Kerry says settlements endanger peace, Israel hits back

A general view shows a Star of David near buildings in the Israeli settlement of Maale Edumim, in the occupied West Bank

By Lesley Wroughton and Yeganeh Torbati

WASHINGTON (Reuters) – U.S. Secretary of State John Kerry warned on Wednesday that Israel’s building of settlements was endangering Middle East peace, expressing unusually frank frustration with the long-time American ally.

Israeli Prime Minister Benjamin Netanyahu shot back at Kerry and accused him of showing bias against the Jewish state.

In a 70-minute speech just weeks before the Obama administration hands over to President-elect Donald Trump, Kerry said Israel “will never have true peace” with the Arab world if it does not reach an accord based on Israelis and Palestinians living in their own states.

His remarks added to strain in the U.S.-Israeli relationship — characterized by personal acrimony between President Barack Obama and Netanyahu — after the United States cleared the way for a U.N. resolution last week that demanded an end to Israeli settlement building.

“Despite our best efforts over the years, the two-state solution is now in serious jeopardy,” Kerry said at the State Department. “We cannot, in good conscience, do nothing, and say nothing, when we see the hope of peace slipping away.”

“The truth is that trends on the ground – violence, terrorism, incitement, settlement expansion and the seemingly endless occupation – are destroying hopes for peace on both sides and increasingly cementing an irreversible one-state reality that most people do not actually want.”

Kerry condemned Palestinian violence which he said included “hundreds of terrorist attacks in the past year.”

His parting words are unlikely to change anything on the ground between Israel and the Palestinians or salvage the Obama administration’s record of failed Middle East peace efforts.

In a statement, Netanyahu said Kerry’s speech “was skewed against Israel.” The Israeli leader said Kerry “obsessively dealt with settlements” and barely touched on “the root of the conflict – Palestinian opposition to a Jewish state in any boundaries”.

The Israelis are looking past Obama and expect they will receive more favorable treatment from Trump, who takes office on Jan. 20. The Republican used his Twitter account on Wednesday to denounce the Obama administration, including its U.N. vote and the nuclear accord it reached with Iran last year.

“We cannot continue to let Israel be treated with such total disdain and disrespect. They used to have a great friend in the U.S., but not anymore,” Trump said in a series of tweets. “Stay strong Israel, January 20th is fast approaching!”

Trump had openly lobbied against the U.N. resolution and would be expected to veto any further ones deemed anti-Israel.

He has vowed to move the U.S. Embassy from Tel Aviv to Jerusalem and has appointed as ambassador a lawyer who raised money for a major Jewish settlement, has cast doubt on the idea of a two-state solution and even advocated for Israel’s annexation of the West Bank, a notion even further to the right than Netanyahu’s own stance.

IMPASSIONED SPEECH

Kerry’s speech provided some insights into an issue that he personally feels passionate about and had hoped to resolve during his years as secretary of state.

He defended the U.S. decision to allow the passage of a U.N. resolution demanding an end to Israeli settlements, saying it was intended to preserve the possibility of a two-state solution.

The United States abstained in the Dec. 23 U.N. resolution, in what many see as a parting shot by Obama who had an acrimonious relationship with Netanyahu.

Kerry vigorously defended the U.N. resolution and rejected criticism “that this vote abandons Israel”.

“It is not this resolution that is isolating Israel. It is the permanent policy of settlement construction that risks making peace impossible.”

In a pointed reply to Netanyahu who said last week that “Friends don’t take friends to the Security Council”, and who has insisted the Obama administration had orchestrated the resolution, Kerry hit back, saying: “Friends need to tell each other the hard truths, and friendships require mutual respect.”

Kerry defended Obama’s commitment to Israel’s security and U.S. support for Israel in international platforms. Earlier this year, the United States and Israel agreed a $38 billion in military assistance over the next decade.

(Additional reporting by Matt Spetalnick in Washington and Jeffrey Heller in Jerusalem; Writing by Yara Bayoumy; Editing by Alistair Bell)

On Pearl Harbor visit, Abe pledges Japan will never wage war again

Japanese Prime Minister Shinzo Abe speaks with a Pearl Harbor survivor after he and U.S. President Barack Obama spoke at Joint Base Pearl Harbor-Hickam, Hawaii, U.S., December 27, 2016..

By Jeff Mason

PEARL HARBOR, Hawaii, Dec 27 (Reuters) – Japanese Prime Minister Shinzo Abe made a symbolic visit to Pearl Harbor with President Barack Obama on Tuesday, commemorating the victims of Japan’s World War Two attack and promising that his country would never wage war again.

The visit, just weeks before Republican President-elect Donald Trump takes office, was meant to highlight the strength of the U.S.-Japan alliance amid concerns that Trump could forge a more complicated relationship with Tokyo.

“I offer my sincere and everlasting condolences to the souls of those who lost their lives here, as well as to the spirits of all the brave men and women whose lives were taken by a war that commenced in this very place,” Abe said.

“We must never repeat the horrors of war again. This is the solemn vow we, the people of Japan, have taken.”

Japanese forces attacked Pearl Harbor with torpedo planes, bombers and fighter planes on the morning of Dec. 7, 1941, pounding the U.S. fleet moored there in the hope of destroying U.S. power in the Pacific.

Abe did not apologize for the attack, a step that would have irked his conservative supporters, many of whom say U.S. economic sanctions forced Japan to open hostilities.

“This visit to Pearl Harbor was to console the souls of the war dead, not to apologize,” Chief Cabinet Secretary Yoshihide Suga told a news conference in Tokyo, adding the trip had showed that the allies would contribute to world peace and prosperity.

Obama, who earlier this year became the first incumbent U.S. president to visit Hiroshima, where the United States dropped an
atomic bomb in 1945, called Abe’s visit a “historic gesture” that was “a reminder that even the deepest wounds of war can give way to friendship and a lasting peace.”

Abe became the first Japanese prime minister to visit the USS Arizona Memorial, built over the remains of the sunken battleship USS Arizona, although three others including his grandfather had made quiet stops in Pearl Harbor in the 1950s.

The two leaders stood solemnly in front of a wall inscribed with the names of those who died in the 1941 attack and took part in a brief wreath-laying ceremony, followed by a moment of silence.

“In Remembrance, Shinzo Abe, Prime Minister of Japan” was written on one wreath and “In Remembrance, Barack Obama, President of the United States” on the other.

They then threw flower petals into the water.

After their remarks, both leaders greeted and Abe embraced U.S. veterans who survived the Pearl Harbor attack.

In China, which has repeatedly urged Japan to show greater repentance for World War Two and Japan’s invasion of China, Foreign Ministry spokeswoman Hua Chunying said real reflection was needed, not show.

“Reconciliation between inflictor and victim must and can only be established on the basis of sincere and deep reflection by the inflictor,” Hua told a daily news briefing.

DISPLAY OF ALLIANCE STRENGTH

Japan hopes to present a strong alliance with the United States amid concerns about China’s expanding military capability.

During a meeting ahead of the Pearl Harbor visit, Abe and Obama agreed to closely monitor moves by China’s aircraft carrier, recently spotted on a routine drill in the Western Pacific for the first time, and to strengthen the U.S.-Japan alliance, Japan’s Kyodo news agency reported.

The leaders’ get-together was also meant to reinforce the U.S.-Japan partnership ahead of the Jan. 20 inauguration of Trump, whose opposition to the Trans-Pacific Partnership trade pact and campaign threat to force allied countries to pay more to host U.S. forces raised concerns among allies such as Japan.

Obama has sought to provide a smooth transition for Trump, but he made his opposition to the Republican’s policies, including his proposal to ban Muslims temporarily from entering the United States, clear during the 2016 campaign.

“It is here that we remember that even when hatred burns hottest, even when the tug of tribalism is at its most primal, we must resist the urge to turn inward,” Obama said at Pearl Harbor. “We must resist the urge to demonize those who are different.”

Abe met with Trump in New York in November and called him a “trustworthy leader.”

Obama called for a world without nuclear arms during his visit to Hiroshima. Trump last week called for the United States to “greatly strengthen and expand” its nuclear capability and reportedly welcomed an international arms race.

Some Abe critics noted the Japanese leader’s visit, and the reconciliation with the United States that it symbolized, underscored the stark contrast in its relationship with China and South Korea, where the bitter wartime legacy still plagues ties with Tokyo.

Abe’s cabinet minister for reconstruction of disaster-hit regions, Masahiro Imamura, paid his respects later in the day (Wednesday, Tokyo time) at Tokyo’s Yasukuni Shrine for war dead, seen in China and South Korea as a symbol of Japan’s past militarism, Kyodo news agency said. Abe angered Beijing and Seoul and upset Washington with his own visit to the shrine three years ago this month.

“A symbolic gesture of contrition to your closest ally is easy,” said Jeffrey Kingston, director of Asian studies at Temple University’s Japan campus in Tokyo.

“If he (Abe) really is sincere about reconciliation diplomacy and overcoming lingering enmities he needs to visit similar symbolic sights (in China and Korea) … and make similar remarks of remorse that are more specific about Japan’s responsibility.”

(Reporting by Jeff Mason in Pearl Harbor, Hawaii, Ben Blanchard in Beijing and Linda Sieg and Kaori Kaneko in Tokyo; Additional reporting by Mohammad Zargham and Eric Beech in Washington; Editing by Alistair Bell, Lisa Shumaker and Nick Macfie)

Israel pressing ahead with settlements after U.N. vote

Houses are seen in the West Bank Jewish settlement of Maale Adumim as the Palestinian village of Al-Eizariya is seen in the background

By Jeffrey Heller

JERUSALEM (Reuters) – The Jerusalem municipality is due to act on Wednesday on requests to construct hundreds of new homes for Israelis in areas that Israel captured in 1967 and annexed to the city, drawing fresh criticism from the United States that settlement activity puts Middle East peace-making at risk.

Israel is still fuming over the resolution approved last Friday by the United Nations Security Council that demands an end to settlement activity in the occupied West Bank and East Jerusalem.

U.S. State Department spokesman Mark Toner said he was aware of press reports about plans for more settlement building.

“We would hope that the U.N. Security Council resolution would serve as a wake-up call, a call to action, an attempt to alert both sides, but certainly Israel, that its actions with regards to settlement activity are a detriment to moving forward with a two-state solution,” Toner told a news briefing.

Israel described as “shameful” the decision by the United States to abstain in the vote rather than wield its veto. The Obama administration is a strong opponent of the settlements.

U.S. Secretary of State John Kerry is to make remarks on Wednesday regarding Middle East peace and discuss steps needed to resolve the Israeli-Palestinian conflict.

An agenda published by Jerusalem City Hall listed applications for at least 390 new homes whose approval looks certain to intensify international and Palestinian opposition to the Israeli settlement-building.

The Municipal Planning and Construction panel usually meets on Wednesdays; the permit requests were filed before the Security Council resolution.

Settler leaders and their supporters have been urging Prime Minister Benjamin Netanyahu to step up construction in East Jerusalem, accusing him of having slowed the pace last year because of international pressure.

Israel’s Haaretz newspaper reported on Tuesday that 1,506 housing units for Israelis have already been approved in East Jerusalem this year, compared with 395 in 2015.

The Jerusalem municipality said in a statement on Tuesday it would “continue to develop the capital according to zoning and building codes, without prejudice, for the benefit of all residents.”

Israel considers all of Jerusalem its united capital, a stance not supported by the international community. Palestinians want East Jerusalem as the capital of a state they seek to establish in the occupied West Bank and in the Gaza Strip.

Some 570,000 Israelis live in East Jerusalem and the West Bank, in settlements that most countries consider to be illegal and the United States terms illegitimate. Israel disputes that, citing historical, political and Biblical links to the areas, as well as security concerns.

The new U.N. resolution changes nothing on the ground between Israel and the Palestinians and will probably be all but ignored by the incoming U.S. administration of President-elect Donald Trump.

However, Israeli officials fear it could spur further Palestinian moves against Israel in international forums.

A U.S. official said after Friday’s vote that Washington’s decision to abstain was prompted mainly by concern that Israel would continue to accelerate settlement construction and put at risk a two-state solution of the conflict with the Palestinians.

The U.S.-backed peace talks have been stalled since 2014.

(Additional reporting by Ori Lewis in Jerusalem and Lesley Wroughton in Washington; Editing by Gareth Jones and Leslie Adler)

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)

Netanyahu seeks to rally Israelis around him in anti-Obama assault

U.S. President Barack Obama meets with Israeli Prime Minister Benjamin Netanyahu in New York

By Jeffrey Heller

JERUSALEM (Reuters) – Benjamin Netanyahu has been unrelenting in his criticism of the  Obama administration over what he condemned as its “shameful” decision not to veto a U.N. Security Council resolution calling for a halt to Israeli settlement-building.

But with the clock ticking down on Barack Obama’s presidency, a possibly more amenable Republican Donald Trump waiting in the wings and a $38 billion U.S. military aid package to Israel a done deal, it’s all a calculated risk for the four-term, right-wing Israeli prime minister.

Netanyahu, after what critics are calling a stinging defeat on the international stage, is already maneuvering to mine deep-seated feelings among many Israelis that their country and its policies toward the Palestinians are overly criticized in a world where deadlier conflicts rage.

He has tried to rally Israelis around him by attempting to portray the anti-settlement resolution as a challenge to Israel’s claimed sovereignty over all of Jerusalem.

That was hammered home with an unscheduled Hanukkah holiday visit to the Western Wall, one of Judaism’s holiest sites, which is located in Jerusalem’s Old City in the eastern sector captured along with the West Bank in a 1967 war.

That all of Jerusalem is their country’s capital is a consensus view among Israelis, including those who otherwise have doubts about the wisdom of Netanyahu’s support for settlements on the West Bank.

Palestinians claim eastern Jerusalem as their capital, and Washington has in the past accepted an international view that the city’s status must be determined at future peace talks. But Trump has promised to reverse decades of U.S. policy by moving the U.S. embassy to Jerusalem from Tel Aviv.

“I did not plan to be here this evening but in light of the U.N. resolution I thought that there was no better place to light the second Hanukkah candle than the Western Wall,” Netanyahu said during the event.

“I ask those same countries that wish us a Happy Hanukkah how they could vote for a U.N. resolution which says that this place, in which we are now celebrating Hanukkah, is occupied territory?”

Some 570,000 Israelis live in the West Bank and East Jerusalem, which Palestinians want as part of a future state.

At the weekly cabinet meeting on Sunday, Netanyahu brushed aside a White House denial and again accused the Obama administration of colluding with the Palestinians in the U.N. move against the settlements, which are considered illegal by most countries and described as illegitimate by Washington.

Disputing this, Israel cites biblical, historical and political links to the West Bank and Jerusalem, as well as security concerns.

The diplomatic drama unfolded over the Christmas holiday, with twists and turns unusual even for the serpentine path followed by Netanyahu’s relationship with a Democratic president who opposes settlement building.

On Thursday, Netanyahu successfully lobbied Egypt, which proposed the draft resolution, to withdraw it – enlisting the help of President-elect Trump to persuade Cairo to drop the bid.

But the Israeli leader was ultimately outmaneuvered at the United Nations, where New Zealand, Venezuela, Senegal and Malaysia, resubmitted the proposal a day later.

It passed 14-0, with an abstention from the United States, withholding Washington’s traditional use of its veto to protect Israel at the world body in what was widely seen as a parting shot by Obama against Netanyahu and his settlement policy.

ACCELERATED CONSTRUCTION

A U.S. official said key to Washington’s decision was  concern that Israel would continue to accelerate settlement construction in occupied territory and put a two-state solution of the conflict with the Palestinians at risk.

The resolution adopted on Friday at the U.N. changes nothing on the ground between Israel and the Palestinians and likely will be all but ignored by the incoming Trump administration.

However, Israeli officials fear it could spur further Palestinian moves against Israel in international forums.

“The Obama administration made a shameful, underhanded move,” Netanyahu said after the vote. It was some of the sharpest criticism he has voiced against Obama, who got off on the wrong foot with Israelis when he skipped their country during a Middle East visit after first taking office in 2009.

In a further display of anger, Netanyahu summoned the U.S. ambassador to meet him during a day of reprimands delivered at the Foreign Ministry to envoys of the 10 countries with embassies in Israel among the 14 that backed the resolution.

Netanyahu, who is vying with the ultranationalist Jewish Home Party in his governing coalition for right-wing voters, also took aim at what has become a favorite target – an Israeli media he has been painting as left-wing and unpatriotic.

“Leftist political parties and TV commentators have been rubbing their hands in glee over the anti-Israeli decision at the United Nations, almost like the Palestinian Authority and Hamas,” Netanyahu wrote on his Facebook page.

But more trouble for the Israeli leader could be ahead at a planned 70-nation, French-hosted conference on Middle East peace due to convene in Paris on Jan. 15, five days before Obama hands over to Trump.

“(Netanyahu) fears there is a U.S.-French move brewing before January 20th, possibly a declarative step at the French peace convention,” said an Israeli official who attended an Israeli security cabinet session on Sunday.

(Editing by Peter Graff)

Defying pressure, U.S. lets U.N. denounce Israeli settlements

A construction site is seen in the Israeli settlement of Givat Zeev, in the occupied West Bank

By Michelle Nichols

UNITED NATIONS (Reuters) – The United States on Friday allowed the U.N. Security Council to adopt a resolution demanding an end to Israeli settlement building, defying heavy pressure from long-time ally Israel and President-elect Donald Trump for Washington to wield its veto.

A U.S. abstention paved the way for the 15-member council to approve the resolution, with 14 votes in favor, prompting applause in the council chamber. The action by President Barack Obama’s administration follows growing U.S. frustration over the unrelenting construction of Jewish settlements on land Palestinians want for a future independent state.

“Israel rejects this shameful anti-Israel resolution at the U.N. and will not abide by its terms,” Prime Minister Benjamin Netanyahu, who has encouraged the expansion of Jewish settlements in territory captured by Israel in a 1967 war with its Arab neighbors, said in a statement.

The U.S. action just weeks before Obama ends eight years as president broke with the long-standing American approach of shielding Israel, which receives more than $3 billion in annual U.S. military aid, from such action. The United States, Russia, France, Britain and China have veto power on the council.

The resolution, put forward by New Zealand, Malaysia, Venezuela and Senegal a day after Egypt withdrew it under pressure from Israel and Trump, was the first adopted by the council on Israel and the Palestinians in nearly eight years.

The U.S. abstention was seen as a parting shot by Obama, who has had an acrimonious relationship with Netanyahu and whose efforts to forge a peace agreement based on a “two-state” solution of creating a Palestinian state existing peacefully alongside Israel have proven futile.

Obama also faced pressure from U.S. lawmakers, fellow Democrats as well as Republicans, to veto the measure, and was hit with bipartisan criticism after the vote.

Trump, who takes office on Jan. 20, took the extraordinary step by a U.S. president-elect of personally intervening in a sensitive foreign policy matter before taking office, speaking by telephone with Netanyahu and Egyptian President Abdel Fattah al-Sisi before Egypt, another major U.S. aid recipient, dropped the resolution.

Trump wrote on Twitter after the vote, “As to the U.N., things will be different after Jan. 20th.”

“There is one president at a time,” Ben Rhodes, White House deputy national security adviser, told reporters, dismissing Trump’s criticism.

Outgoing U.N. Secretary-General Ban Ki-moon welcomed the resolution. Russian U.N. Ambassador Vitaly Churkin called on Israel to “respect international law.”

But Netanyahu said, “At a time when the Security Council does nothing to stop the slaughter of half a million people in Syria, it disgracefully gangs up on the one true democracy in the Middle East, Israel, and calls the Western Wall ‘occupied territory.'”

Israel for decades has pursued a policy of constructing Jewish settlements on territory captured by Israel in a 1967 war with its Arab neighbors including the West Bank, Gaza and East Jerusalem. Most countries view Israeli settlement activity in the West Bank and East Jerusalem as illegal and an obstacle to peace. Israel disagrees.

‘NO LEGAL VALIDITY’

The resolution demanded that Israel “immediately and completely cease all settlement activities in the occupied Palestinian territory, including East Jerusalem” and said the establishment of settlements by Israel has “no legal validity and constitutes a flagrant violation under international law.”

The White House said that in the absence of any meaningful peace process, Obama made the decision to abstain. The last round of U.S.-led peace talks between the Israelis and Palestinians collapsed in 2014. The Palestinians want an independent state in the West Bank, Gaza and East Jerusalem.

“We could not in good conscience veto a resolution that expressed concerns about the very trends that are eroding the foundation for a two-state solution,” Rhodes said.

American U.N ambassador Samantha Power said the United States did not veto it because the resolution “reflects the facts on the ground and is consistent with U.S. policy across Republican and Democratic administrations.”

Successive U.S. administrations of both parties have criticized settlement activity but have done little to slow their growth.

The Obama administration has called settlement expansion an “illegitimate” policy that has undermined chances of a peace deal.

The Security Council last adopted a resolution critical of settlements in 1979, with the United States also abstaining.

The passage of Friday’s resolution changes nothing on the ground between Israel and the Palestinians and likely will be all but ignored by the incoming Trump administration.

But it was more than merely symbolic. It formally enshrined the international community’s disapproval of Israeli settlement building and could spur further Palestinian moves against Israel in international forums.

PALESTINIAN SAYS U.N. MOVE ‘BIG BLOW’ TO ISRAEL POLICY

Trump is likely to be a more staunch supporter of Netanyahu’s right-wing policies. He has picked a hardline pro-Israel ambassador and vowed to move the U.S. Embassy from Tel Aviv to Jerusalem, in what would be a major reversal of long-standing American policy.

The U.N. action was “a big blow to Israeli policy, a unanimous international condemnation of settlements and a strong support for the two-state solution,” a spokesman for Palestinian President Mahmoud Abbas said in a statement published by the official Palestinian news agency Wafa.

“This is a day of victory for international law, a victory for civilized language and negotiation, and a total rejection of extremist forces in Israel,” Chief Palestinian Negotiator Saeb Erekat told Reuters.

Israel’s U.N. ambassador, Danny Danon, said he had no doubt the incoming Trump administration and Ban’s successor as U.N. chief, former Portuguese Prime Minister Antonio Guterres, “will usher in a new era in terms of the U.N.’s relationship with Israel.”

After the vote, Netanyahu instructed Israel’s ambassadors in New Zealand and Senegal to return to Israel for consultations. He also ordered the cancellation of a planned visit to Israel by Senegal’s foreign minister and the cancellation of all aid programs to Senegal.

(Writing by Will Dunham and Yara Bayoumy; Additional reporting by Maayan Lubell in Jerusalem, Lesley Wroughton and Susan Heavey in Washington, Matt Spetalnick in New York and Ali Sawafta in Ramallah; Editing by Bill Trott and Cynthia Osterman)

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)

U.N. council members meeting to decide on push to end settlements

A Jewish man covered in a prayer shawl, prays in the Jewish settler outpost of Amona in the West Bank

By Michelle Nichols

UNITED NATIONS (Reuters) – Four U.N. Security Council members met on Friday to decide whether to vote on a resolution demanding an end to Israeli settlements after Egypt withdrew the measure under pressure from Israel and U.S. President-elect Donald Trump.

The 15-member council had been due to vote on Thursday afternoon and Western officials said the United States had intended to allow the draft resolution to be adopted, a major reversal of U.S. practice of protecting Israel from action.

New Zealand, Malaysia, Venezuela and Senegal, who were co-sponsors of the draft resolution, told Egypt on Thursday night that if Cairo did not clarify its position, then they reserved the right to “proceed to put it to vote ASAP.”

Security Council member Egypt has since officially withdrawn the text, which it had worked on with the Palestinians, allowing those four countries to call for a vote, diplomats said.

Israeli Prime Minister Benjamin Netanyahu and Trump had both called for the United States to veto the draft resolution.

Trump spokesman Sean Spicer said the Republican president-elect had spoken with both Netanyahu and Egyptian President Abdel Fattah al-Sisi about the proposed Security Council action.

“He put out a statement about the Egyptian motion that was going to happen at the U.N. It was revoked,” Spicer said on NBC’s “Today” program on Friday. “President al-Sisi called, Prime Minister Netanyahu called. He is getting results, whether it’s is domestically or abroad.”

The draft resolution would demand Israel “immediately and completely cease all settlement activities in the occupied Palestinian territory, including East Jerusalem” and said the establishment of settlements by Israel has “no legal validity and constitutes a flagrant violation under international law.”

A resolution needs nine votes in favor and no vetoes by the United States, France, Russia, Britain or China to be adopted.

The Palestinians want an independent state in the West Bank, Gaza and East Jerusalem – areas Israel captured in a 1967 war. Most countries and the United Nations view Israeli West Bank settlements as illegal and an obstacle to peace.

Israel disputes that settlements are illegal and says their final status should be determined in any future talks on Palestinian statehood. The last round of U.S.-led peace talks between the Israelis and Palestinians collapsed in 2014.

(Additional reporting by Susan Heavey; Editing by Bill Trott)

Egypt delays U.N. vote on settlements after Trump, Israel urge U.S. veto

Israeli Prime Minister Benjamin Netanyahu (R) stands next to Donald Trump during their meeting in New York,

By Michelle Nichols and Jeffrey Heller

UNITED NATIONS/JERUSALEM (Reuters) – Egypt postponed a U.N. Security Council vote on Thursday on a resolution it proposed demanding an end to Israeli settlement building, diplomats said, after Israel’s prime minister and U.S. president-elect Donald Trump urged Washington to veto it.

Egyptian President Abdel Fattah al-Sisi told Egypt’s U.N. mission to postpone the vote, which would have forced U.S. President Barack Obama to decide whether to shield Israel with a veto or, by abstaining, to register criticism of the building on occupied land that the Palestinians want for a state, diplomats said.

In a sign that they feared Obama might abandon the United States’ long-standing diplomatic protection for Israel at the United Nations, Trump and Israeli Prime Minister Benjamin Netanyahu urged the White House to veto the draft resolution.

Sisi put off the vote after a request from Israel, two sources familiar with the matter told Reuters. Egypt was the first Arab state to make peace with Israel.

Any council member can propose a draft resolution. Council member Egypt worked with the Palestinians to draft the text.

Netanyahu took to Twitter in the dead of night in Israel to make the appeal, in a sign of concern that Obama might take a parting shot at a policy he has long opposed and at a right-wing Israeli leader with whom he has had a rocky relationship.

Hours later, Trump, posting on Twitter and Facebook, backed fellow conservative Netanyahu on one of the most contentious issues in the Israeli-Palestinian conflict and the pursuit, effectively stalled since 2014, of a two-state solution.

“The resolution being considered at the United Nations Security Council regarding Israel should be vetoed,” Trump said.

“As the United States has long maintained, peace between the Israelis and Palestinians will only come through direct negotiations between the parties, and not through the imposition of terms by the United Nations. This puts Israel in a very poor negotiating position and is extremely unfair to all Israelis.”

Egypt circulated the draft on Wednesday evening and the 15-member council had been due to vote at 3 p.m. (2000 GMT) on Thursday, diplomats said. It was unclear, they said, how the United States, which has protected Israel from U.N. action, would vote.

The resolution would demand Israel “immediately and completely cease all settlement activities in the occupied Palestinian territory, including East Jerusalem”.

The draft text put forward by Egypt says the establishment of settlements by Israel has “no legal validity and constitutes a flagrant violation under international law”.

It also expresses grave concern that continuing settlement activities “are dangerously imperilling the viability of a two-state solution”.

The White House declined comment. Some diplomats hoped Obama would allow Security Council action by abstaining on the vote.

Israel’s security cabinet was due to hold a special session at 10 a.m. EST (1500 GMT) to discuss the issue. Israeli officials voiced concern that passage of the resolution would embolden the Palestinians to seek international sanctions against Israel.

In Beirut, French Foreign Minister Jean-Marc Ayrault told reporters: “The continuation of settlements is completely weakening the situation on the ground and creating a lot of tension. It is taking away the prospect of a two-state solution. So this could reaffirm our disagreement with this policy.”

OBAMA CRITICAL OF SETTLEMENTS

Obama’s administration has been highly critical of settlement construction in the occupied West Bank and East Jerusalem. U.S. officials said this month, however, the president was not expected to make major moves on Israeli-Palestinian peace before leaving office in January.

Netanyahu tweeted that the United States “should veto the anti-Israel resolution at the U.N. Security Council on Thursday”.

Israel’s far-right and settler leaders have been buoyed by the election of Trump, the Republican presidential candidate. He has already signaled a possible change in U.S. policy by appointing one of his lawyers, a fundraiser for a major Israeli settlement, as Washington’s ambassador to Israel.

Netanyahu, for whom settlers are a key component of his electoral base, has said his government has been their greatest ally since the capture of the West Bank and East Jerusalem in a 1967 war.

Some legislators in his right-wing Likud party have already suggested Israel declare sovereignty over the West Bank if the United States does not veto the resolution.

That prospect seemed unlikely, but Netanyahu could opt to step up building in settlements as a sign of defiance of Obama and support for settlers.

Israel considers all of Jerusalem its capital, a claim that is not recognized internationally.

The United States says continued Israeli settlement building lacks legitimacy, but has stopped short of adopting the position of many countries that it is illegal under international law. Some 570,000 Israelis live in the West Bank and East Jerusalem.

A resolution needs nine votes in favor and no vetoes by the United States, France, Russia, Britain or China to be adopted.

(Additional reporting by Susan Heavey in Washington, John Irish travelling with French foreign minister, and Matt Spetalnick in Washington; Writing by Arshad Mohammed; Editing by Tom Heneghan and James Dalgleish)

Trump, Netanyahu urge Obama to veto U.N. resolution on settlements

A boy sits near an Israeli flag atop the roof of a vehicle at the entrance to the Jewish settler outpost of Amona in the West Bank

By Jeffrey Heller and Michelle Nichols

JERUSALEM/UNITED NATIONS (Reuters) – U.S. President-elect Donald Trump echoed Israeli Prime Minister Benjamin Netanyahu in urging the Obama administration on Thursday to veto a U.N. Security Council draft resolution that calls for an immediate halt to settlement building on occupied land Palestinians seek for a state.

Netanyahu took to Twitter in the dead of night in Israel to make the appeal, in a sign of concern that President Barack Obama might take a parting shot at a policy he has long opposed and at a right-wing Israeli leader with whom he has had a rocky relationship.

Hours later, Trump, posting on Twitter and Facebook, backed fellow conservative Netanyahu on one of the most contentious issues in the Israeli-Palestinian conflict and the pursuit – effectively stalled since 2014 – of a two-state solution.

“The resolution being considered at the United Nations Security Council regarding Israel should be vetoed,” Trump said.

“As the United States has long maintained, peace between the Israelis and Palestinians will only come through direct negotiations between the parties, and not through the imposition of terms by the United Nations.

“This puts Israel in a very poor negotiating position and is extremely unfair to all Israelis,” he wrote.

After Trump’s statement, a U.S. administration official said: “We have no comment at this time.”

Egypt circulated the draft on Wednesday evening and the 15-member council is due to vote at 3 p.m. ET (2000 GMT) on Thursday, diplomats said. It was unclear, they said, how the United States, which has protected Israel from U.N. action, would vote.

The resolution would demand Israel “immediately and completely cease all settlement activities in the occupied Palestinian territory, including East Jerusalem”.

The White House declined to comment. Some diplomats hope Obama will allow Security Council action by abstaining on the vote.

Israel’s security cabinet was due to hold a special session at 1500 GMT to discuss the issue. Israeli officials voiced concern that passage of the resolution would embolden the Palestinians to seek international sanctions against Israel.

In Beirut, French Foreign Minister Jean-Marc Ayrault told reporters that Paris was looking at the text of the resolution with great interest.

“The continuation of settlements is completely weakening the situation on the ground and creating a lot of tension,” he said. “It is taking away the prospect of a two-state solution. So this could reaffirm our disagreement with this policy.”

OBAMA CRITICAL OF SETTLEMENTS

Obama’s administration has been highly critical of settlement construction in the occupied West Bank and East Jerusalem. U.S. officials said this month, however, the president was not expected to make major moves on Israeli-Palestinian peace before leaving office.

Tweeting at 3:28 a.m., Netanyahu said the United States “should veto the anti-Israel resolution at the U.N. Security Council on Thursday”.

Israel’s far-right and settler leaders have been buoyed by the election of Trump, the Republican presidential candidate. He has already signaled a possible change in U.S. policy by appointing one his lawyers – a fundraiser for a major Israeli settlement – as Washington’s new ambassador to Israel.

Netanyahu, for whom settlers are a key component of his electoral base, has said his right-wing government has been their greatest ally since the capture of the West Bank and East Jerusalem in a 1967 war.

Some legislators in his right-wing Likud party have already suggested Israel declare sovereignty over the West Bank if the United States does not veto the resolution.

That prospect seemed unlikely, but Netanyahu could opt to step up building in settlements as a sign of defiance of Obama and support for settlers.

Israel considers all of Jerusalem its capital, a claim that is not recognized internationally.

In 2011, the United States vetoed a draft resolution condemning Israeli settlements after the Palestinians refused a compromise offer from Washington.

Israel’s U.N. ambassador Danny Danon said on Israeli Army Radio: “In a few hours we will receive the answer from our American friends.”

“I hope very much it will be the same one we received in 2011 when the version was very similar to the one proposed now and the U.S. ambassador to the U.N. at the time, Susan Rice, vetoed it.”

The draft text says the establishment of settlements by Israel has “no legal validity and constitutes a flagrant violation under international law”.

It expresses grave concern that continuing settlement activities “are dangerously imperilling the viability of a two-state solution”.

The United States says continued Israeli settlement building lacks legitimacy, but has stopped short of adopting the position of many countries that it is illegal under international law. Some 570,000 Israelis live in the West Bank and East Jerusalem.

A resolution needs nine votes in favor and no vetoes by the United States, France, Russia, Britain or China to be adopted.

(Additional reporting by Susan Heavey in Washington and John Irish travelling with French foreign minister; Editing by Tom Heneghan)