will start producing the active ingredient at its biomedical lab in Brasilia instead of importing it from Russia.

RDIF said it has signed production contracts for Sputnik V with 20 manufacturing sites in India, Argentina, South Korea, China, Italy, Serbia, Egypt, Turkey, Belarus and Kazakhstan.

So far, the vaccine has already been produced in Russia, Serbia, Turkey, Egypt and Argentina, where the first test batch was produced on April 20 by Laboratorios Richmond, RDIF said.

(Reporting by Leonardo Benassatto and Anthony Boadle; Editing by Bill Berkrot)

Russia charges 19-year-old over school shooting

By Dmitry Madorsky

KAZAN, Russia (Reuters) -A 19-year-old man was charged on Wednesday with multiple counts of murder over a school shooting in Russia that left nine people dead, as state investigators said that he was diagnosed last year with a brain disease.

Ilnaz Galyaviev appeared in court dressed in black, accused of opening fire at School 175 in the city of Kazan in an attack that killed seven children and two adults and wounded many more.

He behaved calmly and confidently and told the court he had no serious illnesses. He did not give a plea.

A court ordered Galyaviev to be held in custody for two months pending trial. State investigators said he had fired at least 17 rounds and detonated an explosive device in the attack in the city 450 miles (725 km) east of Moscow.

The Investigative Committee, which handles probes into serious crimes, said that Galyaviev’s relatives had noticed him behaving aggressively and having a short temper this year.

In a statement, it said that he had repeatedly sought medical treatment for severe headaches and that he was also diagnosed with a brain disease last year.

The deadliest school shooting since 2018 when a student at a college in Russian-annexed Crimea killed 20 people has stunned the city of Kazan.

Mourners brought toys and flowers to the school in tribute from the early hours on Wednesday.

“(I came here) because this is such a disaster … It’s impossible to just remain indifferent,” a woman who gave her name only as Albina said after coming to pay her respects at School Number 175.

The head of Russia’s Muslim-majority region of Tatarstan, where Kazan is the main city, has called it a national tragedy and the Kremlin has called for tighter gun controls.

Russia has strict restrictions on civilian firearm ownership, but some categories of gun are available for purchase for hunting, self-defense or sport, once would-be owners have passed tests and met other requirements.

Around 100 people, some of them wearing face masks because of the COVID-19 pandemic, gathered at a traditional Muslim funeral for Elvira Ignatieva, an English teacher who was among the victims.

“She was protecting her children … She was protecting (them) and didn’t hide away,” said Talgat Gumerov, a Kazan resident.

Twenty-three people were still in hospital on Wednesday, including 12 children with gunshot wounds, the TASS news agency reported. Five children were in a serious condition and one of them was critical, it said.

(Reporting by Dmitry Madorsky; writing by Tom Balmforth; editing by Timothy Heritage and Philippa Fletcher)

Nine killed, many wounded in Russian school shooting

By Andrew Osborn, Tom Balmforth and Alexander Marrow

MOSCOW (Reuters) -Nine people, including seven children, were killed on Tuesday and many more badly wounded after a lone teenage gunman opened fire in a school in the Russian city of Kazan, local authorities said, prompting a Kremlin call for tighter gun controls.

Two children could be seen leaping from the third floor of the four-story School Number 175 to escape as gunshots rang out, in a video filmed by an onlooker that was circulated by Russia’s RIA news agency.

“We heard the sounds of explosions at the beginning of the second lesson. All the teachers locked the children in the classrooms. The shooting was on the third floor,” said one teacher, quoted by Tatar Inform, a local media outlet.

Calling the attack a tragedy for the country, Rustam Minnikhanov, the head of the wider Tatarstan region, said there was no evidence that anyone else had been involved.

“We have lost seven children – four boys and three girls. We also lost a teacher. And we lost one more female staff worker,” he said in a video address.

“The terrorist has been arrested. He’s a 19-year-old who was officially registered as a gun owner,” he said. He said the victims were in the eighth year of school, which in Russia would make them around 14 or 15 years old.

Russia’s Investigative Committee, which investigates major crimes, said in a statement it had opened a criminal case into the shooting and that the identity of the detained attacker had been established.

Reuters could not immediately contact a lawyer for the suspect, who was named in Russian media but whose identity was not officially disclosed, standard practice in Russia until a suspect has been formally charged.

Footage posted on social media showed a young man being pinned to the ground outside the school by police officers.

State TV later broadcast a separate video showing what it said was the suspect, a young man stripped to the waist and under restraint, being questioned by investigators. He could be heard saying that “a monster” had awoken in him, that he had realised that he was a god, and had begun to hate everyone.

The incident was Russia’s deadliest school shooting since 2018 when a student at a college in Russian-annexed Crimea killed 20 people before turning his gun on himself.

PUTIN ORDERS REVIEW OF GUN LAWS

A social media account called “God”, which Russian media said belonged to the suspect, was blocked by the Telegram messaging service citing its rules prohibiting what it described as “calls to violence”.

The account, created before the shooting, contained posts in which a young masked and bespectacled man described himself as a god and said he planned to kill a “huge number” of people and himself. Reuters could not independently confirm whether the account belonged to the detained suspect.

Minnikhanov, the regional leader, said 18 children were in hospital with a range of injuries, including gunshot wounds and broken and fractured bones. Three adults with gunshot wounds were also in hospital, he said, saying doctors were doing all they could to save the lives of those wounded.

Footage showed a corridor inside the school strewn with debris, including smashed glass and broken doors. Another still image showed a body on the floor of a blood-stained classroom.

Russia has strict restrictions on civilian firearm ownership, but some categories of guns are available for purchase for hunting, self-defense or sport, once would-be owners have passed tests and met other requirements.

President Vladimir Putin ordered the head of the national guard to draw up tighter gun regulations, the Kremlin said. The guards would urgently look into the status of weapons that can be registered for hunting in Russia but are considered assault weapons elsewhere.

The suspect had been issued a permit for a Hatsan Escort PS shotgun on April 28, Alexander Khinshtein, a lawmaker in the lower house of parliament, wrote on social media. He gave no further details and Reuters was not able to confirm this independently.

Kazan is the capital of the Muslim-majority region of Tatarstan and located around 450 miles (725 km) east of Moscow.

(Additional reporting by Maxim Rodionov, Dmitry Antonov, Polina Devitt and Maria VasilyevaWriting by Andrew Osborn and Tom BalmforthEditing by John Stonestreet and Peter Graff)

U.S. stands by Ukraine against ‘reckless’ Russian actions – Blinken

By Matthias Williams and Natalia Zinets

KYIV (Reuters) -U.S. Secretary of State Antony Blinken said on Thursday Washington could increase security assistance for Ukraine after what he called Russia’s “reckless and aggressive” actions in massing troops near its border.

During a visit to Kyiv intended to show support for Ukraine, Blinken said Russia had left behind significant numbers of troops and equipment despite announcing a withdrawal of its forces from close to the border after a standoff that alarmed the West.

Blinken also said President Joe Biden was keen to visit Ukraine and meet President Volodymyr Zelenskiy, but gave no details on that or on Ukraine’s aspirations to join the NATO military alliance.

“We are aware that Russia has withdrawn some forces from the border of Ukraine, but we also see that significant forces remain there, significant equipment remains there,” Blinken said, speaking alongside Zelenskiy.

“We are monitoring the situation very, very closely,” he said. “And I can tell you, Mr President, that we stand strongly with you, partners do as well. I heard the same thing when I was at NATO a couple of weeks ago and we look to Russia to cease reckless and aggressive actions.”

Washington is “actively looking at strengthening even further our security cooperation and our security assistance”, he said, without giving details.

Zelenskiy said Russia had withdrawn only about 3,500 of the tens of thousands of troops deployed to the Crimea peninsula which it annexed from Ukraine in 2014.

“There may be a threat. Nobody wants these surprises,” he said.

Blinken mixed solidarity with calls for Ukraine to stick to a path of reforms and fighting corruption and the influence of oligarchs. The State Department expressed concern about the firing of a reformist energy official last week.

TALK ABOUT FUTURE, NOT PAST

Biden had pledged “unwavering support” to Zelenskiy in April as Kyiv and Moscow traded blame for clashes in Ukraine’s eastern Donbass region and Russia’s troop deployment.

Moscow announced a withdrawal of its forces on April 22, helping pave the way for a summit between Biden and Russian President Vladimir Putin, possibly as early as June.

The standoff prompted Ukraine to call for the United States and Europe to help accelerate Kyiv’s NATO entry. Zelenskiy asked Blinken for support in securing a Membership Action Plan at a NATO summit in June.

Washington has been Kyiv’s most powerful backer since Russia annexed Crimea and the conflict between Ukrainian soldiers and Russian-backed separatists began. Kyiv says the fighting has killed 14,000 people in seven years.

The relationship was tested in 2019 when then-President Donald Trump asked Zelenskiy to investigate Biden and the business activities of his son Hunter in Ukraine, and the Trump administration temporarily froze security aid to Kyiv.

The fallout from those events, which led to Trump’s impeachment trial, continued last week as federal agents raided the apartment and office of Trump’s former personal lawyer, Rudy Giuliani, in relation to his activities in Ukraine.

“I don’t want to waste your time on the past, let’s talk about the future,” Zelenskiy said when asked about Giuliani.

Kyiv would like Washington to supply more military hardware to Ukraine. Foreign Minister Dmytro Kuleba told Reuters last month that this included equipment to counter Russia’s capacity to jam Ukrainian communications.

In a CNN interview, Kuleba said Ukraine was also asking for air defense systems and anti-sniper technology.

After meeting Blinken on Thursday, Kuleba said he had been assured that nothing would be decided at a meeting between Putin and Biden without taking into account Ukraine’s interests.

(Reporting by Matthias Williams, Natalia Zinets and Pavel Polityuk; writing by Matthias Williams, Editing by Angus MacSwan and Timothy Heritage)