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Russian intelligence services have hit national infrastructure including UK energy companies as well as the engineering and industrial sectors in a “calculated and dangerous” hacking campaign spanning nearly a decade.
The UK and western allies have linked Russia’s Federal Security Service (FSB), the successor agency to the KGB, to “a historic global campaign targeting critical national infrastructure”, the Foreign, Commonwealth and Development Office said on Thursday.
The department said the National Cyber Security Centre was “almost certain” that the FSB’s Centre 16, which it said was also known by its hacker group pseudonyms of Energetic Bear, Berserk Bear and Crouching Yeti, had attacked critical IT systems and national infrastructure in Europe, the Americas and Asia.
“Russia’s targeting of critical national infrastructure is calculated and dangerous,” said Foreign Secretary Liz Truss.
“It shows [Russian President Vladimir] Putin is prepared to risk lives to sow division and confusion among allies.”
It comes as the US Department of Justice unsealed two indictments charging four men, all Russian citizens who worked for the Russian government, in connection with hacking.
In the UK, the Foreign Office said Centre 16 had focused on engineering and industrial control companies, where “hackers may be able to access contact lists of hacked companies and establish long term access to networks”, and had also taken aim at UK energy companies.
It also linked the group to compromising software used by European manufacturers and wind turbine developers, gaining access through spear-phishing to European and North American energy sectors, stealing user information and entering the networks of US energy, nuclear, water, aviation and critical manufacturing sectors.
Spear-phishing is when targeted emails or text messages are sent to specific people, groups or organisations for malicious purposes such as data theft, espionage or fraud.
Centre 16 was also understood to have gained access to the email address of opposition leader Alexei Navalny, posing as the Russian Federal Tax Service to conduct spear-phishing against Russian citizens including the press secretary of Kremlin critic and former oligarch Mikhail Khordorkov, who now lives in the UK.
Separately, Ms Truss also added to the UK sanctions list a subsidiary of Russia’s Defence Ministry, the Central Scientific Research Institute of Chemistry and Mechanics, for an incident involving overriding the safety controls of a petrochemicals plant in Saudi Arabia in 2017.
“We are sending a clear message to the Kremlin by sanctioning those who target people, businesses and infrastructure,” Ms Truss said.
“We will not tolerate it.
“We will continue to work together with our allies to turn the ratchet and starve Putin’s war machine of its funding and resources.”
In 2020, the National Cyber Security Centre linked another Russian hacking group, APT29 — also known as Cosy Bear or The Dukes — with going after organisations working on Covid-19 vaccines.
It said the hacking group was “almost certainly” linked to the Russian state.
The FCDO on Thursday said APT29 fell under Russia’s Foreign Intelligence Service, the SVR.
Other groups such as APT28 — also known as Fancy Bear or Strontium — and Sandworm came under Russia’s military intelligence wing, the GRU.
APT28 was thought to be behind the September 2016 cyber attack on the World Anti-Doping Agency, where hackers accessed the personal information of athletes.
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Portugal v Chile, 7pm, today
Germany v Mexico, 7pm, tomorrow
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
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Family: I have three siblings, one older brother (age 25) and two younger sisters, 20 and 13
Favourite book: Asking for my favourite book has to be one of the hardest questions. However a current favourite would be Sidewalk by Mitchell Duneier
Favourite place to travel to: Any walkable city. I also love nature and wildlife
What do you love eating or cooking: I’m constantly in the kitchen. Ever since I changed the way I eat I enjoy choosing and creating what goes into my body. However, nothing can top home cooked food from my parents.
Favorite place to go in the UAE: A quiet beach.
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
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