Good food is worth waiting for – China media welcomes Trump letter

Donald Trump

BEIJING (Reuters) – Chinese state media on Friday broadly welcomed U.S. President Donald Trump’s letter to Chinese President Xi Jinping belatedly wishing a happy Lunar New Year, saying it was a positive sign and that “good food is worth waiting for”.

In a brief statement, the White House said that Trump told Xi he looked forward to working with him to develop relations, though the pair haven’t spoken directly since Trump took office last month.

“The letter conveys the reassuring message that bilateral relations are still on the right track despite the speculation that has arisen with Trump’s victory in the November election,” the official China Daily said in an editorial.

Trump upset China in December by taking a phone call from Taiwan President Tsai Ing-wen. China considers Taiwan a wayward province with no right to formal diplomatic relations with any other country.

In his Senate confirmation hearing, U.S. Secretary of State Rex Tillerson said China should not be allowed access to islands it has built in the disputed South China Sea. The White House also vowed to defend “international territories” in the strategic waterway.

“Against this backdrop, the letter, though terse and issued nearly three weeks after Trump’s inauguration, is still a positive signal, as it suggests that reason still prevails in the White House,” the China Daily added.

Even the normally hawkish tabloid the Global Times, published by the ruling Communist Party’s official People’s Daily and which had railed against Trump, struck an upbeat tone.

“Over the past few weeks, more positive signs have emerged between China and the U.S., making people re-evaluate the trajectory of the bilateral relationship under Trump,” it said in an editorial.

Chinese officials have downplayed the significance of Trump breaking with recent precedent and not sending greetings for the Lunar New Year, which began late last month, though state media was pleased his daughter Ivanka Trump went to a Lunar New Year reception at the Chinese embassy in Washington.

Diplomatic sources say China has also not been in a rush to have a telephone call with the unpredictable Trump, in case the call went badly, embarrassing Xi.

In a front page commentary, the overseas edition of the People’s Daily said the letter was an opening to help manage friction.

“There’s a saying in China – good food is worth waiting for.”

(Reporting by Ben Blanchard; Editing by Michael Perry)

Hundreds of thousands rally in Iran against Trump, chant ‘Death to America’: TV

Iran President speaking to crowd shouting death to america

By Parisa Hafezi

ANKARA (Reuters) – Hundreds of thousands of Iranians rallied on Friday to swear allegiance to the clerical establishment following U.S. President Donald Trump’s warning that he had put the Islamic Republic “on notice”, state TV reported.

On the anniversary of Iran’s 1979 Islamic Revolution, which toppled the U.S.-backed shah, marchers including hundreds of military personnel and policemen headed towards Tehran’s Azadi (Freedom) Square.

They carried “Death to America” banners and effigies of Trump, while a military police band played traditional Iranian revolutionary songs.

State TV showed footage of people stepping on Trump’s picture in a central Tehran street. Marchers carried the Iranian flag and banners saying: “Thanks Mr. Trump for showing the real face of America.”

“America and Trump cannot do a damn thing. We are ready to sacrifice our lives for our leader”, a young Iranian man told state TV in a reference to Supreme Leader Ayatollah Ali Khamenei.

Last week, Trump put Iran “on notice” in reaction to a Jan. 29 Iranian missile test and imposed fresh sanctions on individuals and entities. Iran said it will not halt its missile program.

Iranian leading religious and political figures, including Pragmatist President Hassan Rouhani had called on Iranians to join the rally on Friday to “show their unbreakable ties with the Supreme Leader and the Islamic Republic”.

VIGILANT

In a speech marking the revolution’s anniversary, Rouhani urged Iran’s faction-ridden elite to seek unity amid increased tensions with the United States.

“Some inexperienced figures in the region and America are threatening Iran … They should know that the language of threats has never worked with Iran,” Rouhani told the crowd at Azadi Square.

“Our nation is vigilant and will make those threatening Iran regret it … They should learn to respect Iran and Iranians … We will strongly confront any war-mongering policies.”

The rallies were rife with anti-U.S. and anti-Israeli sentiment. Some carried pictures of Trump, Israeli Prime Minister Benjamin Netanyahu and British Prime Minister Theresa May captioned “Death to the Devil Triangle”.

“This turnout of people is a strong response to false remarks by the new leaders of America,” Rouhani told state TV, which said millions had turned out at rallies across Iran.

U.S. flags were burned as is traditional although many Iranians on social media such as Twitter and Facebook used the hashtag #LoveBeyondFlags to urge an end to flag-burning during the anniversary.

They also thanked Americans for opposing Trump’s executive order banning entry to the United States to travellers from seven mainly Muslim countries, including Iran. Trump’s travel ban is being challenged in U.S. courts.

Some marchers carried banners that read : “Thanks to American people for supporting Muslims”.

Both U.S.-based social media sites are blocked in Iran by a wide-reaching government censor but they are still commonly used by millions of Iranians who use special software to get around the restrictions. Iranian officials, including Khamenei, have Twitter and Facebook accounts despite the ban.

Trump has criticized a nuclear deal reached between Iran, the United States and other major powers in 2015 aimed at curbing the country’s nuclear work. Most of the sanctions imposed on Iran were lifted last year under the deal.

Rouhani defended the deal, which his hardline rivals oppose as a concession to pressure from Washington, saying it protected the Islamic Republic’s rights to nuclear power, ending Iran’s political isolation and crippling economic sanctions.

(Writing by Parisa Hafezi; editing by Ralph Boulton; Editing by Catherine Evans)

Trump breaks ice with China’s Xi in letter seeking ‘constructive’ ties

China's president xi jinping

By Ben Blanchard and Eric Walsh

BEIJING/WASHINGTON (Reuters) – U.S. President Donald Trump has broken the ice with Chinese President Xi Jinping in a letter that said he looked forward to working with him to develop relations, although the pair haven’t spoken directly since Trump took office.

The letter thanked Xi for his congratulatory note on Trump’s inauguration and wished the Chinese people a prosperous Lunar New Year of the Rooster, the White House said in a statement on Wednesday.

“President Trump stated that he looks forward to working with President Xi to develop a constructive relationship that benefits both the United States and China,” it said.

China said on Thursday it attached great importance to China-U.S. ties.

“We highly appreciate President Trump’s holiday greetings to President Xi Jinping and the Chinese people,” Chinese Foreign Ministry spokesman Lu Kang said at a daily press briefing.

Asked whether it was a snub that Trump had held calls with many other world leaders as president, but not Xi, Lu said: “This kind of remark is meaningless.”

He reiterated that China and the U.S. had maintained “close communication” since Trump took office and that cooperation was the “only correct choice”.

“China is willing to work with the United States in adhering to the principles of non-confrontation, mutual respect and mutual benefit to promote cooperation, control disputes, and on a healthy and stable foundation, promote greater development in China-U.S. ties,” Lu said.

Trump and Xi have yet to speak directly since Trump took office on Jan. 20, although they did talk soon after Trump won the U.S. presidential election in November.

Diplomatic sources in Beijing say China has been nervous about Xi being left humiliated in the event a call with Trump goes wrong and the details are leaked to the U.S. media.

Last week, U.S. ties with staunch ally Australia became strained after the Washington Post published details about an acrimonious phone call between Trump and Prime Minister Malcolm Turnbull. [nL4N1FN0JR]

“That is the last thing China wants,” a source familiar with China’s thinking on relations with the United States told Reuters. “It would be incredibly embarrassing for President Xi and for Chinese people, who value the concept of face.”

A senior non-U.S. Western diplomat said China was unlikely to be in a rush to set up such a call.

“These things need to happen in a very controlled environment for China, and China can’t guarantee that with the unpredictable Trump,” the diplomat said.

“Trump also seems too distracted with other issues at the moment to give too much attention to China.”

TAIWAN, YUAN IN FOCUS

There are a number of contentious areas where China fears Trump could go off script, the diplomat said, pointing in particular to the issue of self-ruled Taiwan, as well as trade.

Trump upset China in December by taking a phone call from Taiwan President Tsai Ing-wen. China considers Taiwan a wayward province with no right to formal diplomatic relations with any other country.

Trump has also threatened to slap tariffs on Chinese imports, accusing Beijing of devaluing its yuan currency and stealing U.S. jobs.

In his Senate confirmation hearing, U.S. Secretary of State Rex Tillerson said China should not be allowed access to islands it has built in the disputed South China Sea. The White House also vowed to defend “international territories” in the strategic waterway.

China has repeatedly said it has smooth contacts with the Trump team. The Foreign Ministry in Beijing said last week the two countries were remaining “in close touch”.

That contact has been led by China’s top diplomat, State Councillor Yang Jiechi, who outranks the foreign minister.

Yang told Michael Flynn, Trump’s National Security Advisor, last week that China hopes it can work with the United States to manage and control disputes and sensitive problems. [nL4N1FO364]

The source familiar with China’s thinking said Trump’s administration was “very clear” about China’s position on Taiwan. Trump has yet to mention Taiwan since he took office.

Chinese state media has wondered whether Trump has a China policy at all.

On Thursday, the widely read Global Times tabloid, published by the ruling Communist Party’s official People’s Daily, noted that Trump had not immediately confronted China as had been expected because he had realized upsetting Beijing would backfire badly.

“He has probably realized that real tough action against China would result in a complex chain reaction, even beyond his control,” the paper said in an editorial.

Wang Yiwei, a professor of international relations at Beijing’s elite Renmin University, said the letter suggested the new U.S. administration wanted to signal the importance it attached to the U.S.-China relationship without risking being confronted on specific issues.

“Trump has sent many messages that makes the world confused, like on the South China Sea and ‘One China’ policy, so if he makes a phone call President Xi will ask ‘what do you mean?’,” Wang said. “He wants to avoid this so he just sends a letter for the first step.”

(Reporting by Ben Blanchard in BEIJING and Eric Walsh in WASHINGTON; Additional reporting by Beijing newsroom and Michael Martina; Editing by Paul Tait and Nick Macfie)

Islamic State links to Philippine militants ‘very strong’: minister

Philippine Defence Secretary

By Martin Petty and Manuel Mogato

MANILA (Reuters) – The Philippines is certain of “very strong” links between Islamic State and home-grown militants and is concerned about regional repercussions from tension between China and the new U.S. administration, Manila’s defense minister said on Thursday.

Intelligence from various sources had shown Muslim rebels in the southern Philippines had been communicating with Islamic State, and funds were being transferred via mechanisms commonly used by Filipino workers in the Middle East, Defense Secretary Delfin Lorenzana told Reuters.

“Before, what we suspected was the ISIS group would come here but now we are certain that the connections are very strong between home-grown terrorists here and ISIS in the Middle East,” he said in an interview, referring to Islamic State.

“Also there’s quite an amount of money being sent here from the Middle East.”

He said communications via social media, telephone and text messages had been intercepted and funds were being transferred that were difficult to detect due to the large numbers of Filipinos who regularly remit income from places like Saudi Arabia and the smaller Gulf states.

He said there was no indication governments of those countries were involved.

The Philippines did not consider ties with longtime ally the United States to be strained, he said, despite President Rodrigo Duterte’s fierce rebukes of Washington.

Some statements about China by advisers to U.S. President Donald Trump were “very troubling”, he said, adding that an Enhanced Defense Cooperation Agreement (EDCA) with the United States would make U.S. troops based temporarily in the Philippines “magnets for retaliation” if things turned hostile.

CAUGHT IN THE MIDDLE

“We are concerned if war breaks out and it is near us we will be involved whether we like it or not,” he said, adding that if a conflict looked likely, the Philippines would consider scrapping the EDCA, to avoid a repeat of World War Two, when his country was badly affected.

There were no signs of any new Chinese reclamation in the Spratly Islands in the South China Sea, he said, and he had been given assurances repeatedly by China’s ambassador that it would not do any dredging in the disputed Scarborough Shoal.

Despite warming ties with Beijing, the Philippines still “would like to know more the thinking of China” regarding its end-game in building artificial islands equipped with military hardware, he said.

The Philippines was in no rush to pressure China to abide by last year’s ruling by the Permanent Court of Arbitration, which largely rejected Beijing’s claims in the South China Sea.

After the Philippines won the award, the United States had wanted it to push China to comply, Lorenzana said, but it had offered no guarantees of support.

“If we assert our right, our award, it was never going to do any good for us,” he said. “Would the Americans have backed us?”

He said internal security threats were growing and his ministry would next year request a doubling of its budget, or more, to address them.

The army’s involvement in Duterte’s war on drugs, following his decision to suspend police from the campaign, would be limited to assisting the Philippine Drug Enforcement Agency (PDEA) on a case-by-case basis in hostile situations.

“They go there if they are asked by PDEA and they need firepower, then we will assist, that’s our job, that’s all,” he said.

(Editing by Robert Birsel)

China says United States should ‘brush up on’ South China Sea history

Chinese vessels in South China Sea

BEIJING (Reuters) – The United States needs to brush up on its history about the South China Sea, as World War Two-related agreements mandated that all Chinese territories taken by Japan had to be returned to China, Chinese Foreign Minister Wang Yi said in Australia.

China has been upset by previous comments from the new U.S. administration about the disputed waterway.

In his Senate confirmation hearing, Secretary of State Rex Tillerson said China should not be allowed access to islands it has built there. The White House also vowed to defend “international territories” in the strategic waterway.

However, last week U.S. Defense Secretary Jim Mattis suggested that diplomacy should be the priority in the South China Sea.

In comments carried on the foreign ministry’s website late on Tuesday, Wang said he had a “suggestion” for this American friends. “Brush up on the history of World War Two,” Wang was quoted as saying during a visit to Canberra, Australia.

The 1943 Cairo Declaration and 1945 Potsdam Declaration clearly state that Japan had to return to China all Chinese territory taken by Japan, Wang said.

“This includes the Nansha Islands,” he added, using China’s name for the Spratly Islands.

“In 1946, the then-Chinese government with help from the United States openly and in accordance with the law took back the Nansha Islands and reefs that Japan had occupied, and resumed exercising sovereignty,” Wang said.

“Afterwards, certain countries around China used illegal methods to occupy some of the Nansha islands and reefs, and it’s this that created the so-called South China Sea dispute.”

China is committed to having talks with the parties directly involved, and in accordance with historical facts and international law to peacefully resolve the issue, and that position will not change, Wang said.

Countries outside the region should support the efforts of China and others in the region to maintain the peace and stability of the South China Sea, and not do the opposite, he added.

China sets great store on Mattis’ comments stressing diplomatic efforts in the South China Sea, as this is not only the position set by China and Southeast Asia but also the “correct choice” for countries outside the region, Wang said.

China claims most of the South China Sea, while Taiwan, Malaysia, Vietnam, the Philippines and Brunei claim parts of the waters that command strategic sea lanes and have rich fishing grounds along with oil and gas deposits.

(Reporting by Ben Blanchard; Editing by Michael Perry)

Iran leader rebuffs Trump’s warning on missiles

Iran's Supreme Leader

By Bozorgmehr Sharafedin

DUBAI (Reuters) – Ayatollah Ali Khamenei dismissed Donald Trump’s warning to Iran to stop its missile tests, saying the new U.S. president had shown the “real face” of American corruption.

In his first speech since Trump’s inauguration, Iran’s supreme leader called on Iranians to respond to Trump’s “threats” on Feb. 10, the anniversary of Iran’s 1979 Islamic revolution. Trump had tried but failed to frighten Iranians, Khamenei said.

“We are thankful to (Trump) for making our life easy as he showed the real face of America,” Khamenei told a meeting of military commanders in Tehran, according to his website.

The White House has said the last week’s missile test was not a direct breach of Iran’s 2015 nuclear pact with six world powers, but that it “violates the spirit of that”..

In remarks published on Tuesday, Iranian Foreign Minister Mohammad Javad Zarif said Tehran would not agree to renegotiate its nuclear agreement.

“I believe Trump will push for renegotiation. But Iran and European countries will not accept that,” Mohammad Javad Zarif told Ettelaat newspaper. “We will have difficult days ahead.”

On the campaign trail, Trump repeatedly promised to tear up the nuclear deal. While his Secretary of State, Rex Tillerson, has not called for an outright rejection of the accord, he has suggested a “full review” of it.

The supreme leader, Iran’s top authority, also said Trump has “confirmed what we have been saying for more than 30 years about the political, economic, moral and social corruption in the U.S. ruling system.”

Trump responded to a Jan. 29 Iranian missile test by saying “Iran is playing with fire” and slapping fresh sanctions on individuals and entities, some of them linked to Iran’s elite Revolutionary Guards.

“No enemy can paralyze the Iranian nation,” Khamenei said. “(Trump) says ‘you should be afraid of me’. No! The Iranian people will respond to his words on Feb. 10 and will show their stance against such threats.”

A U.N. Security Council resolution underpinning the pact urges Iran to refrain from testing missiles designed to be able to carry nuclear warheads, but imposes no obligation.

Under the accord, Iran agreed to curb its nuclear program in exchange for relief from some U.S., European and U.N. economic sanctions. Critics of Iran said the deal emboldened Tehran to increase its involvement in wars in Arab countries, a charge Tehran denies.

President Hassan Rouhani said on Tuesday that, in contrast to Trump’s view, the nuclear deal was a “win-win” accord, and could be used as a stepping stone to defuse tension in the region.

(Reporting by Bozorgmehr Sharafedin; Writing by William Maclean; Editing by Robin Pomeroy and Raissa Kasolowsky)

Merkel urges Putin to help end violence in eastern Ukraine

Tanks seen in Ukraine

BERLIN (Reuters) – German leader Angela Merkel urged Russia’s Vladimir Putin in a telephone call on Tuesday to use his influence on separatists in eastern Ukraine to stop the violence there, and the two agreed on the need for new ceasefire efforts, a German government spokesman said.

Ukrainian forces and pro-Russian separatists have both blamed each other for the latest flare-up in a conflict that has killed some 10,000 people since April 2014.

“The German Chancellor and the Russian President agreed that new efforts must be made to secure a ceasefire and asked foreign ministers and their advisers to remain in close contact,” government spokesman Steffen Seibert said.

Merkel and French President Francois Hollande have long tried to broker an end to the conflict but the two-year-old Minsk peace deal has merely locked the two sides in a stalemate.

The United States and European Union have imposed sanctions on Russia. Ukraine and NATO accuse the Kremlin of fuelling the conflict by supporting separatists with troops and weapons – a charge it denies.

The Kremlin, in its description of the Merkel-Putin call, said “serious concerns were expressed in connection with the escalation of the armed conflict resulting in human losses”.

Kiev is nervous that U.S. President Donald Trump will shift the political balance in Russia’s favour and that he may consider lifting sanctions against Moscow.

The fighting in eastern Ukraine broke out a month after Russia annexed the Crimean peninsula from Ukraine in March 2014. The statement from Merkel’s spokesman made no mention of Crimea, although the Chancellor does regularly repeat sharp criticism of the annexation.

(Reporting by Madeline Chambers; Editing by Paul Carrel and Mark Trevelyan)

China, United States cannot afford conflict: Chinese foreign minister

Chinese Foreign minister speaking on how U.S. and China need to work together

By Colin Packham

SYDNEY (Reuters) – There would be no winner from conflict between China and the United States, Chinese Foreign Minister Wang Yi warned on Tuesday, seeking to dampen tension between the two nations that flared after the election of U.S. President Donald Trump.

Relations between China and United States have soured after Trump upset Beijing in December by taking a telephone call from Taiwan President Tsai Ing-wen and threatened to impose tariffs on Chinese imports.

China considers Taiwan a wayward province, with no right to formal diplomatic relations with any other country.

But China is committed to peace, Wang said, after meeting Australia’s Foreign Minister Julia Bishop.

“There cannot be conflict between China and the United States, as both sides will lose and both sides cannot afford that,” he told reporters in the Australian capital of Canberra.

While seeking to reduce tension, Wang called on global leaders to reject protectionism, which Trump has backed with his “America First” economic plans.

“It is important to firmly commit to an open world economy,” Wang added. “It is important to steer economic globalisation towards greater inclusiveness, broader shared benefit in a more sustainable way.”

Just days ahead of Trump taking office, Chinese President Xi Jinping was in Switzerland as the keynote speaker at the World Economic Forum in Davos, offering a vigorous defence of globalisation and signalling Beijing’s desire to play a bigger role on the world stage.

Wang said that China does not want to lead or replace anyone, and that as its national strength is still limited it must focus on its own development, according to comments carried on the Chinese Foreign Ministry’s website.

“We must remain clear headed about the various comments demanding China play a ‘leadership role’,” Wang said.

While Trump’s trade policies have spurred concern the United States is entering a period of economic protectionism, China has previously accused Australia of adopting a similar practice by blocking the sale of major assets to Chinese interests.

Bishop urged China to consider joining a pan-Pacific trade pact abandoned last month by Trump, who has said he prefers bilateral deals.

“I want to encourage China to consider the agreement,” Bishop said, referring to the Trans-Pacific Partnership.

As China called on nations to be open to offshore investment, Wang said Beijing would link its “One Belt, One Road” (OBOR) policy with Australia’s plan to develop its remote northern region.

The programme announced by Xi in 2013 envisages investments by China in infrastructure projects, including railways and power grids in central, west and southern Asia, as well as Africa and Europe.

Australia has ambitious plans to develop its Northern Territory, a frontier region with little infrastructure, but efforts have largely stalled for lack of investment.

(This story has been refiled to replace “influence” with “national strength” in ninth paragraph, adds dropped word in first paragraph.)

(Additional reporting by Ben Blanchard in Beijing; Editing by Clarence Fernandez and Pritha Sarkar)

Iran’s missile test ‘not a message’ to Trump

Iran's president

DUBAI (Reuters) – Iran said on Monday a recent missile trial launch was not intended to send a message to new U.S. President Donald Trump and to test him, since after a series of policy statements Iranian officials already “know him quite well”.

Iran test-fired a new ballistic missile last week, prompting Washington to impose some new sanctions on Tehran. Trump tweeted that Tehran, which has cut back its nuclear program under a 2015 deal with world powers easing economic sanctions, was “playing with fire”.

Iranian Foreign Ministry spokesman Bahram Qasemi was quoted by Tasnim news agency as saying: “Iran’s missile test was not a message to the new U.S. government.

“There is no need to test Mr Trump as we have heard his views on different issues in recent days… We know him quite well.”

Iran has test-fired several ballistic missiles since the 2015 deal, but the latest test on January 29 was the first since Trump entered the White House. Trump said during his election campaign that he would stop Iran’s missile program.

Qasemi said The U.S. government was “still in an unstable stage” and Trump’s comments were “contradictory”.

“We are waiting to see how the U.S. government will act in different international issues to evaluate their approach.”

Despite heated words between Tehran and Washington, U.S. Defense Secretary Jim Mattis said on Saturday he was not considering strengthening U.S. forces in the Middle East to address Iran’s “misbehavior”.

Hamid Aboutalebi, deputy chief of staff of Iran’s President Hassan Rouhani, tweeted on Monday that the U.S. government “should de-escalate regional tension not adding to it”, and Washington should “interact with Iran” rather than challenging it.

Iran announced on Saturday that it will issue visas for a U.S. wrestling team to attend the Freestyle World Cup competition, reversing a decision to ban visas for the team in retaliation for an executive order by Trump banning visas for Iranians.

(Reporting by Bozorgmehr Sharafedin; editing by Ralph Boulton)

The Art of the Deal: Why Putin needs one more than Trump

woman passes billboard of Trump and Putin together

By Andrew Osborn

MOSCOW (Reuters) – In his book, ‘Art of the Deal,’ Donald Trump said the best deals were ones where both sides got something they wanted. His credo, applied to a potential U.S.-Russia deal, flags an awkward truth for Vladimir Putin: He wants more from Trump than vice versa.

As aides try to set up a first meeting between the two presidents, the mismatched nature of their respective wish lists gives Trump the edge, and means that a deal, if one is done, may be more limited and longer in the making than the Kremlin hopes.

“What the two countries can offer each another is strikingly different,” said Konstantin von Eggert, a commentator for TV Rain, a Moscow TV station sometimes critical of the Kremlin.

“The U.S. has a stronger hand. In biblical terms, the U.S. is the three kings bearing gold, while Russia is the shepherds with little apart from their good faith.”

Appetite for a deal in Moscow, where parliament applauded Trump’s election win, is palpable. The Kremlin blames Barack Obama for wrecking U.S.-Russia ties, which slid to a post-Cold War low on his watch, and with the economy struggling to emerge from two years of recession, craves a new start.

Trump’s intentions toward Moscow are harder to discern, but seem to be more about what he does not want — having Russia as a time-consuming geopolitical foe — than his so far vague desire to team up with the Kremlin to fight Islamic State.

Trump has hinted he may also push for a nuclear arms deal.

Putin’s wish list, by contrast, is detailed, long and the items on it, such as getting U.S. sanctions imposed over Moscow’s actions in Ukraine eased, are potentially significant for his own political future.

He is looking to be given a free hand in the post-Soviet space, which he regards as Russia’s back yard.

Specifically, he would like Trump to formally or tacitly recognize Crimea, annexed from Ukraine in 2014, as Russian territory, and pressure Kiev into implementing a deal over eastern Ukraine which many Ukrainians view as unpalatable.

The icing on the cake for him would be for Trump to back a Moscow-brokered Syrian peace deal allowing President Bashar al-Assad, a staunch Moscow ally, to stay in power for now, while crushing Islamic State and delivering regional autonomy.

For Putin, described in leaked U.S. diplomatic cables as an “alpha-dog,” the wider prize would be respect. In his eyes, a deal would confer legitimacy and show Russia was a great power.

But, like a couple where one side is more interested than the other, the expectational imbalance is starting to show.

Trump spoke by phone to five world leaders before talking to Putin on Jan. 28 as part of a bundle of calls. The White House readout of the Putin call was vague and four sentences long; the Kremlin’s was effusive and fifteen sentences long.

Nor does Trump seem to be in a rush to meet. Dmitry Peskov, Putin’s spokesman, said the two might only meet before a G20 summit due to take place in July.

Trump has good reason not to rush.

‘A HUGE BONUS’

With U.S. intelligence agencies accusing Moscow of having sponsored computer hacking to help Trump win office, a deal would hand fresh political ammunition to Trump’s opponents, who say he has long been too complimentary to the Russian leader.

A delay would have the added advantage of postponing a chorus of disapproval from foreign allies and Congress, where there is bipartisan determination to block sanctions relief.

For Putin though, in his 17th year of dominating the Russian political landscape, a deal, or even an early symbolic concession such as easing minor sanctions, matters.

Expected to contest a presidential election next year that could extend his time in the Kremlin to 2024, he needs sanctions relief to help lift the economy out of recession.

U.S. and EU financial sector sanctions have cut Russia’s access to Western capital markets and know-how, scared off foreign investors, and — coupled with low global oil prices — have exacerbated an economic crisis that has cut real incomes and fueled inflation, making life harder for millions.

Since Putin’s 2012 election, consumer prices have risen by 50 percent, while a fall in the value of the rouble against the dollar after the annexation of Crimea means average salaries fell by 36 percent from 2012-2016 in dollar terms.

Official data puts inflation at 5.4 percent, but consumers say the real figure is much higher, and fear of inflation regularly ranks among Russians’ greatest worries in surveys.

An easing of U.S. sanctions could spur more foreign investment, helping create a feel-good factor.

“It would be a huge bonus if it happened,” said Chris Weafer, senior partner at economic and political consultancy Macro-Advisory Ltd, who said he thought Putin wanted to put rebuilding the economy at the heart of his next term.

The economy matters to Putin because, in the absence of any more land grabs like Crimea, greater prosperity is one of the few levers he has to get voters to come out and support him.

With state TV affording him blanket and favorable coverage and with the liberal opposition still weak, few doubt Putin would genuinely win another presidential term if, as expected, he decided to run.

But for the win to be politically durable and for Putin to be able to confidently contemplate serving out another full six-year term, he would need to win big on a respectable turnout.

That, an election showed last year, is not a given.

Around 4 million fewer Russians voted for the pro-Putin United Russia party in a September parliamentary vote compared to 2011, the last time a similar election was held.

Although the economic benefits of a Trump deal might take a while to trickle down to voters, its symbolism could boost turnout, helping Putin prolong a system based on himself.

“It would be presented to the Russian people as a huge victory by Putin,” said von Eggert. “It would be described as a validation of his strategy to go to war in Ukraine regardless of the consequences and to turn the country into Fortress Russia.”

(Additional reporting by Andrey Ostroukh; Editing by Peter Graff)