Israel fast-tracks wall, escape route for new U.S. embassy in Jerusalem

FILE PHOTO: View of the U.S. consulate in Jerusalem February 24, 2018. REUTERS/Ammar Awad/File Photo

JERUSALEM (Reuters) – Israel has expedited construction permits to enable temporary quarters for the U.S. Embassy to open in Jerusalem as planned in May, the Finance Ministry said on Tuesday.

U.S. President Donald Trump in December broke with other world powers by recognising Jerusalem as Israel’s capital and announcing the U.S. Embassy would be moved there from Tel Aviv.

Trump’s reversal of decades of U.S. and broad international policy was welcomed by Israeli Prime Minister Benjamin Netanyahu as a “historic decision”. But it drew criticism from around the world and outraged Palestinians, who want a capital for their own future state in eastern parts of the city.

FILE PHOTO: Israeli Prime Minister Benjamin Netanyahu (R) and Israeli Finance Minister Moshe Kahlon attend the weekly cabinet meeting at the Prime Minister's office in Jerusalem December 24, 2017. REUTERS/Amir Cohen/File Photo

FILE PHOTO: Israeli Prime Minister Benjamin Netanyahu (R) and Israeli Finance Minister Moshe Kahlon attend the weekly cabinet meeting at the Prime Minister’s office in Jerusalem December 24, 2017. REUTERS/Amir Cohen/File Photo

Israel has said the Embassy will be opened on May 14, the 70th anniversary of its founding. A U.S. official said it would be located at a provisional site in Jerusalem that now houses a U.S. consular section.

Building a permanent embassy could take several years.

Finance Minister Moshe Kahlon said in a statement that he would empower the Jerusalem municipality to waive the permits that would have been required for a wall and an escape route at the interim site.

“We will not allow needless bureaucracy to hold up the transfer of the American embassy to Jerusalem, Israel’s eternal capital,” Kahlon said.

“This is a strategic diplomatic move for the State of Israel and the planning agencies under me will do whatever is necessary to accommodate the schedule being demanded.”

Jerusalem Mayor Nir Barkat had voiced concern about the timeline, telling Israel Radio on March 9: “I hope their (Americans’) schedule will be kept.”

The Israeli planning permit waiver for the Embassy will be good for three years, the Finance Ministry statement said.

“Initially, the interim Embassy in (the Jerusalem neighbourhood of) Arnona will contain office space for the Ambassador and a small staff,” said a U.S. Embassy official in Tel Aviv.

“By the end of next year, we intend to open a new Embassy Jerusalem annex on the Arnona compound that will provide the Ambassador and his team with expanded interim office space,” he said, adding that a search for site for the construction of a permanent embassy had begun.

Most countries do not recognise either side’s sovereignty in Jerusalem and have embassies to Israel in the Tel Aviv area.

Netanyahu has described Jerusalem as “the capital of the Jewish people for 3,000 years”, and Trump said the embassy move was “a long overdue step to advance the peace process”.

Palestinian leaders said Washington’s decision meant it was no longer an honest broker in efforts to revive peace talks, which collapsed in 2014.

(Writing by Dan Williams; Editing by Jeffrey Heller and Raissa Kasolowsky)

Before expulsions, a brick-by-brick hardening of U.S. stance toward Moscow

By Phil Stewart and Matt Spetalnick

WASHINGTON (Reuters) – America’s most sweeping expulsion of Russian diplomats since the Cold War may have seemed like a dramatic escalation in Washington’s response to Moscow, but the groundwork for a more confrontational U.S. posture had been taking shape for months — in plain sight.

While President Donald Trump’s conciliatory rhetoric toward Moscow has dominated headlines, officials at the U.S. State Department, Pentagon and White House made a series of lower-profile decisions over the past year to counter Russia around the world – from Afghanistan to North Korea to Syria.

The State Department earlier in March announced plans to provide anti-tank missiles to Ukraine to defend against Russia-backed separatists in eastern Ukraine. Trump’s predecessor as president, Barack Obama, had declined to do so over fears of provoking Moscow.

In Syria last month, the U.S. military killed or injured as many as 300 men working for a Kremlin-linked private military firm after they attacked U.S. and U.S.-backed forces. The White House, meanwhile, firmly tied Russia to deadly strikes on civilians in Syria’s eastern Ghouta region.

Both the White House and Pentagon’s top policy documents unveiled in January portrayed Russia as an adversary that had returned to the center of U.S. national security planning.

That was all before the United States said on Monday it would expel 60 Russian diplomats, joining governments across Europe in punishing the Kremlin for a nerve agent attack on a former Russian spy in Britain that they have blamed on Moscow.

Russia has denied any involvement.

With Monday’s announcement, however, it was unclear whether Trump is promoting – or just acquiescing to – the tougher U.S. stance developed by his advisers and generals.

Trump’s critics sought to portray him as a reluctant actor in any get-tough approach to Russia, even though one senior administration official described him as involved “from the beginning” in the expulsions of Russian diplomats.

“It is disturbing how grudgingly he came to this decision,” said U.S. Representative Adam Smith, the top Democrat on the House Armed Services Committee.

Still, the Trump administration’s actions run counter to widespread perception, fueled by the president’s own statements, that Trump has softened America’s stance toward Russian President Vladimir Putin amid a U.S. investigation into Moscow’s meddling in the 2016 presidential election.

Regardless of the tough actions, the inconsistent messaging may undermine Washington’s strategy to deter Moscow’s aggressive behavior, experts warn.

“U.S. signaling is all undercut by Trump’s lack of seriousness about Russia,” said Andrew Weiss, a Russia expert at the Carnegie Endowment for International Peace.

Just last Tuesday, Trump congratulated Putin on his re-election, drawing sharp criticism from fellow Republicans.

But in another sign of mixed messaging, Trump two days later named John Bolton, a strident Russia hawk, to become his national security adviser.

DOWNWARD SPIRAL

Although the nerve agent attack was the official trigger for the U.S. expulsions, Trump administration officials warned that the attack should not be viewed in isolation, citing a series of destabilizing and aggressive actions by Moscow.

In Afghanistan, Trump’s top commander on the ground accused Russia again last week of arming Taliban militants.

On North Korea, Trump himself told Reuters in January that Russia was helping Pyongyang evade United Nations sanctions.

And less than two weeks ago, the Trump administration imposed the first sanctions against Russia for election meddling and cyber attacks, though it held off on punishing business magnates close to Putin.

U.S. officials and experts widely expect ties to further deteriorate, at least in the near term, and caution that Russia’s next steps could extend far beyond retaliation against American diplomats.

“The risk of escalation doesn’t just come from tit-for-tat punishments,” said Matthew Rojansky, a Russia expert at the Wilson Center think tank in Washington, citing the potential for more aggressive moves from the Middle East to the cyber realm.

U.S. officials have said the Trump administration still seeks to avoid a complete rupture in bilateral relations. One official said Russian cooperation was still sought to address thorny diplomatic issues like North Korea and Iran.

(Additional reporting by John Walcott; editing by Mary Milliken and G Crosse)

Thousands more leave enclave in Syria’s Ghouta as Assad takes back control

A convoy of buses that carry rebels and their families waits at Harasta highway outside Jobar, in Damascus, Syria March 26, 2018. REUTERS/Omar Sanadiki

By Tom Perry and Suleiman Al-Khalidi

BEIRUT/AMMAN (Reuters) – Thousands of people departed eastern Ghouta for Syrian rebel territory near the Turkish border on Tuesday, the third group to leave under a deal brokered by Russia to surrender the enclave near Damascus to the Syrian government.

Some 7,000 people – most of them fighters and their families – left on 100 buses in the early hours of the morning, to the Syrian Observatory for Human Rights said. More buses drove into eastern Ghouta ahead of a further evacuation.

Rebels have been leaving Ghouta in batches with their families since Thursday, accepting safe passage to the Idlib region in northwestern Syria after they were beaten into retreat in a fierce assault by the Russian-backed Syrian army.

It marks the biggest defeat for the rebellion against President Bashar al-Assad since insurgents were driven from eastern Aleppo in 2016, underscoring his unassailable military position in the seven-year-long conflict.

“We faced two choices: go to Idlib or make peace with the regime,” said Sakhr Yousef, a 24-year-old fighter with the Failaq al-Rahman faction as he was preparing to leave eastern Ghouta with his wife and four young siblings.

“Making peace with the regime is very difficult, making peace with those who bombed us with criminal Russia,” he added in a voice message to Reuters, referring to Assad’s main backer in the conflict.

The rebels being evacuated on Tuesday are leaving from a tract of territory centered around the towns of Arbin, Ain Tarma and Zamalka that was controlled by Failaq al-Rahman rebels.

The last remaining insurgent-held area in Ghouta is the town of Douma. The United Nations said it is highly concerned for 70,000-78,000 people it said were trapped inside.

The Islamist group that controls Douma, Jaish al-Islam, is in talks with Russia that have yet to yield a result.

DISPLACED PEOPLE SUBJECTED TO “SCREENING PROCESS”

Backed by Russia and Iran, the government has repeatedly forced rebels to surrender areas and withdraw to Idlib. The opposition has called this a policy of “demographic change” aimed at forcing dissidents out of Syria’s main cities.

State television, broadcasting from the outskirts of Arbin, showed buses moving along a dusty road through a wasteland of heavily damaged buildings.

A correspondent with Hezbollah’s al-Manar TV said it could take four to five days to evacuate the tens of thousands of people who had agreed to leave Arbin, Ain Tarma and Zamalka.

Hezbollah, a heavily armed Lebanese group backed by Iran, has fought on Assad’s side during the war.

The Russian news agency TASS said 13,190 rebels had left eastern Ghouta in the last three days.

Many tens of thousands of people have fled eastern Ghouta this month into areas controlled by the Syrian government.

The U.N. Office for the Coordination of Humanitarian Affairs (OCHA) said more than 80,000 people had left formerly besieged parts of eastern Ghouta as control shifted since March 9.

The displaced “have to proceed to collective shelters and are not permitted to leave, until they have undergone a screening process and are able to prove a sponsor”, OCHA said in a situation report.

Syrian state TV said the army freed 28 people who had been held captive by militants in Arbin. The Observatory said their release was part of the deal agreed by rebels.

The Syrian military split eastern Ghouta into three separate zones during its assault that began on Feb. 18 and has killed more than 1,600 people, according to the Observatory.

The government says the offensive is securing Damascus from insurgent mortar fire that regularly used to hit the capital including its Old City.

In addition to their foothold in the northwest, anti-Assad rebels still hold a chunk of territory along the southern frontier with Jordan and Israel, and enclaves near Damascus, Homs and Hama.

(Additional reporting Katya Golubkova; Writing by Tom Perry; Editing by Mark Heinrich)

Russia to respond appropriately to U.S. expulsion of Russian envoys: RIA

A Russian flag flies atop the Consulate General of the Russian Federation in Seattle, Washington, U.S., March 26, 2018. REUTERS/Lindsey Wasson

MOSCOW (Reuters) – Moscow will respond appropriately to the U.S. expulsion of Russian diplomats and closure of the Russian consulate in Seattle, Russia’s Foreign Ministry said on Tuesday, RIA news agency reported.

The United States said on Monday it would expel 60 Russian diplomats, joining governments across Europe in punishing the Kremlin for a nerve agent attack on a former Russian spy in Britain that they have blamed on Moscow.

The ministry said that not a single country has provided any evidence that Russia was behind the poisoning of the former Russian spy and his daughter, RIA reported.

(Reporting by Maria Kiselyova; Writing by Katya Golubkova; Editing by Peter Graff)

Judge denies motion to drop case against widow of Orlando gunman

FILE PHOTO: Investigators work the scene following a mass shooting at the Pulse gay nightclub in Orlando Florida, U.S. on June 12, 2016. REUTERS/Carlo Allegri/File Photo

By Joey Roulette

ORLANDO, Fla. (Reuters) – A judge on Monday denied a defense motion to dismiss charges against the widow of the gunman in the 2016 massacre at Orlando’s Pulse nightclub, saying that the gunman’s father’s work an FBI informant was not relevant to the case.

Over the weekend, prosecutors disclosed that Omar Mateen’s father, Seddique, had worked with the Federal Bureau of Investigation before his son carried out the massacre of 49 people at the Pulse nightclub in June 2016.

In opening their case, lawyers for Mateen’s widow, Noor Salman, argued that the judge should dismiss the charges against her or declare a mistrial because prosecutors had failed to reveal the FBI’s relationship to Mateen’s father and other evidence related to him beforehand.

Salman, 31, is accused of helping her husband carry out surveillance of possible attack sites and doing nothing to stop him. Mateen, a U.S. citizen of Afghan descent who claimed allegiance to a member of the Islamic State militant group, was killed by police after more than three hours in the Pulse nightclub.

An FBI agent on Monday testified that years before Mateen carried out the attack, the agency considered using him as an informant, like his father.

Those discussions took place while the FBI was investigating comments made by the younger Mateen about overseas links to militants, Special Agent Juvenal Martin said in federal court in Orlando. That investigation closed without charges, he said.

Martin did not say why the FBI decided against enlisting Omar Mateen as an informant.

Salman’s attorneys say that the disclosure by prosecutors that Seddique Mateen had been an informant from January 2005 to June 2016 violated a Supreme Court ruling barring prosecutors from withholding evidence.

After resting their case, prosecutors said agents probing the nightclub rampage found receipts of money transfers made from the United States to Turkey and Afghanistan made by the elder Mateen. An active investigation was under way, they said.

If the defense had known about the transfers, it would have investigated whether Seddique Mateen was involved in the attack or had prior knowledge of it, Fritz Scheller, a lawyer for Salman, said in the motion to dismiss.

But U.S. District Judge Paul Byron said, “It is not clear whether the purpose of the transfers was illegal.”

He said the omission of any evidence related to Seddique Mateen had no bearing on the culpability of Salman.

Salman faces possible life in prison if convicted on charges of aiding her husband in the attack and obstructing an investigation.

(Reporting by Joey Roulette; Additional reporting and writing by Frank McGurty; Editing by James Dalgleish and Leslie Adler)

A month after PNG quake, cash-strapped government struggles to help the hardest-hit

FILE PHOTO - A supplied image shows locals inspecting a landslide and damage to a road located near the township of Tabubil after an earthquake that struck Papua New Guinea's Southern Highlands, February 26, 2018

By Tom Westbrook

SYDNEY (Reuters) – Almost a month after a deadly earthquake, Papua New Guinea is struggling to get aid to desperate survivors, having allocated just a fraction of its relief funds, while a rent dispute left disaster officials briefly locked out of their offices.

The scale of the emergency is testing the finances and capacity of one of the world’s poorest countries, disaster and relief officials say, after the magnitude 7.5 quake rocked its remote mountainous highlands on Feb. 26, killing 100 people.

Thousands of survivors have walked to remote airstrips and jungle clearings, awaiting helicopters bringing supplies of food, water and medicines, aid agencies and authorities say.

“To date, we do not have any money to do all the necessary things,” Tom Edabe, the disaster coordinator for the hardest-hit province of Hela, said by telephone from Tari, its capital.

“(The) government is trying to assist and have budgeted some money, but to date we have not received anything…we have only been given food, and non-food items supplied by other NGOs.”

Continuing aftershocks rattle residents, who have to collect water brought by daily rainstorms to ensure adequate supplies, Edabe, the disaster coordinator, said.

“The biggest thing that people need, apart from food, is water,” said James Pima, a helicopter pilot and flight manager at aviation firm HeliSolutions in the Western Highlands capital of Mt. Hagen, about 170 km (100 miles) from the disaster zone.

“They don’t have clean water to cook or drink … they are standing there staring. The expression on their faces is blank.”

His firm’s three helicopters fly relief missions “fully flat-out every day,” Pima added.

Destruction to roads and runways means authorities must rely on helicopters to fly in relief. But while nimble, the craft can only carry smaller loads than fixed-wing aircraft and cannot fly during the afternoon thunderstorms.

The logistics problems wind all the way to PNG’s disaster center, where officials told Reuters they had been locked out of their office in Port Moresby, the capital, for two days last week after the government missed a rental payment.

“That was correct, Monday and Tuesday,” a spokeswoman said.

In a joint report with the United Nations published on Friday, the agency cited “lack of quality data” about food shortages, limited aircraft assets and “significant gaps” in sanitation support as being the biggest problems it faced.

The office of Prime Minister Peter O’Neill did not respond to emailed questions from Reuters.

On his website, O’Neill has previously said, “There will be no quick fix, the damage from this disaster will take months and years to be repaired.”

‘POLITICAL GAMES’

The government had approved relief funds amounting to 450 million kina ($130 million), O’Neill said initially, but a later statement mentioned only 3 million kina in initial relief – or less than 1 percent – had been allocated to the worst-hit areas.

In its November budget, the government made plans to rein in spending and trim debt projected to stand at 25.8 billion kina in 2018.

The impoverished country is also missing its largest revenue earner, after the quake forced a shutdown of Exxon Mobil Corp’s liquefied natural gas project, which has annual sales of $3 billion at current LNG prices. The firm is still assessing quake damage at its facilities.

O’Neill last week hit out at critics of the aid effort for playing “political games,” while thanking Australia and New Zealand for military aircraft that provided assistance beyond the capacity of PNG’s own defense forces.

His political opponent, former Prime Minister Mekere Morauta, had called the government’s response “tardy” and inadequate.

“Relief sources say mobile medical centers and operating theaters are needed urgently, and that only international partners can supply them,” Morauta said last week.

Foreign aid pledges of about $49 million have come in from Australia, China, the European Union, Japan, New Zealand and the United States, says the United Nations, most of it provided by private companies.

Exxon and its partner, Oil Search Ltd, say they have provided $6 million in cash and kind for quake relief.

Local officials say the scale of destruction, with villages buried by landslides and provincial towns flattened, has overwhelmed authorities in Papua New Guinea, which straddles the geologically active Pacific Ring of Fire.

“Policemen are still struggling because there is no support flying in and out,” said Naring Bongi of the quake-damaged police station in the Southern Highlands capital of Mendi.

“There is not enough food to supply care centers, they need fresh water,” he added.

 

(Reporting by Tom Westbrook in SYDNEY; Editing by Clarence Fernandez)

Remove barriers to membership talks, Turkey tells EU before summit

Turkish President Tayyip Erdogan, accompanied by Foreign Minister Mevlut Cavusoglu and Minister of European Union Affairs Omer Celik, speaks during a news conference at Ataturk International airport in Istanbul, Turkey March 26, 2018. Kayhan Ozer/Presidential Palace/Handout via REUTERS ATTENTION EDITORS - THIS PICTURE WAS PROVIDED BY A THIRD PARTY. NO RESALES. NO ARCHIVE.

By Alissa de Carbonnel and Tuvan Gumrukcu

ANKARA/VARNA, Bulgaria (Reuters) – Turkey’s President Tayyip Erdogan said he will seek the removal at a summit with the EU on Monday of all obstacles to a stalled membership bid, which the bloc however believes are of Ankara’s own making.

Criticism from European Union governments of what many view as Erdogan’s growing authoritarianism at home and his intervention in Syria’s war has created an uneasy backdrop to the gathering in the Black Sea port of Varna.

Some countries had called for an end to long-stalled accession talks and had hesitated to agree to meet him.

But Erdogan said it was time for the EU to “keep its promises” to Turkey, which started formal membership negotiations in 2005 that stalled five years and have now effectively collapsed.

“EU membership continues to be our strategic goal,” Erdogan told reporters before departing for the summit. “In today’s EU summit, we will convey our expectations about the lifting of the obstacles our country has faced.”

Erdogan, who has alarmed the West with a massive purge since a failed coup attempt in July 2016, remains an important ally in the U.S.-led NATO alliance and the fight against Islamic militants, and the destination for many Syrians fleeing war.

Turkey shares a border with Iraq, Syria and with Russia in the Black Sea, and the EU is its biggest foreign investor and trading partner.

CASH ONLY

EU leaders are likely to provide Erdogan with 3 billion euros ($3.7 billion) in fresh cash to extend a 2016 deal on Turkey taking in Syrian refugees.

They will go no further than that, as Brussels considers the EU membership bid a separate process focused on rule of law, press freedoms and economic reforms.

But Erdogan on Monday appeared to conflate the two.

“Our country has fulfilled all responsibilities as part of the 2016 migrant deal, but the EU has not shown the same sincerity in keeping its promises and still does not do so,” Erdogan said.

“In terms of counter-terrorism, we will convey that we expect unconditional support and cooperation from the EU.”

EU officials say Turkey’s post-coup crackdown on civil rights has taken it further from complying with EU membership criteria.

“The differences in views between the EU and Turkey are many,” said European Commission President Jean-Claude Juncker, who will represent the bloc along with European Council President Donald Tusk.

“(Varna)…will be a frank and open debate, where we will not hide our differences but will seek to improve our cooperation,” Juncker said after a two-day EU summit that condemned what they said were Turkey’s illegal actions in a standoff over Mediterranean gas with Greece and Cyprus.

DIALOGUE OR CONDEMNATION?

Turkey’s EU membership process is not formally frozen, but talks have not taken place for over a year.

Host Bulgaria, which also shares a border with Turkey holds the EU’s rotating presidency, is eager to keep ties as positive as possible.

“The meeting in Varna is likely to be one of the last opportunities to maintain dialogue,” Bulgarian Prime Minister Boyko Borissov said.

Meanwhile Chancellor Sebastian Kurz of Austria, the country the most opposed to Turkey’s EU membership aspirations, called in an interview in Die Welt newspaper for the EU to condemn Ankara for escalating the seven-year-long war in Syria.

(Additional reporting by Robin Emmott in Brussels and Tulay Karadeniz in Varna; Writing by Alissa de Carbonnel @AdeCar and Robin Emmott; editing by John Stonestreet)

In face of Ghouta defeat, Syrian rebels blame each other

FILE PHOTO: Rebel fighters gather and pray before they leave, at the city limits of Harasta, in the eastern Damascus suburb of Ghouta, Syria March 22, 2018. REUTERS/Omar Sanadiki

BEIRUT (Reuters) – Syrian rebel factions are blaming each other for opening the way to their defeat near Damascus, underlining splits that plagued the armed uprising against President Bashar al-Assad since its earliest days.

The rivalry between the factions of eastern Ghouta – Failaq al-Rahman and Jaish al-Islam – had led to the effective partition of the enclave since 2016 and fueled bouts of deadly violence that played to the government’s advantage.

Their rivalry has at some points mirrored tensions between their regional sponsors: Saudi Arabia, which has backed Jaish al-Islam, and Qatar, which supported Failaq al-Rahman.

With the help of Russian air strikes, the army has waged one of the most ferocious offensives of the war to recapture eastern Ghouta, killing more than 1,600 people since Feb. 18 according to the Syrian Observatory for Human Rights.

Still, in media comments late on Sunday, the groups laid blame on each other for speeding up the government’s advances.

The Jaish al-Islam military spokesman, in an interview with al-Hadath TV, said Failaq al-Rahman had rejected a proposal to mount a shared defense of Ghouta and accused it of cutting water supplies needed to fill defensive trenches.

“These trenches dried up which sped up the regime’s advances,” said Hamza Birqdar, the spokesman.

The Failaq al-Rahman spokesman told the same TV station that Jaish al-Islam had staged a weak defense of the enclave, which advancing government forces split into three separate pockets.

“Failaq al-Rahman was stabbed in the back … via the frontlines that Jaish al-Islam was supposed to be at,” said Wael Olwan, Failaq al-Rahman’s Istanbul-based spokesman.

A Syrian official said the “conflict between the terrorist groups” in eastern Ghouta was one of the factors that had helped the military “achieve what it has achieved in a short space of time”.

It echoes a pattern at other key moments in the seven-year-long war: rebels blamed each other as government forces and Iran-backed Shi’ite militias thrust into opposition parts of eastern Aleppo, won back by Assad in 2016.

Thousands of Failaq al-Rahman fighters, accompanied by their families, are leaving their zone of eastern Ghouta in a negotiated withdrawal to insurgent territory in northern Syria.

Jaish al-Islam says it is holding out in its part of the enclave in the eastern Ghouta town of Douma. Assad’s Russian allies said on Monday that Jaish al-Islam fighters were also ready to lay down their arms and leave, which the group denied.

Rebels who have left eastern Ghouta so far have gone to Idlib, an insurgent-held region at the Turkish border. Idlib has also been blighted by fighting between the dominant faction – fighters formerly affiliated to al Qaeda – and other rebels.

The fragmented state of the anti-Assad armed opposition has been seen as one of its critical weaknesses since the start of the conflict, which the UK-based Observatory says has killed half a million people since 2011.

Russian and Iranian military backing for Assad has also far outstripped support that had been offered to rebel groups from foreign states including Turkey, Qatar, Saudi Arabia and the United States.

In addition to their foothold in the northwest, anti-Assad rebels still hold a chunk of territory at the frontier with Jordan and Israel, and small enclaves near Damascus, Homs and Hama.

(Reporting by Tom Perry and Ellen Francis; Writing by Tom Perry; Editing by Peter Graff)

U.S. gunmaker Remington files for bankruptcy

FILE PHOTO: A man walks with his Remington 870 Express 12 gauge shotgun during a pro-gun and Second Amendment protest outside the Arizona State Capitol in Phoenix, Arizona, U.S., January 19, 2013. REUTERS/Joshua Lott/File Photo

By Tom Hals and Jessica DiNapoli

(Reuters) – Remington Outdoor Co Inc, one of the largest U.S. makers of firearms, filed for bankruptcy protection on Sunday to carry out a debt-cutting deal with creditors amid mounting public pressure for greater gun control.

The company’s chief financial officer, Stephen Jackson, said in court papers that Remington’s sales fell significantly in the year before its bankruptcy, and that the company was having difficulty meeting requirements from its lenders.

Remington, America’s oldest gunmaker, announced in February it would reduce its $950 million debtload in a deal that will transfer control of the company to creditors. The company plans to wrap up its bankruptcy as soon as May 3, according to court papers.

The filing comes after a Feb. 14 shooting at a Parkland, Florida high school that killed 17 and spurred an intense campaign for gun control by activists.

The massacre led to huge U.S. anti-gun rallies by hundreds of thousands of young Americans on Saturday.

In some of the biggest U.S. youth demonstrations for decades, protesters called on lawmakers and President Donald Trump to confront the issue. Voter registration activists fanned out in the crowds, signing up thousands of the nation’s newest voters.

Major U.S. companies and retailers have taken some steps to restrict firearm sales.

Citigroup Inc <C.N> said last week it will require new retail-sector clients to sell firearms only to customers who passed background checks and to bar sales of high-capacity magazines.

Citi also said it was restricting sales for buyers under 21, a move adopted by other large retailers, while Kroger Co’s <KR.N> superstore chain Fred Meyer said it will stop selling firearms entirely.

CERBERUS TO LOSE OWNERSHIP

Cerberus Capital Management LP, the private equity firm that controls Remington, will lose ownership in the bankruptcy.

Remington’s creditors, which sources told Reuters include Franklin Templeton Investments and JPMorgan Asset Management, will exchange their debt holdings for Remington equity.

The creditors inked the debt-cutting deal prior to the Parkland shooting, and it is unclear if any have exited. The restructuring support agreement allows creditors to sell their holdings, but the buyer is bound by the deal.

One investor told IFR, a Thomson Reuters news provider, that his firm had contemplated buying the Remington loans that will be exchanged into equity, which were offered at as low as 25 cents on the dollar.

“We bowed out because we were uncomfortable,” he said.

After a Remington Bushmaster rifle was used in the Sandy Hook elementary school shooting in Connecticut in 2012 that killed 20 children and six adults, Cerberus tried unsuccessfully to sell Remington, then known as Freedom Group.

Katie-Mesner Hage, an attorney representing Sandy Hook families in a lawsuit against Remington, said in a prepared statement that she did not expect the gunmaker’s bankruptcy would affect their case.

Remington and other gunmakers have suffered from slumping sales in the past year as fears of stricter gun laws have faded.

The chief executive of American Outdoor Brands Corp, maker of the Smith & Wesson gun used in the Parkland shooting, said on March 1 that some gun retailers reported increased sales after the Florida school shooting.

Remington filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware.

(Reporting by Tom Hals in Wilmington, Delaware, Jessica DiNapoli in New York and Ismail Shakil in Bengaluru; Editing by Lisa Shumaker and Gopakumar Warrier)

Trump expels 60 Russians, closes Seattle consulate after UK chemical attack: officials

FILE PHOTO: The Russian embassy on Wisconsin Avenue in Washington December 29, 2016. REUTERS/James Lawler Duggan

WASHINGTON (Reuters) – U.S. President Donald Trump on Monday ordered the expulsion of 60 Russians from the United States and closed the Russian consulate in Seattle over a nerve agent attack earlier this month in Britain, senior U.S. officials said.

The order includes 12 Russian intelligence officers from Russia’s mission to the United Nations headquarters in New York and reflects concerns that Russian intelligence activities have been increasingly aggressive, senior U.S. administration officials told reporters, speaking on condition of anonymity.

(Reporting by Roberta Rampton, Editing by Franklin Paul)