Putin savors record win, securing six more years at Russia’s helm

Russian President and Presidential candidate Vladimir Putin delivers a speech at his election headquarters in Moscow, Russia March 18, 2018. Sergei Chirkov/POOL via Reuters

By Andrew Osborn and Christian Lowe

MOSCOW (Reuters) – Russian President Vladimir Putin basked in his biggest ever election victory on Monday, extending his rule over the world’s largest country for another six years at a time when his ties with the West are on a hostile trajectory.

Putin’s victory will take his political dominance of Russia to nearly a quarter of a century, until 2024, making him the longest ruler since Soviet dictator Josef Stalin. Putin, who will be 71 at the end of his term, has promised to beef up Russia’s defenses against the West and raise living standards.

In an outcome that was never in doubt, the Central Election Commission, with nearly 100 percent of the votes counted, announced that Putin, who has run Russia as president or prime minister since 1999, had won 76.68 percent of the vote.

With more than 56 million votes, it was Putin’s biggest ever win and the largest by any post-Soviet Russian leader.

In a late-night victory speech near Red Square, Putin told a cheering crowd the win was a vote of confidence in what he had achieved in tough conditions.

“It’s very important to maintain this unity,” said Putin, before leading the crowd in repeated chants of “Russia! Russia!”

Backed by state TV and the ruling party, and credited with an approval rating around 80 percent, he faced no credible threat from a field of seven challengers.

His nearest rival, Communist Party candidate Pavel Grudinin, won 11.8 percent while nationalist Vladimir Zhirinovsky got 5.6 percent. His most vocal opponent, anti-corruption campaigner Alexei Navalny, was barred from running.

Critics alleged that officials had compelled people to come to the polls to ensure that boredom with the one-sided contest did not lead to low participation.

“NO SERIOUS COMPLAINTS”

Near-final figures put turnout at 67.47 percent, just shy of the 70 percent the Kremlin was reported to have been aiming for before the vote.

The Central Election Commission said on Monday morning that it had not registered any serious complaints of violations. Putin loyalists said the result was a vindication of his tough stance toward the West.

“I think that in the United States and Britain they’ve understood they cannot influence our elections,” Igor Morozov, a member of the upper house of parliament, said on state television.

Kremlin spokesman Dmitry Peskov played down suggestions on Monday that tensions with the West had boosted turnout, saying the result showed that people were united behind Putin’s plans to develop Russia.

He said Putin would spend the day fielding calls of congratulation, meeting supporters, and holding talks with the losing candidates.

Chinese President Xi Jinping was among the first to offer his congratulations to Putin, but Heiko Maas, Germany’s new foreign minister, questioned whether there had been fair political competition.

Opposition leader Navalny is expected to call for protests demanding a re-run of an election that he says was neither free nor fair. International observers were due to give their verdict later on Monday.

The longer-term question is whether Putin will now soften his anti-Western rhetoric.

His bellicose language reached a crescendo in a state-of-the-nation speech before the election when he unveiled new nuclear weapons, saying they could strike almost any point in the world..

AT ODDS WITH THE WEST

Russia is currently at odds with the West over Syria, Ukraine; allegations of cyber attacks and meddling in foreign elections; and the poisoning in Britain of a former Russian spy and his daughter. As a result, relations with the West have hit a post-Cold-War low.

Britain and Russia are locked in a diplomatic dispute over the poisoning, and Washington is eyeing new sanctions on Moscow over allegations that it interfered in the 2016 U.S. presidential election, which Russia denies.

Putin said late on Sunday it was nonsense to think that Russia would have poisoned the former spy, Sergei Skripal, and his daughter in Britain, and said Moscow was ready to cooperate with London.

How long Putin wants to stay in power is uncertain.

The constitution limits the president to two successive terms, obliging him to step down at the end of his new mandate.

Asked after his re-election if he would run for yet another term in the future, Putin laughed off the idea.

“Let’s count. What, do you think I will sit (in power) until I’m 100 years old?” he said, calling the question “funny”.

Although Putin has six years to consider a possible successor, uncertainty about his future is a potential source of instability in a fractious ruling elite that only he can keep in check.

“The longer he stays in power, the harder it will be to exit,” said Andrei Kolesnikov, senior fellow at the Carnegie Moscow Center, a think tank. “How can he abandon such a complicated system, which is essentially his personal project?”

(Restores dropped ‘it’ in paragraph 11, cuts extraneous word ‘calls’ in paragraph 14.)

(Additional reporting by Denis Pinchuk and Maria Kiselyova, Reuters reporters in Russia, and Ben Blanchard in Beijing; Writing by Andrew Osborn; Editing by Peter Graff and Kevin Liffey)

Trump sets metals tariffs but exempts Canada and Mexico

FILE PHOTO: Rolled steel are seen at a Hyundai Steel plant in Dangjin, about 130 km (81 miles) southwest of Seoul June 15, 2011. REUTERS/Lee Jae-Won/File Photo

By David Lawder, Antonio De la Jara and Dave Sherwood

WASHINGTON/SANTIAGO (Reuters) – President Donald Trump pressed ahead with the imposition of 25 percent tariffs on steel imports and 10 percent on aluminum on Thursday but exempted Canada and Mexico, backtracking from earlier pledges of tariffs on all countries.

Details of the plan came from a briefing by administration officials ahead of Trump’s speech, which had been due to start at 3:30 p.m. (2030 GMT). Trump will say that other countries can apply for exemptions, according to the administration, although details of when they would be granted were thin.

Trump has offered relief from steel and aluminum tariffs to countries that “treat us fairly on trade,” a gesture aimed at putting pressure on Canada and Mexico to give ground in separate talks on the North American Free Trade Agreement (NAFTA), which appear to be stalled.

Trump has also demanded concession from the European Union, complaining that it treated American cars unfairly and has threatened to hike tariffs on auto imports from Europe.

Stock markets in Canada and Mexico rallied on the news, as did the Canadian dollar and the Mexican peso.

There was no mention of Mexico and Canada giving ground on NAFTA in the proposals.

Trump’s tariffs have triggered the threat of countermeasures from the European Union and now China. The levies aim to hit Beijing, although China exports very little of either metal to the United States.

(Additional reporting by Michael Martina, Elias Glenn, Kim Coghill, Brian Love, Nichola Saminather, Doina Chiacu and Andrea Hopkins; writing by David Stamp and David Chance; editing by Jonathan Oatis and Frances Kerry)

As talks with North near, South Korea sees familiar hurdles ahead

FILE PHOTO: North Korean leader Kim Jong Un watches the launch of a Hwasong-12 missile in this undated photo released by North Korea's Korean Central News Agency (KCNA) on September 16, 2017. KCNA via REUTERS/File Photo

By Hyonhee Shin

SEOUL (Reuters) – With the specter of two past summits that failed to blunt North Korea’s nuclear ambitions, South Korean officials planning talks next month now face the thorny task of overcoming familiar sticking points with the threat of war looming over any failure.

A South Korean delegation returned home on Tuesday from a first-ever meeting with North Korean leader Kim Jong Un, to announce the agreement on a North-South summit next month, the first since 2007.

Seoul officials see the talks as the starting point of President Moon Jae-in’s initiative to denuclearize and build lasting peace on the peninsula, beginning with a freeze in the North’s nuclear program and ending in its complete abolishment.

“While pursuing a fundamental resolution of the standoff, we need to take some initial denuclearization steps, putting a halt to further testing and returning to dialogue,” a senior South Korean government official said on condition of anonymity.

“One could argue we would be deceived by the North as we have been for the last 20 years, but that’s the past – we have different people and different programs now,” the official said.

Moon said on Wednesday he had suggested to the North a rough roadmap progressing from a nuclear freeze to denuclearization, an opposition party chair told reporters after meeting with him.

But Moon said there won’t be “many agreements” to come out of the summit, according to a ruling party lawmaker who took part in the meeting.

Moon also called a 2005 deal of six-nation nuclear talks, under which Pyogyang agreed to give up its nuclear program in return for economic and energy aid and an end to its diplomatic isolation, a “failed model”, the first politician said.

FAMILIAR PATTERN

Former officials in Washington and Tokyo reacted with scepticism to the North’s offer of talks on denuclearization, seeing a familiar pattern of threats followed by talks that fail to win significant concessions.

Chief among the disagreements that have scuttled past efforts to defuse the standoff is North Korea’s requests for security guarantees in return for abandoning its nuclear weapons.

During talks with Moon’s envoys this week, the North expressed its willingness to denuclearize if military threats against it are eliminated, and the security of its regime is guaranteed, without presenting precise conditions.

“(North Korea) has never said what they mean by the guarantee of regime security,” one former senior South Korean official told Reuters.

“That means it’s up to them to decide whether the security is guaranteed or not, and that means they have full control.”

Pyongyang has protested South Korea-U.S. joint military drills as a rehearsal of war.

It has also called the roughly 28,000 American troops stationed in South Korea a potential invasion force that can only be countered by a robust nuclear deterrent.

The North’s official KCNA news agency said on Wednesday the United States is “getting frantic” with the deployment of U.S. troops on the Korean peninsula and their drills to get “familiar with its terrain and arms buildup there”.

Moon’s special advisor Moon Chung-in has raised the possibility for a possible pullout of U.S. forces, saying the president has the right to “let them out”.

Moon declined to comment on the summit, saying: “We will see.”

SECURITY GUARANTEE?

Any discussion of a U.S. troop withdrawal will be fraught, however, as both Seoul and Washington see them as a bulwark against North Korean provocations.

“For the North, a peace treaty and denuclearization means the removal of U.S. forces from not only the peninsula but also Japan and other bases in the Pacific theater,” said Kim Young-mok, a former South Korean diplomat who was involved in the making of a 1994 freeze-for-aid framework deal between Pyongyang and Washington.

“We responded by pledging non-aggression, but I guess it wasn’t enough.”

South Korean officials expect the issue to arise again, but are hoping Pyongyang won’t make impossible demands.

Another senior official acknowledged the difficulty in making progress in any peace talks without addressing the issue of eliminating the military threat to North Korea and guaranteeing the security of its regime.

“The North bring up disarmament talks and the withdrawal of U.S. forces”, the official said.

“If they do, things could get ugly quickly despite the summit, and the South Korea-U.S. alliance would face serious problems. But if the North were to move things forward, they would hopefully present something more realistic.”

Wi Sung-lac, a former South Korean nuclear negotiator, said there needs to be clearer mutual understanding of the definition of denuclearization to facilitate future talks.

“It’s unlikely to see any tangible outcome on the nuclear issue before the summit,” he said.

“The United States and North Korea could sit together at the negotiating table in the meantime, which would provide better optics for the summit but probably not in terms of substance.”

(Reporting by Hyonhee Shin; Additional reporting by Christine Kim; Editing by Josh Smith and Lincoln Feast)

Oil drops on surprise U.S. gasoline stocks build; crude stocks also up

FILE PHOTO: An oil pump is seen operating in the Permian Basin near Midland, Texas, U.S. on May 3, 2017. Picture taken May 3, 2017. REUTERS/Ernest Scheyder/File Photo

By Ayenat Mersie

NEW YORK (Reuters) – Oil prices fell more than 1 percent on Wednesday and gasoline futures tumbled, after the U.S. government said crude inventories rose more than expected while gasoline stocks posted a big build instead of the draw that was forecast.

U.S. crude inventories rose by 3 million barrels for the week ending Feb. 23, compared with analyst expectations for a build of 2.1 million barrels.

Gasoline inventories rose by 2.5 million barrels, compared to analyst expectations for a 190,000-barrel drawdown. Gasoline futures fell sharply, leading the rest of the energy complex lower.

“The report was bearish, primarily due to the fairly large crude oil and gasoline inventory builds,” said John Kilduff, partner at energy hedge fund Again Capital LLC in New York.

U.S. West Texas Intermediate crude dropped 75 cents at $62.26 a barrel, a 1.2 percent decline, as of 10:55 a.m. EST (1555 GMT). Brent crude futures for the most active May contract were down 84 cents at $65.68 a barrel.

Gasoline futures lost 2.2 percent to $1.7636 a gallon. The rise in inventories came even as refineries boosted activity in the most recent week.

“In spite of refiners undergoing maintenance, they continue to process more crude compared to previous years adding to gasoline and diesel supply,” said Andrew Lipow, president at Lipow Oil Associates in Houston.

Soaring U.S. production kept a lid on oil prices this year, even though the Organization of the Petroleum Exporting Countries and Russia have reduced output.

A Reuters survey on Wednesday showed OPEC maintained its supply cuts in February, dropping output to 32.28 million bpd, lowest since April of last year.

“Climbing U.S. production continues to weigh on the market as traders fear that the OPEC output cuts will be nullified by the rising U.S. output,” said William O’Loughlin, investment analyst at Australia’s Rivkin Securities.

U.S. crude production has risen by a fifth since mid-2016 to more than 10 million barrels per day. Wednesday’s release showed weekly production rose again to 10.3 million bpd. More reliable monthly figures are due later in the day, and analysts expect that report to show another large upward revision.

Prices were pressured earlier after three of the world’s top consumers of crude – China, India and Japan – reported a slowdown in monthly factory activity.

The U.S. dollar hit a one-month high Wednesday, putting additional pressure on crude. A stronger dollar makes oil more expensive for holders of other currencies.

(Additional reporting by Scott DiSavino in NEW YORK, Amanda Cooper in LONDON, Aaron Sheldrick in TOKYO and Henning Gloystein in SINGAPORE; Editing by Dale Hudson and David Gregorio)

White House: Talks with North Korea must lead to ending nuclear program

Pyeongchang 2018 Winter Olympics - Closing ceremony - Pyeongchang Olympic Stadium - Pyeongchang, South Korea - February 25, 2018 - Ivanka Trump (L to R), U.S. President Donald Trump's daughter and senior White House adviser, South Korean President Moon Jae-in and Kim Yong Chol of the North Korea delegation attend the closing ceremony. REUTERS/Lucy Nicholson

By Yuna Park and Roberta Rampton

SEOUL/WASHINGTON (Reuters) – The White House said any talks with North Korea must lead to an end to its nuclear program after senior officials from Pyongyang visiting South Korea said on Sunday their government was open to talks with the United States.

The North Korean delegation, in Pyeongchang for the closing ceremony of the Winter Olympics, met at an undisclosed location with South Korean President Moon Jae-in, and expressed a willingness to meet with the United States, Moon’s office said in a statement.

The Pyongyang delegation said developments in relations between the two Koreas and between North Korea and the United States should go hand in hand, according to the statement.

The Olympics gave a boost to recent engagement between the two Koreas after more than a year of sharply rising tensions over the North’s missile program and its sixth and largest nuclear test in defiance of U.N. sanctions.

The United States announced on Friday it was imposing its largest package of sanctions aimed at getting North Korea to give up its nuclear and missile programs.

On Sunday, North Korean state media accused the United States of provoking confrontation on the Korean peninsula with the sanctions.

The White House said its sanctions would continue.

“We will see if Pyongyang’s message today, that it is willing to hold talks, represents the first steps along the path to denuclearization,” the White House said in a statement.

“In the meantime, the United States and the world must continue to make clear that North Korea’s nuclear and missile programs are a dead end,” it said.

NO INTERACTION WITH IVANKA TRUMP

Moon, the North Korean delegation, and Ivanka Trump, U.S. President Donald Trump’s daughter, were among dignitaries who attended the Olympics closing ceremony on Sunday.

Ivanka Trump, a senior White House adviser, did not interact with the North Korean delegation, a senior U.S. administration official said. She met Moon on Friday as part of a weekend trip leading the U.S. delegation to the closing ceremony.

North Korea sent former military intelligence chief Kim Yong Chol, an official accused of being behind a deadly 2010 attack on a South Korean warship, to lead its delegation.

The decision enraged the families of 46 sailors killed in the torpedo attack and threatened the mood of rapprochement that Seoul sought to create at what it called the “Peace Games.”

North Korea has denied its involvement in the sinking.

Moon met Kim in Pyeongchang, where the Olympics were held, before the closing ceremony, the South Korean government said.

Earlier, about 100 conservative South Korean lawmakers and activists staged a sit-in near the border with North Korea, to protest Kim’s arrival and facing off against about 2,500 South Korean police.

The North’s delegation took a different route, prompting the opposition Korea Liberty Party to accuse Moon’s administration of “abuse of power and an act of treason” by rerouting the motorcade to shield it from the protest.

TRUMP WARNING

The North sent Kim Yo Jong, the younger sister of North Korean leader Kim Jong Un, to the opening ceremony.

She was the center of a frenzy of attention, especially when she appeared at the opening ceremony and was only a few feet from U.S. Vice President Mike Pence. They did not speak.

Kim Yo Jong and the North’s nominal head of state were the most senior North Korean officials to visit the South in more than a decade. The North Korean leader later said he wanted to create a “warm climate of reconciliation and dialogue.”

The U.S. president, in announcing the new sanctions on Friday, warned of a “phase two” that could be “very, very unfortunate for the world” if the sanctions did not work.

North Korea denounced the sanctions in a statement carried on its state media and said a blockade by the United States would be considered an act of war.

China also reacted angrily, saying on Saturday the unilateral targeting of Chinese firms and people risked harming cooperation on North Korea.

Moon won election last year promising to try to improve relations with the North.

(Reporting by Yuna Park and Christine Kim in Seoul; additional reporting by Yasmeen Abutaleb and Roberta Rampton in Washington; Writing by Josh Smith; Editing by Daniel Wallis and Jeffrey Benkoe)

Global watchdog to put Pakistan back on terrorist financing watchlist: sources

A man stands at the entrance of Government Al-Aziz Hospital, previously known as Al-Aziz Hospital, run by the Islamic charity organisation Jamaat-ud-Dawa (JuD) in Muridke near Lahore, Pakistan February 15, 2018. Picture taken February 15, 2018. REUTERS/Mohsin Raza

 

By Kay Johnson and Drazen Jorgic

ISLAMABAD (Reuters) – A global money-laundering watchdog has decided to place Pakistan back on its terrorist financing watchlist, a government official and a diplomat said on Friday, in a likely blow to Pakistan’s economy and its strained relations with the United States.

The move is part of a broader U.S. strategy to pressure Pakistan to cut alleged links to Islamist militants unleashing chaos in neighboring Afghanistan and backing attacks in India.

It comes days after reports that Pakistan had been given a three-month reprieve before being placed on the list, which could hamper banking and hurt foreign investment.

The United States has spent the past week lobbying member countries of the Financial Action Task Force (FATF) to place Pakistan on a so-called grey list of nations that are not doing enough to combat terrorism financing.

Pakistan had launched last-minute efforts to avoid being placed on the list, such as taking over charities linked to a powerful Islamist figure.

But the campaign proved insufficient and the group decided late on Thursday that Pakistan would be put back on the watchlist, a senior Pakistani official and a diplomat with knowledge of the latest FATF discussions told Reuters.

“The decision was taken yesterday. The chair (of FATF) is expected to make a statement some time this afternoon in Paris,” the diplomat said.

Both officials spoke on condition of anonymity.

Pakistan’s foreign ministry spokesman declined to confirm or deny the news at a regular news briefing on Friday, saying the FATF would make an announcement on its website.

“Let the things come out, and then we can comment on the U.S.-Pakistan relationship,” spokesman Mohammad Faisal said.

Pakistan was on the list for three years until 2015.

PAINFUL CONSEQUENCES?

Earlier in the week China, Turkey, and the Gulf Cooperation Council (GCC) were opposing the U.S.-led move against Pakistan but by late on Thursday, both China and the GCC dropped their opposition, the diplomatic source said.

He added that the financial consequences would not kick in until June, which, in theory, could allow Pakistan time to fix financing issues.

“But the odds of that, particularly in an election year, seem slim,” he added.

Pakistani officials and analysts fear being on the FATF list could endanger Pakistan’s handful of remaining banking links to the outside world, causing real financial pain to the economy just as a general election looms.

Under FATF rules one country’s opposition is not enough to prevent a motion from being successful. Britain, France and Germany backed the U.S. move.

Pakistan has sought to head off its inclusion on the list by amending its anti-terrorism laws and by taking over organizations controlled by Hafiz Saeed, a Pakistan-based Islamist accused by the United States and India of being behind 2008 militant attacks on the Indian city of Mumbai in which 166 people were killed.

On Tuesday, Foreign Minister Khawaja Asif tweeted that Pakistan had received a three-month reprieve, adding that it was “grateful to friends who helped”.

U.S. President Donald Trump last month ordered big cuts in security aid to Pakistan over what the United States sees as its failure to crack down on militants.

Pakistan rejects accusations that it sponsors Taliban militants fighting U.S. forces in neighboring Afghanistan and says it is doing all it can to combat militancy.

(Writing by Drazen Jorgic; Editing by Clarence Fernandez, Robert Birsel)

in a likely blow to Pakistan’s economy and its strained relations with the United States.

The move is part of a broader U.S. strategy to pressure Pakistan to cut alleged links to Islamist militants unleashing chaos in neighboring Afghanistan and backing attacks in India.

It comes days after reports that Pakistan had been given a three-month reprieve before being placed on the list, which could hamper banking and hurt foreign investment.

The United States has spent the past week lobbying member countries of the Financial Action Task Force (FATF) to place Pakistan on a so-called grey list of nations that are not doing enough to combat terrorism financing.

Pakistan had launched last-minute efforts to avoid being placed on the list, such as taking over charities linked to a powerful Islamist figure.

But the campaign proved insufficient and the group decided late on Thursday that Pakistan would be put back on the watchlist, a senior Pakistani official and a diplomat with knowledge of the latest FATF discussions told Reuters.

“The decision was taken yesterday. The chair (of FATF) is expected to make a statement some time this afternoon in Paris,” the diplomat said.

Both officials spoke on condition of anonymity.

Pakistan’s foreign ministry spokesman declined to confirm or deny the news at a regular news briefing on Friday, saying the FATF would make an announcement on its website.

“Let the things come out, and then we can comment on the U.S.-Pakistan relationship,” spokesman Mohammad Faisal said.

Pakistan was on the list for three years until 2015.

PAINFUL CONSEQUENCES?

Earlier in the week China, Turkey, and the Gulf Cooperation Council (GCC) were opposing the U.S.-led move against Pakistan but by late on Thursday, both China and the GCC dropped their opposition, the diplomatic source said.

He added that the financial consequences would not kick in until June, which, in theory, could allow Pakistan time to fix financing issues.

“But the odds of that, particularly in an election year, seem slim,” he added.

Pakistani officials and analysts fear being on the FATF list could endanger Pakistan’s handful of remaining banking links to the outside world, causing real financial pain to the economy just as a general election looms.

Under FATF rules one country’s opposition is not enough to prevent a motion from being successful. Britain, France and Germany backed the U.S. move.

Pakistan has sought to head off its inclusion on the list by amending its anti-terrorism laws and by taking over organizations controlled by Hafiz Saeed, a Pakistan-based Islamist accused by the United States and India of being behind 2008 militant attacks on the Indian city of Mumbai in which 166 people were killed.

On Tuesday, Foreign Minister Khawaja Asif tweeted that Pakistan had received a three-month reprieve, adding that it was “grateful to friends who helped”.

U.S. President Donald Trump last month ordered big cuts in security aid to Pakistan over what the United States sees as its failure to crack down on militants.

Pakistan rejects accusations that it sponsors Taliban militants fighting U.S. forces in neighboring Afghanistan and says it is doing all it can to combat militancy.

(Writing by Drazen Jorgic; Editing by Clarence Fernandez, Robert Birsel)

U.S. says ready to talk Mideast peace; Abbas calls for conference

White House senior adviser Jared Kushner seen with United States Ambassador to the United Nations (UN), Nikki Haley, and lawyer Jason Greenblatt (R) before a meeting of the UN Security Council at UN headquarters in New York, U.S., February 20, 2018. REUTERS/Lucas Jackson

By Michelle Nichols

UNITED NATIONS (Reuters) – The United States is “ready to talk” Middle East peace with the Palestinians, U.S. Ambassador to the United Nations Nikki Haley said on Tuesday in remarks directed at Palestinian President Mahmoud Abbas during a meeting of the U.N. Security Council.

U.S. President Donald Trump’s son-in-law and senior adviser, Jared Kushner, and U.S. Middle East envoy Jason Greenblatt, who are working on a new peace plan, sat behind Haley. Speaking after Abbas made a rare address to the 15-member council, Haley gave no details of the U.S. plan.

“Our negotiators are sitting right behind me, ready to talk. But we will not chase after you. The choice, Mr. President, is yours,” Haley said. Abbas did not stay in the council chamber to listen to her.

White House spokesman Josh Raffel said Washington would present a peace plan “when it is done and the time is right.”

The Palestinians no longer view the United States as a neutral negotiator, and Abbas on Tuesday called for an international Middle East peace conference to be convened later this year.

The Palestinians are furious over the Trump administration’s recognition of Jerusalem as Israel’s capital in December and its decision to cut U.S. funding for the U.N. agency that helps Palestinian refugees (UNRWA).

“It has become impossible today for one country or state alone to solve a regional or international conflict,” Abbas said. “It is essential to establish a multilateral international mechanism emanating from an international conference.”

Abbas, who shunned a visit by U.S. Vice President Mike Pence to the region last month, said the conference should include the Palestinians, Israel, the five permanent U.N. Security Council members – the United States, Russia, China, Britain and France – the European Union and the United Nations.

French U.N. Ambassador Francois Delattre told the council: “We are open to studying the development of the ways of international accompaniment for the peace process.” Deputy British U.N. Ambassador Jonathan Allen described U.S. leadership on the issue as “indispensable.”

Israel’s U.N. Ambassador Danny Danon told the Security Council that Abbas was part of the problem, not the solution, and that the “only way to move forward is direct negotiations” between Israel and the Palestinians.

Russian U.N. Ambassador Vassily Nebenzia said the so-called Quartet – made up of the United Nations, the United States, Russia and the EU – and the League of Arab States could play a role in kick-starting the stalled peace process.

(Additional reporting by Steve Holland in Washington; Editing by Paul Simao)

Prime Minister Netanyahu says Israel could act against Iran’s ’empire’

Israeli Prime Minister Benjamin Netanyahu speaks during the dedication ceremony of a new concourse at the Ben Gurion International Airport, near Lod, Israel February 15, 2018. REUTERS/Ronen Zvu

By Robin Emmott and Thomas Escritt

MUNICH (Reuters) – Prime Minister Benjamin Netanyahu said on Sunday that Israel could act against Iran itself, not just its allies in the Middle East, after border incidents in Syria brought the Middle East foes closer to direct confrontation.

Iran mocked Netanyahu’s tough words, saying Israel’s reputation for “invincibility” had crumbled after one of its jets was shot down following a bombing run in Syria.

In his first address to the annual Munich Security Conference, which draws security and defense officials and diplomats from across Europe and the United States, Netanyahu held up a piece of what he said was an Iranian drone that flew into Israeli airspace this month.

“Israel will not allow the regime to put a noose of terror around our neck,” he said. “We will act if necessary not just against Iran’s proxies but against Iran itself.”

For his part, Iran’s Foreign Minister, Mohammad Javad Zarif, called Netanyahu’s presentation “a cartoonish circus, which does not even deserve a response”.

“What has happened in the past several days is the so-called invincibility (of Israel) has crumbled,” Zarif, who addressed the conference hours after Netanyahu, said, referring to the downing of the Israeli F-16, which crashed in northern Israel after a strike on Syrian air defenses.

“Once the Syrians have the guts to down one of its planes it’s as if a disaster has happened,” Zarif said, accusing Israel of using “aggression as a policy against its neighbors” by regularly carrying out incursions into Syria and Lebanon.

Israel has accused Tehran of seeking a permanent military foothold in Syria, where Iranian-backed forces support Syrian President Bashar al-Assad in civil war entering its eighth year.

Netanyahu said that as the Islamic State militant group has lost ground, Iran and its allies were surging into territory, “trying to establish this continuous empire surrounding the Middle East from the south in Yemen but also trying to create a land bridge from Iran to Iraq, Syria, Lebanon and Gaza.”

The tough words on both sides at the international event come as Israel is increasingly seeking to cooperate with Sunni Arab states that share its worries about Shi’ite Iran. For months, Netanyahu has touted what he describes as unprecedented levels of behind-the-scenes cooperation.

“The fact that we have this newfound relationship with the Arab countries – something that … I would not have imagined in my lifetime – this is not what they call a spin,” Netanyahu said, during a question and answer session after his speech.

“This is real, it’s deep, it’s broad: it doesn’t necessarily cross the threshold of a formal peace, and I doubt that would happen until we get some formal progress with the Palestinians – so the two are linked,” he added.

Israel has formal peace agreements with just two Arab countries, Egypt and Jordan. Others have said a pre-condition of any such treaty is an Israeli deal with the Palestinians.

“WE HAVE FRIENDS”

Among Israel’s main concerns is Lebanon, where the heavily armed Iran-backed Shi’ite militia Hezbollah is part of a coalition government. Israel last fought a war against Hezbollah in 2006. Tension between Israel and Lebanon has increased as Hezbollah has gained strength fighting in Syria, and the two countries also have a maritime border dispute.

Israel has carried out air strikes in Syria against suspected Iranian arms shipments to Hezbollah and has accused Tehran of planning to build missile factories in Lebanon.

Lebanon’s Defense Minister, Yacoub Riad Sarraf, who spoke after Netanyahu, warned against intervention: “Watch out, we will defend ourselves … we also have friends.”

Netanyahu also reiterated his view, shared by U.S. President Donald Trump, that world powers needed to scrap or rewrite the 2015 nuclear accord with Tehran that curbs Iran’s nuclear weapons ambitions in return for economic sanctions’ relief.

“It’s time to stop them now,” Netanyahu said. “They’re aggressive, they are developing ballistic missiles, they’re not inspecting, they have a free highway to massive (uranium) enrichment,” he said of the fuel needed for nuclear weapons.

France, Britain, Germany, Russia and China, which signed the nuclear deal along with Iran and the United States, say the accord is working and Iran is allowing inspections.

Russian senator Aleksey Pushkov said scrapping the agreement was akin to choosing between war and peace. John Kerry, the former U.S. secretary of state who helped clinch the agreement, said it was wrong to assume Iran would obtain a nuclear weapon as soon as the 15-year scope of the deal ends.

“If your house is on fire, are you going to refuse to put it out because you are concerned it will light on fire again in 15 years? Or are you going to put it out and use the intervening time to prevent to ever catching fire again?” Kerry said.

(Reporting by Robin Emmott and Thomas Escritt; Editing by Jeffrey Heller and Peter Graff)

Malicious cyber activity cost U.S. economy $57 billion – $109 billion in 2016: White House report

A hooded man holds a laptop computer as blue screen with an exclamation mark is projected on him in this illustration picture taken on May 13, 2017. REUTERS/Kacper Pempel/Illustration -

WASHINGTON (Reuters) – A White House report estimated on Friday that malicious cyber activity cost the U.S. economy between $57 billion and $109 billion in 2016.

The estimate was contained in a report by the White House Council of Economic Advisers on the economic costs of cyber threats.

The report quoted the U.S. intelligence community as saying the main foreign culprits responsible for much cyber activity are Russia, China, Iran and North Korea.

(Reporting By Steve HollandEditing by Chizu Nomiyama)

Philippines may turn to China, Russia after scrapping Canada helicopter deal

FILE PHOTO - Philippine Defence Secretary Delfin Lorenzana listens to questions during a news conference inside the military headquarters of Camp Aquinaldo in Quezon city, metro Manila, Philippines March 14, 2017

MANILA (Reuters) – The Philippines may turn to non-Western defense manufacturers, including China and Russia, to acquire 16 helicopters after it had to scrap a $233 million deal with Canada, its defense minister said on Monday.

Francois-Philippe Champagne, Canada’s trade minister, has ordered a review of the contract over concerns about Manila’s intended use for the helicopters.

“We are looking at Korea, Russia, China, Turkey and other countries for the medium-lift helicopters in lieu of the Bell 412EPI,” Philippines’ Defence Minister Delfin Lorenzana told reporters.

“We’re back to square one in the procurement process.”

It took about two years to negotiate the deal. The contract for the 16 combat utility helicopters was a repeat order, he said, after Canada delivered eight Bell 412 helicopters worth 4.8 billion pesos ($92.8 million) in 2014.

Lorenzana signed the Canadian helicopter deal last week at the Singapore Air Show last week, but Canada ordered a review after learning the aircraft would be used in anti-rebel operations.

“I think there is malice in the way it is being raised,” Lorenzana told reporters.

“It is not an attack helicopter but a medium-lift, meaning for transport of personnel and supplies. We are not asking these for free but we’re buying them. We do not have to justify how we will use these equipment.”

President Rodrigo Duterte scrapped the deal on Friday night because of conditions imposed by Canada, telling his generals not to buy from the United States and Canada because of conditions imposed on arms sales.

Air Force officials said Russia’s Kamov and China’s Z-series helicopters are comparable models to Bell’s 412 medium lift. South Korean’s Surions are also an option.

($1 = 51.7300 Philippine pesos)

(Reporting by Manuel Mogato; Editing by Martin Petty & Simon Cameron-Moore)