U.S. officials say Russian inaction enabled Syria chemical attack

A civil defence member breathes through an oxygen mask, after what rescue workers described as a suspected gas attack in the town of Khan Sheikhoun in rebel-held Idlib, Syria April 4, 2017.

By Sarah N. Lynch

WASHINGTON (Reuters) – Trump administration officials on Sunday blamed Russian inaction for enabling a deadly poison gas attack against Syrian civilians last week as Secretary of State Rex Tillerson prepared to explain to Moscow a U.S. retaliatory missile strike.

Tillerson said Syria was able to execute the attack, which killed scores of people, because Moscow had failed to carry out a 2013 agreement to secure and destroy chemical weapons in Syria.

White House National Security Adviser H.R. McMaster said Syria’s “sponsors,” Russia and Iran, were enabling President Bashar al-Assad’s “campaign of mass murder against his own civilians.”

But Tillerson, who is expected to visit Moscow on Wednesday for talks with Russian officials, said on ABC’s ‘This Week’ program there was “no change” to the U.S. military posture toward Syria.

“I think the real failure here has been Russia’s failure to live up to its commitments under the chemical weapons agreements that were entered into in 2013,” Tillerson said.

“The failure related to the recent strike and the recent terrible chemical weapons attack in large measure is a failure on Russia’s part to achieve its commitment to the international community,” he added.

U.S. President Donald Trump ordered cruise missile strikes on a Syrian air base after he blamed Assad for the chemical attack, which killed at least 70 people, many of them children, in the Syrian town of Khan Sheikhoun. The Syrian government has denied it was behind the attack.

Speaking on “Fox News Sunday,” McMaster said the United States would take further action in Syria if necessary.

“We’re prepared to do more. In fact, we were prepared to do more two days ago,” McMaster said. “The president will make whatever decision he thinks is in the best interests of the American people.”

Russian President Vladimir Putin and Iran’s Hassan Rouhani said in a phone call that aggressive U.S. actions against Syria were not permissible and violated international law, the Kremlin said.

McMaster said Russian leaders were supporting “a murderous regime” and their actions would dictate the future of U.S.-Russian relations.

“Do they want it to be a relationship of competition and potential conflict,” McMaster said. “Or do they want it to be a relationship in which we can find areas of cooperation that are in our mutual interest?”

Tillerson stopped short of accusing Russia of direct involvement in planning or carrying out the attack, saying he had not seen “any hard evidence” to suggest Moscow was an accomplice to Assad.

But he said the United States expected Russia to take a tougher stance by rethinking its alliance with Assad because “every time one of these horrific attacks occurs, it draws Russia closer into some level of responsibility.”

(Reporting by Sarah N. Lynch and David Morgan; Editing by James Dalgleish)

Blasts in St. Petersburg, Russia metro stations kill 10

An injured person stands outside Sennaya Ploshchad metro station, following explosions in two train carriages at metro stations in St. Petersburg.

ST. PETERSBURG, Russia (Reuters) – At least 10 people were killed in explosions in two train carriages at metro stations in St. Petersburg on Monday, Russian authorities said.

Interfax news agency quoted an unnamed source as saying one of the blasts was caused by a bomb filled with shrapnel.

President Vladimir Putin, who was in St. Petersburg for a meeting with Belarussian leader Alexander Lukashenko, said the cause of the blasts was not yet clear and efforts were underway to find out. He said he was considering all possibilities including terrorism.

A Reuters witness saw eight ambulances near the Sennaya

Ploshchad metro station.

Video showed injured people lying bleeding on a platform, some being treated by emergency services. Others ran away from the platform amid clouds of smoke.

 

An injured person is helped by emergency services outside Sennaya Ploshchad metro station, following explosions in two train carriages at metro stations in St. Petersburg.

An injured person is helped by emergency services outside Sennaya Ploshchad metro station, following explosions in two train carriages at metro stations in St. Petersburg. REUTERS/Anton Vaganov

A huge whole was blasted in the side of one carriage with mangled metal wreckage strewn around the platform. Passengers were seen hammering at the windows of one closed carriage.

Authorities closed all St. Petersburg metro stations. The Moscow metro said it was taking unspecified additional security measures in case of an attack there.

Russia has been the target of attacks by Chechen militants in past years. Chechen rebel leaders have frequently threatened further attacks.

At least 38 people were killed in 2010 when two female suicide bombers detonated bombs on packed Moscow metro trains.

Over 330 people, half of them children, were killed in 2004 when police stormed a school in southern Russia after a hostage taking by islamist militants. In 2002, 120 hostages were killed when police stormed a Moscow theater to end another hostage taking.

Putin, as prime minister, launched a 1999 campaign to crush a separatist government in the Muslim southern region of Chechnya, and as president continued a hard line in suppressing rebellion.

(Editing by Ralph Boulton)

Life under Russia not all it was cracked up to be: Crimean ex-leader

Sevastopol Mayor Alexei Chaliy applauds during a meeting of deputies of the State Duma, Russia's lower parliament house, with members of the Crimean parliamentary delegation in Moscow

By Darya Korsunskaya and Anton Zverev

SEVASTOPOL, Crimea (Reuters) – The pro-Moscow Crimean politician who signed a document handing control over the Ukrainian peninsula to Russia in March 2014 said the three years since had been a time of disappointment for many people in the region.

Alexei Chaliy, who at the time of Russia’s annexation was the self-proclaimed governor of Crimea’s biggest city Sevastopol, said he has no regrets about the region becoming part of Russia – a status that Ukraine and most other countries do not recognize.

But he took issue with the way the region had been run since, saying local leaders who took over from him were ineffective, plans to develop the economy had gone nowhere, and prices for consumer goods had shot up.

“If we’re talking about changes linked to quality of life in the region, then here – we have to acknowledge – in a significant way things don’t correspond to what was expected,” Chaliy said.

Russia’s annexation of Crimea, in the days after an uprising installed pro-Western leaders in the Ukrainian capital, prompted Europe and the United States to impose sanctions on Russia and dragged east-West relations to their lowest level since the Cold War.

Chaliy, a 55-year-old businessman, played a major role in events on the ground leading up to the annexation.

While Russian soldiers appeared on the streets, and many officials loyal to Kiev fled, Chaliy took de facto control of the local administration in the city of Sevastopol. Crimea voted to join Russia in a referendum that is regarded as illegitimate by Ukraine and Western states.

Soon after the vote, Chaliy, dressed in his trademark tight black sweater, attended a March 18 Kremlin ceremony with Russian President Vladimir Putin to co-sign a document on Crimea’s status within Russia.

Afterwards, he served briefly as the Moscow-backed governor of Sevastopol before stepping aside for new leaders. He is now a member of the Sevastopol legislative assembly.

In an interview in his office in the city – three years after the annexation – Chaliy said that Sergei Menyailo, who took over from him as Moscow-backed governor of Sevastopol, had failed to follow up on a strategy for economic development.

“Why didn’t it work out? Because the executive arm which came in … turned out to be incompetent and unwilling,” Chaliy said. “Therefore if we’re talking about expectations, then a lot of expectations were not fulfilled.”

He also said that funds injected from Moscow were misspent by the local administration.

Menyailo was moved from the post last year and is now the presidential plenipotentiary for Siberia. He did not respond to a Reuters request for comment. Chaliy said he supported the new governor.

Most Crimean residents interviewed by Reuters reporters over several visits in the past few months said they had no wish to go back to rule from Kiev.

HARSH REALITY

Chaliy said many people in Crimea had hankered for the certainties of life in the Soviet Union, the last time the peninsula was ruled from Moscow.

“There are lots of people who are disappointed because … it wasn’t Russia they were joining but, for many of them, it was the Soviet Union. Back to 1988 or 1989, when factories were operating and there were loads of specialists and jobs.”

“They don’t understand that this won’t happen, and cannot happen.”

Soon after Russian’s annexation, pensions and public sector wages rose dramatically because they were brought into line with Russian levels, higher than in Ukraine.

This though was offset by a rise in prices in stores, partly the result of difficulties of getting goods to the peninsula – which is not connected by land to Russia.

“For us, 2015 and 2016 were very difficult from the point of view of inflation. Now the process has stabilized. As a whole, prices are at a high level. In Sevastopol they’re higher than anywhere else,” said Chaliy.

“Of course, if you compare this with people’s expectations, then in this sense a lot of people are disappointed.”

The private sector, heavily dependent on tourism, has suffered. Ukrainian tourists stopped visiting, and major companies, including some Russian ones, suspended investments because of the risk of being hit by sanctions.

“Businessmen are accustomed to going skiing in Europe and nobody wants to leave themselves open” to being included on a list of people barred from entering the European Union, Chaliy said.

He saw no prospect of the sanctions being lifted any time soon, and offered advice to his fellow Crimeans: “Breathe slowly, relax, and live under a state of sanctions.”

(Editing by Christian Lowe and Pravin Char)

France’s Le Pen to visit Moscow on Friday

Marine Le Pen, French National Front (FN) political party leader and candidate for French 2017 presidential election, addresses supporters during a political rally in Metz, France, March 18, 2017. REUTERS/Vincent Kessler

MOSCOW/PARIS (Reuters) – French far-right presidential candidate Marine Le Pen will visit Russia on Friday, a country whose leader she admires and which has been at the center of allegations of interference in the French election campaign via media outlets.

A spokesman for the National Front leader confirmed the trip to Moscow after Russian news agencies reported an invitation from Leonid Slutsky, head of the parliamentary foreign affairs committee, to meet Russian lawmakers.

“I confirm the visit to Moscow”, said a Le Pen spokesman by text message. He did not respond when asked whether she would meet President Vladimir Putin.

Last year Le Pen, one of the frontrunners in France’s presidential election, said she, U.S. President Donald Trump and Putin “would be good for world peace” and she has taken a foreign policy line strongly supportive of Moscow.

Her stance pre-dates the warm words of Trump for a man whom other world leaders mistrust and who is subject to economic sanctions by the European Union and the United States over his annexation of Crimea.

While most mainstream political groups in Europe have condemned Russia in connection with the Ukraine conflict, Le Pen has said the EU provoked the crisis by threatening Russia’s interests.

Le Pen’s ties to Russia have been subject to intense scrutiny. Her party took a 9-million-euro loan from a Moscow-based bank in 2014. Senior National Front figures have been frequent visitors to Moscow, according to diplomats.

A senior aide to centrist candidate Emmanuel Macron, Le Pen’s main opponent in the election and the favorite to win, has accused Russia of using its state media to spread fake news to discredit Macron and influence the outcome of the vote.

The Russian connections of the number three presidential contender, Francois Fillon, have also been a feature of the campaign ahead of the first-round vote in a month’s time.

The Kremlin has denied meddling in the campaign. It also said this week that a French media report alleging Fillon was paid to arrange introductions to Putin was “fake news”.

(Reporting by Denis Pinchuk and Simon Carraud; Writing by Alessandra Prentice and Andrew Callus; Editing by Christian Lowe and Richard Balmforth)

Exclusive: Russia appears to deploy forces in Egypt, eyes on Libya role – sources

General Khalifa Haftar, commander in the Libyan National Army (LNA), leaves after a meeting with Russian Foreign Minister Sergei Lavrov in Moscow, Russia, November 29, 2016. REUTERS/Maxim Shemetov/File Photo

By Phil Stewart, Idrees Ali and Lin Noueihed

WASHINGTON/CAIRO (Reuters) – Russia appears to have deployed special forces to an airbase in western Egypt near the border with Libya in recent days, U.S., Egyptian and diplomatic sources say, a move that would add to U.S. concerns about Moscow’s deepening role in Libya.

The U.S. and diplomatic officials said any such Russian deployment might be part of a bid to support Libyan military commander Khalifa Haftar, who suffered a setback with an attack on March 3 by the Benghazi Defence Brigades (BDB) on oil ports controlled by his forces.

The U.S. officials, who spoke on condition of anonymity, said the United States has observed what appeared to be Russian special operations forces and drones at Sidi Barrani, about 60 miles (100 km) from the Egypt-Libya border.

Egyptian security sources offered more detail, describing a 22-member Russian special forces unit, but declined to discuss its mission. They added that Russia also used another Egyptian base farther east in Marsa Matrouh in early February.

The apparent Russian deployments have not been previously reported.

The Russian defense ministry did not immediately provide comment on Monday and Egypt denied the presence of any Russian contingent on its soil.

“There is no foreign soldier from any foreign country on Egyptian soil. This is a matter of sovereignty,” Egyptian army spokesman Tamer al-Rifai said.

The U.S. military declined comment. U.S. intelligence on Russian military activities is often complicated by its use of contractors or forces without uniforms, officials say.

Russian military aircraft flew about six military units to Marsa Matrouh before the aircraft continued to Libya about 10 days later, the Egyptian sources said.

Reuters could not independently verify any presence of Russian special forces and drones or military aircraft in Egypt.

Mohamed Manfour, commander of Benina air base near Benghazi, denied that Haftar’s Libyan National Army (LNA) had received military assistance from the Russian state or from Russian military contractors, and said there were no Russian forces or bases in eastern Libya.

Several Western countries, including the U.S., have sent special operations forces and military advisors into Libya over the past two years. The U.S. military also carried out air strikes to support a successful Libyan campaign last year to oust Islamic State from its stronghold in the city of Sirte.

Questions about Russia’s role in north Africa coincide with growing concerns in Washington about Moscow’s intentions in oil-rich Libya, which has become a patchwork of rival fiefdoms in the aftermath of a 2011 NATO-backed uprising against the late leader Muammar Gaddafi, who was a client of the former Soviet Union.

The U.N.-backed government in Tripoli is in a deadlock with Haftar, and Russian officials have met with both sides in recent months. Moscow appears prepared to back up its public diplomatic support for Haftar even though Western governments were already irked at Russia’s intervention in Syria to prop up President Bashar al-Assad.

A force of several dozen armed private security contractors from Russia operated until February in a part of Libya that is under Haftar’s control, the head of the firm that hired the contractors told Reuters.

The top U.S. military commander overseeing troops in Africa, Marine General Thomas Waldhauser, told the U.S. Senate last week that Russia was trying to exert influence in Libya to strengthen its leverage over whoever ultimately holds power.

“They’re working to influence that,” Waldhauser told the Senate Armed Services Committee on Thursday.

Asked whether it was in the U.S. interest to let that happen, Waldhauser said: “It is not.”

REGAINING TOE-HOLD

One U.S. intelligence official said Russia’s aim in Libya appeared to be an effort to “regain a toe-hold where the Soviet Union once had an ally in Gaddafi.”

“At the same time, as in Syria, they appear to be trying to limit their military involvement and apply enough to force some resolution but not enough to leave them owning the problem,” the official added, speaking on the condition of anonymity.

Russia’s courting of Haftar, who tends to brand his armed rivals as Islamist extremists and who some Libyans see as the strongman their country needs after years of instability, has prompted others to draw parallels with Syria, another longtime Soviet client.

Asked by U.S. Senator Lindsey Graham whether Russia was trying to do in Libya what it did in Syria, Waldhauser said: “Yes, that’s a good way to characterize it.”

A Western diplomat, speaking on condition of anonymity, said Russia was looking to back Haftar, although its initial focus would likely be on Libya’s “oil crescent.”

“It is pretty clear the Egyptians are facilitating Russian engagement in Libya by allowing them to use these bases. There are supposedly training exercises taking place there at present,” the diplomat said.

Egypt has been trying to persuade the Russians to resume flights to Egypt, which have been suspended since a Russian plane carrying 224 people from the Red Sea resort of Sharm al-Sheikh to St Petersburg was brought down by a bomb in October 2015. The attack was claimed by an Islamic State branch that operates out of northern Sinai.

Russia says that its primary objective in the Middle East is to contain the spread of violent Islamist groups.

Russian Foreign Minister Sergei Lavrov pledged this month to help unify Libya and foster dialogue when he met the leader of the U.N.-backed government, Fayez Seraj.

Russia, meanwhile, is also deepening its relations with Egypt, which had ties to the Soviet Union from 1956 to 1972.

The two countries held joint military exercises – something the U.S. and Egypt did regularly until 2011 – for the first time in October.

Russia’s Izvestia newspaper said in October that Moscow was in talks to open or lease an airbase in Egypt. Egypt’s state-owned Al Ahram newspaper, however, quoted the presidential spokesman as saying Egypt would not allow foreign bases.

The Egyptian sources said there was no official agreement on the Russian use of Egyptian bases. There were, however, intensive consultations over the situation in Libya.

Egypt is worried about chaos spreading from its western neighbor and it has hosted a flurry of diplomatic meetings between leaders of the east and west in recent months.

(Reporting by Phil Stewart and Idrees Ali in Washington and Lin Noueihed in Cairo; additional reporting by John Walcott in Washington, Ahmed Mohammed Hassan in Cairo, Maria Tsvetkova and Christian Lowe in Moscow, Ayman al-Warfalli in Benghazi, Aidan Lewis in Tunis; editing by Grant McCool)

Germany’s Gabriel, in Moscow, warns of risk of new arms race

German Foreign Minister Sigmar Gabriel attends a news conference after a meeting with his Russian counterpart Sergei Lavrov in Moscow, Russia, March 9, 2017. REUTERS/Sergei Karpukhin

By Sabine Siebold

MOSCOW (Reuters) – German Foreign Minister Sigmar Gabriel on Thursday warned about the danger of a new arms race spiral with Russia and called on all sides to work to end the violence in eastern Ukraine as a first step towards broader disarmament efforts.

Gabriel used his first visit to Moscow as foreign minister to underscore his concerns about both Russia’s military buildup in the Baltic region and its western borders, as well as debate in Washington about “exorbitant military spending increases.”

Speaking to reporters after a meeting with Russian Foreign Minister Sergei Lavrov, Gabriel said they both agreed to continue four-way efforts by Germany, France, Russia and Ukraine to implement the Minsk peace process for Ukraine.

He said both sides in the conflict needed to implement measures already agreed, such as the withdrawal of heavy equipment from the line of conflict.

The conflict between Ukrainian forces and Russian-backed separatists in eastern Ukraine, which has already killed 10,000 people, has heated up in recent weeks.

Gabriel is a member of the Social Democrats, junior partners in Chancellor Angela Merkel’s ruling coalition and historic advocates of dialogue with Russia. But he said Moscow’s violation of sovereign borders in the middle of Europe was unacceptable, a reference to its 2014 annexation of Crimea.

Gabriel did not address Russia’s stationing of ballistic nuclear-capable missiles in Kaliningrad during the joint news conference with Lavrov. But he told Russian news agency Interfax on Wednesday that any move by Moscow to make that deployment permanent would be “a blow to European security.”

Some modifications of the Iskander-M missiles can hit targets 700 km (450 miles) away, putting Berlin within range of Kaliningrad.

“We urgently need new initiatives for peace and security,” Gabriel said on Thursday, adding that strategic and conventional disarmament remained a central tenet of German foreign policy.

“My concern is, given some debate on both sides, the large number of armed troops … in the Baltic states and Poland, and the debate in the United State about exorbitant increases in defense spending, that we are once again facing the danger of a new arms race spiral,” Gabriel said.

He said a military buildup like the one seen in the 1970s and 1980s was not in the interest of the people, noting that Russia, above all, should understand that lesson.

The German foreign minister said Germany had no knowledge about reported CIA hacking attacks carried out from the U.S. consulate in Germany. He added that Germany took any kind of influence operations aimed at affecting public opinion very seriously, regardless of their origin.

(Reporting by Sabine Siebold; Writing by Andrea Shalal; Editing by Madeline Chambers)

Trump’s defense chief sees no military collaboration with Russia

US Defense Secretary

By Phil Stewart and Robin Emmott

BRUSSELS (Reuters) – U.S. President Donald Trump’s defense secretary on Thursday said he did not see the conditions for military collaboration with Russia, in a blow to Moscow’s hopes for repairing ties with the United States following Trump’s election.

“We are not in a position right now to collaborate on a military level. But our political leaders will engage and try to find common ground,” Jim Mattis told reporters after talks at NATO headquarters in Brussels.

Asked whether he believed that Russia interfered in U.S. presidential elections, Mattis said: “Right now, I would just say there’s very little doubt that they have either interfered or they have attempted to interfere in a number of elections in the democracies.”

Mattis’ remarks came shortly after his Russian counterpart, Sergei Shoigu expressed readiness to resume cooperation with the Pentagon and the same day Russian President Vladimir Putin said it was in the interests of both nations to restore communications between their intelligence agencies.

“It’s in everyone’s interest to resume dialogue between the intelligence agencies of the United States and other members of NATO,” Putin said, addressing Russia’s Federal Security Service (FSB).

“It’s absolutely clear that in the area of counter-terrorism all relevant governments and international groups should work together.”

Mattis told a closed-door session of NATO on Wednesday that the alliance needed to be realistic about the chances of restoring a cooperative relationship with Moscow and ensure its diplomats could “negotiate from a position of strength”.

That prompted a terse reply from Russia’s Defense Minister Sergei Shoigu.

“Attempts to build a dialogue with Russia from a position of strength would be futile,” Shoigu was quoted as saying by news agency TASS.

Mattis shot back: “I have no need to respond to the Russian statement at all. NATO has always stood for military strength and protection of the democracies and the freedoms we intend to pass on to our children.”

The back-and-forth was the latest indication from the Trump administration that rebuilding U.S. ties with Moscow could be more difficult than Trump might have thought before his election.

U.S. intelligence agencies concluded that Russia hacked and leaked Democratic emails during the presidential campaign as part of efforts to tilt the vote in the Nov. 8 election in Trump’s favor.

Concerns over the extent of Russian interference have been magnified since Trump forced out national security adviser, Michael Flynn, on Monday.

Flynn resigned after disclosures he had discussed U.S. sanctions on Russia with the Russian ambassador to the United States before Trump took office, and that he later misled Vice President Mike Pence about the conversations.

Congressional inquiries into alleged Russian interference in the U.S. elections are gaining momentum as Capitol Hill investigators press intelligence and law enforcement agencies for access to classified documents.

The FBI and several U.S. intelligence agencies are investigating Russian espionage operations in the United States.

They are also looking at contacts in Russia between Russian intelligence officers or others with ties to President Vladimir Putin’s government and people connected to Trump or his campaign.

(This story has been refiled to add Mattis’ first name in second paragraph.)

(Reporting by Phil Stewart; editing by John Stonestreet)

U.S. believes Russia deployed new missile in treaty violation: NYT

Russian military helicopters fly in formation

WASHINGTON (Reuters) – Russia has deployed a new cruise missile despite complaints by U.S. officials that it violates an arms control treaty banning ground-based U.S. and Russian intermediate-range missiles, the New York Times reported on Tuesday, citing unidentified officials.

The newspaper said Russia had secretly deployed the ground-launched SSC-8 cruise missile that Moscow has been developing and testing for several years, despite U.S. complaints that it violated sections of the 1987 Intermediate-range Nuclear Forces treaty.

The Russian Defense Ministry did not immediately respond to requests for comment on the New York Times story.

The U.S. State Department concluded in a July 2014 arms control report that “the Russian Federation is in violation of its obligations under the INF Treaty not to possess, produce, or flight-test a ground-launched cruise missile (GLCM) with a range capability of 500 km to 5,500 km (310 miles to 3,420 miles), or to possess or produce launchers of such missiles.”

Russia accused Washington of conducting “megaphone diplomacy” after the accusation was repeated by the State Department in 2015. Moscow also denied it had violated the INF treaty, which helped end the Cold War between the two countries.

The New York Times said the previous U.S. administration of President Barack Obama had attempted to persuade Moscow to correct the violation while the missile was still in the testing phase.

Instead, Russia has moved ahead with the SSC-8 missile, deploying it as an operational system, the report said.

Russia now has two battalions of the cruise missile, the newspaper quoted administration officials as saying. One is located at Russia’s missile test site at Kapustin Yar in the country’s southeast.

The other cruise missile battalion has been located at an operational base elsewhere in Russia, the Times quoted one unidentified official as saying.

(Reporting by David Alexander; Editing by Susan Heavey and Grant McCool)

U.S. makes limited exceptions to sanctions on Russian spy agency

cars drive past headquarters

By Joel Schectman and Dustin Volz

WASHINGTON (Reuters) – The U.S. Treasury Department on Thursday adjusted sanctions on Russian intelligence agency FSB, making limited exceptions to the measures put in place by former President Barack Obama over accusations Moscow tried to influence the 2016 U.S. presidential election with cyber attacks on political organizations.

The department said in a statement it would allow U.S. companies to make limited transactions with FSB that are needed to gain approval to import information technology products into Russia.

At the White House, President Donald Trump responded to a reporter’s question about whether he was easing sanctions on Russia, saying, “I’m not easing anything.”

Sanctions experts and former Obama administration officials stressed the exceptions to the sanctions imposed in December do not signal a broader shift in Russia policy.

In a conference call with reporters, a senior Treasury Department official said the exceptions were “a very technical fix” made in response to “direct complaints” from companies that were unable to import many consumer technology products without a permit from the FSB. The action had been in the making for weeks before Trump took office on Jan. 20, the official said.

Beyond its intelligence function, the FSB also regulates the importation of software and hardware that contains cryptography. Companies need FSB approval even to import broadly available commercial products such as cell phones and printers if they contain encryption.

Peter Harrell, a sanctions expert and former senior U.S. State Department official, said Treasury officials likely had not considered the issue in December.

“I don’t think when they sanctioned FSB they were intending to complicate the sale of cell phones and tablets,” Harrell said.

David Mortlock, a former National Security Council advisor for Obama said that before granting such exceptions, the administration would ask who a sanction was hurting and who it was benefiting.

Mortlock, now an attorney, said “here it’s a pretty easy calculus” because it was clear tech companies were the ones harmed by not being able to import software into Russia, not the spy agencies.

U.S. intelligence agencies accused the FSB of involvement in hacking of Democratic Party organizations during the election to discredit Democrat Hillary Clinton and help Republican Trump.

The agencies and private cyber security experts concluded the FSB first broke into the Democratic National Committee’s computer system in the summer of 2015 and began monitoring email and chat conversations.

They said FSB was one of two Russian spy agencies involved in a broad operation approved by top-ranking people in the Russian government. In December, Obama expelled 35 suspected Russian spies and sanctioned two spy agencies. He also sanctioned four Russian intelligence officers and three companies that he said provided support to the cyber operations.

(Reporting by Joel Schectman and Dustin Volz; additional reporting by Yeganeh Torbati and Jason Lange; Editing by Alistair Bell and Grant McCool)

Trump’s offer to Russia: an end to sanctions for nuclear arms cut – London Times

Donald Trump speaking at news conference on Russia foreign policy

By Guy Faulconbridge and William James

LONDON (Reuters) – U.S. President-elect Donald Trump will propose offering to end sanctions imposed on Russia over its annexation of Crimea in return for a nuclear arms reduction deal with Moscow, he told The Times of London.

Criticizing previous U.S. foreign policy in an interview published on Monday, he described the U.S.-led invasion of Iraq in 2003 as possibly the gravest error in the history of the United States and akin to “throwing rocks into a beehive”.

But Trump, who will be inaugurated on Friday as the 45th U.S. president, raised the prospect of the first big nuclear arms control agreement with Moscow since the Strategic Arms Reduction Treaty signed by President Barack Obama in 2010.

“They have sanctions on Russia — let’s see if we can make some good deals with Russia,” the Republican president-elect was quoted as saying by The Times.

“For one thing, I think nuclear weapons should be way down and reduced very substantially, that’s part of it. But Russia’s hurting very badly right now because of sanctions, but I think something can happen that a lot of people are gonna benefit.”

The United States and Russia are by far the world’s biggest nuclear powers. The United States has 1,367 nuclear warheads on deployed strategic missiles and bombers, and Russia has 1,796 such deployed warheads, according to the latest published assessment by the U.S. State Department.

Under the 2010 New START treaty, Russia and the United States agreed to limit the number of long-range, strategic nuclear weapons they can deploy.

Trump has said he will seek to improve relations with Moscow despite criticism that he is too eager to make an ally of Russian President Vladimir Putin.

The United States and other Western powers imposed sanctions on Russia in 2014 over its annexation of the Crimea peninsula from Ukraine and its support for pro-Russia separatists in eastern Ukraine.

Asked whether he would trust German Chancellor Angela Merkel or Putin more, Trump said: “Well, I start off trusting both –but let’s see how long that lasts. It may not last long at all.”

His relations with Moscow have faced renewed scrutiny after an unsubstantiated report that Russia had collected compromising information about Trump.

The information was summarized in a U.S. intelligence report which was presented to Trump and Obama this month.

The report concluded Russia tried to sway the outcome of the Nov. 8 election in Trump’s favor by hacking and other means. It did not make an assessment on whether Russia’s attempts affected the election’s outcome.

Trump accused U.S. intelligence agencies of leaking the information from the unverified dossier, which he called “fake news” and phony stuff.” Intelligence leaders denied the charge and Moscow has dismissed the accusations against it.

RUSSIAN RELATIONS

In the interview with The Times, Trump was also critical of Russia’s intervention in Syria’s civil war which, along with the help of Iran, has tilted the conflict in President Bashar al-Assad’s favor.

“I think it’s a very rough thing,” Trump said of Russian intervention in Syria. “Aleppo has been such a terrible humanitarian situation.”

The war has killed more than 300,000 people, created the world’s worst refugee crisis and aided the rise of the Islamic State militant group.

On NATO, Trump repeated his view that the military alliance was obsolete but said it was still very important for him.

“I took such heat, when I said NATO was obsolete,” Trump told The Times, referring to comments he made during his presidential election campaign. “It’s obsolete because it wasn’t taking care of terror. I took a lot of heat for two days. And then they started saying Trump is right.”

Trump said many NATO member states were not paying their fair share for U.S. protection.

“A lot of these countries aren’t paying what they’re supposed to be paying, which I think is very unfair to the United States,” Trump said. “With that being said, NATO is very important to me. There’s five countries that are paying what they’re supposed to. Five. It’s not much.”

Trump said he would appoint his son-in-law, Jared Kushner, to try to broker a Middle East peace deal, urged Britain to veto any new U.N. Security Council resolution critical of Israel and criticized Obama’s handling of the deal between Iran and six world powers including the United States which curbed Tehran’s nuclear program.

On Britain’s vote to leave the European Union, Trump said: “Brexit is going to end up being a great thing” and said he was eager to get a trade deal done with the United Kingdom.

(Editing by Peter Cooney and Timothy Heritage)