Russia to hold biggest war games in nearly four decades

By Andrew Osborn

MOSCOW (Reuters) – Russia will next month hold its biggest war games in nearly four decades, Defense Minister Sergei Shoigu said on Tuesday, a massive military exercise that will also involve the Chinese and Mongolian armies.

The exercise, called Vostok-2018 (East-2018), will take place in central and eastern Russian military districts and involve almost 300,000 troops, over 1,000 military aircraft, two of Russia’s naval fleets, and all its airborne units, Shoigu said in a statement.

The maneuvers will take place at a time of heightened tension between the West and Russia, which is concerned about what it says is an unjustified build-up of the NATO military alliance on its western flank.

NATO says it has beefed up its forces in eastern Europe to deter potential Russian military action after Moscow annexed Ukraine’s Crimea in 2014 and backed a pro-Russian uprising in eastern Ukraine.

The war games, which will take place from Sept. 11-15, are likely to displease Japan which has already complained about what it says is a Russian military build-up in the Far East.

Japanese Prime Minister Shinzo Abe is due to attend a forum in Vladivostok over the same period, and a Japanese Foreign Ministry official said on Tuesday Tokyo always paid attention to shifts in Russian-Chinese military cooperation.

Shoigu said the war games would be the biggest since a Soviet military exercise, Zapad-81 (West-81) in 1981.

“In some ways they will repeat aspects of Zapad-81, but in other ways, the scale will be bigger,” Shoigu told reporters, while visiting the Russian region of Khakassia.

The Russian Ministry of Defense has said that Chinese and Mongolian military units will also take part in the exercise.

“A MORE ASSERTIVE RUSSIA”

When asked if the cost of holding such a massive military exercise was justified at a time when Russia is faced with higher social spending demands, Kremlin spokesman Dmitry Peskov said such war games were essential.

“The country’s ability to defend itself in the current international situation, which is often aggressive and unfriendly towards our country, means (the exercise) is justified,” Peskov told reporters on a conference call.

When asked if China’s involvement meant Moscow and Beijing were moving towards an alliance, Peskov said it showed that the two allies were cooperating in all areas.

China and Russia have taken part in joint military drills before but not on such a large scale.

NATO spokesman Dylan White said that Russia had briefed the alliance on the planned exercise in May and that NATO planned to monitor it. Russia had invited military attaches from NATO countries based in Moscow to observe the war games, an offer he said was under consideration.

“All nations have the right to exercise their armed forces, but it is essential that this is done in a transparent and predictable manner,” White said in an emailed statement.

“Vostok demonstrates Russia’s focus on exercising large-scale conflict. It fits into a pattern we have seen over some time: a more assertive Russia, significantly increasing its defense budget and its military presence.”

Shoigu this month announced the start of snap combat readiness checks in central and eastern military districts ahead of the planned exercise.

“Imagine 36,000 armored vehicles – tanks, armored personnel carriers and armored infantry vehicles – moving and working simultaneously, and that all this, naturally, is being tested in conditions as close as possible to military ones,” Shoigu said on Tuesday.

(Additional reporting by Katya Golubkova and Andrey Kuzmin in Moscow, Robin Emmott in Brussels and Elaine Lies in Tokyo; Editing by Alison Williams)

U.S. official warns of more actions against Turkey if pastor not freed

FILE PHOTO: U.S. pastor Andrew Brunson reacts as he arrives at his home after being released from the prison in Izmir, Turkey July 25, 2018. Picture taken July 25, 2018. Demiroren News Agency/DHA via REUTERS/File photo

By Steve Holland

WASHINGTON (Reuters) – The United States is warning more economic pressures may be in store for Turkey if it refuses to release a jailed American pastor, a White House official said on Tuesday, in a dispute that has further strained relations between the NATO allies.

The tough message emerged a day after White House national security adviser John Bolton met privately with Turkish ambassador Serdar Kilic about the case of evangelical pastor Andrew Brunson. Bolton warned him that the United States would not give any ground, a senior U.S. official said.

The White House official, speaking to Reuters on condition of anonymity, said “nothing has progressed” thus far on the Brunson case.

“The administration is going to stay extremely firm on this. The president is 100 percent committed to bringing Pastor Brunson home and if we do not see actions in the next few days or a week there could be further actions taken,” the official said.

Further actions would likely take the form of economic sanctions, the official said, who added: “The pressure is going to keep up if we’re not seeing results.”

Relations between Turkey and the United States have been soured by Brunson’s detention, as well as diverging interests on Syria. Trump doubled tariffs on imports of Turkish steel and aluminum last week, contributing to a precipitous fall in the lira.

The United States is also considering a fine against Turkey’s state-owned Halkbank for allegedly helping Iran evade U.S. sanctions. Earlier this month, the United States imposed sanctions on two top officials in President Recep Tayyip Erdogan’s cabinet in an attempt to get Turkey to turn over Brunson.

Brunson is accused of backing a coup attempt against Turkish Erdogan two years ago, charges that he has denied. He is being tried on terrorism charges.

Brunson has appealed again to a Turkish court to release him from house arrest and lift his travel ban, his lawyer told Reuters on Tuesday.

(Reporting by Steve Holland; Editing by Mary Milliken and James Dalgleish)

Sweden to sign $1 billion Patriot missile deal this week: report

FILE PHOTO: A man looks at a Patriot Advanced Capability (PAC-3) Missile Segment Enhancement (MSE) model by Lockheed Martin at an international military fair in Kielce, Poland September 7, 2017. REUTERS/Kacper Pempel/File Photo

STOCKHOLM (Reuters) – Sweden will sign a contract to buy the Patriot air defense missile system from U.S. arms manufacturer Raytheon Co  this week, Swedish radio reported on Wednesday.

Although it is not a North Atlantic Treaty Organization (NATO) member, Sweden has close ties to the alliance and has been beefing up its armed forces after decades of neglect amid increased anxiety over Russia’s actions in Ukraine and Crimea.

Sweden, whose existing air defense system cannot shoot down ballistic missiles, will buy four Patriot firing units and an undisclosed number of missiles, Swedish radio said.

“This system has been proven in action … there are a number of other countries that already have it and we expect the first delivery in 2021,” Swedish radio quoted Defence Minister Peter Hultqvist saying.

The Defence Ministry could not immediately be reached for comment on the Swedish radio report, which said Stockholm will formally sign the deal on Thursday.

Sweden began talks over the purchase, initially worth around 10 billion crowns ($1.14 billion), last November.

The contract includes an option to buy up to 300 missiles, which would bring the final bill to around $3 billion.

The main, center-right opposition has backed the plan, though there are differences over how to finance the deal.

So far, 15 other countries have purchased Patriot, including NATO members Germany, the Netherlands, Romania and Poland, while neutral Switzerland has said it is considering Patriot among other systems.

(Reporting by Simon Johnson; Editing by Alexander Smith)

U.S. Christian pastor leaves Turkish prison after court ruling

U.S. pastor Andrew Brunson reacts as he arrives at his home after being released from the prison in Izmir, Turkey July 25, 2018. Demiroren News Agency, DHA via

By Ezgi Erkoyun and Daren Butler

ISTANBUL (Reuters) – A U.S. Christian pastor on trial in Turkey on terrorism charges left prison on Wednesday after a court ruled he should be transferred to house arrest, a step that could help reduce tension between the NATO allies.

Andrew Brunson, who has worked in Turkey for more than 20 years and has been detained for the last 21 months, was escorted out of prison by officials in the coastal city of Izmir, live television footage showed. He departed in a convoy of cars.

Brunson, who is from North Carolina, was detained in October 2016 and charged with helping the group which Ankara says was behind a failed military coup earlier that year.

His lawyer Ismail Cem Halavurt said Brunson has to wear an electronic ankle bracelet and is banned from leaving the country.

The same court rejected a week ago a call by Brunson’s defense for his release. The state-owned Anadolu news agency said the court had decided, after re-evaluating the case, that he could leave prison on health grounds and because he would be under effective judicial control.

Brunson’s detention deepened a rift between NATO allies Washington and Ankara, who are also at odds over the Syrian war and Turkey’s plan to buy missile defenses from Russia.

A source in the United States familiar with the developments said the sudden shift came a day before U.S. Vice President Mike Pence had been set to unveil a harsh new policy on Turkey.

The source, who was not authorized to speak publicly about the matter, said U.S. and Turkish officials had been working on a deal that would lead to Brunson’s release, with Washington expecting him to be freed at the trial last week.

U.S. officials had been under the impression that the deal was in place, the source said, adding that when Brunson was not released, Pence spoke with President Donald Trump and the two agreed harsh new policy measures were needed to force the issue.

Pence spoke by phone on Wednesday with Brunson, who expressed gratitude for the help from Trump and his top officials in securing his move from prison, the source said.

“LONG OVERDUE NEWS

Brunson was accused of helping supporters of Fethullah Gulen, the U.S.-based cleric who Turkish authorities say masterminded the coup attempt against President Tayyip Erdogan in which 250 people were killed. He was also charged with supporting outlawed PKK Kurdish militants.

The pastor, who denies the charges, faces up to 35 years in jail if found guilty.

U.S. Secretary of State Mike Pompeo welcomed what he said was the “long overdue news” of Brunson’s transfer, but said it was not enough. “We have seen no credible evidence against Mr. Brunson, and call on Turkish authorities to resolve his case immediately in a transparent and fair manner,” he said on Twitter.

Financial markets took the transfer order as a positive, seeing in it the potential for improvement in ties between Ankara and Washington.

The Turkish lira strengthened to 4.8325 against the dollar from 4.8599 before the report. Shares of Halkbank, whose former deputy general manager was convicted in January of evading U.S. sanctions on Iran, jumped 12 percent.

Erdogan has previously linked Brunson’s fate to that of the Muslim cleric Gulen, whose extradition from the United States has been a long-held demand of Turkish authorities. Gulen denies any involvement in the coup bid.

Trump said in a tweet last week that Brunson was being held hostage and that Erdogan should “do something to free this wonderful Christian husband & father”.

The U.S. Senate passed a bill last month including a measure that prohibits Turkey from buying F-35 Joint Strike Fighter jets because of Brunson’s imprisonment and Turkey’s purchase of Russia’s S-400 air defence system.

(Additional reporting by Omer Berberoglu in Istanbul; Tuvan Gumrukcu in Ankara; Roberta Rampton and Doina Chiacu in Washington; Writing by Dominic Evans and David Dolan; editing by David Stamp and Mark Heinrich)

Turkish court keeps U.S. pastor in jail; Trump calls on Erdogan to act

A Turkish soldier stands guard in front of the Aliaga Prison and Courthouse complex in Izmir, Turkey July 18, 2018. REUTERS/Kemal Aslan

By Ezgi Erkoyun

ALIAGA, Turkey (Reuters) – A Turkish court decided on Wednesday to keep an American pastor in jail, dashing hopes that he could be released during his trial on terrorism and spying charges, a case that has deepened a rift with NATO ally Washington.

Andrew Brunson, a Christian pastor from North Carolina who has lived in Turkey for more than two decades, was indicted on charges of helping the group that Ankara blames for a failed 2016 coup against President Tayyip Erdogan, as well as supporting outlawed PKK Kurdish militants.

Brunson, who denies the charges, faces up to 35 years in jail if found guilty.

“It is really hard to stay in jail and be separated from my wife and children,” Brunson, wearing a black suit and a white shirt, told the court in Turkish.

“There is no concrete evidence against me. The disciples of Jesus suffered in his name, now it is my turn. I am an innocent man on all these charges. I reject them. I know why I am here. I am here to suffer in Jesus’s name.”

U.S. President Donald Trump late on Wednesday said in a tweet that Erdogan “should do something to free this wonderful Christian husband and father,” saying that Brunson has “been held hostage far too long.”

The U.S. Senate passed a bill last month including a measure that prohibits Turkey from buying F-35 Joint Strike Fighter jets because of Brunson’s imprisonment and Turkey’s purchase of Russia’s S-400 air defense system.

The U.S. envoy to Turkey said he was “disappointed” by the ruling of the court in the Aegean province of Izmir, where Brunson had been living.

“Our government is deeply concerned about his status and the status of other American citizens and Turkish local employees of the U.S. diplomatic mission who have been detained under state of emergency rules,” Charge d’Affaires Philip Kosnett told reporters outside the courtroom.

“We have great respect for both Turkey’s traditional role as a haven for people of faiths and Turkey’s legal traditions,” he said. “We believe this case is out of step with these traditions.”

NEW WITNESSES

Erdogan has previously linked Brunson’s fate to that of Fethullah Gulen, a U.S.-based Muslim cleric who Turkey accuses of masterminding the failed coup. Gulen denies any involvement in the coup, in which at least 250 people were killed.

The spokesman of Turkey’s ruling AK Party, Mahir Unal, said that just as Washington had responded repeatedly to Ankara’s requests for Gulen’s extradition by saying it was a matter for the U.S. courts, so Brunson’s fate was a judicial matter.

Brunson was pastor of the Izmir Resurrection Church, serving a small Protestant congregation in Turkey’s third-largest city, south of the Aegean town of Aliaga where he is now on trial.

His lawyer Ismail Cem Halavurt had raised hopes that Brunson could be released as the prosecution witnesses finish testifying.

But Halavurt said on Wednesday the prosecution has added the testimony of two new anonymous witnesses to the case and that the court would reconvene on Oct. 12 to hear them and view new evidence.

Turkey’s lira weakened against the dollar immediately after the ruling, reflecting investor worries about tensions with the United States.

Brunson’s trial is one of several legal cases that have raised tensions between Washington and Ankara. A U.S. judge sentenced a Turkish bank executive in May to 32 months in prison for helping Iran evade U.S. sanctions, while two locally employed U.S. consulate staff in Turkey have been detained.

The two NATO allies are also at odds over U.S. policy in Syria, where Washington’s ally in the fight against Islamic State is a Kurdish militia that Turkey says is an extension of the PKK, which has waged a three-decade insurgency in southeast Turkey.

In a statement late on Wednesday, four Republican U.S. senators called for the immediate release of Brunson and other U.S. citizens being held in Turkey, warning of legislative reprisals otherwise.

“We encourage the Administration to use all the tools at their disposal to ensure the release of these innocent people before Congress is forced to press for even stricter legislative measures that will be difficult to unwind,” Senators Thom Tillis, Jeanne Shaheen, James Lankford, and Lindsey Graham said.

(Writing by Ezgi Erkoyun and Humeyra Pamuk; Editing by John Stonestreet and Leslie Adler)

Turkish court keeps U.S. pastor in jail, Washington says deeply concerned

Ismail Cem Halavurt, lawyer of the jailed pastor Andrew Brunson, talks to media in front of the Aliaga Prison and Courthouse complex in Izmir, Turkey July 18, 2018. REUTERS/Kemal A

By Ezgi Erkoyun

ALIAGA, Turkey (Reuters) – A Turkish court decided on Wednesday to keep an American pastor in jail, dashing hopes that he could be released during his trial on terrorism and spying charges, a case that has deepened a rift with NATO ally Washington.

Andrew Brunson, a Christian pastor from North Carolina who has lived in Turkey for more than two decades, was indicted on charges of helping the group that Ankara blames for the failed 2016 coup against President Tayyip Erdogan, as well as supporting outlawed PKK Kurdish militants.

Brunson, who denies the charges, faces up to 35 years in jail if found guilty.

“It is really hard to stay in jail and be separated from my wife and children,” Brunson, wearing a black suit and a white shirt, told the court in Turkish.

“There is no concrete evidence against me. The disciples of Jesus suffered in his name, now it is my turn. I am an innocent man on all these charges. I reject them. I know why I am here. I am here to suffer in Jesus’s name.”

President Donald Trump has called for his release and the U.S. Senate passed a bill last month including a measure that prohibits Turkey from buying F-35 Joint Strike Fighter jets because of Brunson’s imprisonment and Turkey’s purchase of Russia’s S-400 air defense system.

The U.S. envoy to Turkey said he was “disappointed” by the ruling by the court in the Aegean province of Izmir where Brunson had been living.

“Our government is deeply concerned about his status and the status of other American citizens and Turkish local employees of the U.S. diplomatic mission who have been detained under state of emergency rules,” Charge d’affaires Philip Kosnett told reporters outside the courtroom.

“We have great respect for both Turkey’s traditional role as a haven for people of faiths and Turkey’s legal traditions. We believe this case is out of step with these traditions,” he said.

NEW WITNESSES

Brunson was pastor of the Izmir Resurrection Church, serving a small Protestant congregation in Turkey’s third-largest city, south of the Aegean town of Aliaga where he is now on trial.

His lawyer Ismail Cem Halavurt had raised hopes that he could be released as the prosecution witnesses finish testifying.

Jailed U.S. pastor Andrew Brunson's wife Norine Brunson leaves from Aliaga Prison and Courthouse complex in Izmir, Turkey July 18, 2018. REUTERS/Kemal Aslan

Jailed U.S. pastor Andrew Brunson’s wife Norine Brunson leaves from Aliaga Prison and Courthouse complex in Izmir, Turkey July 18, 2018. REUTERS/Kemal Aslan

But Halavurt said on Wednesday the prosecution has added the testimonies of two new anonymous witnesses to the case and that the court will hold its next

hearing on October 12 to hear them and view new evidence.

Turkey’s lira weakened against the dollar immediately after the ruling, reflecting investor worries about tensions with the United States. It was nearly half a percent weaker on the day, at 4.8215 at 1234 GMT.

Brunson’s trial is one of several legal cases that have raised tensions between Washington and Ankara. A U.S. judge sentenced a Turkish bank executive in May to 32 months in prison for helping Iran evade U.S. sanctions, while two locally employed U.S. consulate staff in Turkey have been detained.

The NATO allies are also at odds over U.S. policy in Syria, where Washington’s ally in the fight against Islamic State is a Kurdish militia Turkey says is an extension of the PKK, which has waged a three-decade insurgency in southeast Turkey.

Philip Kosnett, U.S. Charge d'affaires in Turkey, talks to media in front of the Aliaga Prison and Courthouse complex in Izmir, Turkey July 18, 2018. REUTERS/Kemal Aslan

Philip Kosnett, U.S. Charge d’affaires in Turkey, talks to media in front of the Aliaga Prison and Courthouse complex in Izmir, Turkey July 18, 2018. REUTERS/Kemal Aslan

The Turkish government says Brunson’s case will be decided by the courts. But Erdogan has previously linked his fate to that of Fethullah Gulen, the U.S.-based Muslim cleric Turkey blames for the coup attempt and whose extradition Ankara seeks.

Gulen has denied having any link to the failed coup, in which at least 250 people were killed.

(Writing by Ezgi Erkoyun and Humeyra Pamuk; Editing by Dominic Evans, David Dolan and Andrew Heavens)

Trump says Putin summit ‘even better’ than NATO meeting

FILE PHOTO: U.S. President Donald Trump waves after a joint news conference with Russian President Vladimir Putin (not pictured) in Helsinki, Finland July 16, 2018. REUTERS/Grigory Dukor

WASHINGTON (Reuters) – President Donald Trump on Tuesday morning cast his Monday meeting with Russian President Vladimir Putin in a glowing light and attempted to discredit the widely held perception that the day he spent with Putin in Helsinki, Finland, was detrimental to the United States.

“While I had a great meeting with NATO, raising vast amounts of money, I had an even better meeting with Vladimir Putin of Russia,” Trump wrote in a tweet. “Sadly, it is not being reported that way – the Fake News is going Crazy!”

Trump’s news conference alongside Putin, where he discounted U.S. intelligence assessments that Russia meddled with the 2016 election, drew fire from members of both political parties, who said he put Russia above U.S. interests.

Last week, Trump met with fellow NATO members, pushing them to increase their spending on defense. In another tweet on Tuesday, he took personal credit for the strength of the North Atlantic Treaty Organization, saying it is better funded “only because of me.”

“I had a great meeting with NATO,” he said in the same tweet. “NATO was weak, but now it is strong again (bad for Russia). The media only says I was rude to leaders, never mentions the money!”

(Reporting by Lisa Lambert and Susan Heavey)

U.S. State Department in talks with Turkey to sell Patriot system

FILE PHOTO: U.S. soldiers stand beside a U.S. Patriot missile system at a Turkish military base in Gaziantep, southeastern Turkey, October 10, 2014.. REUTERS/Osman Orsal

FARNBOROUGH (Reuters) – The U.S. State Department is negotiating a potential deal to sell Turkey the Raytheon Co Patriot missile defense system as an alternative to the Russian-made S-400 system Turkey has agreed to purchase, an official said on Monday.

U.S. Ambassador Kaidanow, the Acting Assistant Secretary of State for Political-Military Affairs, told reporters that a delegation of U.S. government officials at the Farnborough Airshow was holding meetings with allies in the hopes of bolstering U.S. defense trade.

She said the U.S. State Department was in talks with Turkey and “trying to give the Turks an understanding of what we can do with respect to Patriot.” She did not say if the delegations were meeting at the air show.

Turkey has attracted criticism from NATO allies over its planned purchase of the S-400 missile defense systems from Russia, which could jeopardize Ankara’s purchase of Lockheed Martin made F-35 Joint Strike Fighter jets.

“Ultimately we are concerned that by purchasing these systems from the Russians it will be supportive of some of the least good behavior that we have seen from them (Russia) in various places including Europe but also elsewhere,” Kaidanow said.

She said Washington wanted to ensure that systems acquired by U.S. allies “remain supportive of the strategic relationship between us and our allies, in the case of Turkey that is Patriots.”

In April, the Trump administration rolled out a long-awaited overhaul of U.S. arms export policy aimed at expanding sales to allies, saying it would bolster the American defense industry and create jobs at home.

(Reporting by Mike Stone in Farnborough; Editing by Mark Potter)

The issues on the table when Trump and Putin meet

FILE PHOTO: Russia's President Vladimir Putin talks to U.S. President Donald Trump during their bilateral meeting at the G20 summit in Hamburg, Germany, July 7, 2017. REUTERS/Carlos Barria//File Photo

MOSCOW/WASHINGTON (Reuters) – Donald Trump and Vladimir Putin will sit down in a room together in the Finnish capital on July 16 for their first summit meeting.

The U.S. president’s spontaneous approach to negotiations, and the inscrutable style of the Kremlin leader, make predicting the outcome of the summit with any accuracy close to impossible.

We do however, have a reasonable idea of the issues the two leaders and their aides will have mapped out before the meeting: the areas where they each want something from their counterpart, and the places they are willing to give ground.

Below are the issues likely to figure:

ARMS RACE RHETORIC

Both Trump and Putin have been using bellicose rhetoric about their nuclear arsenals, drawing their countries closer to a new arms race. Trump has said the U.S. nuclear capability needs renewing. He told Reuters last year, “if countries are going to have nukes, we’re going to be at the top of the pack.” Putin in March this year unveiled an array of new nuclear weapons, and warned Western governments “now they need to take account of a new reality.” An arms race would be dangerous and expensive for both sides. An agreement to scale back the rhetoric would be a win for both Putin and Trump. Progress towards extending the New Start arms treaty, which expires in 2021, would give substance to that agreement.

SANCTIONS RELIEF

Putin would like Trump to soften sanctions that Washington imposed over the annexation of Ukraine’s Crimea region and backing for separatists in eastern Ukraine, involvement in the Syrian civil war and allegations of Russian meddling in the U.S. elections in 2016. While a 2017 law bars Trump from easing many sanctions without Congress’ approval, he can offer some relief without a nod from Congress. The Republican president, who did not want to sign the law and has missed several deadlines for imposing sanctions included in it, could send a signal that the administration does not plan to expand the list of Russian firms and individuals subject to economic and travel restrictions. That would unfreeze much-needed investment and lending from international investors who, at the moment, are reluctant to commit to Russia for fear of the sanctions’ impact.

SYRIAN DEAL

Washington ally Israel is anxious that, with the conflict in Syria entering its end game, Iranian and Iran-backed forces will be left gathered around Israel’s borders. At the summit, Trump may ask Putin, the most powerful outside player in Syria since Russia’s military intervention there, to use his influence with Tehran to curb Iran’s military presence. This would be tough to deliver for Putin: it would risk a rupture with his allies in Tehran, and could leave Russian forces having to do the lion’s share of the remaining fighting in Syria, a burden that Moscow does not want to shoulder.

DIPLOMATIC TIT-FOR-TAT

Russia’s diplomatic presence in the United States, and the U.S. missions in Russia, are depleted after two rounds of tit-for-tat diplomatic expulsions in the past two years. The first was over alleged Russian meddling in the U.S. election, and the second, this year, was in response to the poisoning in England of former Russian spy Sergei Skripal and his daughter. Putin and Trump could agree in Helsinki to restore the full complement of diplomatic staff. That would not change the substance of the U.S.-Russia relationship, but it would be a symbol of a new start.

RUSSIA’S BACKYARD

Since Russia’s annexation of Crimea in 2014, the NATO alliance has stepped up military exercises in eastern Europe. The aim, according to NATO leaders, is to reassure alliance members who fear a Russian incursion. That has angered Russia. It says NATO is bearing down on its backyard. The Kremlin has likened it to Russia stationing missiles in Mexico. If Trump scaled back the exercises, that would be a big win for Putin. Two senior NATO diplomats told Reuters they are prepared for a worst-case scenario that Trump would announce a freeze on U.S. military exercises or withdraw troops from the Baltics in a gesture to Putin. At the NATO summit in Brussels that precedes Helsinki, NATO states will seek Trump’s assurances that he will stand firm on the exercises.

UKRAINIAN ALLY

Washington has stood by Ukraine’s pro-Western leaders in their stand-off with Russia. That has included the United States providing Kiev with hundreds of millions of dollars worth of military aid. Helsinki would be a triumph for Putin if he persuaded Trump to drop that military aid. Ukrainian officials say they have assurances from Trump aides he won’t do this, but acknowledge anything can happen when Trump and Putin are in a room together. In return, the Russian leader could make concessions over eastern Ukraine, where pro-Moscow separatists control swathes of territory. Diplomats say there is a deal to be done allowing armed international peacekeepers to patrol the area. However, Putin will not contemplate any concessions over Crimea.

(Writing by Christian Lowe and Mary Milliken; Editing by Gareth Jones)

Trump will focus on Russia’s ‘malign’ activity at summits: U.S. officials

FILE PHOTO: Russia's President Vladimir Putin talks to U.S. President Donald Trump during their bilateral meeting at the G20 summit in Hamburg, Germany, July 7, 2017. REUTERS/Carlos Barria//File Photo

WASHINGTON (Reuters) – U.S. President Donald Trump will discuss Russia’s “malign activity” during a summit with NATO leaders and follow up in a meeting Russian President Vladimir Putin to determine whether Moscow wants to reduce tensions, U.S. official said on Thursday.

“The president believes a better relationship with Russia would be good for both America and Russia, but the ball really is in Russia’s court and the president will continue to hold Russia accountable for its malign activity,” Jon Huntsman, U.S. ambassador to Russia, told reporters on a conference call.

“We’re entering with our eyes wide open, but peace is always worth the effort,” Huntsman said.

Trump is slated to meet Putin in Helsinki on July 16. He will meet with NATO leaders the week before in Brussels.

(Reporting by Jeff Mason, Doina Chiacu and Arshad Mohammed; Editing by David Gregorio)