Risking NATO’s future for its expansion to Ukraine

Barring some unforeseen contingency there will not be a war in Europe, beyond Ukraine, for some time to come.

That prediction, however, is based on NATO’s ability to deter a future Russian attack. NATO’s deterrent capability, in light of the Ukraine war, is open to increasing doubt.

If NATO is unable to restore confidence in its defenses, the organization will have to make deals with the Russians that will change Europe’s strategic map.

NATO’s ultra modern HQ in Brussels

As things stand now, NATO is an expansionist alliance and not a defensive alliance as originally conceived.

The organization’s changed posture came about after the collapse of the Soviet Union. Policymakers decided to extend NATO coverage to the Baltic States and Eastern Europe, vastly expanding the NATO’security zone.

It was a gutsy decision, based on a greatly weakened and mostly impoverished Russia. Over nearly a decade, post-Soviet Russia stopped producing weapons and ammunition, its military leadership ossified and its plans for new weapons were put to the side because there wasn’t money to finance them.

One of Vladimir Putin’s accomplishments in his 17 years in power was to reverse the decline in Russia’s military. That has not been easy. Russia’s industry was far from modernized. However good they were at their main job, military leaders in the core group were not up to the task of managing factories run by the state.

The Russians were very slow to adapt. By the time of the second Nagorno-Karabakh war in 2020, it was clear that Russian-supplied hardware and tactics were inadequate and failed. The Armenians, who used mainly Russian equipment, saw their forces torn apart by Azerbaijan.

A key factor in the war was the introduction of armed and loitering drones that were used to destroy Armenian air defenses, command posts, and heavy equipment.

Harop Loitering Munition (Israel)

By the start of 2022, the Russias had not yet learned the lessons of 2020. Nor had they adapted their tactics on how to deal with smart weapons including anti tank missiles and MANPADs air defenses.

Russian drones first seen in the Ukraine War were primitive and poorly made. Russian armor was picked apart by Ukrainian soldiers, who ambushed hundreds of them as they traveled down roadways. Ukraine, with lots of Western support in the form of smart weapons and real-time intelligence, pushed the Russians back and inflicted serious defeats on them.

Bleeding Ukraine (and NATO)

But all that changed in late 2022 and early 2023 as the Russians adapted. Spurning World War II-style shock armor advances that were costly in equipment and manpower, Russia turned to an active defense system designed primarily by Russian general Sergei Surovikin.

Russia then turned to a new generation of attack drones, concentrated artillery, and aerial dropped mines to stop Ukraine’s army. Russia adopted the strategy of bleeding Ukraine, something Ukraine’s American and European advisors did not correctly calculate when they trained nine Ukrainian brigades to attack Russia’s defenses in the Zaphorize area.

Sergei Surovikin

Bleeding Ukraine has, at least so far, demonstrated that NATO’s military ideas are defective and out of date. Seen objectively, the huge losses of equipment and manpower by the Ukrainians are not sustainable in a NATO context. NATO lacks the trained armed forces and satisfactory equipment to withstand a modernized Russian army on the offensive.

One of the keys to the dilemma is artillery. NATO planners did not anticipate the level of ammunition needed in the new warfare paradigm seen in Ukraine. To support the fighting, Europe and the United States have supplied long-range artillery howitzer rounds, mainly 155mm, to Ukraine.  These supplies are far below what is needed.  

Both the Russians and NATO are experiencing shortages, but the NATO shortages are far more significant than Russia’s. Today even after shell supply has been ramped up, NATO won’t be able to produce more than 163,000 shells a month – while the Russians probably have the potential to manufacture over 350,000 monthly.

The US raided its stockpile of 155mm shells in Korea and Israel, both very dangerous moves.  It left the US with nothing to defend South Korea if Kim Jong-un starts a conventional war on the peninsula.  North Korea has loads of artillery and plenty of shells.  South Korea does not have enough.  

The decision to take 300,000 155 mm shells stockpiled in Israel and send them on to Ukraine likewise was a bad one as it left Israel with little more than its own war stocks. With the fighting in Gaza and in the north against Hezbollah, Israel urgently needed 155mm shells from the United States and that need significantly impacted supplies that had been set to go to Ukraine. 

The Russians also felt some pinch and they turned to their friends in North Korea and Iran.  Both manufacture 152mm (actually 152.4 mm) shells for Russian towed and self-propelled howitzers. The actual numbers being supplied are hard to come by. One report has it that North Korea already sent 500,000 and could end up sending up to two million shells to Russia.

There are reports that shells from North Korea and Iran are being stockpiled, either as a contingency or for a big offensive in Ukraine – or possibly even both.

2S19 Msta-S Russian 152mm Self-Propelled Howitzer

The Europeans are saying that they need to keep back ammunition from Ukraine because they have little or nothing left for their own defense. While some European companies, such as Rheinmetall, have stepped up production, it will take them years to produce the numbers needed. Rheinmetall has a new factory in Spain.

In the United States there are six ammunition plants, but the two most important are in Iowa and Pennsylvania.

These factories are getting billions from the US government to increase production. It is, however, hard to push them much harder because they use out-of-date manufacturing methods and find it hard to attract workers due to rough working conditions.

These US factories are over 80 years old. It takes about three days to produce one completed shell (not counting the time it takes to produce the propellant charges and fuses, which are manufactured elsewhere).

Iowa Ammunition Plant

The Iowa Army Ammunition Plant in Middletown, near Burlington, is the largest 155mm shell producer. The facility covers more than 19,000 acres ― nearly 30 square miles. It has more than 400 buildings and a total storage capacity of 1.6 million square feet. It is owned by the Army but operated by a private company called American Ordnance LLC. Today it employs 830 civilians and around 25 military (mainly supervisory).  In the 1960s the same plant employed 13,000 workers.

A worker at the Iowa factory. Photo: DVIDS

The plant is not automated.  However, it does use some robots to carry out some of the most dangerous tasks such as moving around red hot shell billets. Otherwise the factory is much the same as it was years ago.

Scranton Ammunition Plant

The other big factory is in Scranton, Pennsylvania. That factory – built for the Delaware, Lackawanna and Western Railroad just after 1900 – has produced large-caliber ammunition for the military going back to the Korean War. It has received $120 million to expand production, but won’t reach that goal until 2025 at the earliest. It is a government-owned-contractor-operated (GOCO) operation, like the Iowa plant.

The Scranton Ammunition Plant (SCAAP) was established in 1953 and was operated by the US Hoffman Machinery Corporation until 1963, when Chamberlain Manufacturing Corporation became the operating contractor. General Dynamics – Ordnance and Tactical Systems (GD-OTS) assumed operation of the facility from Chamberlain in 2006, and is the current operating contractor.

Like the Iowa Army Ammunition Plant, most of the production machinery is old.  

While the Army has invested a great deal in ginning up the production of shells, it has not undertaken any real effort to update the manufacturing technology. Even DARPA (the Defense Advanced Research Project Agency) has not been receptive to introducing new technology to these installations.

US and NATO ammunition goal not enough for deterrence

The US Defense Department wants to ramp up 155mm shell production to 80,000 per month by 2028.  European plans are less clear: the hope is to build between 20,000 to 55,000 per month “in future.”  

The NATO production goal is based on the Ukraine war numbers.  But in case of wider warfare in Europe, or fighting elsewhere (Korean peninsula, China, Taiwan, Israel), those numbers go out the window. 

One of the amazing features of the US and its NATO allies supplying millions of tons of ammunition and hardware to Ukraine is that the allies paid almost no attention to contingencies and freely raided stockpiles that were put there for US and NATO national security defense needs.

What is true of 155mm ammunition is even more true of precision weapons whose supplies have been depleted.  If it takes 3 days to manufacture a basic 155 mm shell; it takes two years or more to produce smart weapons. 

The idea of expanding NATO to Ukraine may well have propelled the NATO partners into a far riskier future. Surely it has undermined NATO’s deterrence, something the Russians and Chinese clearly grasp.

Stephen Bryen, who served as staff director of the Near East Subcommittee of the
US Senate Foreign Relations Committee and as a deputy undersecretary of defense
for policy, currently is a senior fellow at the Center for Security Policy and the Yorktown Institute.

This article was originally published on his Weapons and Security Substack. It is republished with kind permission.

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Cyber money heist: Why companies paying off hackers fuels ransomware crimes

80 PER CENT OF VICTIMS PAY RANSOM

Analysts told CNA that it is common for companies to pay up in a bid to protect their data, with Forbes reporting about 80 per cent of 1,200 victims surveyed decided to do so.

More than 72 per cent of businesses were affected by ransomware attacks as of 2023, Mr Backer told CNA, noting that it was an increase from the previous five years and was by far the highest figure reported.

Predictions also indicate ransomware will cost victims roughly $265 billion annually by 2031, he added.

“In the heat of the moment and with pressures mounting, the decision to pay a ransom is definitely not an easy one,” said Mr Flores.

“Many choose to opt for this route for a few reasons, with the most common one being faster recovery time. With business operations and continuity at stake, paying the ransom and obtaining the decryption tool in return is sometimes the quicker option to resume activity.”

According to media reports in 2019, ride-hailing platform Uber allegedly paid a US$100,000 ransom and had the hackers sign non-disclosure agreements in exchange for the payment.

This shows that organisations are worried, noted Mr Backer.

Regarding banks like ICBC paying ransoms, he said such information is not usually disclosed to the public due to the sensitive nature of the incidents.

“Many organisations, including banks, may not disclose this due to concerns about reputation, legal implications, and the encouragement of further attacks.”

However, Dr Kerrison noted that the intention behind companies paying ransoms “might not always be to keep it a secret”. 

“Rather, it’s the best option available to them in the circumstances,” he said.

Mr Backer added that claims by attackers should be “treated with caution” as they might not always accurately reflect the reality of the situation.

Analysts also told CNA the rise of the ransomware-as-a-service (RaaS) model is one of the driving factors in the increase in ransom payment.

“RaaS made it possible for low-skilled cybercriminals to join the illicit industry ultimately contributing to the surge in the number of victims,” said He Feixiang, an adversary intelligence research lead at Group-IB.

The RaaS business model allows individuals to develop and distribute ransomware, paying the affiliates for successful attacks using their ransomware, he noted.

In addition, analysts said collaborations among ransomware groups, encryption-less attacks and cryptocurrency services also allow more hackers to target companies and facilitate their movements, driving up the number of ransom cases.

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Cyber money heist: Why companies paying off hackers fuels the ransomware industry

80 PER CENT OF VICTIMS PAY RANSOM

Analysts told CNA that it is common for companies to pay up in a bid to protect their data, with Forbes reporting about 80 per cent of 1,200 victims surveyed decided to do so.

More than 72 per cent of businesses were affected by ransomware attacks as of 2023, Mr Backer told CNA, noting that it was an increase from the previous five years and was by far the highest figure reported.

Predictions also indicate ransomware will cost victims roughly $265 billion annually by 2031, he added.

“In the heat of the moment and with pressures mounting, the decision to pay a ransom is definitely not an easy one,” said Mr Flores.

“Many choose to opt for this route for a few reasons, with the most common one being faster recovery time. With business operations and continuity at stake, paying the ransom and obtaining the decryption tool in return is sometimes the quicker option to resume activity.”

According to media reports in 2019, ride-hailing platform Uber allegedly paid a US$100,000 ransom and had the hackers sign non-disclosure agreements in exchange for the payment.

This shows that organisations are worried, noted Mr Backer.

Regarding banks like ICBC paying ransoms, he said such information is not usually disclosed to the public due to the sensitive nature of the incidents.

“Many organisations, including banks, may not disclose this due to concerns about reputation, legal implications, and the encouragement of further attacks.”

However, Dr Kerrison noted that the intention behind companies paying ransoms “might not always be to keep it a secret”. 

“Rather, it’s the best option available to them in the circumstances,” he said.

Mr Backer added that claims by attackers should be “treated with caution” as they might not always accurately reflect the reality of the situation.

Analysts also told CNA the rise of the ransomware-as-a-service (RaaS) model is one of the driving factors in the increase in ransom payment.

“RaaS made it possible for low-skilled cybercriminals to join the illicit industry ultimately contributing to the surge in the number of victims,” said He Feixiang, an adversary intelligence research lead at Group-IB.

The RaaS business model allows individuals to develop and distribute ransomware, paying the affiliates for successful attacks using their ransomware, he noted.

In addition, analysts said collaborations among ransomware groups, encryption-less attacks and cryptocurrency services also allow more hackers to target companies and facilitate their movements, driving up the number of ransom cases.

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Commentary: How will money changers fare in a world of multi-currency apps?

But there are also downsides to using apps and multi-currency cards. In the event of the loss or theft of our belongings, we would have to go through the process of cancelling credit cards or freezing accounts. Then there is the risk of data hack or breach, such as a ransomware attack on the bank such that the card becomes unusable overseas.

Cybersecurity also becomes a concern, when using cards or withdrawing cash in unknown storefront ATMs. We may also not be used to checking for card skimmers in Singapore, but using phony or tampered ATMs can lead to identity theft through cloning of cards, particularly in countries with lax regulation and limited penalties for cybercrimes.

Travellers who arrive home may also be stuck with unused foreign currency with a multicurrency debit card, given restrictions for using an ATM locally and fees to convert to domestic currency.

CHANGE IS ON THE HORIZON

The money exchange business will still need to adapt to the changing times despite some of the advantages of cash. How can money changers respond to technological disruption laying a siege on their business model?

Money changers can consolidate using aggregator services by going digital, getting recommendations by advertising their exchange rates. While travellers expect the money changer rates to be at par with the live interbank rate, there is uncertainty about what the actual rate is before we head down to join the queue.

They can also seek to be accessible online round the clock, provide low-cost remittance services, offer micro-investments in commodities like gold and enable smaller ticket purchases, including other travel services like booking of no-frill flights or inexpensive hotels that might not be readily available online.

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Expert downplays quake threat

Hundreds of quakes occur along the Three Pagodas Fault per year in Kanchanaburi, although they are too small to be noticed, according to a geological expert.

Prinya Putthapiban, an expert at the Geoscience Department of Mahidol University, said the Three Pagodas Fault runs parallel to the Sagaing Fault in Myanmar and the Ranong Fault in Thailand’s south, leaving little room for it to move and create powerful earthquakes.

“It is unlikely that the quakes along the Three Pagodas Fault will be as destructive as those detected in southern China, northern Myanmar and Nepal,” said Mr Prinya.

He was speaking after a recent earthquake in Kanchanaburi, which had its epicentre near tambon Nong Lu of Sangkhla Buri district, at a depth of about six kilometres.

Three Pagoda Fault lies roughly 60 kilometres across Thong Pha Phum and Sangkhla Buri districts, which are close to the country’s largest dam — the Srinagarind dam in Kanchanaburi province.

Mr Prinya confirmed that the 4-magnitude quake on Sunday morning posed no harm to the Vajiralongkorn and Srinagarind dams.

He said most earthquakes that occur along the Three Pagodas Fault are so mild they go unnoticed.

Mr Prinya explained that earthquakes with a magnitude of around 8-9 in the Southeast Asia region are likely to occur on the ridge between the Indo-Australian Plate and the Eurasian Plate, roughly 500 kilometres away from Thailand.

The closest fault line which could potentially unleash a destructive impact on Thailand is Myanmar’s Sagaing Fault. However, he said that most quakes caused by this fault occur on its western side, and so Thailand, which lies on the east, is mostly unaffected.

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Government urged to support amnesty bill

Government urged to support amnesty bill

The Internet Law Reform Dialogue (iLaw) group on Monday unveiled a new bill granting amnesty to all people prosecuted or facing charges in connection with political activities from Sept 19, 2006, until now.

The bill was presented at a seminar, organised by iLaw, in which some sides called on the Pheu Thai Party-led coalition to support the draft and treat it as a first step towards building reconciliation among all political groups.

Benja Apan, one those facing a criminal case over their involvement in a past political movement, said the bill was aimed at ensuring legal protection for her and other activists which had not existed in the past two decades.

The amnesty proposed in the bill could be divided into two types, said Ms Benja.

The first is an instant amnesty for those who should not have been prosecuted in the first place, including civilians sentenced by the military court for violating National Council for Peace and Order orders and people facing legal action for violating Section 112 of the Criminal Code, the Emergency Decree or 2016 referendum law, she said.

All these cases are apparently political and these offenders should not have been prosecuted, she said.

The other type of amnesty will have to be decided on by a committee as to which of the other criminal cases linked with political violence were actually driven by a political motives, she said.

The committee is proposed to comprise 19 members who are the parliament president, opposition leader, the chief whip, representatives of all political parties and representatives of the people facing legal action since the 2006 military coup, she said.

Speaking at the same seminar, Amorn Amornratananont, a former supporter of the yellow-shirt People’s Alliance for Democracy (PAD), said he personally supported this amnesty bill because he it has the potential to help all sides overcome past political conflicts.

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Govt urged to support amnesty bill

The Internet Law Reform Dialogue (iLaw) group yesterday unveiled a new bill granting amnesty to all people prosecuted or facing charges in connection with political activities from Sept 19, 2006, until now.

The bill was presented at a seminar, organised by iLaw, in which some sides called on the Pheu Thai-led coalition to support the draft and treat it as a first step towards building reconciliation among all political groups.

Benja Apan, one those facing a criminal case over their involvement in a past political movement, said the bill was aimed at ensuring legal protection for her and other activists which had not existed in the past two decades.

The amnesty proposed in the bill could be divided into two types, said Ms Benja.

The first is an instant amnesty for those who shouldn’t have been prosecuted in the first place, including civilians sentenced by the military court for violating National Council for Peace and Order orders and people facing legal action for violating Section 112 of the Criminal Code, the Emergency Decree or 2016 referendum law, she said.

All these cases are apparently political and these offenders shouldn’t have been prosecuted, she said.

The other type of amnesty will have to be decided on by a committee as to which of the other criminal cases linked with political violence were actually driven by a political motives, she said.

The committee is proposed to comprise 19 members who are the parliament president, opposition leader, the chief whip, representatives of all political parties and representatives of the people facing legal action since the 2006 military coup, she said.

Speaking at the same seminar, Amorn Amornratananont, a former supporter of the People’s Alliance for Democracy, said he personally supported this amnesty bill because he it has the potential to help all sides overcome past political conflicts.

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Loan bill for digital wallet plan ‘is being checked’

Loan bill for digital wallet plan 'is being checked'
Prime Minister Srettha Thavisin clarifies the digital wallet scheme at Government House on Nov 10. (Photo: Chanat Katanyu)

A bill allowing the government to borrow 500 billion baht to fund its digital money handout is being vetted by the Council of State and will be returned to the government as soon as possible, according to Deputy Prime Minister and Commerce Minister Phumtham Wechayachai.

His assurance came as a fresh petition was lodged seeking to stop the controversial scheme, a key election manifesto pledge of the ruling Pheu Thai Party.

After a number of economists raised concerns over the hefty financial burden the handout scheme will likely create, critics remain doubtful about the legitimacy of the government’s claim that the 500 billion baht in spending is vital for tackling a crisis caused by a deep slump in people’s purchasing power.

“The objective of this scheme isn’t simply to hand out money to people, but to stimulate the economy by augmenting people’s purchasing power, which has been at a low ebb,” said Mr Phumtham.

“While those who have enough money may say the economy isn’t in a crisis, for others, like vendors, the weak buying power of their customers has long been at a critical point,” he said.

If nothing is done to shore things up, the mechanisms designed to spur the country’s economy will become useless, he said.

“Some figures cited by economists to reject the government’s digital wallet scheme might not truly reflect the situation faced by people on the street and the businesses that employ them, he said.

The minister stressed that “real world” input must be taken into consideration.

Support expressed by many in the business sector for the digital wallet is also proof of that, and while some people are opposed, others are waiting for it, he said.

Under the plan, about 50 million Thais would receive 10,000 baht each in digital money to spend on consumer products in certain zones near where they live. Those eligible for the perk include anyone over 16 years old in one of the lower income brackets.

In another development, political activist Srisuwan Janya on Monday submitted a petition asking both the State Audit Office and State Audit Commission to examine the digital wallet scheme’s planned implementation and decide whether it is against the law on state financial and budgetary discipline.

The activist previously petitioned the Ombudsman to seek the Constitutional Court’s ruling on whether the 500-billion-baht loan bill is against Section 140 of the constitution and Section 53 of the 2017 law on state financial and budgetary discipline.

Three similar petitions were also submitted in April and October by other parties. Political activist Sonthiya Sawasdee was the first to petition the Ombudsman over the controversial giveaway on April 28.

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Sweden opens new consulate

Sweden opens new consulate
Phuket’s deputy governor Amnuay Pinsuwan, right, welcomes Swedish Ambassador to Thailand Anna Hammargren at City Hall on Monday. (Photo: Achadthaya Chuenniran)

Phuket: The Swedish embassy in Thailand has appointed an Honorary Consul in Phuket to boost Thai-Swedish relations on the resort island, and the number of Swedish tourists to Thailand reached 110,000 so far this year.

Phuket’s deputy governor Amnuay Pinsuwan welcomed Swedish Ambassador to Thailand Anna Hammargren and other Swedish officials at City Hall as part of an official Nov 20-21 visit to Phuket.

The event was also attended by representatives from Phuket’s Immigration Office, the Tourism Authority of Thailand’s Phuket Office, the Phuket Chamber of Commerce and the Phuket Tourist Association.

Mr Amnuay said Phuket is ready to strengthen ties with Swedish authorities as they have invited people from both public and private sectors to discuss support and collaboration between Phuket and Sweden.

He also welcomed the appointment of the honorary consul in Phuket, believing that the move would play an important part in future Swedish investment, trade and tourism on the island.

The Phuket Provincial Administration Organisation also holds meetings with honorary consuls and agencies in the province twice a month to discuss matters and follow up on issues that need immediate action, said Mr Amnuay.

“About 110,000 Swedish tourists visited Thailand between January and September this year. Phuket City hopes that the island will see more Swedish visitors in the last quarter,” he said.

Apart from being a popular destination for tourists, Mr Amnuay said Phuket has 411 Swedes with long-term residency visas.

“The public and private sectors are ready to provide care for Swedish people. We have Provincial Police, Tourism Police, Immigration Police and agencies under the Ministry of Foreign Affairs to help with this,” he added.

The Swedish embassy marked the opening of its Honorary Consulate at the Phuket Marriott Merlin Beach yesterday.

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Pork kingpins in firing line

The mastermind and financiers behind illegal pork imports also need to be arrested, not just those hired to do the job, or else the illegal pork problem won’t go away, Prime Minister Srettha Thavisin said yesterday.

The PM was speaking after meeting with national police chief Pol Gen Torsak Sukvimol and other agencies involved in the ongoing investigation into the latest illegal pork import case, in which meat in 161 refrigerated shipping containers was seized at Laem Chabang Port in Chon Buri and eight suspects arrested.

“It’s necessary to find the mastermind behind this crime and bring them to justice so that the case can be closed. Don’t only detain the unimportant suspects,” he said. “Otherwise, the same problem will return in six months or a year.”

Though he didn’t impose a deadline for the completion of the investigation into this case, the PM said he expects it to be wrapped up as soon as possible.

All eight suspects are from a group of shipping companies handling the illegal pork containers, said Pol Maj Gen Yutthana Phrae-dam, deputy director-general of the Department of Special Investigation (DSI).

The DSI has found that from 2001 until last year, pork had been unlawfully imported into Thailand in more than 2,385 refrigerated shipping containers, he said. At this point, three suspects believed to be financiers of the illegal pork importing ring have been named, a father and son identified only as Wirat and Thanakrit and another man named Somnuek, said Pol Maj Gen Yutthana.

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