ZeroFox Physical Security Intelligence Daily Brief - October 28, 2024

ZeroFox Physical Security Intelligence Daily Brief - October 28, 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

• China to Offer Taliban Tariff-free Trade
• Russia Increases Interest Rate to 21 Percent
• Poland to Begin Construction on East Shield

China to Offer Taliban Tariff-free Trade

China announced that it would offer the Taliban tariff-free access to its construction, energy, and consumer sectors, likely to gain access to Afghanistan's resources and forge supply chains through the country. China has still not formally recognized the Taliban-led government, which will likely be a future condition for ties. The agreement would see China gain priority access to mineral resources, including lithium, copper, and iron deposits, which could help supply China’s battery and construction industries and help support the Taliban’s struggling economy. The projects would also help connect China through South Asia, where it is building road and rail supply chains through neighboring Pakistan as well, hoping to eventually reach Iran and create a supply chain that avoids U.S.-controlled waters.

Russia Increases Interest Rate to 21 Percent

Russia's Central Bank raised its key interest rate from 19 percent to 21 percent to combat persistent inflation. This marks the highest rate since 2003. Since Russia invaded Ukraine in 2022, heightened defense spending and payments to military personnel have overheated Russia's economy and led to inflation rates between seven to 10 percent, despite several previous rate hikes.

Poland to Begin Construction on East Shield

Polish Defense Minister Władysław Kosiniak-Kamysz announced that in several days Poland will begin construction on the East Shield project, a system of new comprehensive fortifications on Poland's border. Poland announced the East Shield program in May, arguing NATO needed to boost defenses along the bloc's borders with Russia and Belarus. The project has a budget of PLN 10 billion (USD 2.5 billion) allocated over four years until 2028.