see upshaw was that leaders could design new systems from scratch, recreation, innovative, and business friendly environments that gave rise to $1000000000.00 companies. ready they also built super online societies where everything from filing your taxes to in the case of a stony of those thing takes place on the internet. these digital economies have most of advantages, but in times of conflicts, they opened up another dangerous front. cyber attacks of the become a part of the $200.00 of the russian federation diplomacy, if you say, or do something that is not accepted by them or that is counter to their narrative or then that immediately after that there is a cyber attack to follow that was get out of the rector of cyber security at a stony as information system authority. i asked them to describe some of the attacks his agency has had to deal with perhaps the way the most known a tech on

a stone. yeah. we're not the most known, but one of them was a, was the last year in autumn in 2023. when our national train system was attacked for about 46 hours, people are not able to use their cellphone to buy a ticket or to see when the training is coming or to show the ticket when uh, entering the train. and nobody uses paper tickets anymore. and a so in the heart of the tickets are in the mobile phone. definitely the other attacks recently on government portals, hospitals and even central heating systems. but one really remarkable incident happened on may. the 9th and latvia, when people watching the tv news were southerly, served up images of moscow's victory day parade instead. may the 9th is when motions celebrate the fees of nazi germany. i asked by task and she heads up last be a cyber security agency, how it could happen. so the resource that was breached it was physically and lot,

3 about it was administrative, then owned by a company from another country. i'm from e. u and the, our television company was using this resource for broadcasting. so exactly how it was cracked, i cannot disclose. but the, the goal obviously has been to have this excess and in on the right date. the heightened threat of cyber warfare from russia, especially targeting supply chains that cross international borders has prompted security agencies to be pumped their resorts is in my case, the cyber security agents it over. so now the people are working here has more than trip. but within the budget, more or less control booth over the last 2 years. but we're still along the road of getting to the minimum level to protect. because again, i come back to the fact that we have 9 incidents with an impact every 24 hours. afraid thousands,

a $114.00 incidents last year and already in the course of the last 2 quarters of this year or the 2nd quarter still ongoing. so there's been more attacks done at the same time period last year. so the tendencies going up, this is the, this is the new reality with the threat level. so high government agencies have to compete for talents. it's a challenge, and for us, it has become even more of a challenge because of all of those unicorns the companies exceeding 1000000000. and there's about 10 of them appraising from a stone, you know, and they all in the tech sector all in the i t sector. so for a government agency, it is very hard to compete with their salary level and then to to uh, to get all the tell them that we need to protect our systems when it comes to cyber security. international cooperation is key in lot fia authorities have teens up

with nasal partner canada to fight cyber crime. we have been uh, conducting a trip hunting operations together with canadian armed forces since 2022. so there are of cyber operators for, from canadian armed forces, working together as us or toby, on truck hunting operations on our critical infrastructure on our public sector. that reference to the public sector is key. with tax us health stays high education records on most other public services, primarily taking place online. the stakes of cyber warfare could hardly be higher. the more you digitize your services, the wider and the tech spectrum becomes. but what you need to do in such a scenario is this secure by design approach. make it really and from the get go and build systems, you know, way that security the as an inherent element. another area,

the ball success being focused on safe guarding is energy. and you can see why in the month following russia's full scale invasion of ukraine, things got very expensive, very fast. inflation was an issue across the u, but it was especially extreme in las vegas away near the sonia because of their heavy reliance on russian. gov. all 3 nations took action to end that dependence as quickly as possible. nowhere did it foster then lithuania. in 202096 percent of the country's energy imports came from russia. today, this taker is 0 to or use the landscape has been at the forefront of that change. his company, k and energies operates liquefied natural gas terminals. infrastructure that's being key to entering the reliance on gas and ports by a pipeline from russia. the company build its 1st ellen

t terminal at the port of club, haida in 2014 the same here that russia on next to crimea. before the infrastructure appeared in 2014, in july built up. uh, actually we had only one the channel for guess of like that was a grid coming off from russia. so we recognize the threats and the risk. one of those risk price manipulation from russian states energy dined golf problem to leave us suffering highest prices in europe in continental because be inconvenient partner at all. or let's say the consumer offer a gas which was not to it, let's say, following or supporting the let's see before we take a line off of the eastern neighbors, the car pay, the l n g terminal is aptly named independence. that the way any and now no longer relies on russian gas. having replaced it with inputs of l. n. g,

from countries such as norway in the united states. other allies of ukraine are benefiting from the companies know how can energies recently one attempt or to maintain a for l n. g terminal, it's on germany's north, the coast of the developers. major players spotted the approaches. oh guys. you know, we saw your project well done. you know, maybe you can help us in some, you know, and in some scope of how projects. sony unlocked fee a have also ended their dependence on russian gas. and both 3 countries are in the process of questioning the russian and beller russian electricity grid. connecting to europe by a poland instead. but do they have the financial resources to deal with an even more ominous thresh, following rushes invasion of ukraine, all 3 governments boost to their defense budgets considerably. leaders are paying special attention to the possibility of russian military aggression in 3 areas. the eastern a sony and says you have nava where 85 percent of the population is ethnically,

russian. the region of luck, gully and eastern lot via the the russian x club of clinton grad. it's connected to bella. ruth, by the so walk. you got a 65 kilometers stretched up. awesome. tied to it as a potential flash point for a confrontation between russia. i'm ne, so i must 33, once again that the security of the baltic states directly depends on ukraine's victory. the politics are among the world's biggest, her g d. p. spenders on ukraine. and all 3 countries are well exceeding the nasal defense spending. target of 2 percent of g d p are actually spread and prepare for a long confrontation. and so most we for that we need to increase our defense budgets as sonya is now spending more than 3.2 percent of a g to be on defense. the additional money is being spent on increasing troop numbers, buying new weapons systems, expanding military service and boosting cyber security. but is this increase

defense spending actually having any impact on businesses on the grant? i asked the ceo, the estonian defense and the aerospace industry association. he told me that the exports of defense systems have gone up. so those numbers has increased, let's say, uh, 40 feet in front of a sense, of course, the main market. main market, but the, the, the biggest export driven you gain came from you bringing defense companies have also noticed the difference in box eagerness to lend even the sweetest banks which being before, really concerned with the, the, so forth, defense industry as now, as they said that the moral compass has to be changed. they also now see this potentially and then describes of markets as a small country, as sony as defense companies, comp compete on price or quantity. but they have built up a nation, specialize high tech systems,

attracting interest from bigger international players, like germany design, baton. we have the company board dev sinking though they're providing situational awareness systems. actually, that's a joint venture with raymond, though, for example, raymond, dollars supporting or so on. so you, for even they saw this kind systems workforce meeting this. sonya, that's what and what do you bring in what needed they financing this project. so defending ukraine is the main mission, but what it by protecting themselves, you see me relieved with the side to the story. and this rhetoric has been, is the 1st time describing different topics and of course, reading tab. so maybe it's impressions, historical um, memories from the boss. of course it's the

it's how, how it to explain the best way. you don't have panic and just doing it. ok. tomorrow we stopped at all. but um, yes we, we definitely be aware the situation kind escalate. we often hear what's happening in ukraine described as a war on europe store stuff for the baltics. that's literally true. and what struck me the most about the people i spoke with was the cool head. whether it's managing l n, g terminals, sending advance defense systems to ukraine, or culture in the latest 5 or address. these small countries have no choice but to keep calm and carry on and breathing for the nose and out for the most. it's in delta and it's interesting, but of course the, there's a lot of stress. and that brings us to the end of this edition of business beyond thank you so much for watching. if you liked this episode,

you should definitely check out my colleague stevens recent story. he looked into why europe defense industry is struggling until next time for me on the team is by taking the the sometimes it's hard to find what you're looking for. but we've got something for you. get ready for an exciting up until you look surprised. hi, irish and i'm ready to dive into the hands of children to which you have you have a one the front porch and

unexpected side to side. the beauty you know, wants to help both him and his talent. then the last 16 years old.