ZeroFox Physical Security Intelligence Daily Brief - April 16, 2024

ZeroFox Physical Security Intelligence Daily Brief - April 16, 2024

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

• U.S. and UK Block Russian Access to Metals Exchanges
• German Police Foil Suspected IS Inspired Attack Against Euro 2024 Soccer Tournament
• Russia and China Trade New Copper Disguised as Scrap to Evade Taxes and Sanctions

U.S. and UK Block Russian Access to Metals Exchanges

On April 12, the United States and the United Kingdom jointly introduced new restrictions on the Russian metals trade. The measures block some Russian metals producers from the two premier metals exchanges in each country: the London Metal Exchange and the Chicago Mercantile Exchange. The exchanges will no longer trade new aluminum, copper, and nickel produced by Russia.

German Police Foil Suspected IS Inspired Attack Against Euro 2024 Soccer Tournament

Police arrested four teenagers in western Germany who were reportedly planning on targeting the European Championships soccer tournament (EURO 2024) in the name of the Islamic State (IS). The suspects were reportedly inspired by IS to carry out Molotov cocktail and knife attacks against the nationwide tournament, which runs for a month starting in mid-June. The attackers were likely inspired by IS and did not receive orders from the group.

Russia and China Trade New Copper Disguised as Scrap to Evade Taxes and Sanctions

On April 14, the Russian Copper Company (RCC) and Chinese firms reportedly avoided taxes and Western sanctions by trading in new copper-wired rods disguised as scrap. Copper wire rods, mainly used for making power cables, were shredded in the remote Xinjiang Uyghur region to make them difficult to distinguish from scrap, enabling both exporters and importers to profit from tariff differences and escape Western sanctions. China has become a major destination for Russian companies that seek to export their commodities after the United States imposed sanctions on Russia for its invasion of Ukraine in February 2022. According to data from a commercial data provider, China’s copper scrap imports from Russia increased sharply from December 2023, with monthly imports reaching 11,599 tons by February 2024, while customs data on Chinese imports of copper is not publicly available.