Russia will not expel anyone in response to U.S. sanctions, Putin says

A guard screens cars entering the Russian embassy on Wisconsin Avenue in Washington, U.S.

By Polina Devitt and Polina Nikolskaya

MOSCOW (Reuters) – President Vladimir Putin said Moscow would not expel anyone in response to Washington’s decision to throw out 35 suspected Russian spies and sanction intelligence agencies it believes were involved in computer hacking in the 2016 presidential election.

Foreign Minister Sergei Lavrov earlier proposed expelling 35 U.S. diplomats after outgoing U.S. President Barack Obama ordered the expulsions and sanctions on Thursday.

But Putin said he would wait for the actions of President-elect Donald Trump, who will take office on Jan. 20, before deciding on any further steps in relations with the United States.

“We will not expel anyone,” Putin said in a statement on Friday. “While keeping the right for retaliatory measures, we will not descend to the level of ‘kitchen’, irresponsible diplomacy.”

He even invited the children of U.S. diplomats to a party in the Kremlin.

It was not clear whether Trump, who has repeatedly praised Putin and nominated people seen as friendly toward Moscow to senior administration posts, would seek to roll back the measures which mark a new post-Cold War low in U.S.-Russian ties.

Russian officials have portrayed the sanctions as a last act of a lame-duck president and suggested that Trump could reverse them when he takes over the White House.

“Further steps towards the restoration of Russian-American relations will be built on the basis of the policy which the administration of President D. Trump will carry out,” said Putin.

In a separate message of New Year congratulations to Trump, he said Russia-U.S. relations were an important factor for maintaining global safety and stability.

The U.S. sanctions also closed two Russian compounds in New York and Maryland that the administration said were used by Russian personnel for “intelligence-related purposes”.

However, a former Russian Foreign Ministry employee told Reuters that the facility in Maryland was a dacha used by diplomatic staff and their children.

Lavrov also proposed banning U.S. diplomats from using a dacha in Moscow’s prestigious waterfront park area, Serebryany Bor.

But Putin said Russia would not prohibit U.S. diplomats and their families from their usual vacation spots. “Moreover, I invite all children of American diplomats accredited in Russia to the New Year and Christmas party in the Kremlin,” he said.

Obama, a Democrat, had promised consequences after U.S. intelligence officials blamed Russia for hacks intended to influence the 2016 election. Officials pointed the finger directly at Putin for personally directing the efforts and primarily targeting Democrats.

Washington put sanctions on two Russian intelligence agencies, the GRU and the FSB, four GRU officers and three companies that he said “provided material support to the GRU’s cyber operations”.

“EMBITTERED LOSERS”

Russian Prime Minister Dmitry Medvedev was more outspoken in his criticism. “It is regrettable that the Obama administration, which started out by restoring our ties, is ending its term in an anti-Russia death throes. RIP,” he wrote on his official Facebook page.

Russian Foreign Ministry spokeswoman Maria Zakharova called the Obama administration “a group of embittered and dimwitted foreign policy losers”.

Obama said Americans should be alarmed by Russia’s actions in the U.S. election.

“These actions follow repeated private and public warnings that we have issued to the Russian government, and are a necessary and appropriate response to efforts to harm U.S. interests in violation of established international norms of behavior,” he said in a statement from Hawaii, where he is on vacation.

The sanctions were the strongest response yet by the his administration to Russian cyber activities. However, a senior administration official acknowledged that Trump could reverse them and allow Russian intelligence officials back into the United States once he takes office.

Trump has brushed aside allegations from the CIA and other intelligence agencies that Russia was behind the cyber attacks. He said on Thursday he would meet with intelligence officials soon. “It’s time for our country to move on to bigger and better things,” Trump said in a statement.

“Nevertheless, in the interest of our country and its great people, I will meet with leaders of the intelligence community next week in order to be updated on the facts of this situation,” he said, without mentioning Russia.

U.S. intelligence agencies say Russia was behind hacks into Democratic Party organizations and operatives before the Nov. 8 presidential election. U.S. intelligence officials say the Russian cyber attacks were aimed at helping Trump defeat Democrat Hillary Clinton.

Incoming White House Chief of Staff Reince Priebus told Fox News he did not condone foreign governments hacking U.S. institutions.

“It’s wrong and it’s something we don’t agree with,” Priebus said. “However, it would be nice if we could get to a place where the intelligence community in unison can tell us what it is that has been going on and what the investigation was and what it has led to so that we can respond.”

“PERSONA NON GRATA”

Obama said the State Department declared as “persona non grata” 35 Russian intelligence operatives and was closing the two Russian compounds. The 45-acre complex in Maryland includes a Georgian-style brick mansion, swimming pool, tennis courts and cottages for embassy staff.

A senior U.S. official told Reuters the expulsions would come from the Russian embassy in Washington and consulate in San Francisco.

The Russians have 72 hours to leave the United States, the official said. Access to the two compounds will be denied to all Russian officials as of noon on Friday.

The State Department has long complained that Russian security agents and traffic police have harassed U.S. diplomats in Moscow, and U.S. Secretary of State John Kerry has raised the issue with Putin and Lavrov.

The U.S. official declined to name the Russian diplomats who would be affected, although it is understood that Russia’s ambassador to the United States, Sergei Kislyak, will not be one of those expelled.

Obama said the actions announced on Thursday were just the beginning.

“These actions are not the sum total of our response to Russia’s aggressive activities. We will continue to take a variety of actions at a time and place of our choosing, some of which will not be publicized,” Obama said.

A report detailing Russia’s interference in the 2016 election as well as cyber attacks in previous election cycles would be delivered to Congress in the coming days, he added.

(Additional reporting by Dustin Volz, Yeganeh Torbati, Eric Beech and Nikolai Pavlov in Washington and Katya Golubkova and Svetlana Reiter in Moscow; Writing by Anna Willard; Editing by David Stamp)

Obama sanctions Russia for intervening in 2016 election

U.S. Democratic presidential nominee Hillary Clinton's campaign chairman John Podesta walks off the stage after addressing supporters at the election night rally in New York, U.S.,

HONOLULU (Reuters) – President Barack Obama on Thursday authorized a series of sanctions against Russia for intervening in the 2016 U.S. presidential election and warned of more action to come.

“These actions follow repeated private and public warnings that we have issued to the Russian government, and are a necessary and appropriate response to efforts to harm U.S. interests in violation of established international norms of behavior,” Obama said in a statement.

“These actions are not the sum total of our response to Russia’s aggressive activities. We will continue to take a variety of actions at a time and place of our choosing, some of which will not be publicized,” he said.

Obama said a report by his administration about Russia’s efforts to interfere in the 2016 election would be delivered to Congress in the coming days.

(Reporting by Jeff Mason; Editing by Chris Reese)

U.S. expels 35 Russian diplomats, closes two compounds

U.S. President Barack Obama and Russian President Vladimir Putin walk into a photo opportunity before their meeting at the United Nations General Assembly in New York

WASHINGTON (Reuters) – The United States expelled 35 Russian diplomats and closed two Russian compounds in New York and Maryland in response to a campaign of harassment against American diplomats in Moscow, a senior U.S. official said on Thursday.

The move against the diplomats from the Russian embassy in Washington and consulate in San Francisco is part of a series of actions announced on Thursday to punish Russia for a campaign of intimidation of American diplomats in Moscow and interference in the U.S. election.

The Obama administration was also announcing on Thursday a series of retaliatory measures against Russia for hacking into U.S. political institutions and individuals and leaking information to help President-elect Donald Trump and other Republican candidates, two U.S. officials said.

Trump, who takes office on Jan. 20, has called for better relations with Russia. It was not clear if he will be able to immediately overturn the measures announced on Thursday.

The Russian diplomats would have 72 hours to leave the United States, the official said. Access to the two compounds, which are used by Russian officials for intelligence gathering, will be denied to all Russian officials as of noon on Friday, the senior U.S. official added.

“These actions were taken to respond to Russian harassment of American diplomats and actions by the diplomats that we have assessed to be not consistent with diplomatic practice,” the official said.

The State Department has long complained that Russian security agents and traffic police have harassed U.S. diplomats in Moscow, and U.S. Secretary of State John Kerry has raised the issue with Russian President Vladimir Putin and his foreign minister, Sergei Lavrov.

“By imposing costs on the Russian diplomats in the United States, by denying them access to the two facilities, we hope the Russian government reevaluates its own actions, which have impeded the ability and safety of our own embassy personnel in Russia,” the official said.

The U.S. official declined to name the Russian diplomats who would be affected, although it is understood that Russia’s ambassador to the United States, Sergei Kislyak, will not be one of those expelled.

(Reporting by Lesley Wroughton; Editing by Yara Bayoumy and Alistair Bell)

Russia announces ceasefire in Syria from midnight

Russian President Vladimir Putin attends a session of the Collective Security Treaty Organisation (CSTO) in St. Petersburg, Russia December 26, 2016.

By Denis Pinchuk and Tulay Karadeniz

MOSCOW/ANKARA (Reuters) – Russian President Vladimir Putin announced a ceasefire between Syrian opposition groups and the Syrian government starting at midnight on Thursday.

The Kremlin statement came after Moscow, Iran and Turkey said they were ready to broker a peace deal in the nearly six-year-old Syrian war.

The Syrian army announced a nationwide halt to fighting but said Islamic State and ex-Nusra Front militants and all groups linked to them would be excluded from the deal. It did not say which unnamed groups would be excluded.

Several rebel officials told Reuters they had agreed to the ceasefire plan, but there was uncertainty over which groups were included in the deal, which was due to come into effect at 2200 GMT on Thursday.

Talks on a ceasefire picked up momentum after Russia, Iran and Turkey last week said they were ready to back a deal and adopted a declaration setting out principles that any agreement should adhere to.

Putin said Syrian opposition groups and the Syrian government had signed a number of documents including the ceasefire that would take effect at midnight on the night of Dec 29-30.

“The agreements reached are, of course, fragile, need a special attention and involvement… But after all, this is a notable result of our joint work, efforts by the defence and foreign ministries, our partners in the regions,” Putin said.

He also said that Russia had agreed to reduce its military deployment in Syria.

WASHINGTON SIDELINED

The United States has been sidelined in recent negotiations and is not due to attend the next round of peace talks in Astana, capital of Kazakhstan, a key Russian ally.

Its exclusion reflects growing frustration from both Turkey and Russia over Washington’s policy on Syria, officials have said.

However, Russian Foreign Minister Sergei Lavrov said the United States could join the peace process once President-elect Donald Trump takes office.

Talks towards a ceasefire to end the conflict reflect the complexity of Syria’s civil war, with an array of groups and foreign interests involved on all sides.

The deal by Turkey and Russia to act as guarantors in the war comes despite their support of different sides in the civil war. Ankara has insisted on the departure of Syrian President Bashar al-Assad, who is backed by Russia.

Likewise, demands that troops from Lebanese Shi’ite Hezbollah leave Syria may not sit well with Iran, another major supporter of Assad. Hezbollah troops have been fighting alongside Syrian government forces against rebels opposed to Assad.

“All foreign fighters need to leave Syria. Hezbollah needs to return to Lebanon,” Turkish foreign minister Mevlut Cavusoglu said.

Sources have told Reuters that, under an outline deal between the three countries, Syria could be divided into informal zones of regional power and Assad would remain president for at least a few years.

HURDLES

There are also more immediate hurdles. Syrian rebel groups were due to hold talks with Turkish officials in Ankara on Thursday.

A senior rebel official told Reuters this week the groups were discussing with Turkey the ceasefire proposal being negotiated with Russia.

They had rejected Moscow’s demand to exclude a rebel stronghold near the capital from any deal, said Munir al Sayal, the head of the political wing of Ahrar al Sham, whose group is involved in talks with Turkey.

Children play near rubble of damaged buildings in al-Rai town, northern Aleppo countryside, Syria

Children play near rubble of damaged buildings in al-Rai town, northern Aleppo countryside, Syria December 25, 2016. REUTERS/Khalil Ashawi

Ankara supports the Free Syrian Army, a loose alliance of rebel groups, some of which it is backing in operations in northern Syria designed to sweep Islamic State and Syrian Kurdish fighters from its southern border.

The United States is backing the Syrian Kurdish YPG in the fight against Islamic State in Syria, a move that has infuriated Turkey, which sees the YPG as an extension of the militant Kurdistan Workers Party (PKK). Ankara fears that advances by Kurdish fighters in Syria could inflame militants at home.

Turkish President Tayyip Erdogan has accused the United States of supporting terrorism in Syria, including Islamic State, comments that Washington has dismissed as “ludicrous”.

“We, as Turkey, have been calling to Western nations for some time to not distinguish between terrorist organizations and to be principled and consistent in their stance,” Erdogan said in a speech on Thursday.

“Some countries, namely the United States, have come up with some excuses on their own and overtly supported the organizations that massacre innocent people in our region. When we voice these, these gentlemen are bothered by it.”

(Additional reporting by Suleiman Al-Khalidi in Amman and Humeyra Pamuk and Daren Butler in Istanbul; Writing by David Dolan and Anna Willard; editing by Giles Elgood)

Russia’s Putin says Syrian government, opposition sign ceasefire deal

Russian President Vladimir Putin attends a session of the Collective Security Treaty Organisation (CSTO) in St. Petersburg, Russia December 26, 2016.

MOSCOW/BEIRUT (Reuters) – Russian President Vladimir Putin said on Thursday that Syrian opposition groups and the Syrian government had signed a number of documents including a ceasefire deal that would take effect at midnight on the night of Dec. 29-30.

Speaking at the meeting with Russian Defence Minister Sergei Shoigu and Foreign Minister Sergei Lavrov, Putin said that three documents which open the way for solving the Syria crisis were signed earlier on Thursday.

The documents include a ceasefire agreement between the Syrian government and the opposition, measures to monitor the ceasefire deal and a statement on the readiness to start peace talks to settle the Syrian crisis, Putin said.

“The agreements reached are, of course, fragile, need a special attention and involvement… But after all, this is a notable result of our joint work, efforts by the defence and foreign ministries, our partners in the regions,” Putin said.

He also said that Russia had agreed to reduce its military deployment in Syria. Lavrov said that the ministry has started preparations for the meeting on Syrian crisis resolution in Astana, the capital of Kazakhstan.

Putin’s announcement followed a statement carried by Syrian state news agency SANA, which said the Syrian army would begin a ceasefire at midnight. The statement said the agreement excluded Islamic State, the group formerly known as the Nusra Front and all groups linked to them.

(Reporting by Denis Pinchuk, Andrey Ostroukh, Maria Tsvetkova and Vladimir Soldatkin; writing by Peter Hobson/Katya Golubkova; Editing by Elaine Hardcastle)

Turkey and Russia have ceasefire plan for Syria, says Ankara

Russian President Vladimir Putin and his Turkish counterpart Tayyip Erdogan arrive for a joint news conference following their meeting in Istanbul, Turkey,

By Orhan Coskun and Ellen Francis

ANKARA/BEIRUT (Reuters) – Turkey and Russia have prepared an agreement for a ceasefire in Syria, Turkey’s foreign minister said on Wednesday, adding Ankara would not budge on its opposition to President Bashar al-Assad staying on as leader.

The comments from Mevlut Cavusoglu appeared to signal tentative progress in talks aimed at reaching a truce. While the insistence on Assad’s departure could complicate negotiations with his biggest backer Russia, another Turkish official did not rule out a transitional role for the Syrian president.

Russia, Iran and Turkey said last week they were ready to help broker a peace deal after holding talks in Moscow where they adopted a declaration setting out the principles any agreement should adhere to. Russia has said the next talks are set for Astana, the Kazakh capital.

“There are two texts ready on a solution in Syria. One is about a political resolution and the other is about a ceasefire. They can be implemented any time,” Cavusoglu told reporters on the sidelines of an awards ceremony at the presidential palace in Ankara.

He said Syria’s opposition would never back Assad.

“The whole world knows it is not possible for there to be a political transition with Assad, and we also all know that it is impossible for these people to unite around Assad.”

Last week, Russia’s foreign minister said Russia, Iran and Turkey had agreed the priority in Syria was to fight terrorism and not to remove Assad’s government – comments that suggested a shift by Turkey, which has long pushed for Assad’s ouster.

Sources told Reuters that, under an outline deal between the three countries, Syria could be divided into informal zones of regional power and Assad would remain president for at least a few years.

A senior Turkish government official said on Wednesday that future discussions would likely hash out Assad’s role.

“We put importance on the establishment of a transitional government and that it would be one that meets the demands of the Syrian people,” the official said. “Whether or not Assad will take place in the government will be discussed in the coming period.”

Assad will not be attending the talks in Astana, which are likely to be held at the undersecretary level “at most”, the official added.

STICKING POINT

Turkey’s state-run Anadolu Agency said earlier on Wednesday Moscow and Ankara had agreed on a proposal towards a general ceasefire. The Kremlin said it could not comment on the report.

A Syrian rebel official said meetings between Ankara and rebel forces were expected to continue this week, but he could not confirm whether a final ceasefire agreement had been reached.

The rebel official told Reuters a major sticking point was that Russia wanted to exclude the Damascus countryside from the ceasefire, which the rebels were refusing to do.

A second rebel official told Reuters there was no agreement yet from the side of the rebel factions. “The details of the ceasefire deal have yet to be officially presented to the factions,” he said.

Russia’s foreign minister said on Tuesday the Syrian government was consulting with the opposition ahead of possible peace talks, while a Saudi-backed opposition group said it knew nothing of the negotiations but supported a ceasefire.

Russian officials have said invitations to participants for the Astana talks have not been sent out and the time has yet to be decided.

The talks would not include the United States and would be distinct from separate, intermittent U.N.-brokered negotiations.

In Berlin, a Foreign Ministry spokesman said Germany supported any effort to solve the conflict by political means, adding the United Nations also had an import role to play.

Russia’s Foreign Ministry said on Wednesday U.N. Special Envoy Staffan de Mistura had spoken by phone with Foreign Minister Sergei Lavrov and supported the efforts to establish a ceasefire and new peace talks.

The Syrian opposition’s main political body on Tuesday urged rebel groups to cooperate with “sincere regional efforts” to reach a ceasefire deal but that it had not been invited to any conference, referring to the Kazakhstan meeting.

The Turkish military said on Wednesday it had “neutralised” 44 Islamic State militants and wounded 117 as part of its operation in the northern Syrian town of al-Bab.

Rebels supported by Turkish troops have laid siege to al-Bab for weeks under an operation to sweep the Sunni hardliners and Kurdish fighters from its Syrian border.

(Additional reporting by Tuvan Gumrukcu and Tulay Karadeniz in Ankara, Humeyra Pamuk in Istanbul, Denis Pinchuk in Moscow and Madeline Chambers in Berlin; writing by David Dolan; editing by Andrew Roche and John Stonestreet)

Russia, Turkey, Iran eye dicing Syria into zones of influence

Russian President Vladimir Putin (R) and Syrian President Bashar al-Assad enter a hall during a meeting at the Kremlin in Moscow, Russia

By Andrew Osborn and Orhan Coskun

MOSCOW/ANKARA (Reuters) – Syria would be divided into informal zones of regional power influence and Bashar al-Assad would remain president for at least a few years under an outline deal between Russia, Turkey and Iran, sources say.

Such a deal, which would allow regional autonomy within a federal structure controlled by Assad’s Alawite sect, is in its infancy, subject to change and would need the buy-in of Assad and the rebels and, eventually, the Gulf states and the United States, sources familiar with Russia’s thinking say.

“There has been a move toward a compromise,” said Andrey Kortunov, director general of the Russian International Affairs Council, a think tank close to the Russian Foreign Ministry.

“A final deal will be hard, but stances have shifted.”

Assad’s powers would be cut under a deal between the three nations, say several sources. Russia and Turkey would allow him to stay until the next presidential election when he would quit in favor of a less polarizing Alawite candidate.

Iran has yet to be persuaded of that, say the sources. But either way Assad would eventually go, in a face-saving way, with guarantees for him and his family.

“A couple of names in the leadership have been mentioned (as potential successors),” said Kortunov, declining to name names.

Nobody thinks a wider Syrian peace deal, something that has eluded the international community for years, will be easy, quick or certain of success. What is clear is that President Vladimir Putin wants to play the lead role in trying to broker a settlement, initially with Turkey and Iran.

That would bolster his narrative of Russia regaining its mantle as a world power and serious Middle East player.

“It’s a very big prize for them if they can show they’re out there in front changing the world,” Sir Tony Brenton, Britain’s former ambassador to Moscow, told Reuters. “We’ve all grown used to the United States doing that and had rather forgotten that Russia used to play at the same level”

BACKROOM DEALS

If Russia gets its way, new peace talks between the Syrian government and the opposition will begin in mid-January in Astana, the capital of Kazakhstan, a close Russian ally.

The talks would be distinct from intermittent U.N.-brokered negotiations and not initially involve the United States.

That has irritated some in Washington.

“So this country that essentially has an economy the size of Spain, that’s Russia, is strutting around and acting like they know what they are doing,” said one U.S. official, who declined to be named because of the subject’s sensitivity.

“I don’t think the Turks and the Russians can do this (political negotiations) without us.”

Foreign and defense ministers from Russia, Turkey and Iran met in Moscow on Dec. 20 and set out the principles they thought any Syria deal should adhere to.

Russian sources say the first step is to get a nationwide ceasefire and then to get talks underway. The idea would then be to get Gulf states involved, then the United States, and at a later stage the European Union which would be asked, maybe with the Gulf states, to pick up the bill for rebuilding.

The three-way peace push is, at first glance, an odd one.

Iran, Assad’s staunchest backer, has provided militia fighters to help Assad, Russia has supplied air strikes, while Turkey has backed the anti-Assad rebels.

Putin has struck a series of backroom understandings with his Turkish counterpart Tayyip Erdogan to ease the path to a possible deal, several sources familiar with the process say.

Moscow got Iran to buy into the idea of a three-way peace push by getting Turkey to drop its demands for Assad to go soon, the same sources said.

“Our priority is not to see Assad go, but for terrorism to be defeated,” one senior Turkish government official, who declined to be named, said.

“It doesn’t mean we approve of Assad. But we have come to an understanding. When Islamic State is wiped out, Russia may support Turkey in Syria finishing off the PKK.”

Turkey views the YPG militia and its PYD political wing as extensions of the outlawed Kurdistan Workers Party (PKK), which has long waged an insurgency in its largely Kurdish southeast.

“Of course we have disagreements with Iran,” said the same Turkish official. “We view some issues differently, but we are coming to agreements to end mutual problems.”

Aydin Sezer, head of the Turkey and Russia Centre of Studies, an Ankara-based think tank, said Turkey had now “completely given up the issue of regime change” in Syria.

Turkey’s public position remains strongly anti-Assad however and Foreign Minister Mevlut Cavusoglu said on Wednesday a political transition with Assad was impossible.

Brenton, Britain’s former ambassador, said Moscow and Ankara had done a deal because Moscow had needed Turkey to get the opposition out of Aleppo and to come to the negotiating table.

“The real flesh in the game the Turks have, and the fear they have, is of an autonomous Kurdistan emerging inside Syria that would have direct implications for them,” he said.

Ankara launched an incursion into Syria, “Operation Euphrates Shield”, in August to push Islamic State out of a 90-km (55-mile) stretch of frontier territory and ensure Kurdish militias did not gain more territory in Syria.

REALPOLITIK

The shifting positions of Moscow and Ankara are driven by realpolitik. Russia doesn’t want to get bogged down in a long war and wants to hold Syria together and keep it as an ally.

Turkey wants to informally control a swathe of northern Syria giving it a safe zone to house refugees, a base for the anti-Assad opposition, and a bulwark against Kurdish influence.

The fate of al-Bab, an Islamic State-held city around 40 km (25 miles) northeast of Aleppo, is also a factor. Erdogan is determined that Turkish-backed rebels capture the city to prevent Kurdish militias from doing so.

Several sources said there had been an understanding between Ankara and Moscow that rebels could leave Aleppo to help take al-Bab.

Iran’s interests are harder to discern, but Ali Akbar Velayati, Iran’s Supreme Leader Ayatollah Ali Khamenei’s top adviser, said Aleppo’s fall might alter a lot in the region.

By helping Assad retake Aleppo, Tehran has secured a land corridor that connects Tehran to Beirut, allowing it to send arms to Hezbollah in Lebanon.

Russian and Western diplomatic sources say Iran would insist on keeping that corridor and on Assad staying in power for now. If he did step down, Tehran would want him replaced with another Alawite, which it sees as the closest thing to Shia Islam.

Iran may be the biggest stumbling block to a wider deal.

Iranian Defence Minister Hossein Dehghan has said Saudi Arabia must not take part in talks because of its stance on Assad – Riyadh wants the Syrian leader to step down.

Scepticism about the prospects for a wider deal abounds.

Dennis Ross, an adviser to Democratic and Republican administrations, now at the Washington Institute for Near East Policy, said he did not think a deal would bring peace to Syria.

“I doubt this will end the war in Syria even after Aleppo,” Ross told Reuters. “Assad’s presence will remain a source of conflict with the opposition.”

(Additional reporting by Maria Tsvetkova in Moscow, Bozorgmehr Sharafedin in Beirut, William Maclean in Dubai, Ece Toksabay, David Dolan, Arshad Mohammed, Phil Stewart and Yeganeh Torbati in Washington; Editing by Janet Lawrence)

Russia calls U.S. move to better arm Syrian rebels a ‘hostile act’

Russian President Vladimir Putin delivers a speech during his annual state of the nation address at the Kremlin in Moscow, Russia,

By Andrew Osborn

MOSCOW (Reuters) – Russia said on Tuesday that a U.S. decision to ease restrictions on arming Syrian rebels had opened the way for deliveries of shoulder-fired anti-aircraft missiles, a move it said would directly threaten Russian forces in Syria.

Moscow last year launched a campaign of airstrikes in Syria to help President Bashar al-Assad and his forces retake territory lost to rebels, some of whom are supported by the United States.

Foreign Ministry spokeswoman Maria Zakharova said the policy change easing restrictions on weapons supplies had been set out in a new U.S. defence spending bill and that Moscow regarded the step as a hostile act.

U.S. President Barack Obama, who has been sharply critical of Russia’s intervention in Syria, signed the annual defence policy bill into law last week.

“Washington has placed its bets on supplying military aid to anti-government forces who don’t differ than much from bloodthirsty head choppers. Now, the possibility of supplying them with weapons, including mobile anti-aircraft complexes, has been written into this new bill,” Zakharova said in a statement.

“In the administration of B. Obama they must understand that any weapons handed over will quickly end up in the hands of jihadists,” she added, saying that perhaps that was what the White House was counting on happening.

The U.S. decision was a direct threat to the Russian air force, to other Russian military personnel, and to Russia’s embassy in Damascus, said Zakharova.

“We therefore view the step as a hostile act.

Zakharova accused the Obama administration of trying to “put a mine” under the incoming administration of President-elect Donald Trump by attempting to get it to continue what she called Washington’s “anti-Russian line.”

The Obama administration has in recent weeks expanded the list of Russians affected by U.S. sanctions imposed on Moscow over its actions in Ukraine.

Trump, during his election campaign, said he was keen to try to improve relations with Moscow and spoke positively about President Vladimir Putin’s leadership skills.

A back-and-forth exchange between Trump and Putin over nuclear weapons last week tested the Republican’s promises to improve relations with Russia however.

The Obama administration and U.S. intelligence officials have accused Russia of trying to interfere with the U.S. election by hacking Democratic Party accounts.

“The current occupants of the White House imagined that they could pressure Russia,” said Zakharova. “Let’s hope that those who replace them will be wiser.”

(Additional reporting by Peter Hobson in Moscow and Tom Perry in Beirut; Editing by Raissa Kasolowsky)

All 92 on Syria-bound Russian military jet killed in crash

A woman lays flowers in memory of passengers and crew members of Russian military Tu-154 plane, which crashed into the Black Sea, at the Russian embassy in Minsk

By Polina Devitt and Andrew Osborn

MOSCOW (Reuters) – A Russian military plane carrying 92 people, including dozens of Red Army Choir singers, dancers and orchestra members, crashed into the Black Sea on its way to Syria on Sunday, killing everyone on board, Russian authorities said.

The Russian Defence Ministry said one of its TU-154 Tupolev planes had disappeared from radar screens at 0525 MSK (9.25 p.m. ET), two minutes after taking off from Sochi in southern Russia, where it had stopped to refuel from Moscow, on its way to Syria.

Major-General Igor Konashenkov, a ministry spokesman, told reporters that nobody had survived.

“The area of the crash site has been established. No survivors have been spotted,” he said. An unnamed ministry source told Russian news agencies no life rafts had been found, while another source told the Interfax agency that the plane had not sent an SOS signal.

In televised comments, President Vladimir Putin, speaking in St Petersburg, declared Dec. 26 a national day of mourning.

The jet, a Soviet-era Tupolev plane built in 1983, had been carrying 84 passengers and eight crew members.

At least 60 were members of the Alexandrov Ensemble, better known internationally as the Red Army Choir, and were being flown out to Russia’s Hmeymim air base in Syria to entertain troops in the run-up to the New Year.

Nine Russian reporters were also on board as well as military servicemen.

Konashenkov said fragments of the plane had been found at a depth of about 70 meters (yards) in the Black Sea about 1.5 km (1 mile) off the coast near the city of Sochi.

“The search operation is continuing,” said Konashenkov. “Four ships, four helicopters, and a plane and a drone are working in the area,” he said, saying a military commission had flown to Sochi to look into what happened.

Six ships from Russia’s Black Sea fleet were on their way to the crash site, and more than 100 divers were being drafted in to search the area along with a mini-submarine.

Konashenkov said four bodies had been recovered from the sea. Russian news agencies cited a higher figure.

Russia’s RIA news agency, citing an unidentified security source, said preliminary information indicated that the plane had crashed because of a technical malfunction or a pilot error. Another source told Russian agencies that the possibility of a militant act had been ruled out. The weather had been good.

Konashenkov said the plane had last been serviced in September and undergone more major repairs in December 2014. He said the pilot was experienced and that the plane had about 7,000 flying hours on its clock.

According to the defense ministry’s passenger manifest, Elizaveta Glinka, a member of Putin’s advisory human rights council, was on the plane.

Kremlin spokesman Dmitry Peskov told reporters it was too early to say what had caused the crash. Putin was being kept constantly informed of the latest developments, Peskov said.

Russian military investigators said in a statement they had opened a criminal investigation into the crash.

The Kremlin said Putin expressed his deepest condolences to those who had lost loved ones in the crash and ordered Prime Minister Dmitry Medvedev to head a government investigatory commission.

Russia’s Defence Ministry regularly flies musicians into Syria to put on concerts for military personnel. The base they were heading for, Hmeymim, is in Latakia province. It is from there that Russia launches air strikes against Syrian rebels.

The last big TU-154 crash was in 2010 when a Polish jet carrying then-president Lech Kaczynski and much of Poland’s political elite crashed in western Russia killing everyone on board.

Russian news agencies cited Denis Manturov, the Russian Transport Minister, as saying on Sunday it was premature to talk about withdrawing the TU-154 from service.

On Dec. 19, a Russian military jet crashed in Siberia with 39 people on board as it tried to make an emergency landing near a Soviet-era military base. Nobody was killed in that incident, though 32 people were airlifted to hospital.

(Additional reporting by Denis Pinchuk and Svetlana Reiter; Editing by Louise Ireland)

Highlights: Russian President Putin’s end-of-year news conference

Journalists listen to Russian President Vladimir Putin during his annual end-of-year news conference in Moscow, Russia, December 23,

MOSCOW (Reuters) – The following are highlights from Russian President Vladimir Putin’s annual end-of-year news conference.

ON U.S. POLITICS

“The party that is called the Democrats has clearly forgotten the original meaning of that name.”

“The use of administrative resources (by the Democrats) is absolutely shameless.”

“Outstanding figures in American history from the ranks of the Democratic Party would likely be turning in their graves. Roosevelt certainly would be.”

“They (the Democrats) are losing on all fronts and looking elsewhere for things to blame. In my view this, how shall I say it, degrades their own dignity. You have to know how to lose with dignity.”

ON WHAT HE WOULD ASK DONALD TRUMP

“It’s hard to say. The U.S. President-elect should first have the opportunity to form his team in an orderly way. Without that, simply having unprepared meetings is not productive. What will the questions be? Questions about the normalization of our relations. Mr Trump did after all say during the election campaign that he thought it right to normalize U.S.-Russia links and said it would not get worse. Because they cannot get any worse, I agree with him on that. We’ll think together about how to make the situation better.”

ON DONALD TRUMP AND THE MILITARY

“In the course of his election campaign he (Trump) spoke about the necessity of strengthening the U.S. nuclear arsenal, and strengthening the armed forces. There’s nothing unusual here. To be honest, I’m a bit surprised by the words of certain other official representatives of the current administration who have for some reason set about proving that the armed forces of the United States are the most powerful in the world. No-one disputed that.”

“If anyone is unleashing an arms race it’s not us … We will never spend resources on an arms race that we can’t afford.”

ON PARTICIPATION IN ELECTIONS IN 2018

“When the time is ripe (I’ll say). I will look at what is happening in the country and in the world, and based on the results of what we have done and what we can do the decision will be made on whether I will participate in upcoming elections for the Russian president.”

ON THE ECONOMY

“(Economic) growth is happening thanks to certain sectors of the economy – machine building, chemicals, manufacturing and agriculture.”

“We saw some economic growth in November … This year we will probably have minus 0.5-0.6 percent (economic growth).”

ON INFLATION

“This year (inflation) will be significantly less than 6 percent … most likely in the region of 5.5 percent – this is a record low inflation rate, and gives us cause to expect that we will be able to reach our target and very soon get to inflation of 5 percent and then 4 percent.”

ON THE BUDGET DEFICIT

“The budget deficit will be a bit bigger .. 3.7 percent. In my view this is an absolutely acceptable amount because, among other reasons, we have preserved a positive external trade balance – more than 70 billion dollars (and) we have preserved our reserves … the central bank’s gold and forex reserves have even grown, and are now a little over 385 (billion dollars). Judging by that measure everything is fine. It’s a good safety margin.”

ON OPEC AND OIL PRICES

“We think that in the second half of 2017 the surplus of oil in the market will disappear and the oil price will stabilize. We are counting on a stabilization (of prices) at today’s level.”

“It (Russian oil production cuts agreed with OPEC) will be a smooth reduction that will hardly affect our overall output. This is perfectly acceptable to us, and we are counting on a rise in prices, which has already happened … a difference in the oil price of $10 will mean extra revenues to the budget of 1.75 trillion rubles ($28.65 billion) and an extra 750 billion rubles of income for oil companies, despite lower output. So at the end of the day everyone ends up winning.”

ON DOPING

“In this area transparency is absolutely essential … Undoubtedly there is a certain political element in all these issues. Sport should be cleansed, along with culture, of any sort of politics. Sport and culture are things that should unite people and not divide them.”

ON UKRAINE AND CRIMEA

“I am sure that sooner or later there will be a normalization of relations with Ukraine, and it (a bridge between Russian and Crimea) will be very beneficial to the development of Russia-Ukraine relations and future commercial and humanitarian links.”

ON PENSIONS

“All the necessary money is in place next year so we can from Feb.1 increase pensions in line with the rate of inflation in 2016.”

ON ALEPPO

“The president of Turkey and the leaders of Iran (also) played a huge role in this (managing the situation around Aleppo). I don’t know if this will sound immodest, but without our participation it would have been impossible.”

($1 = 61.0790 rubles)

(Reporting by Moscow Newsroom)