ZeroFox Physical Security Intelligence Daily Brief - June 15, 2024

ZeroFox Physical Security Intelligence Daily Brief - June 15, 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

• UK Introduces New Sanctions Against Russia
• G7 Agrees to Provide Ukraine with USD 50 Billion Loan
• Armenian PM Comments on Membership in Russia-Led CSTO Military Alliance

UK Introduces New Sanctions Against Russia

On June 13, the United Kingdom sanctioned the Moscow Exchange one day after the United States introduced similar measures. This move may force the Moscow Exchange to halt transactions involving the British pound. The UK also introduced other sanctions targeting Russia's financial system and defense industrial base. Notably, these measures include the UK's first ever sanctions on Russia's shadow fleet, which Russia uses to evade Western sanctions on its oil exports.

G7 Agrees to Provide Ukraine with USD 50 Billion Loan

On June 13, Group of Seven (G7) leaders agreed to a plan that will use frozen Russian assets to finance a USD 50 billion loan to Ukraine. G7 nations will establish a loan syndicate based on the size of their economies to provide Ukraine with USD 50 billion in aid that will begin to flow by the end of the year. The loan will be repaid using the profits generated by USD 280 billion in frozen Russian assets, most of which are immobilized in Europe. Profits on these loans are estimated to be worth between EUR 3 billion (USD 3.2 billion) and EUR 5 billion (USD 5.4 billion) annually. While the European Union previously agreed to transfer these funds to Ukraine on a bi-annual basis, the G7 agreement front loads the support to cover Ukraine's immediate needs. This agreement marks a significant expansion in aid for Ukraine, and will likely help the government finance its budget through 2025 and beyond.

Armenian PM Comments on Membership in Russia-Led CSTO Military Alliance

Armenian Prime Minister Nikol Pashinyan suggested Armenia may soon withdraw from the Russian-led Collective Security Treaty Organization (CSTO) military alliance. Speaking on the CSTO during a question-and-answer session in parliament, Pashinyan said "we will decide for ourselves when we go out". Armenia's Foreign Minister Ararat Mirzoyan somewhat walked back these comments, saying Pashinyan's statement does not mean Armenia is leaving the CSTO. Pashinyan has increasingly distanced Armenia from its longtime ally Russia, after accusing Russia of failing to defend Armenia from Azerbaijan during the second Nagorno-Karabakh war. Pashinyan has especially doubled down on these efforts since Azerbaijan seized control of Nagorno-Karabakh in September 2023.