Tag Archives: Europe

Pence says U.S. will stand firm with Europe, NATO

US Vice President Mike Pence

By Roberta Rampton and John Irish

MUNICH (Reuters) – U.S. Vice President Mike Pence on Saturday brought a message of support for Europe from Donald Trump but failed to wholly reassure allies worried about the new president’s stance on Russia and the European Union.

In Pence’s first major foreign policy address for the Trump administration, the vice president told European leaders and ministers that he spoke for Trump when he promised “unwavering” commitment to the NATO military alliance.

“Today, on behalf of President Trump, I bring you this assurance: the United States of America strongly supports NATO and will be unwavering in our commitment to this transatlantic alliance,” Pence told the Munich Security Conference.

While Poland’s defense minister praised Pence, many others, including France’s foreign minister and U.S. lawmakers in Munich, remained skeptical that he had convinced allies that Trump, a former reality TV star, would stand by Europe.

Trump’s contradictory remarks on the value of the North Atlantic Treaty Organisation, scepticism of the 2015 deal to curb Iran’s nuclear ambitions and an apparent disregard for the future of the European Union have left Europe fearful for the seven-decade-old U.S. guardianship of the West.

French Foreign Minister Jean-Marc Ayrault on Twitter expressed his disappointment that Pence’s speech contained “Not a word on the European Union”, although the vice president will take his message to EU headquarters in Brussels on Monday.

U.S. Senator Chris Murphy, a member of the opposition Democrats, said he saw two rival governments emerging from the Trump administration.

Pence, Trump’s defense secretary Jim Mattis and his foreign minister Rex Tillerson all delivered messages of reassurance on their debut trip to Europe.

But events in Washington, including a free-wheeling news conference Trump gave in which he branded accredited White House reporters “dishonest people”, sowed more confusion.

“Looks like we have two governments,” Murphy wrote on Twitter from Munich. The vice president “just gave speech about shared values between US and Europe as (the U.S. president) openly wages war on those values.”

The resignation of Trump’s security adviser Michael Flynn over his contacts with Russia on the eve of the U.S. charm offensive in Europe also tarnished the message Pence, Mattis and Tillerson were seeking to send, officials told Reuters.

U.S. Republican Senator John McCain, a Trump critic, told the conference on Friday that the new president’s team was “in disarray,” breaking with the American front.

The United States is Europe’s biggest trading partner, the biggest foreign investor in the continent and the European Union’s partner in almost all foreign policy, as well as the main promoter of European unity for more than sixty years.

Pence, citing a trip to Cold War-era West Berlin in his youth, said the new U.S. government would uphold the post-World War Two order.

“This is President Trump’s promise: we will stand with Europe today and every day, because we are bound together by the same noble ideals – freedom, democracy, justice and the rule of law,” Pence said.

MUTED APPLAUSE

While the audience listened intently, Pence received little applause beyond the warm reception he received when he declared his support for NATO.

Ayrault, in a speech defending Franco-German leadership in Europe, lauded the virtues of multilateralism at a time of rising nationalism. Trump has promise ‘America First.’

“In these difficult conditions, many are attempting to look inward, but this isolationism makes us more vulnerable. We need the opposite,” Ayrault said.

Pence warned allies they must pay their fair share to support NATO, noting many lack “a clear or credible path” to do so. He employed a tougher tone than Mattis, who delivered a similar but more nuanced message to NATO allies in Brussels this week, diplomats said.

The United States provides around 70 percent of the NATO alliance’s funds and European governments sharply cut defense spending since the fall of the Soviet Union. Russia’s resurgence as a military power and its seizure of Ukraine’s Crimean peninsula in the Black Sea has started to change that.

Baltic states and Poland fear Russia might try a repeat of Crimea elsewhere. Europe believes Moscow is seeking to destabilize governments and influence elections with cyber attacks and fake news.

Pence’s tough line on Russia, calling Moscow to honor the international peace accords that seek to end the conflict in eastern Ukraine, were welcomed by Poland.

“Know this: the United States will continue to hold Russia accountable, even as we search for new common ground, which as you know, President Trump believes can be found,” Pence said.

Polish Defence Minister Antoni Macierewicz said Pence’s speech “highlighted on behalf of President Trump that the U.S. supports NATO, Ukraine and Europe.

“They want to show the U.S. military potential,” he said.

(Additional reporting by Noah Barkin, Andrea Shalal, Vladimir Soldatkin, John Irish and Jonathan Landay; Writing by Robin Emmott; Editing by Janet Lawrence)

Tunisia PM, in Germany, dismisses criticism over asylum deportations

Tunisia PM and Germany Chancellor to discuss refugee/migrant issue

BERLIN (Reuters) – Tunisia’s prime minister, in Germany for talks with Chancellor Angela Merkel, rejected criticism on Tuesday that his country had been slow to take back failed asylum seekers from Europe, including Berlin Christmas market attacker Anis Amri.

Youssef Chahed also rejected the idea of Tunisia setting up its own asylum centers to ease the burden on Europe.

Shortcomings in the system were exposed in December by the failure to deport Tunisian Islamic State supporter Amri, who was on a watch list and had been denied asylum six months before he killed 12 people by driving a truck through the market.

In an interview in Bild, Chahed said cooperation with Germany on asylum seekers was functioning well.

“The biggest problem for Europe is refugees who go from Libya to Italy,” he said, adding that German authorities needed to provide the correct paperwork to be able to send back failed asylum seekers to Tunisia.

It was largely a delay in getting the right documents, including identity papers, that prevented Amri from being repatriated. He was shot dead by Italian police in Milan on Dec. 23.

“Illegal immigrants who use false papers sometimes make things difficult and prolong the process,” he said.

Asked about the possibility of Tunisia building refugee centers with European help, Chahed said:

“Tunisia is a very young democracy, I don’t think that it can function or that we have capacity to create refugee camps,” he said, adding that the main focus should be finding a solution with Libya.

Merkel has been weakened by her open-door migrant policy which allowed more than a million refugees into Germany in the last two years. She is now trying to show voters she is beefing up security and cracking down on illegal migrants before a national election due in September.

Merkel needs the cooperation of countries like Tunisia to speed up deportations. She also plans to give police greater powers to detain rejected asylum seekers seen as a terrorist threat and to set up ‘federal departure centers’ near airports to house rejected applicants ahead of their deportation.

Chahed visited the site of the December attack by Amri in western Berlin and laid flowers there.

(Reporting by Madeline Chambers; Editing by Gareth Jones)

NATO allies lock in U.S. support for stand-off with Russia

Donald Trump and Melania Trump

By Robin Emmott and Andrius Sytas

ZAGAN, Poland/RUKLA, Lithuania (Reuters) – Immediately after Donald Trump was elected, U.S. diplomats urged Lithuania to rush through an agreement to keep American troops on its soil, reflecting alarm that the new, Russia-friendly U.S. president might try to stop more deployments in Europe.

The agreement was signed just a few days before Trump’s inauguration, according to a document from the Lithuanian defense ministry, and became the first step locking the new U.S. president into a NATO strategy to deter Russia in Poland and the Baltics, following Moscow’s 2014 annexation of Crimea.

European allies are growing confident that, with the arrival of U.S. troops in Poland, plans ordered by Barack Obama will hold. They are reassured by Trump’s remarks to U.S. forces in Florida this week, when he said: “We strongly support NATO.”

“When you put soldiers on the ground, tanks like this, that signifies a long-term commitment,” Lieutenant General Ben Hodges, the U.S. army’s top commander in Europe, said at the snow-covered base in Zagan, Poland where thousands of U.S. troops are arriving before fanning out across the region.

“I am not hearing anything that would tell me otherwise,” Hodges said when asked whether Trump might scale back deployments. The president has described NATO as “obsolete” and has praised Russian leader Vladimir Putin.

But it will be hard politically for Trump to bring troops home “on the orders of Russia”, one senior alliance diplomat said. The U.S. soldiers featured in a TV commercial seen by millions of Americans at the end of the Super Bowl on Sunday.

Worried since Russia’s seizure of Crimea that Moscow could invade Poland or the Baltic states, the Western military alliance wants to bolster its eastern flank without provoking the Kremlin by stationing large forces permanently.

The troop build-up is NATO’s biggest in Europe since the end of the Cold War, using a web of small eastern outposts, forces on rotation, regular war games and warehoused U.S. equipment ready for a rapid response force of up to 40,000 personnel.

Britain, Germany and Canada are playing major roles in the force build-up. “Every ally is locked in,” said Adam Thomson, a former British ambassador to NATO and now director of the European Leadership Network think-tank in London.

GRAND BARGAIN?

Apparently confident of Washington’s commitment to Obama’s strategy, Poland’s Defense Minister Antoni Macierewicz declared “God bless President Trump” at a welcoming ceremony for U.S. forces in Zagan last week.

But European governments remain concerned Trump could use the troop deployments as a chip with Moscow in a grand bargain. Political analysts say that could involve giving Moscow a free hand in much of the former Soviet Union in return for a commitment not to interfere in Europe.

“Trump is a businessman and he wants to negotiate from a position of strength,” a central European diplomat in Brussels said of the decision to allow U.S. deployments to continue.

Trump held an hour-long phone call with Putin in late January but avoided talk of Crimea and the rebellion in eastern Ukraine that the West accuses Moscow of sponsoring.

Trump has suggested lifting economic sanctions imposed on Russia over Crimea in return for a reduction of nuclear weapons.

He might offer to scale back NATO projects like the new Polish site set to form part of the alliance’s missile shield in the region. NATO says the system is designed to intercept Iranian rockets but Moscow says it is aimed at disabling Russian missiles.

The shield was developed by the United States and is now part of NATO. “It is impossible for Washington to act unilaterally without upsetting allies,” Thomson said.

For now, Obama’s “dialogue and deterrent” remains the NATO mantra – talking to Moscow but also sending U.S. tanks back to Europe and reopening Cold War-era storage sites.

“We stick with the facts, not the forecasts,” Salvatore Farina, the NATO commander coordinating forces in Poland and the three Baltic states of Lithuania, Latvia and Estonia, told Reuters at the Rukla military base in Lithuania, where both a German battle group and U.S. infantry are based.

(Anditional reporting by Andrea Shalal in Berlin; editing by Andrew Roche)

More than 1,300 migrants rescued at sea in one day: Italy coast guard

migrants woman praying after rescue

ROME (Reuters) – More than 1,300 migrants were rescued in 13 separate missions in the Mediterranean on Friday, bringing the total helped over the last three days to more than 2,600, the coast guard said.

The migrants, who were aboard 13 vessels, were saved in the central Mediterranean by ships from the Italian coast guard, the Italian and British navies, merchant ships and vessels operated by non-government organizations, a statement said.

Another 1,300 were rescued on Wednesday.

The voyage from Libya across the Mediterranean to Italy is currently the main route to Europe for migrants.

A record 181,000 made the journey last year, most on flimsy boats run by people-smugglers.

More than 5,000 are believed to have died attempting the crossing in 2016.

In the latest in a series of measures pushed by the European Union to stop migrants reaching Europe, Italy launched a new fund on Wednesday to help African countries control their borders.

(Reporting By Philip Pullella; Editing by Hugh Lawson)

Businesses growing in face of upcoming risks

waiter carries food at British restaurant

By Jonathan Cable

LONDON (Reuters) – Business started 2017 on a solid footing, surveys showed on Friday, thriving ahead of a myriad of political risks in the coming year.

Fears of a growing protectionist agenda in the United States, whether national elections across Europe upset the status quo and just how fractious Britain’s divorce proceedings from the European Union become, are all expected to weigh in the months ahead.

Yet so far those risks seem to have been mostly ignored with firms from Asia to Europe increasing or at least largely maintaining activity. Similar upbeat results are expected later from the United States..

Euro zone businesses started 2017 by increasing activity at the same multi-year record pace they set in December.

China’s factory activity grew for a seventh month and while India’s services business contracted for a third month as firms struggled to recover from a government crackdown on currency in circulation, the pace slowed.

“The outlook for this year is reasonably bright despite all the risks. The numbers for January have generally been quite positive,” said Andrew Kenningham, chief global economist at Capital Economics.

Growth in Britain’s services sector slowed for the first time in four months in January, dipping just below its long-run average, as businesses battled the sharpest rise in costs in more than five years.

But on Thursday the Bank of England sharply revised up its growth forecast for 2017 to 2.0 percent, a view held by only the most optimistic forecaster in a Reuters poll of 50 economists taken last month.

Britain’s economy unexpectedly outpaced all its major peers last year, wrongfooting those who expected an immediate hit from June’s Brexit vote.

The Markit/CIPS British services Purchasing Managers’ Index dropped to a three-month low of 54.5 last month from December’s 15-month high, at the bottom end of a range of forecasts in a Reuters poll of economists, but Markit said the PMIs still point to first quarter growth of 0.5 percent.

IHS Markit’s final composite PMI for the euro zone, seen as a good guide to growth, held at 54.4. It has not been higher since May 2011 and has remained above the 50 mark dividing growth from contraction since mid-2013.

That points to first quarter expansion of 0.4 percent, Markit said, matching the median prediction in a Reuters poll.

“Despite the slightly disappointing outcome this remains a very strong report,” said James Knightley, senior economist at ING.

China’s factory activity expanded for the seventh straight month in January, giving Beijing more room to tackle chronic imbalances in the economy. The Caixin/Markit Manufacturing PMI fell to 51.0.

The world’s second largest economy has seen a broad-based pickup in recent months, with fourth-quarter GDP beating expectations due largely to a strong housing market and higher government spending on infrastructure projects.

A recovery in the country’s “smokestack” industries has also been supported by government mandates to close down outdated production capacity in the coal and steel sectors, as well as a rebound in investment in the property sector that came amid a record flood of credit.

India’s Nikkei/IHS Markit Services PMI remained below 50 registering 48.7 in January as firms still reel from Prime Minister Narendra Modi’s decision in November to abolish high-value bank notes.

Modi’s policy removed 86 percent of the currency in circulation, hitting consumption and capital investments, and shattered traditional cash-reliant supply chains.

(Editing by Jeremy Gaunt)

EU extends emergency border controls to tackle migration

italian police officer stopping cars at border

BRUSSELS (Reuters) – European Union envoys agreed on Wednesday to extend emergency border controls inside the bloc’s free-travel zone for another three months to mid-May, as immigration and security continued to dominate the political agenda.

The so-called Schengen zone of open borders collapsed as about 1.5 million refugees and migrants arrived in the bloc in 2015 and 2016, leaving the EU scrambling to ensure security and provide for the people.

Germany, Austria, Sweden, Denmark and Norway started imposing the emergency border controls from September, 2015, and got the go-ahead on Wednesday to keep them in place for longer.

Germany is all but certain to seek further extensions beyond that in the build-up to Sept. 24 national elections.

The influx of refugees and migrants has triggered a political crisis and bitter feuds between EU member states, which have not been able to agree on how to share the burden.

This has further strained the EU’s troubled unity, adding to challenges facing the bloc – from the rising power of China and a more assertive Russia, to radical Islam in the Middle East and North Africa and the threat of attacks in Europe, to uncertainty shrouding the trans-Atlantic relationship under the new U.S. President Donald Trump.

(Reporting by Gabriela Baczynska; Editing by Andrew Heavens)

Proliferation of bird flu outbreaks raises risk of human pandemic

wokers gather ducks that may have bird flu

By Kate Kelland

LONDON (Reuters) – The global spread of bird flu and the number of viral strains currently circulating and causing infections have reached unprecedented levels, raising the risk of a potential human outbreak, according to disease experts.

Multiple outbreaks have been reported in poultry farms and wild flocks across Europe, Africa and Asia in the past three months. While most involve strains that are currently low risk for human health, the sheer number of different types, and their presence in so many parts of the world at the same time, increases the risk of viruses mixing and mutating – and possibly jumping to people.

“This is a fundamental change in the natural history of influenza viruses,” Michael Osterholm, an infectious disease specialist at University of Minnesota, said of the proliferation of bird flu in terms of geography and strains – a situation he described as “unprecedented”.

Global health officials are worried another strain could make a jump into humans, like H5N1 did in the late 1990s. It has since caused hundreds of human infections and deaths, but has not acquired the ability to transmit easily from person to person.

The greatest fear is that a deadly strain of avian flu could then mutate into a pandemic form that can be passed easily between people – something that has not yet been seen.

While avian flu has been a prominent public health issue since the 1990s, ongoing outbreaks have never been so widely spread around the world – something infectious disease experts put down to greater resilience of strains currently circulating, rather than improved detection or reporting.

While there would normally be around two or three bird flu strains recorded in birds at any one time, now there are at least half a dozen, including H5N1, H5N2, H5N8 and H7N8.

The Organization for Animal Health (OIE) says the concurrent outbreaks in birds in recent months are “a global public health concern”, and the World Health Organization’s director-general warned this week the world “cannot afford to miss the early signals” of a possible human flu pandemic.

The precise reasons for the unusually large number and sustained nature of bird outbreaks in recent months, and the proliferation of strains, is unclear – although such developments compound the global spreading process.

Bird flu is usually spread through flocks through direct contact with an infected bird. But Osterholm said wild birds could be “shedding” more of the virus in droppings and other secretions, increasing infection risks. He added that there now appears to be “aerosol transmission from one infected barn to others, in some cases many miles away”.

Ian MacKay, a virologist at Australia’s University of Queensland, said the current proliferation of strains means that “by definition, there is an increased risk” to humans.

“You’ve got more exposures, to more farmers, more often, and in greater numbers, in more parts of the world – so there has to be an increased risk of spillover human cases,” he told Reuters.

BRITAIN TO BANGLADESH

Nearly 40 countries have reported new outbreaks of highly pathogenic avian influenza in poultry or wild birds since November, according to the WHO.

In China, H7N9 strains of bird flu have been infecting both birds and people, with the of human cases rising in recent weeks due to the peak of the flu season there. According to the WHO, more than 900 people have been infected with H7N9 bird flu since it emerged in early 2013.

In birds, latest data from the OIE should that outbreaks of highly pathogenic avian flu have been detected in Britain, Italy, Kuwait and Bangladesh in the last few days alone.

Russia’s agriculture watchdog issued a statement describing the situation as “extremely tense” as it reported H5N8 flu outbreaks in another four regions. Hungarian farmers have had to cull 3 million birds, mostly geese and ducks.

These come on top of epidemics across Europe and Asia which have been ongoing since late last year, leading to mass culling of poultry in many countries.

Strains currently documented as circulating in birds include H5N8 in many parts of Europe as well as in Kuwait, Egypt and elsewhere, and H5N1 in Bangladesh and India.

In Africa – which experts say is especially vulnerable to missing flu outbreak warning signs due to limited local government capacities and weak animal and human health services – H5N1 outbreaks have been reported in birds in Burkina Faso, Cameroon, Ghana, Niger, Nigeria and Togo. H5N8 has been detected in Tunisia and Egypt, and H7N1 in Algeria.

The United States has, so far this year, largely escaped bird flu, but is on high alert after outbreaks of H5N2, a highly pathogenic bird flu, hit farms in 15 states in 2015 and led to the culling of more than 43 million poultry.

David Nabarro, a former senior WHO official who has also served as U.N. system senior coordinator for avian and human influenza, says the situation is worrying. “For me the threat from avian influenza is the most serious (to public health), because you never know when,” he told Reuters in Geneva.

HIGHLY PATHOGENIC H5N1

H5N1 is under close surveillance by health authorities around the world. It has long been seen as one to watch, feared by infectious disease experts because of its pandemic potential if it were to mutate an acquire human-to-human transmission capability.

A highly pathogenic virus, it jumped into humans in Hong Kong in 1997 and then re-emerged in 2003/2004, spreading from Asia to Europe and Africa. It has caused hundreds of infections and deaths in people and prompted the culling of hundreds of millions of poultry.

Osterholm noted that some currently circulating H5 strains – including distant relatives of H5N1 – are showing significant capabilities for sustaining their spread between wild flocks and poultry, from region to region and farm to farm.

“What we’re learning about H5 is, that whether its H5N6, H5N8, H5N2 or H5N5, this is a very dangerous bird virus.”

Against that background, global health authorities and infectious disease experts want awareness, surveillance and vigilance stepped up.

Wherever wild birds are found to be infected, they say, and wherever there are farms or smallholdings with affected poultry or aquatic bird flocks, regular, repeated and consistent testing of everyone and anyone who comes into contact is vital.

“Influenza is a very tough beast because it changes all the time, so the ones we’re tracking may not include one that suddenly emerges and takes hold,” said MacKay.

“Right now, it’s hard to say whether we’re doing enough (to keep on top of the threat). I guess that while it isn’t taking off, we seem to be doing enough.”

(Additional reporting by Ed Stoddard in Johannesburg, Stephanie Nebehay in Geneva, Polina Devitt in Moscow and Sybille de La Hamaide in Paris; Editing by Pravin Char)

After Iran’s nuclear pact, Iranian state firms win most foreign deals

A staff member removes the Iranian flag from the stage after a group picture with foreign ministers and representatives of Unites States, Iran, China, Russia, Britain, Germany, France and the European Union during the Iran nuclear talks at the Vienna International Center in Vienna, Austria

By Yeganeh Torbati, Bozorgmehr Sharafedin and Babak Dehghanpisheh

WASHINGTON (Reuters) – When world powers agreed in 2015 to lift sanctions on Iran in return for curbs on its nuclear program, the deal’s supporters in the United States, Europe and Tehran hoped renewed trade and investment could boost Iran’s private sector and weaken the state’s hold on the economy.

But a Reuters review of business accords reached since then shows that the Iranian winners so far are mostly companies owned or controlled by the state, including Iran’s Supreme Leader, Ayatollah Ali Khamenei.

Of nearly 110 agreements worth at least $80 billion that have been struck since the deal was reached in July 2015, 90 have been with companies owned or controlled by Iranian state entities, the Reuters analysis shows.

U.S. President-elect Donald Trump, who takes office on Friday, has threatened to scrap the accord, which came into force in January 2016. In Iran, Khamenei and other anti-Western hardliners have repeatedly criticized it because they are concerned it would open the door to Western involvement in Iran’s economy. The accord also promises to dominate Iran’s presidential elections due in May. Khamenei’s criticism has helped hardliners undermine President Hassan Rouhani, who supported the deal, as he tries to win a second term.

No matter what hardliners have said about the nuclear pact, though, the Reuters analysis shows that businesses which answer ultimately to the Supreme Leader stand to gain from it. This could help shield the accord from its Iranian critics, according to one analyst.

“Iran’s leaders have probably calculated that ensuring politically connected businesses benefit from sanctions relief will protect the deal,” said Richard Nephew, a former U.S. negotiator with Iran on the deal and now a scholar at Columbia University.

Officials at Iran’s mission to the United Nations and Rouhani’s office did not respond to requests for comment. No one at Khamenei’s office could be reached.

WINNERS

The Reuters analysis drew on interviews with company officials, statements by Iranian, European and Asian companies, Iranian news reports, ownership data from the Tehran Stock Exchange, filings with Iran’s official company registry and statements by the U.S. Treasury.

Many deals are preliminary agreements with no published financial value. The deals span energy, infrastructure, pharmaceuticals, and other key sectors. South Korean, Italian, French, German, and Russian companies have signed the most.

The review found that beneficiaries of the nuclear pact include Setad Ejraiye Farman-e Hazrat-e Emam, also called EIKO, an organization overseen by Khamenei with stakes in nearly every sector of Iran’s economy. It found companies in which entities controlled by Khamenei have a large or majority stake, including those that are part of the economic empire of the Islamic Revolutionary Guard Corps (IRGC), have struck at least nine foreign deals worth more than $11 billion in the last 18 months.

Setad said in a statement to Reuters that Iran’s private sector “is reluctant to make large and long-term investments.” Setad and groups like it “create a favorable atmosphere for investment, private-sector development, and the downsizing of the government,” it said. The IRGC declined to comment.

The state dominates Iran’s economy, so state-controlled firms were always likely to win most business after sanctions were lifted. Iranian officials estimate that the private sector makes up only 20 percent of Iran’s economy.

In Iran, “you make money if you’re close to the centers of power,” said Ali Ansari, an Iran scholar at the University of St. Andrews in Scotland. “The economy hasn’t been restructured or reorganized. You’re recycling wealth through the elite.”

Only 17 deals have gone to private companies, by Reuters’ tally. These include a hotel management pact between France’s AccorHotels and Tourism Financial Group, a large conglomerate. Its chief executive is the brother of Iran’s vice-president, Eshaq Jahangiri.

Tourism Financial Group and AccorHotels did not respond to requests for comment on the deal.

Counter to the hopes of supporters of the nuclear accord, the initial wave of investment looks likely to further strengthen the power of the state, including Khamenei, whose power far surpasses Rouhani’s. Supreme Leader since 1989, the cleric controls the judiciary and security forces and the Revolutionary Guards, which direct Iran’s military efforts in Syria and Iraq.

Most sanctions on Iran were lifted under the nuclear accord, so there is no suggestion any partners doing business in the country after the agreement would be breaking any laws.

A U.S. State Department spokesman said the nuclear deal “solves a specific problem, which is making sure that they don’t possess a nuclear weapon … We are not standing in the way of legitimate, permissible business with Iran.”

SUPREME LEADER

Of the 90 deals signed between foreign firms and Iranian state-controlled or state-owned entities, 81 were with companies controlled by Iran’s elected government. These include entities such as the National Iranian Oil Company, large semi-public conglomerates whose top executives are chosen by ministers, and companies owned by government pension funds.

Though Iran holds regular elections and the president has sway over much domestic policy, Khamenei has the final word on state matters, including through his constitutional authority over institutions such as the Guardian Council, which vets candidates hoping to run for office.

Five of the 90 deals went to conglomerates or foundations whose leaders Khamenei directly appoints. These entities – several of which have vast business activities but which Iranian officials have said do not pay full tax – include the religious institution Astan-e Qods-e Razavi, whose economic arm lists 36 subsidiary companies and institutes on its website.

One of them is Razavi Oil and Gas Development Co., which agreed in April to discuss developing a gas field with Saipem, an Italian oil and gas company. A Saipem spokeswoman said it was a preliminary agreement. Officials at Razavi did not respond to requests for comment.

Another winner in this category is Setad. A 2013 investigation by Reuters found Setad built an empire worth about $95 billion on the seizure of thousands of properties belonging to religious minorities, business people, and Iranians living abroad.

In 2013, the U.S. Treasury sanctioned Setad, calling it a “major network of front companies controlled by Iran’s leadership.” The nuclear deal lifted sanctions, allowing foreign companies to do business with the conglomerate.

Reuters identified three deals between foreign companies and Setad units, including the proposed construction of a $10 billion oil refinery.

The other two deals were with Barakat Pharmed, a Setad-owned pharmaceutical company. Nasrallah Fathiyan, a Barakat official, told Reuters that Khamenei doesn’t own Barakat, but that “his supervision is basically guiding all of this investment.” Some of Barakat’s profits, Fathiyan said, go to Setad’s charity arm.

Setad said it is independent, and its income goes toward “economic empowerment, building houses for the underprivileged, building schools and cultural centers” and other activities to help the disadvantaged in Iran.

REVOLUTIONARY GUARDS

Four of the 90 deals with government entities involve firms in which the Revolutionary Guards have large or controlling stakes. Khamenei, as commander in chief, ultimately controls the IRGC.

Even after the nuclear deal, some U.S. sanctions remain in place. These state that foreign companies which knowingly conduct “significant” transactions with the Revolutionary Guards, or other sanctioned Iranian entities, risk penalties. The sanctions effectively banish those targeted from the global financial system.

However, many companies in which the IRGC has an interest are not blacklisted. Three of the four deals Reuters found with IRGC-linked companies are with non-sanctioned Iranian companies that are wholly or significantly owned by the IRGC. A fourth IRGC company is still on the sanctions list and is indirectly involved in one foreign deal.

Sanctions lawyers say the fine print of the remaining U.S. sanctions allows foreign companies to continue to deal with some IRGC-held firms indirectly.

A Treasury spokeswoman declined comment on individual deals, but said a transaction by foreigners with a company in which the IRGC or another sanctioned entity had a “passive, minority” stake “is not necessarily sanctionable.” The foreign party should ensure the deal does not involve a sanctioned entity, she said.

“At a policy level I think this is a gap that needs to be closed,” said Peter Harrell, a former State Department official who helped develop sanctions against Iran. “As problematic and troubling as some of these deals may appear to be from a policy perspective, on the face of it, there’s not a strict legal problem.”

(Additional reporting by Isla Binnie and Crispian Balmer in Rome, Stephen Jewkes in Milan, Seoul bureau, Vladimir Soldatkin in Moscow, Georgina Prodhan in Frankfurt, Brenda Goh in Shanghai and Aizhu Chen in Beijing; Edited by Sara Ledwith and Richard Woods)

Elite North Korean defector says more diplomats waiting to defect to Seoul: Yonhap

former North Korea deputy

SEOUL (Reuters) – More high-level North Korean diplomats are waiting to defect to South Korea from their overseas posts in Europe, Pyongyang’s former deputy ambassador to London said on Tuesday, according to the Yonhap News Agency.

Thae Yong Ho defected to South Korea in August last year and since December 2016 has been speaking to local media and appearing on variety television shows to discuss his defection to Seoul and his life as a North Korean envoy.

“A significant number of North Korean diplomats came to South Korea recently,” Thae said, according to Yonhap.

“I am not the only one from Europe. There are more waiting to come,” Thae said, speaking at an event held in South Korea’s parliamentary building.

Thae, 54, has said publicly that dissatisfaction with the rule of young leader Kim Jong Un had led him to flee his post, but he also had two university-age sons living with him and his wife in London who were due to return to isolated North Korea.

He is the highest-ranking official to have fled North Korea for the South since the 1997 defection of Hwang Jang Yop, the brains behind North Korea’s governing ideology, “Juche”, which combines Marxism with extreme nationalism.

“Of all the recent high-level defectors, I am the only one to have gone public,” said Thae.

(Reporting by James Pearson; Additional reporting by Jeong Eun Lee)

Russia says facing increased cyber attacks from abroad

graphic representing hacking or cyber attacks

MOSCOW (Reuters) – Russia is facing increased cyber attacks from abroad, a senior security official was quoted on Sunday as saying, responding to Western accusations that Moscow is aggressively targeting information networks in the United States and Europe.

U.S. intelligence agencies say Russian President Vladimir Putin ordered a cyber campaign aimed at boosting Donald Trump’s electoral chances by discrediting his Democrat rival Hillary Clinton in the 2016 presidential campaign.

Russia has dismissed the accusations as a “witch-hunt”.

“Recently we have noted a significant increase in attempts to inflict harm on Russia’s informational systems from external forces,” Nikolai Patrushev, secretary of Russia’s Security Council, told the Rossiiskaya Gazeta daily, according to excerpts of an interview to be published in full on Monday.

“The global (Internet) operators and providers are widely used, while the methods they use constantly evolve,” said Patrushev, a former head of the FSB secret service and a close ally of Putin.

Patrushev accused the outgoing U.S. administration of President Barack Obama of “deliberately ignoring the fact that the main Internet servers are based on the territory of the United States and are used by Washington for intelligence and other purposes aimed at retaining its global domination”.

But he added that Moscow hoped to establish “constructive contacts” with the Trump administration. Trump, who praised Putin during the election campaign and has called for better ties with Moscow, will be inaugurated as president on Jan. 20.

(Reporting by Vladimir Soldatkin; Editing by Gareth Jones)