Putin to watch parachute drop, part of war games that have rattled West

Russian President Vladimir Putin uses a pair of binoculars while watching the Zapad-2017 war games, held by Russian and Belarussian servicemen, with Chief of the General Staff of Russian Armed Forces Valery Gerasimov seen nearby, at a military training ground in the Leningrad region, Russia September 18, 2017.

MOSCOW (Reuters) – President Vladimir Putin arrived at a remote army training ground on Monday to watch a military parachute drop, part of Russia’s biggest war games since 2013 that have the West looking on nervously.

NATO officials say they are watching the “Zapad-2017” (“West-2017”) war games with “calm and confidence”, but many are unnerved about what they see as Moscow testing its ability to wage war against the West. Russia says the exercise is rehearsing a purely defensive scenario.

A parachuter descends before landing at a firing range during the Zapad-2017 war games, held by Russian and Belarussian servicemen, outside the town of Ruzhany in Belarus, September 17, 2017.

A parachuter descends before landing at a firing range during the Zapad-2017 war games, held by Russian and Belarussian servicemen, outside the town of Ruzhany in Belarus, September 17, 2017. REUTERS/Vasily Fedosenko

The Russian Defence Ministry said Monday’s parachute drop, at a military facility in the Leningrad region, would see 450 paratroopers and nine armored vehicles dropped from military transport planes, a show of military might that is likely to be heavily covered on state TV.

Putin, commander-in-chief of Russia’s armed forces, has often appeared at such events in the past, using them to bolster his image among Russians as a robust defender of the country’s national interests on the world stage.

The Russian leader, 64, has not yet said whether he will run for what would be a fourth presidential term in March, but is widely expected to do so.

Once the paratroopers and their vehicles have landed behind the lines of their simulated enemy, their task will be to wage war against what the defense ministry in a statement called “illegal armed formations” and to destroy their opponents’ vital infrastructure and command centers.

A Belarussian Mi-8 helicopter flies above a firing range during the Zapad-2017 war games, held by Russian and Belarussian servicemen, outside the town of Ruzhany in Belarus, September 17, 2017.

A Belarussian Mi-8 helicopter flies above a firing range during the Zapad-2017 war games, held by Russian and Belarussian servicemen, outside the town of Ruzhany in Belarus, September 17, 2017. REUTERS/Vasily Fedosenko

The over-arching Zapad war games run to Sept. 20 and are taking place in Belarus, western Russia and Russia’s exclave of Kaliningrad.

Moscow says almost 13,000 Russian and Belorussian service personnel are taking part, as well as around 70 planes and helicopters. Almost 700 pieces of military hardware are being deployed, including almost 250 tanks, 10 ships and various artillery and rocket systems.

 

(Reporting by Andrew Osborn; Editing by Janet Lawrence)

 

Putin: Russia reserves right to cut further U.S. diplomatic mission

Russian President Vladimir Putin attends a news conference after BRICS (Brazil, Russia, India, China and South Africa) Summit in Xiamen, China September 5, 2017. Sputnik/Mikhail Klimentyev/Kremlin via REUTERS

By Denis Pinchuk

XIAMEN, China (Reuters) – Russia reserves the right to cut further the number of U.S. diplomatic staff in Moscow, Russian President Vladimir Putin said on Tuesday, in response to what he called Washington’s “boorish” treatment of Russia’s diplomatic mission on U.S. soil.

Speaking after U.S. officials ordered Russia to vacate diplomatic premises in several American cities, Putin said he would order the Russian foreign ministry to take legal action over alleged violations of Russia’s property rights.

“That the Americans reduced the number of our diplomatic facilities – this is their right,” Putin told a news conference in the Chinese city of Xiamen, where he was attending a summit of major emerging economies.

“The only thing is that it was done in such a clearly boorish manner. That does not reflect well on our American partners. But it’s difficult to conduct a dialogue with people who confuse Austria and Australia. Nothing can be done about it. Probably such is the level of political culture of a certain part of the U.S. establishment.”

“As for our buildings and facilities, this is an unprecedented thing,” Putin said. “This is a clear violation of Russia’s property rights. Therefore, for a start, I will order the Foreign Ministry to go to court – and let’s see just how efficient the much-praised U.S. judiciary is.”

U.S. President Donald Trump took office in January, saying he wanted to improve ties with Russia. Putin also spoke favorably of Trump.

But relations have been damaged by accusations from U.S. intelligence officials that Russia sought to meddle in the presidential election. Russia has denied interfering in the vote.

Asked by a reporter if he was disappointed with Trump, Putin said: “Whether I am disappointed or not, your question sounds very naive – he is not my bride and, likewise, I am neither his bride nor bridegroom.”

“We are both statesmen. Every nation has interests of its own. In his activities, Trump is guided by the national interests of his country, and I by the interests of mine.”

“I greatly hope that we will be able, just as the current U.S. president said, to find some compromises while resolving bilateral and international problems … taking into account our joint responsibility for international security.”

DIPLOMATIC PARITY

The U.S. order for Russia to vacate some of its diplomatic properties was the latest in a series of tit-for-tat actions that began when former U.S. president Barack Obama, late last year, expelled 35 Russian diplomats.

The Obama administration said it was retaliating for Russian meddling in the U.S. presidential election.

In July, Moscow responded, ordering the United States to cut the number of its diplomatic and technical staff working in Russia by around 60 percent, to 455.

Moscow said the move aimed to bring the number of U.S. and Russian diplomats working on each other’s soil to parity. But Putin said the latest expulsions ordered by Washington brought the number of Russian diplomats on U.S. soil to below parity.

He said the United States was erroneously counting 155 Russian diplomats working at the United Nations headquarters in New York as being Russian diplomats on U.S. soil. If they are removed from the equation, Putin said, Russia has fewer than 455 diplomats in the United States.

“We reserve the right to take a decision on the number of U.S. diplomats in Moscow. But we won’t do that for now. Let’s wait and see how the situation develops further,” he said.

The United States has ordered the closure of the Russian consulate in San Francisco and two buildings housing trade missions in Washington and New York.

U.S.-Russian relations have also been badly strained by Moscow’s annexation of Crimea in 2014 and the subsequent separatist conflict in eastern Ukraine, developments which led Washington to impose economic sanctions on Russia.

Trump, himself battling allegations that his associates colluded with Russia, grudgingly signed into law the new sanctions against Moscow that had been drawn up by Congress.

(Reporting by Denis Pinchuk; Writing by Dmitry Solovyov; Editing by Christian Lowe and Gareth Jones)

Russia pledges ‘harsh response’ to U.S. tit-for-tat measures

A sign outside the entrance to the building of the Consulate General of Russia is shown in San Francisco, California, U.S., August 31, 2017.

By Andrew Osborn

MOSCOW (Reuters) – Russia said on Friday it would respond harshly to any U.S. measures designed to hurt it, a day after the United States told Moscow to close its San Francisco consulate and buildings in Washington and New York.

The warning, from Foreign Minister Sergei Lavrov, came as Russia said it was weighing a response to the U.S. move that will force it to shutter two trade missions in the United States as well as the San Francisco consulate by Sept. 2.

“We’ll react as soon as we finish our analysis,” Lavrov told students in Moscow. “We will respond harshly to things that damage us.”

Separately, a top Kremlin aide complained the U.S. demarche pushed bilateral ties further into a blind alley and fuelled a spiral of tit-for-tat retaliatory measures.

U.S. President Donald Trump took office in January, saying he wanted to improve U.S.-Russia ties which were at a post-Cold War low. But since then, ties have frayed further after U.S. intelligence officials said Russia had meddled in the presidential election, something Moscow denies.

Trump, himself battling allegations his associates colluded with Russia, grudgingly signed new sanctions on Moscow into law this month which had been drawn up by Congress.

When it became clear those measures would become law, Moscow ordered the United States to cut its diplomatic and technical staff in Russia by more than half, to 455 people.

Lavrov hinted on Friday that Russia might look at ordering further reductions in U.S. embassy staff, suggesting Moscow had been generous last time by allowing Washington to keep “more than 150” extra people.

He said Russia had cut the U.S. numbers to tally with the number of Russian diplomats in the United States, but that Moscow had generously included more than 150 Russian staff who work at Russia’s representation office at the United Nations.

Lavrov said Moscow still hoped for better relations and blamed Trump’s political foes for the deteriorating situation.

“I want to say that this whole story with exchanging tit-for-tat sanctions was not started by us,” Lavrov said.

“It was started by the Obama administration to undermine U.S.-Russia relations and to not allow Trump to advance constructive ideas or fulfil his pre-election pledges.”

Barack Obama, then outgoing president, expelled 35 suspected Russian spies in December and seized two Russian diplomatic compounds. President Vladimir Putin paused before responding, saying he would wait to see how Trump handled Russia.

“We thought this administration could exercise common sense, but unfortunately the Russophobes in Congress are not allowing it to,” said Lavrov, who complained that the United States had only given Moscow 48 hours to comply with its latest demands.

 

(Additional reporting by Denis Pinchuk; Editing by Robin Pomeroy)

 

Netanyahu: Iran building missile production sites in Syria, Lebanon

Israeli Prime Minister Benjamin Netanyahu (R) gestures as he delivers a joint statement with U.N. Secretary General Antonio Guterres in Jerusalem August 28,

By Jeffrey Heller

JERUSALEM (Reuters) – Prime Minister Benjamin Netanyahu said on Monday that Iran is building sites to produce precision-guided missiles in Syria and Lebanon, with the aim of using them against Israel.

At the start of a meeting in Jerusalem with U.N. Secretary-General Antonio Guterres, Netanyahu accused Iran of turning Syria into a “base of military entrenchment as part of its declared goal to eradicate Israel.”

“It is also building sites to produce precision-guided missiles towards that end, in both Syria and in Lebanon. This is something Israel cannot accept. This is something the U.N. should not accept,” Netanyahu said.

Iran, Israel’s arch-enemy, has been Syrian President Bashar al-Assad’s staunchest backer and has provided militia fighters to help him in Syria’s civil war.

There was no immediate comment from Iran.

Israel has pointed to Tehran’s steadily increasing influence in the region during the six-year-old Syrian conflict, whether via its own Revolutionary Guard forces or Shi’ite Muslim proxies, especially Hezbollah.

On Wednesday, Netanyahu, in a meeting with Russian President Vladimir Putin, said Israel was prepared to act unilaterally to prevent an expanded Iranian military presence in Syria.

Russia, also an Assad ally, is seen as holding the balance of power in achieving a deal on Syria’s future. Israel fears an eventual Assad victory could leave Iran with a permanent garrison in Syria, extending a threat posed from neighboring Lebanon by Hezbollah.

Netanyahu accused Iran of building the production sites two weeks after an Israeli television report showed satellite images it said were of a facility Tehran was constructing in northwest Syria to manufacture long-range rockets.

The Channel 2 News report said the images were of a site near the Mediterranean coastal town of Baniyas and were taken by an Israeli satellite.

In parallel to lobbying Moscow, Israel has been trying to persuade Washington that Iran and its guerrilla partners, not Islamic State, pose the greater common threat in the region.

 

(Additional reporting and editing by Maayan Lubell; Editing by Richard Balmforth)

 

Tillerson says U.S., Russia can settle problems, ease tension

U.S. Secretary of State Rex Tillerson answers questions during a news conference in Manila, Philippines August 7, 2017.

By Karen Lema

MANILA (Reuters) – U.S. Secretary of State Rex Tillerson said on Monday he believes Washington and Russia can find a way to ease tensions, saying it wouldn’t be useful to cut ties over the single issue of suspected Russian meddling in the U.S. election.

Tillerson said Russia had also expressed some willingness to resume talks about the crisis in Ukraine, where a 2015 ceasefire between Kiev’s forces and Russian-backed separatists in the eastern part of the country is regularly violated.

“We should find places we can work together… In places we have differences we’re going to have to continue to find ways to address those,” Tillerson told reporters.

Tillerson met his Russian counterpart, Sergei Lavrov, on the sidelines of an international gathering in Manila on Sunday, where he also asked about Moscow’s retaliation against new U.S. sanctions.

Tillerson said he told Lavrov the United States would respond to the Kremlin’s order for it to cut about 60 percent of its diplomatic staff in Russia by September 1.

“We have not made a decision on how we will respond to Russia’s request to remove U.S. diplomatic personnel. I asked several clarifying questions…I told him we would respond by September first,” Tillerson said.

The meeting was their first since President Donald Trump reluctantly signed into law the sanctions that Russia said amounted to a full-scale trade war and ended hopes for better ties.

Lavrov on Sunday said he believed his U.S. colleagues were ready to continue dialogue with Moscow on complex issues despite tensions.

Tillerson said he discussed Russia’s suspected meddling in the 2016 U.S. presidential election with Lavrov to “help them understand how serious this incident had been and how seriously it damaged the relationship” between the two nations.

But Tillerson said that should not irreversibly damage ties.

“The fact that we want to work with them on areas that are of serious national security interest to us, and at the same time having this extraordinary issue of mistrust that divides us, that is just what we in the diplomatic part of our relationship are required to do,” Tillerson said.

The United States sent its special representative on Ukraine, Kurt Volker, a former U.S. envoy to NATO, to Ukraine last month to assess the situation in the former Soviet republic.

Washington cites the conflict as a key obstacle to improved relations between Russia and the United States.

“We appointed a special envoy to engage with Russia but also coordinating with all parties. This is full visibility to all parties. We are not trying to cut some kind of deal on the side,” Tillerson said.

 

(Editing by Martin Petty and Nick Macfie)

 

Russia takes over U.S. compound in Moscow in retaliation over sanctions

Russia takes over U.S. compound in Moscow in retaliation over sanctions

MOSCOW (Reuters) – Russian authorities on Wednesday took over a summer-house compound in Moscow leased by the U.S. embassy, five days after the Kremlin ordered Washington to slash its diplomatic presence in Russia.

In retaliation for new U.S. sanctions, President Vladimir Putin has ordered the United States to cut around 60 percent of its diplomatic staff in Russia by Sept. 1, and said Moscow would seize a dacha country villa used by U.S. embassy staff and a warehouse.

U.S. employees cleared out the dacha on Tuesday and a Reuters journalist who visited the property on Wednesday saw a large metal padlock securing the front gate.

The one-storey building and courtyard, previously used by diplomatic staff at weekends and to host embassy parties, was empty and cleared of barbecue equipment and garden furniture.

Two policemen in a car in front of the main entrance said they had been instructed to guard the property and did not expect any visits from U.S. or Russian officials.

“I don’t know when this situation will change,” one of the policemen said.

Maria Olson, a spokeswoman for the U.S. embassy, had no immediate comment when contacted by Reuters. She was quoted by Russia’s Interfax news agency as saying the embassy had retrieved all its possessions from the villa, and from the warehouse.

Putin said on Sunday Russia had ordered the United States to cut 755 of its 1,200 diplomatic staff in its embassy and consular operations, though many of those let go will be Russian citizens, with the United States allowed to choose who leaves.

The ultimatum issued by the Russian leader is a display to voters at home that he is prepared to stand up to Washington – but is also carefully calibrated to avoid directly affecting the U.S. investment he needs, or burning his bridges with U.S. President Donald Trump.

One local Russian employee at the embassy, who declined to be named when speaking to the media, said staff were still in the dark about their future employment.

“They say they will have to cut a lot of jobs – not just diplomats and technical staff, but also in the ancillary services, including drivers, janitors and cooks,” he said. “I hope I won’t be in trouble, but who knows.”

(Reporting by Jack Stubbs and Dmitry Solovyov; Editing by Richard Balmforth)

Trump to sign Russia sanctions, Moscow retaliates

FILE PHOTO - U.S. President Donald Trump shakes hands with Russia's President Vladimir Putin during their bilateral meeting at the G20 summit in Hamburg, Germany July 7, 2017. REUTERS/Carlos Barria/File Photo

By Eric Beech and Andrew Osborn

WASHINGTON/MOSCOW (Reuters) – U.S. President Donald Trump will sign legislation that imposes sanctions on Russia, the White House said on Friday, after Moscow ordered the United States to cut hundreds of diplomatic staff and said it would seize two U.S. diplomatic properties in retaliation for the bill.

The U.S. Senate had voted almost unanimously on Thursday to slap new sanctions on Russia, forcing Trump to choose between a tough position on Moscow and effectively dashing his stated hopes for warmer ties with the country or to veto the bill amid investigations in possible collusion between his campaign and Russia.

By signing the bill into law, Trump can not ease the sanctions against Russia unless he seeks congressional approval.

Moscow’s retaliation, announced by the Foreign Ministry on Friday, had echoes of the Cold War. If confirmed that Russia’s move would affect hundreds of staff at the U.S. embassy, it would far outweigh the Obama administration’s expulsion of 35 Russians in December.

The legislation was in part a response to conclusions by U.S. intelligence agencies that Russia meddled in the 2016 U.S. presidential election, and to further punish Russia for its annexation of Crimea in 2014.

Late on Friday, the White House issued a statement saying Trump would sign the bill after reviewing the final version. The statement made no reference to Russia’s retaliatory measures.

Russia had been threatening retaliation for weeks. Its response suggests it has set aside initial hopes of better ties with Washington under Trump, something the U.S. leader, before he was elected, had said he wanted to achieve.

Relations were already languishing at a post-Cold War low because of the allegations that Russian cyber interference in the election was intended to boost Trump’s chances, something Moscow flatly denies. Trump has denied any collusion between his campaign and Russian officials.

The Russian Foreign Ministry complained of growing anti-Russian feeling in the United States, accusing “well-known circles” of seeking “open confrontation”.

President Vladimir Putin had warned on Thursday that Russia would have to retaliate against what he called boorish U.S. behavior. Putin’s spokesman, Dmitry Peskov, told reporters on Friday that the Senate vote was the last straw.

Russian foreign minister Sergei Lavrov told U.S. Secretary of State Rex Tillerson by telephone that Russia was ready to normalize relations with the United States and to cooperate on major global issues.

Lavrov and Tillerson “agreed to maintain contact on a range of bilateral issues”, the Russian Foreign Ministry said.

The ministry said the United States had until Sept. 1 to reduce its diplomatic staff in Russia to 455 people, the number of Russian diplomats left in the United States after Washington expelled 35 Russians in December.

‘EXTREME AGGRESSION’

It was not immediately clear how many U.S. diplomats and other workers would be forced to leave either the country or their posts, but the Interfax news agency cited an informed source as saying “hundreds” of people would be affected.

A diplomatic source told Reuters that it would be for the United States to decide which posts to cut, whether occupied by U.S. or Russian nationals.

An official at the U.S. Embassy, who declined to be named because they were not allowed to speak to the media, said the Embassy employed around 1,100 diplomatic and support staff in Russia, including Russian and U.S. citizens.

Russian state television channel Rossiya 24 said over 700 staff would be affected but that was not confirmed by the foreign ministry or the U.S. embassy.

The Russian Foreign Ministry’s statement said the passage of the bill confirmed “the extreme aggression of the United States in international affairs”.

Deputy Foreign Minister Sergei Ryabkov met outgoing U.S. ambassador John Tefft on Friday to inform him of the counter measures, Russian news agencies reported. The U.S. Embassy said Tefft had expressed his “strong disappointment and protest”.

Most U.S. diplomatic staff, including around 300 U.S. citizens, work in the main embassy in Moscow, with others based in consulates in St Petersburg, Yekaterinburg and Vladivostok.

The Russian Foreign Ministry said it was also seizing a Moscow dacha compound used by U.S. diplomats for recreation, from Aug. 1, as well as a U.S. diplomatic warehouse in Moscow.

In December, the outgoing Obama administration seized two Russian diplomatic compounds – one in New York and another in Maryland – at the same time as it expelled Russian diplomats.

Trump and Putin met for the first time at a G20 summit in Germany this month in what both sides described as a productive encounter, but Russian officials have become increasingly convinced that Congress and Trump’s political opponents will not allow him to mend ties, even if he wants to.

The European Union has also threatened to retaliate against new U.S. sanctions on Russia, saying they would harm the bloc’s energy security by targeting projects including a planned new pipeline to bring Russian natural gas to northern Europe.

A European Commission spokesman in Brussels said the bloc would be following the sanctions process closely.

(Additional reporting by Dmitry Solovyov, Polina Devitt, Jack Stubbs and Denis Pinchuk in Moscow, Patricia Zengerle and Ayesha Rascoe in Washington; Editing by Kevin Liffey, Grant McCool and Christian Schmollinger)

U.S. lawmakers reach deal for Senate Russia sanctions vote

Senator Bob Corker (R-TN) arrives for a health care vote on Capitol Hill in Washington, U.S. July 26, 2017. REUTERS/Eric Thayer

By Patricia Zengerle, Andrew Osborn and Philip Blenkinsop

WASHINGTON/MOSCOW/BRUSSELS (Reuters) – U.S. lawmakers reached an agreement on Wednesday paving the way for the U.S. Senate to pass a bill as soon as this week to impose new sanctions on Russia and bar President Donald Trump from easing sanctions on Moscow without Congress’ approval.

Earlier on Wednesday, Russia warned it was edging closer to retaliation against Washington after the House of Representatives backed new U.S. sanctions on Moscow, while the European Union said the move might affect its energy security and it stood ready to act too.

“I am glad to announce that we have reached an agreement that will allow us to send sanctions legislation to the president’s desk,” Senator Bob Corker, the Republican chairman of the U.S. Senate Foreign Relations Committee, said in a statement on Wednesday evening.

He said the Senate would move to approve sanctions on Russia and Iran that it originally passed in mid-June, as well as sanctions on North Korea developed by the House of Representatives and included in a bill the House passed overwhelmingly on Wednesday.

Before the latest agreement, some senators had objected to the North Korea measures and it had looked like the sanctions bill, already delayed since mid-June, could languish into September.

If the bill passes the Senate as expected, it would be sent to the White House for Trump to sign into law or veto. It is, however, expected to garner enough support to override a Trump veto.

The House voted 419-3 on Tuesday to impose new sanctions on Moscow and force Trump to obtain lawmakers’ approval before easing any punitive measures on Russia.

“This is rather sad news from the point of view of Russia-U.S. ties,” said Dmitry Peskov, a Kremlin spokesman. “We are talking about an extremely unfriendly act.”

He said President Vladimir Putin would decide if and how Moscow would retaliate once the sanctions became law. Russia’s deputy foreign minister warned the move was taking bilateral relations into uncharted waters, killing off hopes of improving them in the near future.

DOGGED BY RUSSIA ALLEGATIONS

Trump, whose presidency has been embroiled in a distracting dispute over his associates’ alleged ties to Moscow, is on the defensive over accusations Russia helped elect him last year. He has said he wants to mend relations with Russia that are languishing at a post-Cold War low.

Trump had denied that there was any collusion between his campaign and Russia.

Most White House watchers believe Trump will reluctantly sign off on the new sanctions, given deep support for them among U.S. lawmakers and his desire to avoid being accused of being soft on Moscow.

Representative Ed Royce, the Republican chairman of the House Foreign Affairs Committee, said Trump would have little choice. The Senate passed a version of the legislation, without the North Korea sanctions, on June 15 by 98-2.

“I think the president will sign it,” Royce said on NBC’s Meet the Press Daily on Wednesday.

The issue has rattled Russia, which fears that its economy, weakened by 2014 Western sanctions imposed over its role in the Ukraine crisis, will now find it harder to recover and grow. Foreign investors could be scared off.

The European Union frets that new U.S. restrictions could pose obstacles to its companies doing business with Russia and threaten the bloc’s energy supply lines.

The Kremlin’s alleged interference in the 2016 U.S. presidential election is one reason lawmakers have pushed for the new sanctions.

HOPES FADE FOR DETENTE

Peskov said Moscow would wait until the sanctions became law before fully analyzing them and deciding how to respond.

Moscow had hoped that Trump, who made upbeat statements about Putin before winning the White House, would work to repair the U.S.-Russia relationship. But it has watched with frustration as the vote-meddling allegations killed off hopes of any detente.

The Russian Foreign Ministry said this month that too many American spies were operating in Russia under diplomatic cover and it might expel some to retaliate for the expulsion of 35 Russian diplomats last year by then-President Barack Obama’s administration.

Many Russian politicians increasingly believe Trump’s political foes and Congress have left the U.S. president with little room for maneuver on Russia and they have nothing to lose by retaliating.

In Brussels, European Commission President Jean-Claude Juncker said the EU was ready to act “within a matter of days” if it felt the new U.S. sanctions undermined the bloc’s energy security.

Brussels fears the new sanctions will damage European firms and oil and gas projects on which the EU is dependent.

The Russia section of the bill includes sanctions on a range of industries.

Several provisions target Russian energy, with new limits on U.S. investment in Russian companies. U.S. firms also would be barred from participating in energy exploration projects where Russian firms have a stake of 33 percent or higher.

The bill includes sanctions on foreign firms investing in or helping Russian energy exploration, although the president could waive those sanctions.

The bill would give the Trump administration the option of imposing sanctions on firms helping develop Russian export pipelines, such as the Nord Stream 2 pipeline carrying natural gas to Europe, in which German companies are involved.

In a concession to allies, those sanctions are optional, not mandatory.

The European Commission said a number of EU concerns had been taken into account in the most recent version of the bill, but said it could lead to sanctions on any company, including European, that worked on Russian energy export pipelines.

(Additional reporting by Dmitry Solovyov and Katya Golubkova in Moscow, Alissa de Carbonnel in Brussels and Susan Heavey in Washington; Editing by Yara Bayoumy, James Dalgleish, Toni Reinhold)

Why Ukrainian forces gave up Crimea without a fight – and NATO is alert

Vice Admiral Sergei Yeliseyev, First Deputy Commander of the Ukrainian fleet, attends joint maritime exercises with Russian Navy forces in the Crimean port of Sevastopol, Ukraine, June 22, 2013.

By Pavel Polityuk and Anton Zverev

KIEV/SEVASTOPOL, Crimea (Reuters) – The career of Sergei Yeliseyev helps to explain why Ukraine’s armed forces gave up Crimea almost without a fight – and why NATO now says it is alert to Russian attempts to undermine military loyalty in its eastern European members.

His rise to become number two in the Ukrainian navy long before Russia seized Crimea illustrates the divided loyalties that some personnel in countries that once belonged to the Soviet Union might still face.

Yeliseyev’s roots were in Russia but he ended up serving Ukraine, a different ex-Soviet republic, only to defect when put to the test. NATO military planners now believe Moscow regards people with similarly ambiguous personal links as potentially valuable, should a new confrontation break out with the West.

In 2014, Yeliseyev was first deputy commander of the Ukrainian fleet, then largely based in Crimea, when Russian soldiers in unmarked uniforms took control of Kiev’s ships and military bases on the peninsula.

Instead of resisting, Yeliseyev quit and subsequently got a new job: deputy chief of Russia’s Baltic Fleet.

Yeliseyev, now aged 55, did not respond to Reuters questions sent to him via the Russian defense ministry.

In Kiev, however, there is no doubt where his loyalties lay. “When he took an oath to Ukraine, these were empty words for him. He has always been pro-Russian,” said Ihor Voronchenko, now commander of the Ukrainian navy, who once served with Yeliseyev.

In fact, the Russian soldiers were pushing at an open door in late February 2014 – Yeliseyev was just one of many to defect and almost all Ukrainian forces in Crimea failed to resist.

Russia annexed Crimea the following month, prompting a major row with the West which deepened over Moscow’s role in a rebellion in eastern Ukraine that lasts to this day.

At the time, Moscow and its allies in Crimea exploited weaknesses within Kiev’s military to undermine its ability to put up a fight, according to interviews conducted by Reuters with about a dozen people on both sides of the conflict.

The Russian defense ministry did not respond to questions on their accounts of the events in 2014 submitted by Reuters.

One NATO commander told Reuters that, in a re-run of the tactics it deployed in Crimea, Russian intelligence was trying to recruit ethnic Russians serving in the militaries of countries on its borders.

Speaking on condition of anonymity, the commander said the alliance was particularly sensitive to the risk in countries with high concentrations of ethnic Russians, notably the Baltic states.

NATO had to guard against this, said the commander, though the risk should not be overstated because having Russian roots did not necessarily mean that a person’s loyalty is to Moscow.

Officials in the Baltic states, former Soviet republics which unlike Ukraine are NATO members, play down the danger.

NATO Secretary-General Jens Stoltenberg likewise said he trusted the armies of the Estonia, Latvia and Lithuania. Still, he told Reuters: “We always have to be vigilant. We always have to develop our intelligence tools and to be able to see any attempts to try to undermine the loyalty of our forces.”

 

DROPPING THE GUARD

Years before the Crimean annexation, a Ukrainian appointment panel appeared to drop its guard when it interviewed Yeliseyev for the deputy naval commander’s post.

Yeliseyev was born near Moscow, graduated from a Soviet naval school in the Russian city of Kaliningrad in 1983 and served with the Russian Pacific fleet.

So the panel asked Yeliseyev what he would do if Russia and Ukraine went to war. He replied that he would file for early retirement, according to Myroslav Mamchak, a former Ukrainian naval captain who served with Yeliseyev. Despite this response, Yeliseyev got the job in 2006.

Mamchak did not disclose to Reuters how he knew what was said in the interview room but subsequent events bear out his account.

Relations between Russia and Ukraine dived as Kiev moved closer to NATO and eight years after his appointment, with the countries on the brink of conflict over Crimea, Yeliseyev stayed true to his word by quitting.

Russia’s actions were not the only factor in the Crimean events. Ukraine’s military had suffered years of neglect, there was a power vacuum in Kiev after the government was overthrown, and many Crimean residents felt more affinity with Moscow.

Still, Ukrainian service personnel with Russian ties switched sides when the annexation began and some officers pretended to put up resistance only to avoid court-martial. Moscow also intercepted orders from Kiev so they never reached the Crimean garrison.

“There was nothing spontaneous. Everything was organized and each fiddler played his role,” said Mykhailo Koval, who at the time was deputy head of the Ukrainian border guard and is now deputy head of the Security Council in Kiev.

 

INVITATION TO DEFECT

Voronchenko, who was another deputy commander of the navy at the time of the annexation, said he had received invitations to defect to Moscow’s side soon after the Russian operation began.

These, he told Reuters, came from Sergei Aksyonov, who was then head of Crimea’s self-proclaimed pro-Russian government, as well as from the commander of Russia’s southern military district and a deputy Russian defense minister.

Asked what they offered in exchange, Voronchenko said: “Posts, an apartment … Aksyonov offered to make me defense minister of Crimea.” Neither Aksyonov nor the Russian defense ministry responded to Reuters questions about the contacts.

Voronchenko, in common with many other senior Ukrainian officers, had been in the Soviet military alongside people now serving in the Russian armed forces. He had spent years in Crimea, where Russia leased bases from Ukraine for its Black Sea fleet after the 1991 break up of the Soviet Union.

“Those generals who came to persuade me … said that we belong to the same circle, we came from the Soviet army,” he said. “But I told them I am different … I am not yours.”

Naval chief Denis Berezovsky did defect, along with several of his commanders, and was later made deputy chief of the Russian Black Sea fleet.

Many in the ranks followed suit. At one Ukrainian signals unit, service personnel were watching Russian television when President Vladimir Putin appeared on the screen.

“To my surprise, they all stood up,” said Svyatoslav Veltynsky, an engineer at the unit. “They had been waiting for this.” The majority of the unit defected to the Russian side.

 

JUST A SHOW

Even those willing to resist found themselves in a hopeless position. One member of the Ukrainian border guards told Reuters how his commander had despatched their unit’s ships to stop them falling into Russian hands, and ordered his men to train their rifles on anyone trying to enter their base.

However, the base’s military communications were not working, having been either jammed or cut by the Russians. Isolated from his own side, and outnumbered and outgunned by Russian troops outside, the commander struck a deal with the head of a Russian special forces unit.

Pro-Russian civilians were allowed to force the base’s gate without reprisals. The Ukrainians “supposedly could not do anything; you cannot shoot civilians”, the member of the unit said on condition of anonymity because he is still living in Crimea and feared repercussions.

Russian troops then followed the civilians in, taking over the base and offering the unit a chance to switch allegiance to Russia. About half agreed, although the base’s chief refused and was allowed to leave Crimea.

“The commander did not resist,” said the unit member. “On the other hand, he did what he could under the circumstances.”

Two other people involved in the annexation – a former Ukrainian serviceman now on a Russian base in Crimea, and a source close to the Russian military who was there at the time – also described witnessing similar faked confrontations.

“You have to understand that the seizure of Ukrainian military units in Crimea was just a show,” said the source close to the Russian military.

 

LESSONS LEARNED

NATO’s Baltic members differ significantly from Ukraine. Soviet-era commanders, for instance, largely left their armed forces after the countries joined the Western alliance in 2004.

Officials also point out that Russian speakers were among the seven members of Latvia’s forces to die during international deployments to Afghanistan and Iraq.

Nevertheless, lessons have been learned from Crimea. “We learned, of course, that there was not only the issue of loyalty, but also false orders were submitted and there was a blockage of communication during the Crimea operation,” said Janis Garisons, State Secretary in the Latvian defense ministry.

Latvia has changed the law so that unit commanders are obliged to resist by default. But Garisons said the simplest step was taken long before the annexation, with the introduction in 2008 of vetting by the security services for “everybody who joins the armed forces, from private to general”.

 

(Additional reporting by Margaryta Chornokondratenko in KIEV, Andrius Sytas in VILNIUS, Gederts Gelzis in RIGA, David Mardiste in TALLINN, and Robin Emmott in BRUSSELS; editing by David Stamp)

 

Kremlin hopes Putin-Trump meeting to establish working dialogue

FILE PHOTO: A combination of file photos showing Russian President Vladimir Putin at the Novo-Ogaryovo state residence outside Moscow, Russia, January 15, 2016 and U.S. President Donald Trump posing for a photo in New York City, U.S., May 17, 2016. REUTERS/Ivan Sekretarev/Pool/Lucas Jackson/File Photos

MOSCOW (Reuters) – Moscow hopes the first face-to-face meeting between Russian President Vladimir Putin and his U.S. counterpart Donald Trump later this week will establish an effective working dialogue between the two men, the Kremlin said on Wednesday.

The meeting, due to be held on the sidelines of the G20 summit in Hamburg on Friday, will be closely watched at a time when ties between the two countries remain strained by U.S. allegations of Russian election hacking, Syria, Ukraine and a U.S. row over Trump associates’ links to Moscow.

“This is the first meeting, the first time the two presidents will get acquainted – this is the main thing about it,” Kremlin spokesman Dmitry Peskov told a conference call with reporters.

“The expectation is that a working dialogue will be established, which is vitally important for the entire world when it comes to increasing the efficiency of resolving a critical mass of conflicts.”

The meeting would explore whether there was a chance and a readiness for the two countries to fight international terrorism together in Syria, Peskov said, saying Putin would explain Moscow’s stance on the conflicts in both Syria and Ukraine.

But Peskov said the meeting’s brief format meant the Russian leader might not have enough time to give a full analysis of what Moscow regarded as the causes of the Ukraine crisis.

Three years after Russia annexed Crimea from Ukraine and a pro-Russian separatist uprising broke out in eastern Ukraine, there is little sign of a peaceful solution in the east despite a ceasefire agreement signed in February 2015 in Minsk, Belarus.

Those accords were signed by France, Germany, Russia and Ukraine. Kiev accuses Moscow of actively supporting the pro-Russian separatists. Russia denies the charge.

The meeting with Trump would “be a good chance to reiterate Russia’s stance that the Minsk accords have no alternative, that the Minsk accords must be implemented, and that measures must be taken to stop provocations which unfortunately Ukraine’s armed forces are still carrying out,” Peskov said.

(Reporting by Dmitry Solovyov; Editing by Andrew Osborn)