U.S.: meatpacker ransomware attack likely from Russia

CHICAGO/ABOARD AIR FORCE ONE — Brazil’s JBS SA told the U.S. government that a ransomware attack on the company that disrupted meat production in North America and Australia originated from a criminal organization likely based in Russia, the White House said on Tuesday.

JBS, the world’s largest meatpacker, said on Tuesday night it had made “significant progress in resolving the cyberattack.” The vast majority of the company’s beef, pork, poultry and prepared foods plants will be operational on Wednesday, according to a statement, easing concerns over rising food prices.

The cyberattack followed one last month by a group with ties to Russia on Colonial

Pipeline, the largest fuel pipeline in the United States, which crippled fuel delivery for several days in the U.S. Southeast.

JBS halted cattle slaughter at all its U.S. plants on Tuesday, according to union officials. On Monday, the attack caused Australian operations to shut down.

“Our systems are coming back online and we are not sparing any resources to fight this threat,” said Andre Nogueira, chief executive of JBS USA.

With North American operations headquartered in Greeley, Colo., JBS controls about 20 per cent of the slaughtering capacity for U.S. cattle and hogs.

White House spokeswoman Karine Jean-pierre said the United States contacted Russia’s government and that the FBI was investigating.

“The White House is engaging directly with the Russian government on this matter and delivering the message that responsible states do not harbor ransomware criminals,” Jean-pierre said.

Ongoing shutdowns of JBS plants would threaten to raise meat prices further for American consumers during summer grilling season and to disrupt meat exports at a time of strong demand from China.