Tag Archives: Middle East

Lesser-known North Korea cyber-spy group goes international: report

Binary code is seen on a screen against a North Korean flag in this illustration photo November 1, 2017. REUTERS/Thomas White/Illustration

By Eric Auchard

FRANKFURT (Reuters) – A North Korean cyber espionage group previously known only for targeting South Korea’s government and private sector deepened its sophistication and hit further afield including in Japan and the Middle East in 2017, security researchers said on Tuesday.

Cyber attacks linked by experts to North Korea have targeted aerospace, telecommunications and financial companies in recent years, disrupting networks and businesses around the world. North Korea rejects accusations it has been involved in hacking.

U.S. cyber security firm FireEye said the state-connected Reaper hacking organization, which it dubbed APT37, had previously operated in the shadows of Lazarus Group, a better-known North Korean spying and cybercrime group widely blamed for the 2014 Sony Pictures and 2017 global WannaCry attacks.

APT37 had spied on South Korean targets since at least 2012 but has been observed to have expanded its scope and sophistication to hit targets in Japan, Vietnam and the Middle East only in the last year, FireEye said in a report.

The reappraisal came after researchers found that the spy group showed itself capable of rapidly exploiting multiple “zero-day” bugs – previously unknown software glitches that leave security firms no time to defend against attacks, John Hultquist, FireEye’s director of intelligence analysis said.

“Our concern is that their (international) brief may be expanding, along with their sophistication,” Hultquist said.

“We believe this is a big thing”.

APT37 has focused on covert intelligence gathering for North Korea, rather than destructive attacks or financial cyber crime, as Lazarus Group and other similar hacking groups have been shown to engage in order to raise funds for the regime, it said.

The group appears to be connected to attack groups previously described as ScarCruft by security researchers at Kaspersky and Group123 by Cisco’s Talos unit, FireEye said.

“We assess with high confidence that this activity is carried out on behalf of the North Korean government given malware development artefacts and targeting that aligns with North Korean state interests,” the security report said.

From 2014 until 2017, APT37 concentrated mainly on South Korean government, military, defense industrial organizations and the media sector, as well as targeting North Korean defectors and human rights groups, the report said.

Since last year, its focus has expanded to include an organization in Japan associated with the United Nations missions on human rights and sanctions against the regime and the director of a Vietnamese trade and transport firm.

Its spy targets included a Middle Eastern financial company as well as an unnamed mobile network operator, which FireEye said had provided mobile phone service in North Korea until business dealings with the government fell apart.

FireEye declined to name the firm involved, but Egypt’s Orascom <OTMT.CA> provided 3G phone service in the country via a joint venture from 2002 to 2015, until the North Korean regime seized control of the venture, according to media reports.

Asked for comment, a spokeswoman for Orascom said she had no immediate knowledge of the matter and was looking into it.

(Reporting by Eric Auchard, and Nadine Awadalla in Cairo, Editing by William Maclean)

‘Bad guy’ Russia emerges as central player in Western diplomacy

Russian President Vladimir Putin attends a wreath laying ceremony at the eternal flame during an event to commemorate the 75th anniversary of the battle of Stalingrad in World War Two, at the Mamayev Kurgan memorial complex in the city of Volgograd, Russia February 2, 2018. REUTERS/Maxim Shemetov

By Robin Emmott and Andrea Shalal

MUNICH (Reuters) – European and U.S. officials divided over U.S. President Donald Trump’s foreign policy found common cause this weekend in decrying what they say is Russia’s covert campaign to undermine Western democracies.

But despite the transatlantic show of anger at Russia during the Munich Security Conference, Western officials and diplomats also acknowledged an uncomfortable truth: that Russia is critical to resolving many of the world’s worst conflicts.

From eastern Ukraine to North Korea, Russia’s status as a nuclear power, its military intervention in Syria and its veto on the United Nations Security Council mean any diplomacy must ultimately involve Moscow, officials said.

“We can’t find a political solution without Russia,” Norwegian Defence Minister Frank Bakke Jensen told Reuters. “We need to reach a point where we can work to find a political solution, and they must be central to that.”

Publicly at least, Russia was the bad guy in Munich, roundly criticized for interfering in the 2016 U.S. presidential campaign after the U.S. indictment of 13 Russians this week, and more broadly for its 2014 annexation of Ukraine’s Crimea.

For the West, such unity of purpose marked a change after a year of Trump’s “America First” rhetoric, his inconsistent statements on NATO and the European Union, his decision to pull out of the Paris climate change accord and his move not to certify Iran’s compliance with the 2015 nuclear deal.

At the annual Munich event, a rare gathering of European and U.S. security officials that also attracts top Russian diplomats, American policymakers were visibly irritated with Moscow’s public denials of accusations of meddling.

“I am amazed that … the Russians come, they send someone, every year to basically refute the facts,” U.S. Director of National Intelligence Dan Coats said of the Russian presence at the event.

But behind the scenes, diplomats said there was a different tone, as top officials including NATO Secretary-General Jens Stoltenberg met Russian Foreign Minister Sergei Lavrov in the gold-and-white paneled rooms of the Bayerischer Hof hotel.

“There is a diplomatic network that works,” said Russian senator Aleksey Pushkov, citing contacts to resolve the Syrian civil war including Moscow, Ankara, Washington and Tel Aviv. “It’s something that, if used efficiently, can prevent bigger confrontations.”

German Foreign Minister Sigmar Gabriel met several times with Lavrov, offering the prospect of easing economic sanctions imposed over Moscow’s role in eastern Ukraine and calling Russia an “indispensable” partner in global efforts to prevent proliferation of nuclear weapons.

Former U.S. Secretary of State John Kerry, who negotiated the 2015 accord curbing Iran’s nuclear ambitions, said the West needed to “compartmentalize” issues with Moscow, so that diplomacy could achieve more.

“IN RUSSIA’S HANDS”

Part of the challenge for the West is that international crises have been interlinked.

Russia is allied to Israel’s nemesis Iran in Syria while Moscow’s support for separatists in Ukraine draws NATO’s ire.

But NATO-ally Turkey is seeking to complete an arms deal to buy Russian air defenses. It has struck U.S-backed Kurdish forces in northern Syria with Russia’s blessing.

In Asia, U.S. efforts to stop North Korea’s atomic weapons development rest partly on Moscow’s willingness to countenance a U.S. and European call for an oil embargo on Pyongyang, which it has so far rejected.

“A few years ago you could talk about distinct crises, but today, if you’re discussing one, you’re shaking all the others,” Norway’s Jensen said.

So as Israel’s Prime Minister Benjamin Netanyahu railed against Iran in Munich on Sunday, in New York, British, U.S. and French efforts to condemn Tehran at the United Nations immediately ran into Russian resistance, diplomats told Reuters.

And in Munich, while U.S. and European officials saw momentum for U.N. peacekeepers in eastern Ukraine to resolve the four-year-old conflict there, U.S. special envoy Kurt Volker conceded everything rested on Moscow.

“It’s in Russia’s hands,” Volker told a gathering of EU and U.S. officials, including Sweden’s defense chief, who offered his country’s troops for any such mission.

Nine years ago in Munich, then U.S. Vice President Joe Biden promised to “reset” relations with Russia, but few in the West appeared to realize the depth of Russia’s resentment over the break-up of the Soviet Union and NATO’s eastward expansion.

Now, with Western economic sanctions in place on Russia over its 2014 annexation of Crimea and its support for rebels in eastern Ukraine, East-West ties are at their lowest since the Cold War, with little chance of an improvement, diplomats said.

(Reporting by Robin Emmott and Andrea Shalal; Editing by Catherine Evans)

Rocky day for Syria talks in Russia: Lavrov heckled, opposition quits

Participants react as they attend a session of the Syrian Congress of National Dialogue in the Black Sea resort of Sochi, Russia January 30, 2018.

By Kinda Makieh and Maria Tsvetkova

SOCHI, Russia (Reuters) – A Syrian peace conference in Russia was marred by discord on Tuesday after the Russian foreign minister was heckled, an opposition delegation refused to leave the airport on arrival, and delegates squabbled over who should preside over the event.

Russia, a staunch ally of Syrian President Bashar al-Assad, was hosting what it called a Syrian Congress of National Dialogue in the Black Sea resort of Sochi that it hoped would launch negotiations on drafting a new constitution for Syria.

But in a blow to Moscow, which has cast itself as a Middle East peace broker, the event was boycotted by the leadership of the Syrian opposition, while powers such as the United States, Britain and France stayed away because of what they said was the Syrian government’s refusal to properly engage.

Western countries support a separate U.N.-mediated peace process, which has so far failed to yield progress toward ending a war that is entering its eighth year. The latest round of those talks took place in Vienna last week.

Russian Foreign Minister Sergei Lavrov helped open the conference on Tuesday by reading out a statement from President Vladimir Putin saying the conditions were ripe for Syria to turn “a tragic page” in its history.

But some delegates stood up and began heckling him, accusing Moscow of killing civilians in Syria with its air strikes.

The incident was broadcast on Russian state TV where two security guards were shown approaching one man in the audience indicating that he should sit down.

Other delegates shouted out their support for Russia. Lavrov told the delegates to let him finish speaking, saying they would have their say later.

Several delegates, who declined to be identified, told Reuters that organizers had later been forced to suspend a plenary session due to squabbling among delegates over who would be chosen to preside over the congress.

FLAG ROW

In a further setback, one group of delegates, which included members of the armed opposition who had flown in from Turkey, refused to leave Sochi airport until Syrian government flags and emblems which they said were offensive were removed.

Ahmed Tomah, the head of the delegation, said his group was boycotting the congress and would fly back to Turkey because of the flag row and what he called broken promises to end the bombardment of civilians.

“We were surprised that none of the promises that were given had been kept, the ferocious bombing of civilians had not stopped nor the flags and banners of the regime (been) removed,” he said in a video recorded at the airport.

Artyom Kozhin, a senior diplomat at the Russian Foreign Ministry, acknowledged there had been some complications.

“Some problems have arisen with a group of the armed opposition that has come from Turkey which has made its participation dependent on additional demands,” Kozhin wrote on social media.

Lavrov had spoken by phone twice to his Turkish counterpart and been told that the problem would be resolved, said Kozhin.

Turkish and Iranian government delegations attended the congress, as did U.N. Syria envoy Staffan de Mistura.

Vitaly Naumkin, a Russian expert on the Middle East employed by de Mistura as an adviser, told reporters that the problems encountered by organizers had not tarnished the event.

“Nothing awful happened,” said Naumkin. “Nobody is fighting anyone else. Nobody is killing anyone. These were standard working moments.”

Russian officials have complained of attempts to sabotage the conference, which was originally billed as a two-day event but was reduced to a one-day event at the last minute.

(Additional reporting by Dahlia Nehme in Beirut, Tulay Karadeniz in Ankara, Tom Miles in Geneva and Suleiman Al-Khalidi in Amman; Writing by Andrew Osborn; Editing by Peter Graff)

Guilt, fines remain hazy as Saudi corruption purge draws to close

Saudi Arabian billionaire Prince Alwaleed bin Talal sits for an interview with Reuters in the office of the suite where he has been detained at the Ritz-Carlton in Riyadh, Saudi Arabia January 27, 2018.

By Stephen Kalin and Reem Shamseddine

RIYADH (Reuters) – Saudi Arabian media magnate Waleed al-Ibrahim was found innocent in an anti-corruption purge, a source at his company said on Monday, part of a wider campaign against graft whose secrecy could hurt the country’s effort to win foreign investment.

Ibrahim, who controls influential regional broadcaster MBC, was one of at least half a dozen top businessmen freed from more than two months of detention at the weekend after being interrogated by officials who said they aimed to recover $100 billion of illicit funds.

The officials said all of the men, who included billionaire global investor Prince Alwaleed bin Talal, had agreed to financial settlements after admitting to unspecified “violations”.

But the allegations against the men and their settlements have been kept secret, leaving the global investment community to wonder what the penalties are for large-scale corruption in Saudi Arabia – and whether detainees were actually guilty.

The mystery is unsettling investors who have closely watched Crown Prince Mohammed bin Salman’s every move since he promised to reform oil superpower Saudi Arabia, surprising citizens who regarded top businessmen and powerful royals as untouchable.

Aside from the crackdown on corruption, those changes are meant to include less dependence on oil, megaprojects to create jobs, and greater transparency and social freedoms.

The decision to release some of the most powerful people in the kingdom comes ahead of a planned trip by Prince Mohammed to the United States and European capitals in February and March, according to diplomats.

He could face awkward questions there about how the purge was conducted. The releases, and what kind of deals may have been struck, could have huge implications for Saudi Arabia’s image in the international investment community.

MBC’s Ibrahim “was fully exonerated and declared innocent of any wrongdoing, no corruption charges, no charges actually whatsoever,” a senior executive at MBC group told Reuters.

In an email to its staff, MBC management said Ibrahim was “fit and well and eager to get back. He has also been totally exonerated and faces no issues going forward.”

MURKINESS

Saudi officials did not respond to requests for information on the cases of Ibrahim and dozens of other officials and businessmen caught by the purge.

Prince Alwaleed, owner of global investor Kingdom Holding, continued to maintain his innocence in an interview with Reuters hours before his release, although an official said he had agreed to an unspecified financial settlement.

On Monday, shares in Kingdom rose back to the level where they were trading when Prince Alwaleed was arrested – a vote of confidence by the market in his future. In the days after his detention, the shares had plunged more than 20 percent, erasing as much as $2.2 billion of his fortune.

Authorities have not disclosed how many people are still detained but Riyadh’s grand Ritz-Carlton hotel, where many detainees were held, is to reopen to the public by mid-February.

Last week, before the latest releases, the attorney general said most detainees had agreed to settlements, 90 were released after charges were dropped, and 95 remained in custody. Some cases will go to trial.

Jason Tuvey, Middle East economist at Capital Economics in London, said the purge had increased uncertainty among potential foreign investors in Saudi Arabia, because it was not clear how they would be treated if they were caught up in corruption allegations.

“The release of Prince Alwaleed bin Talal and a number of other high-profile individuals may ease some concerns, but we still don’t have any details on what sort of agreement they have reached with the authorities. It just adds to the murkiness surrounding the whole process.”

He added that one potential worry for investors was that the purge could one day lead to a backlash against Prince Mohammed, who launched the purge and is leading ambitious reforms.

“Investors will probably need some reassurance on the exact procedures going forward to deal with corruption allegations,” Tuvey said. “But I think political uncertainty will remain a key risk surrounding the Saudi economy for many years to come.”

Prince Mohammed initially said he wanted to conclude the purge quickly. Foreign bankers dealing with Saudi Arabia said he may have been encouraged to do so by concern that the purge could start to affect foreign investment in the country.

Constructing complex, watertight legal cases against detainees may have been more challenging than expected – suggesting the government might find it hard to reach its target of recovering $100 billion of illicit funds, analysts said.

Saudi officials said Ibrahim’s 40 percent stake in MBC would remain unchanged and Prince Alwaleed would stay in control of Kingdom.

But construction giant Saudi Binladin Group said earlier this month that family shareholders might transfer part of their holdings to the state in a settlement with authorities.

(Additional reporting by Alexander Cornwell; Writing by Andrew Torchia; Editing by Michael Georgy, William Maclean)

Timing of Trump peace plan depends on Palestinians: Pence

U.S. Vice President Mike Pence touches the Western Wall, Judaism's holiest prayer site, in Jerusalem's Old City January 23, 2018.

By Jeff Mason

JERUSALEM (Reuters) – U.S. Vice President Mike Pence said on Tuesday the timing of a long-awaited U.S. Middle East peace initiative depended on the return of Palestinians to negotiations.

President Donald Trump’s advisers have been working on the outlines of a plan for some time. But Palestinians ruled out Washington as a peace broker after the U.S. president’s Dec. 6 recognition of Jerusalem as Israel’s capital.

“The White House has been working with our partners in the region to see if we can develop a framework for peace,” Pence told Reuters in an interview in Jerusalem on the last leg of a three-day Middle East trip. “It all just depends now on when the Palestinians are going to come back to the table.”

Trump’s Jerusalem move angered the Palestinians, sparked protests in the Middle East and raised concern among Western countries that it could further destabilize the region. Palestinians see East Jerusalem as capital of a future state.

A White House official told reporters he hoped the plan would be announced in 2018.

“It’ll come out both when it’s ready and when both sides are actually willing to engage on it,” said the White House official, speaking on condition of anonymity.

The official acknowledged that the United States and the Palestinian leadership had not had any direct diplomatic contact since Trump’s Jerusalem declaration.

Pence said in the interview that he and the president believed the decision, under which the United States also plans to move its embassy to Israel from Tel Aviv to Jerusalem, would improve peacemaking prospects.

Hanan Ashrawi, a senior official at the Palestine Liberation Organization (PLO), said the Trump administration had dealt a death blow to any prospect for peace.

“The extremist positions of this U.S. administration and the biblical messianic message of Pence not only disqualified the U.S. as a peace broker but created conditions of volatility and instability in the region and beyond,” Ashrawi said in the West Bank city of Ramallah.

Pence discussed the Jerusalem issue during talks with Egypt’s President Abdel Fattah al-Sisi on Saturday and Jordan’s King Abdullah on Sunday. He said the two leaders had agreed to convey to the Palestinians that the United States was eager to resume peace talks.

“We want them (the Palestinians) to know the door is open. We understand they’re unhappy with that decision but the president wanted me to convey our willingness and desire to be a part of the peace process going forward,” Pence said.

Asked if the Egyptians and Jordanians had agreed to pressure the Palestinians to return to talks, Pence said: “I wouldn’t characterize it as that.”

SUPPORTER OF NETANYAHU

The Palestinians want to establish an independent state in the Israeli-occupied West Bank and in the Gaza Strip with East Jerusalem as its capital.

Israel captured East Jerusalem in the 1967 Middle East war and annexed it in a move not recognized internationally. It says the entire city is its eternal and indivisible capital.

Pence said the U.S. State Department would spell out details in the coming weeks about a plan to move the U.S. embassy to Jerusalem by the end of 2019.

Israeli media have speculated that a 2019 embassy move could help Israeli Prime Minister Benjamin Netanyahu win reelection in a vote scheduled for November of that year.

Pence said he admired Netanyahu’s leadership and appreciated his friendship. Asked if he hoped for the prime minister’s reelection, Pence said: “I’m a strong supporter of Benjamin Netanyahu, but I don’t get a vote here.”

Pence toured Israel’s Yad Vashem Holocaust memorial with Netanyahu on Tuesday before visiting the Western Wall, one of Judaism’s holiest sites. He stood solemnly with his hand on the wall and left a note, as people who pray there traditionally do.

The vice president also pressed European leaders to heed Trump’s call to forge a follow-up agreement to the Iran nuclear deal established under President Barack Obama’s administration.

“At the end of the day, this is going to be a moment where the European community has to decide whether they want to go forward with the United States or whether they want to stay in this deeply flawed deal with Iran,” he said.

Asked if he thought the United States would succeed in getting that kind of agreement with its European allies, Pence said: “We’ll see.”

Trump said earlier this month the United States would withdraw from the agreement unless its flaws were fixed.

(Reporting by Jeff Mason; Editing by Maayan Lubell and Ralph Boulton)

Migrants risk death crossing Alpine mountains to reach France

Abdullhai, 38, from Guinea, is helped by a friend as they try to cross part of the Alps mountain range from Italy into France, near the town of Bardonecchia, in northern Italy, December 21, 2017.

By Siegfried Modola

BARDONECCHIA, Italy (Reuters) – It took Abdullhai almost three years to get from his home in Guinea to a rocky, snow-covered Alpine mountain pass in the dead of winter, for what he hopes will be the final stage of his journey into France.

The terrain is steep and dangerous and he and a group of five other migrants face risks ranging from losing their footing on steep drops, being struck by falling rocks or succumbing to the -9C (15°F) temperatures in clothing ill-suited to the terrain.

Abdullhai, 38, is one of hundreds of migrants who over the last year have attempted to cross from Italy into France through high mountain passes, in a bid to evade increased border security put in place at easier crossing points. His group crossed into France in December.

In Guinea, he left behind his wife and three children, including a two-year old son whom he has never seen.

“Our life in Guinea is not good,” said Abdullhai, 38, who like his friends asked that his last name not be published in this story.

“There is no work there and no future for my children. Here in Europe we can have a future. We can find work and live a life with some dignity. This is worth a try for me.”

A migrant rests after crossing part of the Alps mountain range from Italy into France, near the town of Nevache in southeastern France, December 21, 2017.

A migrant rests after crossing part of the Alps mountain range from Italy into France, near the town of Nevache in southeastern France, December 21, 2017. REUTERS/Siegfried Modola

The number of migrants making perilous journeys has fallen since over one million arrived in Europe from the Middle East and Africa in 2015. There were 171,635 arrivals by boat officially recorded in 2017, down from 363,504 in 2016.

As the group huddled around a fire in a cave during a rest on their journey, others told stories of being jailed and tortured, or of being orphaned and looking at uncertain futures in their home country.

The crossings have become more perilous with heavy snowfall.

On Jan. 10, Reuters spoke with three migrants, a 24-year-old Senegalese man, a 31-year-old man from the Democratic Republic of Congo and a 37-year-old from Pakistan who were attempting to cross into France.

They managed to cross the border, but abandoned their trek, exhausted and despondent, and were returned to Italy.

But they are at least alive. The International Organisation for Migration estimates that 20,000 people have died in the Mediterranean itself while trying to reach Italy.

Nor does it compare to the hardships that some of those making the journey have already endured to get as far as they have.

Discarded clothes are seen by a mountain pass near the Italian-French border from where migrants have attempted to pass into France, near the Mediterranean coastal town of Ventimiglia in northern Italy,

Discarded clothes are seen by a mountain pass near the Italian-French border from where migrants have attempted to pass into France, near the Mediterranean coastal town of Ventimiglia in northern Italy, December 2, 2017. REUTERS/Siegfried Modola

“I was imprisoned and tortured in Libya for many months. I was forced to work for free. Just look at my scars,” said Kamarra, 28, from Guinea, lifting his shirt and pulling down his trousers at the side to show marks on his body and hip.

“After all that, crossing the Alps is not a big deal for me.”

For a photo essay about the migrant crossings, click here:http://reut.rs/2EyeDmR

(Additional reporting by Eleanor Biles; Writing by Mark Hanrahan in London; Editing by Richard Balmforth)

Turkey to end extraditions to U.S. unless cleric is turned over, Erdogan says

Turkish President Tayyip Erdogan speaks during a meeting at the Presidential Palace in Ankara, Turkey,

ANKARA (Reuters) – Turkey will not extradite any suspects to the United States if Washington does not hand over the cleric Ankara blames for orchestrating a failed 2016 military coup, President Tayyip Erdogan said on Thursday.

Ankara accuses U.S.-based Turkish cleric Fethullah Gulen of masterminding the putsch and has repeatedly asked Washington for his extradition. U.S. officials have said courts require sufficient evidence to extradite the elderly cleric who has denied any involvement in the coup.

“We have given the United States 12 terrorists so far, but they have not given us back the one we want. They made up excuses from thin air,” Erdogan told local administrators at a conference in his presidential palace in Ankara.

“If you’re not giving him (Gulen) to us, then excuse us, but from now on whenever you ask us for another terrorist, as long as I am in office, you will not get them,” he said.

Turkey is the biggest Muslim country in NATO and an important U.S. ally in the Middle East.

But Ankara and Washington have been at loggerheads over a wide range of issues in recent months, including a U.S. alliance with Kurdish fighters in Syria and the conviction of a Turkish bank executive in a U.S. sanctions-busting case that included testimony of corruption by senior Turkish officials.

On Wednesday, Foreign Minister Mevlut Cavusoglu said ties were harmed by Washington’s failure to extradite Gulen and U.S. support for Syria’s Kurdish YPG militia and its PYD political arm. He said relations could deteriorate further.

“The United States does not listen to us, but it listens to the PYD/YPG. Can there be such a strategic partnership?… Turkey is not a country that will be tripped up by the United States’ inconsistent policies in the region,” Erdogan said.

Last week, a U.S. jury convicted an executive of Turkey’s majority state-owned Halkbank of evading U.S. sanctions on Iran, in a case which Erdogan has condemned as a “political coup attempt” and a joint effort by the CIA, FBI and Gulen’s network to undermine Turkey.

The two countries also suspended issuing visas for months last year over a dispute following the detention of two locally employed U.S. consulate workers in Turkey on suspicion of links to the failed 2016 coup.

(Reporting by Tuvan Gumrukcu; Editing by Dominic Evans and Peter Graff)

Israel changes law to make it harder to cede Jerusalem control

An Israeli flag is seen near the Dome of the Rock, located in Jerusalem's Old City on the compound known to Muslims as Noble Sanctuary and to Jews as Temple Mount December 6, 2017.

By Maayan Lubell

JERUSALEM (Reuters) – Israel’s parliament passed an amendment on Tuesday that would make it harder for it to cede control over parts of Jerusalem in any peace deal with the Palestinians, who condemned the move as undermining any chance to revive talks on statehood.

The legislation, sponsored by the far-right Jewish Home coalition party, raises to 80 from 61 the number of votes required in the 120-seat Knesset to approve any proposal to hand over part of the city to “a foreign party”.

Last month U.S. President Donald Trump angered the Palestinians, Middle East leaders and world powers by recognizing Jerusalem as Israel’s capital.

As home to major Muslim, Jewish and Christian holy sites, Jerusalem’s status is one of the most sensitive issues in the decades-old Israeli-Palestinian conflict. Trump’s Dec. 6 decision sparked regional protests and prompted the Palestinians to rule out Washington as a peace broker in any future talks.

Nabil Abu Rdainah, a spokesman for Palestinian President Mahmoud Abbas, described Trump’s policy shift on Jerusalem and the passage of the amendment as “a declaration of war against the Palestinian people”.

“The vote clearly shows that the Israeli side has officially declared an end to the so-called political process,” Abu Rdainah said, referring to U.S.-sponsored talks on Palestinian statehood that collapsed in 2014.

Israel captured East Jerusalem in the 1967 Middle East war and annexed it in a move not recognized internationally. It says the entire city is its “eternal and indivisible” capital.

Palestinians seek to make East Jerusalem the capital of a state they seek to establish in the occupied West Bank and in the Gaza Strip.

The amendment, long in the legislative pipeline, was passed with 64 lawmakers voting in favor and 52 against.

Opposition head Isaac Herzog said Jewish Home was leading Israel “toward a terrible disaster”. Jewish Home’s leader, Naftali Bennett, said the vote showed that Israel would keep control of all of Jerusalem forever.

“There will be no more political skulduggery that will allow our capital to be torn apart,” Bennett said on Twitter.

A bid to revive Israeli-Palestinian negotiations led by the president’s adviser and son-in-law, Jared Kushner, has so far shown no progress.

On Sunday, Netanyahu’s Likud party unanimously urged legislators in a non-binding resolution to effectively annex Israeli settlements built in the West Bank.

Political commentators said Likud’s decision might bolster right-wing support for Netanyahu, who could seek a public mandate in an early election while he awaits possible criminal indictments against him on corruption suspicions. He denies wrongdoing.

Parliamentary elections are not due until November 2019 but the police investigations in two cases of alleged corruption against Netanyahu and tensions among coalition partners in his government could hasten a poll.

Some commentators, pointing to an existing law that already sets a similar high threshold for handing over territory in a land-for-peace deal, have said Jewish Home was essentially competing with Likud for support among the right-wing base.

(This version of the story refiles to remove extraneous word in paragraph 14.)

(Reporting by Maayan Lubell, additional reporting by Ali Sawafta in Ramallah; Editing by Jeffrey Heller and Raissa Kasolowsky)

Thousands of Palestinians take part in anti-Trump protests

A demonstrator holds a sign and a Palestinian flag during clashes with Israeli troops at a protest against U.S. President Donald Trump's decision to recognise Jerusalem as the capital of Israel, near the West Bank city of Nablus, December 29, 2017.

GAZA (Reuters) – Thousands of Palestinians took to the streets of Gaza and the occupied West Bank for the fourth Friday in a row in protests against U.S. President Donald Trump’s recognition of Jerusalem as Israel’s capital.

Palestinian health officials said at least 20 protesters were wounded by live fire, mostly along the Gaza border. An Israeli military spokeswoman said soldiers had shot at “main instigators” who posed a direct threat to the troops and who were trying to damage the border security fence.

The spokeswoman said about 4,000 Palestinians across the West Bank and Gaza, some throwing rocks and fire bombs and setting tires alight, confronted Israeli soldiers who responded mainly by firing tear gas.

A Palestinian demonstrator hurls stones towards Israeli troops during clashes at a protest against U.S. President Donald Trump's decision to recognise Jerusalem as the capital of Israel, near the West Bank city of Nablus, December 29, 2017.

A Palestinian demonstrator hurls stones towards Israeli troops during clashes at a protest against U.S. President Donald Trump’s decision to recognise Jerusalem as the capital of Israel, near the West Bank city of Nablus, December 29, 2017. REUTERS/Mohamad Torokman

In Gaza, demonstrators chanted “Death to America, death to Israel, and death to Trump” and militants fired rockets into Israel, drawing strikes by Israeli tanks and aircraft.

The military said it targeted posts that belonged to Hamas, the Islamist group that controls the Palestinian enclave, after intercepting two of the three rockets fired into Israel. Police said the third struck a building, causing damage. No casualties were reported in those incidents.

Trump outraged Palestinians and sparked anger in the Middle East and among world powers with his Jerusalem declaration on Dec. 6, which reversed decades of U.S. policy on one of the most sensitive issues in the Israeli-Palestinian conflict.

Israel considers Jerusalem its eternal and indivisible capital. Palestinians want the capital of an independent Palestinian state to be in the city’s eastern sector, which Israel captured in the 1967 Middle East War and annexed in a move never recognized internationally.

A masked Palestinian demonstrator uses a slingshot to hurl stones towards Israeli troops during clashes at a protest against U.S. President Donald Trump's decision to recognise Jerusalem as the capital of Israel, near the West Bank city

A masked Palestinian demonstrator uses a slingshot to hurl stones towards Israeli troops during clashes at a protest against U.S. President Donald Trump’s decision to recognise Jerusalem as the capital of Israel, near the West Bank city of Nablus, December 29, 2017. REUTERS/Mohamad Torokman

Most countries regard the status of Jerusalem as a matter to be settled in an eventual Israeli-Palestinian peace agreement, although that process is now stalled.

A U.N. General Assembly resolution passed on Dec. 21 rejected Trump’s Jerusalem declaration. A total of 128 countries voted for the U.N. resolution. Nine opposed it and 35 abstained. Twenty-one countries did not cast a vote.

(Reporting by Nidal al-Mughrabi and Maayan Lubell; Editing by Catherine Evans)

Arab states believe U.S. aid secure despite defying Trump Jerusalem move

Members of the United Nations Security Council vote on an Egyptian-drafted resolution regarding recent decisions concerning the status of Jerusalem, during a meeting on the situation in the Middle East, including Palestine, at U.N. Headquarters in New York City, New York, U.S., December 18, 2017.

By Suleiman Al-Khalidi and John Davison

AMMAN/CAIRO (Reuters) – Leading Arab allies threatened with cuts in aid by Donald Trump said on Friday they had no choice but to defy the U.S. president over his recognition of Jerusalem as Israel’s capital, and did not believe he would follow through.

More than 120 countries, including every Arab nation, voted at the U.N. General Assembly late on Thursday to urge the United States to withdraw its decision, announced earlier this month.

Trump threatened to cut off financial aid to countries that voted in favor of the U.N. resolution, drafted by Egypt and supported by all members of the U.N. Security Council except Washington.

He repeated his threat on Friday, writing on Twitter: “After having foolishly spent $7 trillion in the Middle East, it is time to start rebuilding our country!”

In Egypt and Jordan, among the top recipients of U.S. aid but long the most heavily invested in the Israeli-Palestinian peace process, Trump’s threats were not taken seriously enough to backtrack on firm opposition to the U.S. move.

“The Americans know more than any one else that a stable Jordan is crucial for U.S. interests in the region,” a government minister who asked not to be named said.

For its cooperation in defense and other fields, Jordan receives some $1.2 billion annually from Washington.

“We do not expect the American administration to touch assistance but if it does this will only add to Jordan’s economic woes,” the minister said.

UNPREDICTABILITY

Former Jordanian prime minister Taher al-Masri said Jordan’s role as an ally in a volatile region where unrest has led to attacks on U.S. soil would likely keep the aid safe.

“Trump is not giving us aid as charity. Jordan performs a regional role in stability that we have not gone back on delivering,” he said.

In a sign of concern over Trump’s unpredictability, some Jordanian officials privately expressed worry, however.

Masri said the U.N. resolution would have received many more votes from member states had Trump not made his threat.

For Arab and Muslim states, anything less than total rejection of Trump’s Jerusalem decision would have been impossible, he said.

Nations around the world have criticized the move as damaging chances to end the Israeli-Palestinian conflict, and Palestinian President Mahmoud Abbas has rejected any further U.S. role in the peace process.

As home to major Muslim, Jewish and Christian holy sites, Jerusalem’s status has long been fought over in rounds of failed negotiations, and ignited deadly conflict between Israeli and the Palestinians.

Jordan’s monarchy is custodian of Jerusalem’s holy shrines, making Amman sensitive to any changes of status of the disputed city.

SAFETY IN NUMBERS

Egypt, which led regional efforts to reject Trump’s decision as having a “negative impact” on security in the region, has been a key broker of past peace deals. Egypt’s foreign ministry and presidency could not be reached for comment after several attempts following the General Assembly vote.

H.A. Hellyer, an Egypt expert at the Atlantic Council, said Egypt likely felt secure over its $1.3 billion in U.S. military aid despite Trump’s threats.

“I don’t think Egypt will be worried … certainly Trump’s inner circle will not be too impressed – but I doubt that it will extend beyond that,” he said.

Egypt is an important military partner for the United States and is fighting its own Islamist insurgency in part of the vast Sinai Peninsula.

Arab countries are unanimous in their rejection of Trump’s Jerusalem move. Key allies such as Saudi Arabia and Iraq reiterated their stance at the General Assembly vote.

Iraq’s foreign ministry described the result as a “triumph for international law”.

Saudi Arabia’s delegation said their vote on the Palestinian cause reflected a “policy priority since the time of the founder (of Saudi Arabia), King Abdul Aziz.”

It is unclear if U.N. votes and strong rhetoric alone will force Washington to reverse course, however.

Israel, the closest U.S. ally in the Middle East, has heaped praise on Trump. Prime Minister Benjamin Netanyahu hailed his decision, which reversed decades of U.S. policy, as a “historic landmark”.

Israel considers Jerusalem its eternal and indivisible capital and wants all embassies based there. Palestinians want the capital of an independent Palestinian state to be in the city’s eastern sector, which Israel captured in a 1967 war and annexed in a move never recognized internationally.

(Additional reporting by Ahmed Tolba in Cairo, Ahmed Aboulenein in Baghdad, Maha El Dahan in Dubai, Dominic Evans in Istanbul, Editing by William Maclean)