Sudan to end fuel, food subsidies by 2019: minister

street vendor in Sudan

By Khalid Abdelaziz

KHARTOUM (Reuters) – Sudan plans to end all subsidies on food and fuel by 2019 and forecasts the lifting of U.S. sanctions will earn its hard currency-starved economy $4 billion per year in remittances, Minister of State for Finance Magdi Hassan Yasin said on Monday.

In the final days of Barack Obama’s presidency, Washington announced plans to lift a 20-year-old trade embargo, unfreeze assets and remove financial sanctions in response to Khartoum’s cooperation in fighting Islamic State and other groups.

The sanctions relief will come in six months if Sudan takes further steps to improve its human rights record and takes steps to resolve military conflicts, including in Darfur.

Even so, Sudanese officials are already looking beyond the sanctions regime.

“The lifting of American sanctions is a turning point for the Sudanese economy,” Yasin, a junior minister, said in an interview.

The path may not be smooth. On Saturday, Sudan’s foreign ministry called President Donald Trump’s temporary travel ban on citizens from seven countries, including Sudan, “very unfortunate”.

If there is no extension, the three-month restriction on Sudanese citizens entering the United States would be over by the time the trade embargo and financial sanctions are removed.

Even so, it is unclear if the tougher immigration rules promised by Trump might impact on trade relations between the two countries.

END OF SUBSIDIES

Sudan’s economy has struggled since South Sudan seceded in 2011, taking with it three-quarters of the country’s oil output and much of Khartoum’s foreign currency and government revenue.

Sudan in November cut fuel and electricity subsidies and announced import restrictions to save scarce foreign currency. Yasin said the government targets scrapping these subsidies entirely by 2019.

“Distortions will be removed from the economy with the total cancellation of consumption subsidies,” Yasin said. “That includes for fuel, electricity, and imported wheat.”

Yasin said the government was considering legislation allowing foreign companies to invest in electricity infrastructure and production for the first time. Huge swathes of rural Sudan have never been connected to the national grid.

“Sudan only produces 34 percent of its electricity needs, so the door will be open for investment in this field, especially after U.S. sanctions are lifted,” he said.

Khartoum has already said it will review its monetary and exchange rate policies once the U.S. sanctions are lifted to lure new foreign investment.

The potential for increased trade and investment flows is already reflecting in the real economy, with the Sudanese pound strengthening to 16 per dollar from 19 before the sanctions announcement.

The pound trades at 6.8 per dollar in the official banking system. The minister said a stronger pound would tame inflation, which hit an annual rate of 30.47 percent in December.

“We expect inflation to start declining beginning this July and for the value of the pound to continue rising with the inflow of remittances from Sudanese abroad and foreign investments,” said Yasin.

(Writing by Eric Knecht; Editing by Ahmed Aboulenein and Richard Lough)

Trump talks to Putin, other world leaders about security threats

President Donald Trump and staff

By Jeff Mason

WASHINGTON (Reuters) – President Donald Trump discussed Syria and the fight against Islamic State with Russian President Vladimir Putin on Saturday in one of several calls with world leaders that the new U.S. president used to put his stamp on international affairs.

Trump’s call with Putin was their first since the New York businessman took office and came as officials said he was considering lifting sanctions on Moscow despite opposition from Democrats and Republicans at home and European allies abroad.

Neither the White House nor the Kremlin mentioned a discussion of sanctions in their statements about the roughly hour-long call.

“The positive call was a significant start to improving the relationship between the United States and Russia that is in need of repair,” the White House said. “Both President Trump and President Putin are hopeful that after today’s call the two sides can move quickly to tackle terrorism and other important issues of mutual concern.”

Former President Barack Obama strongly suggested in December that Putin personally authorized the computer hacks of Democratic Party emails that U.S. intelligence officials say were part of a Russian effort aimed at helping Trump beat Democrat Hillary Clinton in the Nov. 8 election.

Trump’s relationship with Russia is being closely watched by the European Union, which teamed up with the United States to punish Moscow after its annexation of Crimea from Ukraine.

Trump spoke to two top EU leaders, German Chancellor Angela Merkel and French President Francois Hollande, on Saturday in addition to Japanese Prime Minister Shinzo Abe and Australian Prime Minister Malcolm Turnbull.

His call with Merkel, who had a very close relationship with Trump’s predecessor, former President Barack Obama, included a discussion about Russia, the Ukraine crisis, and NATO, the U.S. and German governments said.

Trump has described NATO as being obsolete, a comment that has alarmed long-time U.S. allies. A White House statement said he and Merkel agreed NATO must be capable of confronting “21rst century threats.”

Trump’s executive order restricting travel and instituting “extreme vetting” of visitors from seven Muslim-majority countries already puts him at odds with Merkel, whose embrace of Syrian refugees was praised by Obama even as it created political problems for her domestically.

Trump has said previously that Merkel made a “catastrophic mistake” by permitting more than a million refugees, mostly Muslims fleeing war in the Middle East, to come to her country.

In his call with Hollande, Trump “reaffirmed the U.S. commitment to NATO and noted the importance of all NATO allies sharing the burden on defense spending,” the White House said.

Hollande warned Trump against taking a protectionist approach, which he said would have economic and political consequences, according to a statement from the French president’s office.

The refugee order created confusion and chaotic scenes in airports on Saturday and largely overshadowed the news of Trump’s calls with foreign leaders, which took place throughout the day and which photographers captured in photos and video outside the Oval Office.

During his call with Japan’s Abe, Trump affirmed an “ironclad” U.S. commitment to ensuring Japan’s security. The two leaders also discussed the threat posed by North Korea. They plan to meet in Washington early next month.

Trump spoke to Australia’s Turnbull for 25 minutes and emphasized the close relationship between the two countries.

(additional reporting by Roberta Rampton, Andrea Shalal, Andrew Osborn, Alexander Winning, and Kiyoshi Takenaka; Editing by Nick Zieminski)

Duterte pleads with Philippine rebels to rebuff Islamic State advances

Philippine President Duterte

MANILA (Reuters) – Philippine President Rodrigo Duterte on Friday pleaded with the country’s Muslim separatist groups to deny sanctuary to militants with links to Islamic State, warning a war would ensue that would put civilians in danger.

His appeal comes a day after his defense minister said foreign intelligence reports showed a leader of the Abu Sayyaf rebel group was getting instructions from Islamic State to expand in the Philippines, in the strongest sign yet of links to the Middle Eastern militants.

Duterte said he could no longer contain the extremist “contamination” and urged two Muslim separatist rebels groups – the Moro Islamic Liberation Front and the Moro National Liberation Front – to rebuff Islamic State’s advances.

“I am earnestly asking, I am pleading to the MNLF and the MILF, do not provide sanctuary to the terrorists in your areas,” he told troops at a military camp in Mindanao, his home region.

“Because if that happens, then we will be forced to go after them within your territory, and that could mean trouble for all of us. I don’t want that to happen.

“The government is going after them, they have done wrong, they killed a lot of innocent people.”

The south of the predominately Christian Philippines has for decades been a hotbed of Muslim insurgency but Duterte is worried some smaller groups and splinter factions that have pledged allegiance to Islamic State could host IS fighters being driven out of Iraq and Syria.

They include the Maute group in Lanao del Sur province and the Abu Sayyaf in the Sulu Archipelago near Malaysia.

Abu Sayyaf, which means “bearer of the sword”, is notorious for piracy and kidnapping and for beheading foreign hostages for whom ransoms are not paid.

It has used the Islamic State flag in hostage videos posted online.

(Reporting by Martin Petty; Editing by Robert Birsel)

Exchanging fire across the Tigris as battle for west Mosul looms

Iraq army soldiers fire back at Islamic State in Mosul

By Michael Georgy

MOSUL (Reuters) – An Iraqi soldier stared patiently through a high-powered scope until he spotted a bulldozer across the Tigris River. He alerted his elite unit, which fired a missile with a boom so loud it blew a metal door behind the soldiers off its hinges.

The target, which was being used to dig earth berms to fortify Islamic State positions, exploded into a blaze that sent white smoke into the sky.

Militants could be seen gathering at the bulldozer as it burned. Some arrived on foot, others in a pickup truck or on a motorcycle, seemingly unfazed by the prospect of another rocket landing.

“The terrorist driving that bulldozer is burning. He is cooked,” said Mostafa Majeed, the soldier manning the scope.

In three months of Iraq’s biggest military operation since the fall of Saddam Hussein in 2003, government forces have seized most of east Mosul.

But they have yet to cross the Tigris, leaving the western half of the city still firmly in the hands of the jihadists, who declared their caliphate here two and a half years ago.

Now, the troops are firing across the river to harass the militants and disrupt their fortifications, in preparation for the next phase of the campaign: the fight for the other side.

“The idea is to keep making life tough for them from our position, to kill them and prevent them from escaping as other forces surround them from other directions,” Major Mohamed Ali told Reuters.

The methodical advance of Iraqi forces is a sharp contrast to 2014, when the army collapsed and fled in the face of a force of only an estimated 800 Islamic State militants that swept into Mosul and swiftly seized a third of Iraq.

The soldiers appear disciplined as they position themselves on rooftops behind green sandbags, painstakingly watching the militants’ every move through binoculars and scopes, hoping to get a clear shot with sniper rifles.

To get a closer look, the men send up a computer-operated white drone aircraft, propelling it over Islamic State territory for more accurate intelligence.

Islamic State militants are gathered at their stronghold of Abu Seif village below steep hills and Mosul Airport, just beyond the Tigris.

The group is expected to put up fierce resistance when the next phase of the offensive kicks off, possibly within days.

If the militants lose Mosul, that would probably mark the end of their self-proclaimed caliphate that has ruled over millions of people in Iraq and Syria. Iraqi authorities and their U.S. allies still expect the fighters to wage an insurgency in Iraq and inspire attacks against the West.

Militants could be seen, through a scope, monitoring the rapid reaction force from the other side of the river.

“They watch us, we watch them,” said Majeed as he spotted a vehicle on the move.

Although there are plenty of rockets like the one that took out the bulldozer, the Iraqi forces say they use the heavy weapons only against important targets or when there is a substantial gathering of jihadists in one spot.

“If it is fewer than nine terrorists we hold fire,” said one soldier.

Snipers are used more freely. One hid a few hundred feet from the east bank of the Tigris and opened fire every ten minutes or so.

Hours after the rocket demolished the bulldozer, Islamic State retaliated, firing a series of mortars towards the rapid reaction force.

One crashed a few streets away. Another landed closer. A third hit the river about 200 meters away.

(Editing by Peter Graff)

NY man linked to Islamic State gets 20 years prison for New Year’s Eve plot

By Jonathan Stempel

(Reuters) – An upstate New York man was sentenced on Thursday to 20 years in prison after pleading guilty to conspiring to provide material support to Islamic State, in connection with his alleged role in preparing a New Year’s Eve attack in 2015 at a local club or bar.

Emanuel Lutchman, 26, of Rochester, was sentenced by Chief Judge Frank Geraci of the federal court in that city, following his August 11 guilty plea, the U.S. Department of Justice said.

The prison term was the maximum possible, and Lutchman was also sentenced to 50 years of supervised release. He has been in custody since his Dec. 30, 2015 arrest.

A federal public defender representing Lutchman did not immediately respond to requests for comment.

According to his plea agreement, Lutchman admitted to having bought a machete, knives, ski masks and other items for his attack, in which he was prepared to kidnap or kill people, and planned to later release a video explaining his actions.

The defendant also admitted to having conspired with Abu Issa Al-Amriki, a now deceased member of Islamic State in Syria, hoping that a successful attack would help him gain membership into the group, the Justice Department said.

Lutchman had also expressed support for Islamic State on social media, and gathered issues of Inspire, an online magazine published by al Qaeda, designed to help people conduct “‘lone wolf’ terrorist attacks” in the United States, the department added.

The defendant was arrested soon after recording a video in which he pledged allegiance to Islamic State, vowed to “spill the blood” of non-believers, and asked Allah to “make this a victory.”

Lutchman’s lawyer had sought a 10-year prison term.

In a court filing, he said Lutchman had since age 14 had “extensive” mental health issues including bipolar disorder and depression, and was easily influenced by radical Islam, but has now “renounced” Islamic State and “seen its empty promise.”

(Reporting by Jonathan Stempel in New York; Editing by David Gregorio)

Florida airport shooting suspect indicted on 22 criminal counts

law enforcement walk at ft. lauderdale airport

TAMPA, Fla. (Reuters) – A federal grand jury has indicted on 22 criminal counts an Iraq war veteran suspected of killing five people in a mass shooting at a Florida airport this month, U.S. prosecutors said on Thursday.

Esteban Santiago, 26, is accused of opening fire in the baggage claim area of the Fort Lauderdale airport on Jan. 6. The charges against him include multiple counts of violence at an airport resulting in death and injury, as well as firearms crimes.

If convicted, he could be punished by life imprisonment or death. The U.S. Attorney General has not decided whether to seek a death sentence, the prosecutors office said.

The indictment was returned by a federal grand jury in Broward County, Florida, where the attack occurred, prosecutors in the U.S. Southern District of Florida said in a news release.

Authorities said Santiago aimed at victims’ heads and bodies until he ran out of ammunition and was taken into custody. Five people were killed in the attack and six others wounded.

The indictment accuses Santiago of “substantial planning and premeditation to cause the death of a person.”

The attack was the latest in a series of deadly U.S. mass shootings, some inspired by Islamist militants, others carried out by loners or the mentally disturbed.

Santiago had a history of erratic behavior. Authorities have said they were investigating whether mental illness played a role in the shooting.

Court records show he is being represented by a public defender. A representative answering calls for the office said it had no immediate comment.

An arraignment hearing in Santiago’s case is scheduled in federal court in Fort Lauderdale on Monday.

A private first class in the National Guard who served in Iraq from 2010 to 2011, Santiago traveled from Alaska to Florida on a one-way airline ticket with a handgun and ammunition in his checked luggage, according to authorities.

Upon arrival, he claimed his gun case and loaded the weapon in a men’s bathroom, investigators said in a criminal complaint. He opened fire on the first people he saw after leaving the restroom, it said.

Santiago told investigators he was inspired by Islamic State and had previously chatted online with Islamist extremists, according to FBI testimony presented in court.

(Reporting by Letitia Stein; Editing by Colleen Jenkins and James Dalgleish)

Eight held in Austrian police raids linked to Islamic State

VIENNA (Reuters) – Austrian police took eight people into custody on Thursday in raids linked to potential connections with the militant group Islamic State, prosecutors in the city of Graz said.

Around 800 police officers took part in the raids in Vienna and Graz “due to suspected participation in a terrorist organization (‘IS’),” they said in a statement, adding that the coordinated action had been planned for some time.

The statement gave no more details, but a spokesman said the people taken into custody included three Austrian nationals with a migrant background, two Bosnians and a Syrian. The nationalities of the other suspects were not immediately known.

“There was no acute danger” and no indications of a concrete attack, the spokesman said, adding that the detentions were not connected to the arrest of an Austrian teenager last week on suspicion of planning an Islamist attack in Vienna.

That suspect, a 17-year-old with Albanian roots, was arrested on Friday after tip-offs from unspecified foreign countries. Austria alerted Germany to a related suspect, a 21-year-old who was arrested in the western German city of Neuss on Saturday. A boy thought to be 12 has also been held in Austria.

German authorities have been on high alert since a Tunisian failed asylum seeker rammed a truck into a Christmas market in Berlin on Dec. 19, killing 12 people.

Police in Vienna have also been on heightened alert since Friday’s arrest and have increased patrols at transport hubs and busy public places.

(Reporting by Alexandra Schwarz-Goerlich in Vienna and Michael Shields in Zurich; Editing by Gareth Jones)

Prosecutor urges Arizona man’s conviction for Islamic State support

By Nate Raymond

NEW YORK (Reuters) – A federal prosecutor on Wednesday urged jurors to convict an Arizona man who she said played a vital role in helping a New York college student travel to Syria, where he died fighting for Islamic State.

In her closing argument, Assistant U.S. Attorney Negar Tekeei told a federal jury in Manhattan that Mohammed El Gammal, 44, was a “steadfast and enthusiastic supporter” of Islamic State who in an online message had said he was “with the State.”

Tekeei said the Egyptian-born Phoenix resident shared his support in encrypted messages with Samy Mohammed El-Goarany, a 24-year-old student at Baruch College in Manhattan, who like El Gammal had become “obsessed” with Islamic State.

She said El Gammal, settled in his American life, decided to guide the student toward his goal, traveling to New York in October 2014 to vet El-Goarany before putting him in touch with a friend in Istanbul who helped him get to Syria.

“It was the defendant who paved the way for that,” she said.

But Sabrina Shroff, El Gammal’s lawyer, said he did not know about El-Goarany’s plan, saying the student misled people into believing he was planning to do humanitarian work in Syria and followed steps in an Islamic State manual to join it.

While El Gammal was not shy in his views, Shroff said no evidence existed showing he took any actions. She also said El Gammal’s friend in Turkey belonged to the Muslim Brotherhood and would not have helped El-Goarany join Islamic State.

“Samy, ladies and gentlemen of the jury, is the only terrorist in this case,” she said.

El Gammal is one of more than 100 people to face U.S. charges since 2014 in cases related to Islamic State, which controls parts of Syria and Iraq and has claimed responsibility for bombings and shootings of civilians in other countries.

According to prosecutors, El-Goarany ultimately flew to Istanbul from New York in January 2015, and sometime after arrived in Syria, where he received religious and military training and fought with Islamic State.

Prosecutors said that in November 2015, an unidentified person via an instant messaging platform contacted El-Goarany’s brother to report that he had been killed fighting in Syria.

In a photograph of the hand-written note shown to jurors, El-Goarany wrote that “if you’re reading this then know that I’ve been killed in battle and am now with our Lord Insha’Allah.”

(Reporting by Nate Raymond in New York; Editing by Bernard Orr)

Islamic State fighters redeploy in west Mosul after Iraqi forces take east

grenades left by Islamic State at children's school

By Maher Chmaytelli

BAGHDAD (Reuters) – Islamic State fighters have taken up sniper positions in buildings on the west bank of the Tigris river ahead of an expected government offensive into that side the city, locals said on Wednesday.

Prime Minister Haider al-Abadi said on Tuesday his forces had taken complete control of eastern Mosul, and the commander of the campaign to retake Islamic State’s last major stronghold in Iraq has said preparations to cross the Tigris are under way.

IS fighters have moved in recent days into Mosul’s main medical complex made up of a dozen buildings located between two of the city’s five bridges – positions that can be used for observation and sniper fire, local residents told Reuters.

The tallest is seven storeys, one resident said, asking not to be identified as the militants execute those caught speaking with the outside world.

Some 750,000 people live in western Mosul, according to the United Nations which has voiced grave concerns for civilians in an area beyond the reach of aid organizations.

It took 100,000 Iraqi troops, members of regional Kurdish security forces and Shi’ite Muslim paramilitaries, backed by air and ground support from a U.S.-led coalition, almost 100 days to retake eastern Mosul in what has become the biggest battle in Iraq since the U.S.-led invasion of 2003.

Taking the west side – the location of Mosul’s Grand Mosque where Islamic State leader Abu Bakr al-Baghdadi declared a “caliphate” in 2014 – could prove even tougher as it is crisscrossed by streets too narrow for armored vehicles.

The Sunni Muslim jihadists are expected to put up a fierce fight as they are cornered in a shrinking area but the narrow streets could also deprive them of one of their most effective weapons: suicide-car bombs.

The group released drone footage on Wednesday of cars driving at high speed into clusters of army Humvees and armored vehicles before blowing up.

In some cases, Iraqi soldiers can be seen running away as the car bombs speed toward them. The recordings also show munitions dropped from the drones.

Iraqi forces estimated the number of militants inside Mosul at 5,000-6,000 at the start of the battle, and have said 3,300 have been killed in the fighting.

More than 160,000 civilians have been displaced since the start of the offensive in Mosul, which had a pre-war population of about 2 million, U.N. officials say. Aid agencies estimate the dead and wounded – both civilian and military – at several thousand.

“The reports from inside western Mosul are distressing,” U.N. humanitarian coordinator Lise Grande said on Tuesday.

“Prices of basic food and supplies are soaring … Many families without income are eating only once a day. Others are being forced to burn furniture to stay warm.”

(Editing by Robin Pomeroy)

Islamic State fighters redeploy in west Mosul after Iraqi forces take east

Iraqi rapid response

By Maher Chmaytelli

BAGHDAD (Reuters) – Islamic State fighters have taken up sniper positions in buildings on the west bank of the Tigris river ahead of an expected government offensive into that side the city, locals said on Wednesday.

Prime Minister Haider al-Abadi said on Tuesday his forces had taken complete control of eastern Mosul, and the commander of the campaign to retake Islamic State’s last major stronghold in Iraq has said preparations to cross the Tigris are under way.

IS fighters have moved in recent days into Mosul’s main medical complex made up of a dozen buildings located between two of the city’s five bridges – positions that can be used for observation and sniper fire, local residents told Reuters.

The tallest is seven storeys, one resident said, asking not to be identified as the militants execute those caught speaking with the outside world.

Some 750,000 people live in western Mosul, according to the United Nations which has voiced grave concerns for civilians in an area beyond the reach of aid organizations.

It took 100,000 Iraqi troops, members of regional Kurdish security forces and Shi’ite Muslim paramilitaries, backed by air and ground support from a U.S.-led coalition, almost 100 days to retake eastern Mosul in what has become the biggest battle in Iraq since the U.S.-led invasion of 2003.

Taking the west side – the location of Mosul’s Grand Mosque where Islamic State leader Abu Bakr al-Baghdadi declared a “caliphate” in 2014 – could prove even tougher as it is crisscrossed by streets too narrow for armored vehicles.

The Sunni Muslim jihadists are expected to put up a fierce fight as they are cornered in a shrinking area but the narrow streets could also deprive them of one of their most effective weapons: suicide-car bombs.

The group released drone footage on Wednesday of cars driving at high speed into clusters of army Humvees and armored vehicles before blowing up.

In some cases, Iraqi soldiers can be seen running away as the car bombs speed toward them. The recordings also show munitions dropped from the drones.

Iraqi forces estimated the number of militants inside Mosul at 5,000-6,000 at the start of the battle, and have said 3,300 have been killed in the fighting.

More than 160,000 civilians have been displaced since the start of the offensive in Mosul, which had a pre-war population of about 2 million, U.N. officials say. Aid agencies estimate the dead and wounded – both civilian and military – at several thousand.

“The reports from inside western Mosul are distressing,” U.N. humanitarian coordinator Lise Grande said on Tuesday.

“Prices of basic food and supplies are soaring … Many families without income are eating only once a day. Others are being forced to burn furniture to stay warm.”

(Editing by Robin Pomeroy)