Category Archives: Department of Defense

Cyber Security on the Skids, Blinking RED

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Recorded Future is a real time open source intelligence collection company that determines trends and predictions of emerging threats.

Recorded Future identified the possible exposures of login credentials for 47 United States government agencies across 89 unique domains.

As of early 2015, 12 of these agencies, including the Departments of State and Energy, allowed some of their users access to computer networks with no form of two-factor authentication. The presence of these credentials on the open Web leaves these agencies vulnerable to espionage, socially engineered attacks, and tailored spear-phishing attacks against their workforce.

The damage has yet to be fully realized and cannot be overstated. Where is the White House? Where are the protections? Where is a policy? Major alarm bells as you read on.

From Associated Press:

Tech company finds stolen government log-ins all over Web

WASHINGTON (AP) — A CIA-backed technology company has found logins and passwords for 47 government agencies strewn across the Web – available for hackers, spies and thieves.

Recorded Future, a social media data mining firm backed by the CIA’s venture capital arm, says in a report that login credentials for nearly every federal agency have been posted on open Internet sites for those who know where to look.

According to the company, at least 12 agencies don’t require authentication beyond passwords to access their networks, so those agencies are vulnerable to espionage and cyberattacks.

The company says logins and passwords were found connected with the departments of Defense, Justice, Treasury and Energy, as well as the CIA and the Director of National Intelligence.

From the WSJ: Obama’s Cyber Meltdown

“While Russia and Islamic State are advancing abroad, the Obama Administration may have allowed a cyber 9/11 at home.”

If you thought Edward Snowden damaged U.S. security, evidence is building that the hack of federal Office of Personnel Management (OPM) files may be even worse.

When the Administration disclosed the OPM hack in early June, they said Chinese hackers had stolen the personal information of up to four million current and former federal employees. The suspicion was that this was another case of hackers (presumably sanctioned by China’s government) stealing data to use in identity theft and financial fraud. Which is bad enough.

Yet in recent days Obama officials have quietly acknowledged to Congress that the hack was far bigger, and far more devastating. It appears OPM was subject to two breaches of its system in mid-to-late 2014, and the hackers appear to have made off with millions of security-clearance background check files.

These include reports on Americans who work for, did work for, or attempted to work for the Administration, the military and intelligence agencies. They even include Congressional staffers who left government—since their files are also sent to OPM.

This means the Chinese now possess sensitive information on everyone from current cabinet officials to U.S. spies. Background checks are specifically done to report personal histories that might put federal employees at risk for blackmail. The Chinese now hold a blackmail instruction manual for millions of targets.

These background checks are also a treasure trove of names, containing sensitive information on an applicant’s spouse, children, extended family, friends, neighbors, employers, landlords. Each of those people is also now a target, and in ways they may not contemplate. In many instances the files contain reports on applicants compiled by federal investigators, and thus may contain information that the applicant isn’t aware of.

Of particular concern are federal contractors and subcontractors, who rarely get the same security training as federal employees, and in some scenarios don’t even know for what agency they are working. These employees are particularly ripe targets for highly sophisticated phishing emails that attempt to elicit sensitive corporate or government information.

The volume of data also allows the Chinese to do what the intell pros call “exclusionary analysis.” We’re told, for instance, that some highly sensitive agencies don’t send their background checks to OPM. So imagine a scenario in which the Chinese look through the names of 30 State Department employees in a U.S. embassy. Thanks to their hack, they’ve got information on 27 of them. The other three they can now assume are working, undercover, for a sensitive agency. Say, the CIA.

Or imagine a scenario in which the Chinese cross-match databases, running the names of hacked U.S. officials against, say, hotel logs. They discover that four Americans on whom they have background data all met at a hotel on a certain day in Cairo, along with a fifth American for whom they don’t have data. The point here is that China now has more than enough information to harass U.S. agents around the world.

And not only Americans. Background checks require Americans to list their contacts with foreign nationals. So the Chinese may now have the names of thousands of dissidents and foreigners who have interacted with the U.S. government. China’s rogue allies would no doubt also like this list.

This is a failure of extraordinary proportions, yet even Congress doesn’t know its extent. The Administration is still refusing to say, even in classified briefings, which systems were compromised, which files were taken, or how much data was at risk.

***
While little noticed, the IRS admitted this spring it was also the subject of a Russian hack, in which thieves grabbed 100,000 tax returns and requested 15,000 fraudulent refunds. Officials have figured out that the hackers used names and Social Security data to pretend to be the taxpayers and break through weak IRS cyber-barriers. As Wisconsin Senator Ron Johnson has noted, the Health and Human Services Department and Social Security Administration use the same weak security wall to guard ObamaCare files and retirement information. Yet the Administration is hardly rushing to fix the problem.

Way back in March 2014, OPM knew that Chinese hackers had accessed its system without having downloaded files. So the agency was on notice as a target. It nonetheless failed to stop the two subsequent successful breaches. If this were a private federal contractor that had lost sensitive data, the Justice Department might be contemplating indictments.

Yet OPM director Katherine Archuleta and chief information officer Donna Seymour are still on the job. Mr. Obama has defended Ms. Archuleta, and the Administration is trying to change the subject by faulting Congress for not passing a cybersecurity bill. But that legislation concerns information sharing between business and government. It has nothing to do with OPM and the Administration’s failure to protect itself from cyber attack.

Ms. Archuleta appears before Congress this week, and she ought to remain seated until she explains the extent of this breach. While Russia and Islamic State are advancing abroad, the Obama Administration may have allowed a cyber 9/11 at home.

Truck Hijacked in Mexico, Visas Stolen

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Sheesh, can it get worse?

MEXICO CITY (AP) — The U.S. Embassy in Mexico says a truck carrying visas was hijacked in northern Mexico and the visas stolen.

The embassy says in a statement Wednesday that the theft occurred on June 7 “in northern Mexico,” without specifying where.

The truck was making a trip from the United States to U.S. Consulates in the cities of Monterrey and Guadalajara.

Some approved border crossing cards also were stolen. An electronic alert has been issued so that the stolen cards cannot be used to cross the border.

The cards were re-issued for the intended holders, but they have also been advised of the robbery in case the cards are used in attempts at identity theft.

***

The Vice Admiral of the Coast Guard delivered testimony on drug interdiction on the waterways. In part:

Emerging Threats: Transnational Organized Crime, Violence, and Instability
One of the goals of the Coast Guard’s drug interdiction program is to interdict illicit traffic as close to the source zone1 as possible. This helps to keep the drugs from reaching the shores of Central America where it is transported over land into Mexico, and then to the United States, where the proceeds from the sale of drugs fuel TOC networks. These nefarious organizations operate with impunity throughout Central America while vying for power through drug-fueled violence and corruption of government officials; in fact, eight out of the ten most violent nations in the world are along these trafficking routes in the Western Hemisphere. Traffickers have also increasingly moved product through the Central and Eastern Caribbean vector. Corresponding with this movement, the homicide rate in Puerto Rico is five times that of the rest of the United States. Drug trafficking has destabilized regional states, undermined the rule of law, terrorized citizens, and driven both families and unaccompanied children to migrate to the United States. To be clear, the flow of illicit drugs funds TOC networks which pose a significant and growing threat to national and international security.

Then Border Patrol has their terrifying summary. Yes, it can get worse and Border Patrol is telling the media just how bad it is, but who is really listening, who will address the issues and how is this breaking national security policy? The clarion call is being made, but is there a busy signal?

From the LA Times in full:

Rank-and-file Border Patrol agents are furious that they have lost some of their favorite enforcement tools and say that intense public criticism of border shootings has led to a morale crisis.

“We lack the political will to enforce the law and allow our agency to be effective,” said National Border Patrol Council spokesman Shawn Moran in a conference call with reporters Wednesday. The call was coordinated by the union that represents the agents.

Among the most far-reaching and damning accusations from agents working entry points in Arizona, Texas and California was that the U.S. Customs and Border Patrol administration in Washington does not want agents to make drug busts and has taken away their ability to do so.

Shane Gallagher, an agent in the San Diego sector, said roving interdiction patrols — in which agents would stop suspicious vehicles north of the border — were extraordinarily successful at nabbing border crossers with drugs. But those patrols would then create uncomfortable questions for the ports through which the vehicles had just passed, he said.

“Now the port of entry has to explain who was in the primary lane, what actions were taken, if the vehicle was inspected, so you can see there’s a whole host of implications,” he said.

Though rank-and-file agents saw the value in drug interdictions, Gallagher said, agency leadership did not and drastically reduced the number of agents doing such work.

“There was a lot of pressure for us to get out of the [drug] interdiction game,” Gallagher said.

The decision to speak with reporters comes as rank-and-file agents have come under intense criticism for their involvement in fatal cross-border shootings – including the slaying of a 15-year-old boy who was walking home from a basketball game in Nogales, Mexico, when he was hit by a bullet fired by an agent on the Arizona side of the border.

According to records released last month, only 13 out of 809 abuse complaints sent to Customs and Border Protection’s office of internal affairs between January 2009 and January 2012 led to disciplinary action, and last week, the agency’s head of internal affairs was removed from his post.

A Customs and Border Protection spokesman declined to comment Wednesday when reached by the Los Angeles Times.

The agency also handcuffed agents by instituting civil liberties protections for potential targets of investigations at public transit stations or on agricultural land, colloquially known as a “farm and ranch check,” Moran said.

For such checks, Moran said, agents are required to create an “operations plan” and be able to show supervisors some kind of intelligence that connects targets of investigations to potential criminal activity. No longer, he said, can Border Patrol agents simply question random people.

Amid a flood of women and children turning themselves in at the border, agents also criticized administration directives to lend help to neighboring agencies.

The Border Patrol “grew but other agencies didn’t grow,” said Tucson sector Agent Art Del Cueto. “They’ve been butchering our agency to assist other agencies.”

According to Agent Chris Cabrera of the Rio Grande Valley sector in southern Texas, in one hour last week, 80 people, mostly women and children, turned themselves in to the Border Patrol in the Rincon Village area of his sector.

Overall, the agency finds itself holding 500 people in the Rio Grande Valley sector each day, he said, down from 700 people each day last year, when a flood of women and children from Central America overwhelmed the U.S. immigration sector.

Typically, one or two agents are stationed near Rincon Village to get people into a shelter and check them for weapons. Those agents can handle 10 or 15 people at once, Cabrera said. But when scores arrive, the agency must call on other agents to respond.

“You’re leaving large swaths of the area unprotected,” Cabrera said. “You take a few agents from the field, then you take a few more, and before you know it, you’re down to five agents covering a 53-mile stretch of river.”

Agents criticized the Border Patrol as top-heavy, with a ratio of four or five agents per each supervisor, a ratio that the agents said should be closer to 10 agents per supervisor.

Cabrera said the issue isn’t a lack of resources, but the way in which they’re used.

“We do not have what we need,” he said, “to do the job we need done.”

Obama has Synchronized Iran’s Nuclear Program

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Consider the stated position of the Supreme leader of Iran:

Reuters and AFP – Iran’s Supreme Leader Ayatollah Ali Khamenei has stated his country’s red lines for a nuclear deal with six world powers.

“Freezing Iran’s research and development for a long time like 10 or 12 years is not acceptable,” Khamenei said in a speech broadcast live on June 23.

Khamenei, who has the final say for Iran on any deal, added that all financial and economic sanctions “should be lifted immediately” if an agreement is signed.

Britain, France, Germany, China, Russia, and the United States want Tehran to commit to a verifiable halt of at least 10 years on sensitive nuclear development work as part of a deal they aim to reach by a June 30 deadline. In exchange, they are offering relief from economic sanctions.

Khamenei reiterated that Iran would not give international inspectors access to its military sites and accused the United States of wanting to destroy Iran’s nuclear industry.

The six powers want limits on Tehran’s programs that could have a military use.

Tehran denies it is pursuing nuclear weapons.

***

When the NYT finally prints an explosive fantasy piece on what the White House and John Kerry at the State Department are doing with Iran, one needs to take notice. The New York Times calls this Iran agreement a ‘fatal flaw’.

The Iran Deal’s Fatal Flaw

PRESIDENT OBAMA’S main pitch for the pending nuclear deal with Iran is that it would extend the “breakout time” necessary for Iran to produce enough enriched uranium for a nuclear weapon. In a recent interview with NPR, he said that the current breakout time is “about two to three months by our intelligence estimates.” By contrast, he claimed, the pending deal would shrink Iran’s nuclear program, so that if Iran later “decided to break the deal, kick out all the inspectors, break the seals and go for a bomb, we’d have over a year to respond.”

Unfortunately, that claim is false, as can be demonstrated with basic science and math.  Most important, in the event of an overt attempt by Iran to build a bomb, Mr. Obama’s argument assumes that Iran would employ only the 5,060 centrifuges that the deal would allow for uranium enrichment, not the roughly 14,000 additional centrifuges that Iran would be permitted to keep mainly for spare parts. Such an assumption is laughable. In a real-world breakout, Iran would race, not crawl, to the bomb.  Iran stands to gain enormously. The deal would lift nuclear-related sanctions, thereby infusing Iran’s economy with billions of dollars annually. In addition, the deal could release frozen Iranian assets, reportedly giving Tehran a $30 billion to $50 billion “signing bonus.”

Showering Iran with rewards for making illusory concessions poses grave risks. It would entrench the ruling mullahs, who could claim credit for Iran’s economic resurgence. The extra resources would also enable Iran to amplify the havoc it is fostering in neighboring countries like Iraq, Syria, Lebanon and Yemen.

Worst of all, lifting sanctions would facilitate a huge expansion of Iran’s nuclear program. Ayatollah Ali Khamenei, Iran’s supreme leader, says that he wants 190,000 centrifuges eventually, or 10 times the current amount, as would appear to be permissible under the deal after just 10 years. Such enormous enrichment capacity would shrink the breakout time to mere days, so that Iran could produce enough weapons-grade uranium for a bomb before we even knew it was trying — thus eliminating any hope of our taking preventive action.

Nothing in the pending deal is worth such risks. Read the full article in context here.

*** But is getting worse as new documents demonstrate.

Reported by Fox News via Associated Press:

The United States and its allies are willing to offer Iran state-of-the-art nuclear equipment if Tehran agrees to pare down its atomic weapons program as part of a final nuclear agreement, a draft document has revealed.

The confidential paper, obtained by the Associated Press, has dozens of bracketed text where disagreements remain. Technical cooperation is the least controversial issue at the talks, and the number of brackets suggest the sides have a ways to go, not only on that topic but also more contentious disputes, with less than a week until the June 30 deadline for a deal.

However, the scope of the help now being offered in the draft may displease U.S. congressional critics who already argue that Washington has offered too many concessions at the negotiations.

The draft, titled “Civil Nuclear Cooperation,” promises to supply Iran with light-water nuclear reactors instead of its nearly completed heavy-water facility at Arak, which would produce enough plutonium for several bombs a year if completed as planned. The full details are here.

Civil Nuclear Cooperation platform is not new.

Chilling are the following facts:

Russia and Saudi Arabia have signed a nuclear cooperation agreement. The U.S. has done the same with Korea. Then comes Pakistan learning from U.S. and India where pacts could lead to even more proliferation globally.

For a more detailed summary of the Nuclear Cooperation agreements, take a look at a surface review on equipment, supply and banks in the matter of Korea.

 

Cyber Conflict, Chaos and Calamity

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There have been several Congressional hearings on cyber-terrorism, yet with such an emergency and threat, no solution is forthcoming.

From AEI: “America’s intelligence leaders have made clear the biggest threat today is cyber and counterintelligence. Who are the largest perpetrators of these types of attacks? The intelligence report singles out Russia and China as first examples. These nations have “highly sophisticated cyber programs” and are regularly conducting “politically motivated” attacks. What are they up to exactly? Countries such as China are “reconnoitering and developing access to US critical infrastructure systems, which might be quickly exploited for disruption if an adversary’s intent became hostile.” Back in 2013, Verizon released a report detailing Chinese hackers lurking around inside American industrial control systems—the cyber equivalent to casing a robbery target. In 2014 alone, the FBI investigated a likely Russian hacking campaign against American banking backbone JP Morgan, while two cybersecurity firms blamed Iran for a major campaign against US critical infrastructure like major airliners, medical universities, and energy companies. As the year ended, the US government publicly accused North Korea of a devastating cyberattack against Sony.”

When of Office of National Intelligence produced a report, the first chapter is on cyber threats.

“Risk. Despite ever-improving network defenses, the diverse possibilities for remote hacking intrusions, supply chain operations to insert compromised hardware or software, and malevolent activities by human insiders will hold nearly all ICT systems at risk for years to come. In short, the cyber threat cannot be eliminated; rather, cyber risk must be managed. Moreover, the risk calculus employed by some private sector entities does not adequately account for foreign cyber threats or the systemic interdependencies between different critical infrastructure sectors.

Costs. During 2014, we saw an increase in the scale and scope of reporting on malevolent cyber activity that can be measured by the amount of corporate data stolen or deleted, personally identifiable information (PII) compromised, or remediation costs incurred by US victims. “

The stakes are higher than anyone will admit, most of all the White House. The Office of Personnel Management hack of personnel files now appears to exceed 18 million individuals. “FBI Director James Comey gave the 18 million estimate in a closed-door briefing to Senators in recent weeks, using the OPM’s own internal data, according to U.S. officials briefed on the matter. Those affected could include people who applied for government jobs, but never actually ended up working for the government.”

Just announced as a possible additional agency falling victim to hacking is the National Archives and Records Administration (NARA). What is chilling about this probability is all government reports, records and communications are by law to be maintained by NARA., even classified material.

EXCLUSIVE: Signs of OPM Hack Turn Up at Another Federal Agency

The National Archives and Records Administration recently detected unauthorized activity on three desktops indicative of the same hack that extracted sensitive details on millions of current and former federal employees, government officials said Monday. The revelation suggests the breadth of one of the most damaging cyber assaults known is wider than officials have disclosed.

The National Archives’ own intrusion-prevention technology successfully spotted the so-called indicators of compromise during a scan this spring, said a source involved in the investigation, who was not authorized to speak publicly about the incident. The discovery was made soon after the Department of Homeland Security’s U.S. Computer Emergency Readiness Team published signs of the wider attack — which targeted the Office of Personnel Management — to look for at agencies, according to NARA.

It is unclear when NARA computers were breached. Suspected Chinese-sponsored cyberspies reportedly had been inside OPM’s networks for a year before the agency discovered what happened in April. Subsequently, the government uncovered a related attack against OPM that mined biographical information on individuals who have filed background investigation forms to access classified secrets.

The National Archives has found no evidence intruders obtained “administrative access,” or took control, of systems, but files were found in places they did not belong, the investigator said.

NARA “systems” and “applications” were not compromised, National Archives spokeswoman Laura Diachenko emphasized to Nextgov,  “but we detected IOCs,” indicators of compromise, “on three workstations, which were cleaned and re-imaged,” or reinstalled.

“Other files found seemed to be legitimate,” such as those from a Microsoft website, she said. “We have requested further guidance from US-CERT on how to deal with these” and are still awaiting guidance on how to proceed.

It will take additional forensics assessments to determine whether attackers ever “owned” the National Archives computers, the investigator said.

Diachenko said, “Continued analysis with our monitoring and forensic tools has not detected any activity associated with a hack,” including alerts from the latest version of a governmentwide network-monitoring tool called EINSTEIN 3A.

EINSTEIN, like NARA’s own intrusion-prevention tool, is now configured to detect the tell-tale signs of the OPM attack.

“OPM isn’t the only agency getting probed by this group,” said John Prisco, president of security provider Triumphant, the company that developed the National Archives’ tool. “It could be happening in lots of other agencies.”

Prisco said he learned of the incident at a security industry conference June 9, from an agency official the company has worked with for years.

“They told us that they were really happy because we stopped the OPM attack in their agency,” Prisco said.

The malicious operation tries to open up ports to the Internet, so it can excise information, Prisco said.

“It’s doing exploration work laterally throughout the network and then it’s looking for a way to communicate what it finds back to its server,” he added.

Homeland Security officials on Monday would not confirm or deny the situation at the National Archives. DHS spokesman S.Y. Lee referred to the department’s earlier statement about the OPM hack: “DHS has shared information regarding the potential incident with all federal chief information officers to ensure that all agencies have the knowledge they need to defend against this cybersecurity incident.”

The assault on OPM represents the seventh raid on national security-sensitive or federal personnel information over the past year.

Well-funded hackers penetrated systems at the State Department, the White House, U.S. Postal Service and, previously in March 2014, OPM. Intruders also broke into networks twice at KeyPoint Government Solutions, an OPM background check provider, and once at USIS, which conducted most of OPM’s employee investigations until last summer.

On Wednesday, the House Oversight and Government Reform Committee is scheduled to hold a hearing on the OPM incident that, among other things, will examine the possibility that hackers got into the agency’s systems by using details taken from the contractors.

Is Putin Afraid of $50 Billion or Russia’s Future?

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Vladimir Putin is obviously corrupt and aggressive and countless world leaders maintain the evidence, include the International Criminal Court at the Hague. In 2014, an international court has awarded the shareholders of the now-defunct Yukos oil company more than $50 billion, ruling that the Russian government wrongly seized the company from one of the country’s most powerful oligarchs.

The award by a tribunal in The Hague — the largest ever in international arbitration — is the latest chapter in a dispute that began in 2003 when Russian authorities arrested Yukos’s chairman, Mikhail B. Khodorkovsky, and sold off his company over the next several years.

There are also negative implications for Russia was the European Court of Human Rights finding that Armenia had occupied Nagorno-Karabakh and was thus liable for the destruction there. Regardless of the merits of each side in that war, there is no reason why Ukraine cannot now appear before that court to find Russia guilty of occupying Ukraine and therefore liable for the destruction and loss of life there. Moreover, upon invading Crimea, Moscow immediately seized all the assets of Ukraine’s energy explorations there and took them over (that may have been a motive for the invasion of Crimea). 

Another matter is the legal and political action against Moscow, not only by international courts but by the European Commission for there is no doubt that Russia’s projected Turk Stream pipeline will contain some of that gas as do Russian oil shipments to Europe, If the Commission could block South Stream on the grounds of its failure to conform to EU guidelines, it can certainly block a pipeline that utilizes the fruits of unmitigated aggression. And courts can easily declare those as stolen assets and impose penalties on Russia and anyone benefiting from them.

Then there is the case of the Malaysian flight 17 that was shot down which continues to be investigated.

The case against the Russian aggression continues to build and it is questionable whether Putin has any concerns on how this will play out for the future of the country or whether he takes it all in stride for a larger mission.

The matter of Crimea has not subsided nor has it been settled. From the Daily Beast in part:

‘Under occupation Crimea has become a cesspool of human rights violations, but a new report offers some hope. An international team of lawyers, working with Razom, the Ukrainian-American human rights nonprofit, compiled investigations by Human Rights Watch, the U.N., and other leading organizations as well as accounts from journalists and Crimean residents, into a single report— Human Rights on Occupied Territory: Case of Crimea. The 68-page report is conveniently structured to provide a clear legal framework for Crimeans and policymakers to bring Russian aggression to justice. It also provides a section called “Human Rights Protection Guide,” which includes peaceful resistance tactics including some used during the Soviet Union.’

Defense Secretary Ash Carter is on a Eastern Europe tour as positioning of military equipment is occurring in Bulgaria, Estonia, Latvia, Lithuania, Poland and Romania.

From the WSJ:

‘The equipment, which includes a total of 250 tanks, Bradley fighting vehicles and self-propelled howitzers, is headed to temporary sites in Bulgaria, Estonia, Latvia, Lithuania, Poland and Romania, Mr. Carter said here, flanked by his counterparts from three of the most anxious Baltic nations; Estonia, Lithuania and Latvia.

The full complement of equipment, which includes noncombat related cars and trucks and other equipment for an armored brigade combat team for as many as 5,000 troops, includes roughly 1,200 vehicles, according to a senior military official.

“American rotational forces need to more quickly and easily participate in training and exercises in Europe,” Mr. Carter told reporters in Tallinn.

The long-awaited move won’t place American troops in those temporary bases, even though Estonia, Latvia and Lithuania had specifically requested that the North Atlantic Treaty Organization do so. Instead, American rotational forces, which have been used for months for a series of exercises called Operation Atlantic Resolve, would fall in on the equipment housed at the different sites across the six nations. The idea is to save shipping costs for the Pentagon, which has had to move equipment to and fro for each exercise. But basing the equipment at the sites also helps demonstrate American resolve in the region since Russia annexed Crimea last year.’