ZeroFox Physical Security Intelligence Daily Brief - December 27, 2023

ZeroFox Physical Security Intelligence Daily Brief - December 27, 2023

ZeroFox physical security experts collect, curate, and analyze information derived from open and proprietary sources for comprehensive context of the circumstances surrounding global events. Here is today’s daily roundup of major developments.

Brief Highlights

• Biden Signs Executive Order Targeting Banks that Help Russia Evade Sanctions
• Western Sanctions Halt Russia’s Arctic LNG 2 Project
• Ukraine Seeks to Withdraw from Free Trade Agreement with Belarus

Biden Signs Executive Order Targeting Banks that Help Russia Evade Sanctions

On December 22, 2023, United States President Joe Biden signed an executive order allowing the Treasury Department to sanction financial institutions that support Russia's defense industry. The order aims to close loopholes in the current sanctions regime that Russia has used to source critical materials. The sanctions place a greater onus on foreign banks to scrutinize transactions with front companies or middlemen that ultimately deliver sanctioned goods to Russia. Most notably, the order includes a punishing enforcement mechanism. If a financial institution violates U.S. sanctions, Biden's order would prevent the organization from conducting any business with U.S. entities or using US financial services.

Western Sanctions Halt Russia’s Arctic LNG 2 Project

On December 25, 2023, Russian media outlet Kommersant confirmed foreign shareholders withdrew from Russia's Arctic LNG 2 project. Arctic LNG 2 is Russia's newest liquified natural gas (LNG) project owned by domestic oil producer Novatek, which controls a 60 percent stake. The project aimed to increase Russia's global LNG market share—currently around eight percent—to 20 percent by 2030. Plans for the project include three production lines, with the first set to begin LNG production in the first quarter of 2024.

Ukraine Seeks to Withdraw from Free Trade Agreement with Belarus

On December 24, 2023, Ukraine's government proposed the Verkhovna Rada (Ukraine's parliament) to terminate its free trade agreement with Belarus. Ukraine terminated its trade relations with Belarus after Russia's February 2022 invasion; however, its withdrawal from the agreement would formalize Ukraine's position.