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Russia says US hacked thousands of Apple phones in spy plot

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Russia’s Federal Security Service (FSB) said on Thursday it had uncovered an American espionage operation that compromised thousands of iPhones using sophisticated surveillance software.

Moscow-based Kaspersky Lab said dozens of its employees’ devices were compromised in the operation.

The FSB, the main successor to the Soviet-era KGB, said in a statement that several thousand Apple Inc (NASDAQ:AAPL) devices had been infected, including those of domestic Russian subscribers as well as foreign diplomats based in Russia and the former Soviet Union.

“The FSB has uncovered an intelligence action of the American special services using Apple mobile devices,” the FSB said in a statement.

The FSB said the plot showed “close cooperation” between Apple and the National Security Agency (NSA), the U.S. agency responsible for cryptographic and communications intelligence and security. The FSB provided no evidence that Apple cooperated with, or had any awareness of, the spying campaign.

In a statement, Apple denied the allegation. “We have never worked with any government to insert a backdoor into any Apple product and never will,” the firm said in a statement.

The NSA declined to comment.

Kaspersky CEO Eugene Kaspersky said on Twitter that dozens of his employees’ phones were compromised in the operation, which his company described as “an extremely complex, professionally targeted cyberattack” that had targeted workers in “top and middle-management.”

Kaspersky researcher Igor Kuznetsov told Reuters that his company had independently discovered anomalous traffic on its corporate Wi-Fi network around the start of the year. He said Kaspersky did not circulate its findings to Russia’s Computer Emergency Response Team until earlier on Thursday.

He said he could not comment on Moscow’s allegation that Americans were responsible for the hacking or that thousands of others had been targeted.

“It’s very hard to attribute anything to anyone,” he said.

In a blog post, Kaspersky said the oldest traces of infection it discovered dated back to 2019. “As of the time of writing in June 2023, the attack is ongoing,” the company said. It added that while its staff was hit, “we are quite confident that Kaspersky was not the main target of this cyberattack.”

The FSB said the American hackers had compromised diplomats from Israel, Syria, China and NATO members in the espionage campaign.

Israeli officials declined comment. Chinese, Syrian and NATO representatives were not immediately able for comment. 

U.S. SNOOPING?

The United States is the world’s top cyber power in terms of intent and capability, according to Harvard University’s Belfer Center Cyber 2022 Power Index, followed by China, Russia, the United Kingdom and Australia.

Both the Kremlin and Russia’s foreign ministry pointed to the significance of the matter.

“The hidden data collection was carried out through software vulnerabilities in U.S.-made mobile phones,” Russia’s foreign ministry said in a statement.

“The U.S. intelligence services have been using IT corporations for decades in order to collect large-scale data of Internet users without their knowledge,” the ministry said.

Russian officials said the plot had been uncovered as part of a joint effort by FSB officers and those of the Federal Guards Service (FSO), a powerful agency that runs the Kremlin bodyguard and was also once the KGB’s Ninth Directorate.

Officials in Russia, which Western spies say has constructed a very sophisticated domestic surveillance structure, have long questioned the security of U.S. technology.

Kremlin spokesman Dmitry Peskov said all officials in the presidential administration knew that gadgets such as iPhones were “absolutely transparent.”

Earlier this year, the Kremlin told officials involved in preparations for Russia’s 2024 presidential election to stop using Apple iPhones because of concerns that the devices are vulnerable to Western intelligence agencies, the Kommersant newspaper reported.

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Constellation nears acquisition of Calpine in major power deal, Bloomberg News

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Constellation Energy (NASDAQ:) Corp. is on the verge of acquiring Calpine Corp., a move that could mark one of the most significant transactions in the power generation industry, Bloomberg reported on Wednesday.

Baltimore-based Constellation is negotiating with Calpine’s private equity owners to finalize the terms of a deal that could place the value of Calpine at approximately $30 billion, including the assumption of debt, the report said, citing people familiar with the matter.

The potential acquisition, which could be announced within the next few weeks, is still subject to ongoing deliberations, report added.

Constellation’s interest in Calpine underscores the strategic moves within the power sector as companies seek to consolidate and expand their market presence.

While the exact terms of the deal are still being discussed, the acquisition’s completion would likely have considerable implications for both Constellation and the wider power generation sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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EU could lift some Syria sanctions quickly, France says

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By John Irish and Alexander Ratz

PARIS/BERLIN (Reuters) -European Union sanctions in Syria that obstruct the delivery of humanitarian aid and hinder the country’s recovery could be lifted swiftly, France’s foreign minister said Wednesday.

The United States on Monday issued a sanctions exemption for transactions with governing institutions in Syria for six months after the end of Bashar al-Assad’s rule to try to ease the flow of humanitarian assistance.

Speaking to France Inter radio, Foreign Minister Jean-Noel Barrot said the EU could take a similar decision soon without giving precise timing, while adding that lifting more political sanctions would depend on how Syria’s new leadership handled the transition.

“There are other (sanctions), which today hinder access to humanitarian aid, which hinder the recovery of the country. These could be lifted quickly,” said Barrot, who met Syria’s de facto leader Ahmed al-Sharaa on Friday with Germany’s foreign minister.

“Finally, there are other sanctions, which we are discussing with our European partners, which could be lifted, but obviously depending on the pace at which our expectations for Syria regarding women and security are taken into account.”

Three European diplomats speaking on condition of anonymity said the EU would seek to agree to lift some sanctions by the time the bloc’s 27 foreign ministers meet in Brussels on Jan. 27.

Two of the diplomats said one aim was to facilitate financial transactions to allow funds to return to the country, ease air transport and lessen sanctions targeting the energy sector to improve power supplies. A third said Germany had put forward a position paper on the potential sanctions to be lifted.

“Due to the new situation, existing sanctions are under scrutiny. Germany has already pitched ideas on this issue,” German foreign ministry spokesperson Christian Wagner said on Wednesday.

“The focus lies on economic questions and return of funds of the Syrian diaspora,” he said.

© Reuters. FILE PHOTO: France's Minister for Europe and Foreign Affairs Jean-Noel Barrot delivers a speech during the annual conference of French ambassadors at the International Conference Centre of the French Foreign Affairs ministry in Paris, France on January 6, 2025.  LUDOVIC MARIN/Pool via REUTERS/File Photo

Syria suffers from severe power shortages, with state-supplied electricity available two or three hours per day in most areas. The caretaker government says it aims to provide electricity for up to eight hours per day within two months.

The U.S. waivers allow some energy transactions and personal remittances to Syria until July 7, but do not remove any sanctions.

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Yellen says CFIUS made “thorough analysis” of blocked US Steel-Nippon Steel merger

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WASHINGTON (Reuters) – U.S. Treasury Secretary Janet Yellen said on Wednesday that Nippon Steel’s blocked acquisition of U.S. Steel received a “thorough analysis” by an interagency national security review body that was sent to President Joe Biden.

© Reuters. FILE PHOTO: Treasury Secretary Janet Yellen speaks at the Council on Foreign Relations in New York City, U.S., October 17, 2024.  REUTERS/Andrew Kelly/File Photo

Yellen, in a live interview on CNBC, said she could not discuss specifics of the review of the merger blocked by Biden last week that is now the subject of a lawsuit that alleges that the review by the Committee on Foreign Investment in the United States (CFIUS) was not conducted in good faith and was prejudiced by Biden.

“I think, as you know, there is ongoing litigation over this case, and as head of CFIUS, I regret there is very little substantive that I can say to you about this,” Yellen said. “Other than that, CFIUS did analyze the specifics, as it always does of this situation, and prepared a thorough analysis to go to the president.”

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