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Putin says trust erodes under Trump, Moscow icily receives Tillerson

U.S. Secretary of State Rex Tillerson attends a meeting with Russian Foreign Minister Sergei Lavrov in Moscow, Russia

By Yeganeh Torbati and Vladimir Soldatkin

MOSCOW (Reuters) – Vladimir Putin said on Wednesday trust had eroded between the United States and Russia under President Donald Trump, as Moscow delivered an unusually hostile reception to Secretary of State Rex Tillerson in a face-off over Syria.

Any hope in Russia that the Trump administration would herald less confrontational relations has been dashed in the past week after the new U.S. leader fired missiles at Syria to punish Moscow’s ally for its suspected use of poison gas.

Just as Tillerson sat down for talks, a senior Russian official assailed the “primitiveness and loutishness” of U.S. rhetoric, part of a volley of statements that appeared timed to maximize the awkwardness during the first visit by a member of Trump’s cabinet.

“One could say that the level of trust on a working level, especially on the military level, has not improved but has rather deteriorated,” Putin said in an interview broadcast on Russian television moments after Tillerson sat down with Russian Foreign Minister Sergei Lavrov in an ornate hall.

Putin doubled down on Russia’s support for Syrian President Bashar al-Assad, repeating denials that Assad’s government was to blame for the gas attack last week and adding a new theory that the attack may have been faked by Assad’s enemies.

Moments earlier, Lavrov greeted Tillerson with unusually icy remarks, denouncing the missile strike on Syria as illegal and accusing Washington of behaving unpredictably.

“I won’t hide the fact that we have a lot of questions, taking into account the extremely ambiguous and sometimes contradictory ideas which have been expressed in Washington across the whole spectrum of bilateral and multilateral affairs,” Lavrov said.

“And of course, that’s not to mention that apart from the statements, we observed very recently the extremely worrying actions, when an illegal attack against Syria was undertaken.”

Lavrov also noted that many key State Department posts remain vacant since the new administration took office — a point of sensitivity in Washington.

One of Lavrov’s deputies was even more undiplomatic.

“In general, primitiveness and loutishness are very characteristic of the current rhetoric coming out of Washington. We’ll hope that this doesn’t become the substance of American policy,” Deputy Foreign Minister Sergei Ryabkov told Russia’s state-owned RIA news agency.

“As a whole, the administration’s stance with regards to Syria remains a mystery. Inconsistency is what comes to mind first of all.”

Tillerson kept to more calibrated remarks, saying his aim was “to further clarify areas of sharp difference so that we can better understand why these differences exist and what the prospects for narrowing those differences may be.”

“I look forward to a very open, candid, frank exchange so that we can better define the U.S.-Russian relationship from this point forward,” he told Lavrov.

After journalists were ushered out of the room, Lavrov’s spokeswoman, Maria Zakharova, wrote on her Facebook page that U.S. journalists traveling with Tillerson had behaved as if they were in a “bazaar” by shouting questions to Lavrov.

Kremlin spokesman Dmitry Peskov said Tillerson might meet Putin later on Wednesday if the two top diplomats decided it would be useful to brief the Russian president on their talks. But Peskov too did not hold back his criticism, saying calls from Western powers for Russia to cut support for Assad amounted to giving terrorists a free hand.

Moscow’s hostility to Trump administration figures is a sharp change from last year, when Putin hailed Trump as a strong figure and Russian state television was consistently full of effusive praise for him.

Russian Foreign Minister Sergei Lavrov and U.S. Secretary of State Rex Tillerson enter a hall during their meeting in Moscow, Russia, April 12, 2017. REUTERS/Maxim Shemetov

COVER-UP

The White House has accused Moscow of trying to cover up Assad’s use of chemical weapons after the attack on a town killed 87 people last week.

Trump responded to the gas attack by firing 59 cruise missiles at a Syrian air base on Friday. Washington warned Moscow, and Russian troops at the base were not hit.

Moscow has stood by Assad, saying the poison gas belonged to rebels, an explanation Washington dismisses as beyond credible. Putin said that either gas belonging to the rebels was released when it was hit by a Syrian strike on a rebel arms dump, or the rebels faked the incident to discredit Assad.

Trump came to the presidency promising to seek closer ties with Russia and greater cooperation fighting against their common enemy in Syria, Islamic State. Tillerson is a former oil executive who was awarded Russia’s Order of Friendship by Putin.

Last week’s poison gas attack and the U.S. retaliation upended what many in Moscow hoped would be a transformation in relations between the two countries, which reached a post-Cold War low under Trump’s predecessor Barack Obama.

The United States and its European allies imposed financial sanctions on Russia in 2014 after Putin seized territory from neighboring Ukraine.

Washington is leading a campaign of air strikes in Syria against Islamic State fighters and has backed rebels fighting against Assad during a six-year civil war, but until last week the United States had avoided directly targeting the Syrian government.

Russia, meanwhile, intervened in the civil war on Assad’s side in 2015 and has troops on the ground, which it says are advising government forces. Both Washington and Moscow say their main enemy is Islamic State, although they back opposing sides in the wider civil war which has killed more than 400,000 people and spawned the world’s worst refugee crisis.

In an interview with the Fox Business Network, Trump said he was not planning to order U.S. forces into Syria, but that he had to respond to the images of dead children poisoned in the gas attack.

“We’re not going into Syria,” he said in excerpts of the interview on the station’s website. “But when I see people using horrible, horrible chemical weapons … and see these beautiful kids that are dead in their father’s arms, or you see kids gasping for life … when you see that, I immediately called (Defense Secretary) General Mattis.”

Tillerson traveled to Moscow with a joint message from Western powers that Russia should withdraw its support for Assad after a meeting of the Group of Seven industrialized economies also attended by Middle East allies.

Some of Washington’s allies had been wary of Trump, who spoke during his election campaign of seeking closer ties with Moscow and questioned the value of U.S. support for its traditional friends. Tillerson’s mission sees the Trump administration taking on the traditional U.S. role as spokesman for a unified Western position.

Trump’s relations with Russia are also a domestic issue, as U.S. intelligence agencies have accused Moscow of using computer hacking to intervene in the election to help Trump win. The FBI is investigating whether any Trump campaign figures colluded with Moscow, which the White House denies.

(writing by Peter Graff; Editing by Sonya Hepintall)

Trump’s pick Gorsuch sworn in, restoring top court’s conservative tilt

Chief Justice of the United States John Roberts (C) looks on as Judge Neil Gorsuch (R) signs the constitutional oath during swearing-in ceremony at the Supreme Court in Washington, U.S.

By Lawrence Hurley

WASHINGTON (Reuters) – Neil Gorsuch, picked by President Donald Trump and confirmed by the Republican-led Senate, was sworn in as a U.S. Supreme Court justice at the White House on Monday and was poised to have an instant impact on a court once again dominated by conservatives.

Trump earned the biggest political victory of his presidency and fulfilled a major campaign promise when the Senate voted on Friday to confirm the conservative federal appeals court judge from Colorado to the lifetime job despite vehement Democratic opposition. With Gorsuch aboard, the court once again has five conservative justices and four liberals.

Gorsuch took his judicial oath in a White House Rose Garden ceremony with Trump watching on, filling a vacancy that lingered for nearly 14 months after the death of conservative Justice Antonin Scalia in February 2016. The oath was administered by Justice Anthony Kennedy, for whom Gorsuch worked as a clerk as a young lawyer. Gorsuch will become the first justice to serve alongside a former boss.

All the other members of the court were at the ceremony, including liberal Justice Ruth Bader Ginsburg, who called Trump “a faker” last year during the presidential campaign but later said she regretted the remark. Trump at the time called on her to resign and said her “mind is shot.”

Scalia’s widow, Maureen, also attended the ceremony.

Gorsuch earlier in the day took his separate constitutional oath, administered by Chief Justice John Roberts, in a private ceremony at the Supreme Court with the other justices.

Trump made Gorsuch, 49, the youngest Supreme Court nominee since Republican President George H.W. Bush in 1991 selected Clarence Thomas, who was then 43. Gorsuch could be expected to serve for decades, and Trump could make further appointments to the high court to make it even more solidly conservative, with three of the eight justices 78 or older: Ginsburg, 84; fellow liberal Stephen Breyer, 78; and conservative swing vote Kennedy, 80.

Gorsuch will take part in the court’s next round of oral arguments, starting on April 17. They include a closely watched religious rights case on April 19 in which a Missouri church is objecting to being frozen out of state funds for a playground project due to a state ban on providing public money to religious organizations.

He is expected to take part in oral arguments in 13 cases during the court’s current term, which ends in June.

Gorsuch can be expected to have have an immediate impact of the court. He takes part on Thursday in the justices’ private conference to decide which cases to take up. Appeals are pending before the justices on expanding gun rights to include carrying concealed firearms in public, state voting restrictions that critics say are aimed at reducing minority turnout, and letting Christian business owners object on religious grounds to providing gay couples certain services.

Gorsuch could also play a vital role in some cases on which his new colleagues may have been split 4-4 along ideological lines and therefore did not yet decide. Those cases potentially could be reargued in the court’s next term, which starts in October.

Gorsuch’s wife, Louise, and his two daughters were also present at the private constitutional oath ceremony at the court, said Supreme Court spokeswoman Kathy Arberg. Louise Gorsuch held a family Bible as her husband took the oath, Arberg said.

The Senate, which last year refused to consider Democratic former President Barack Obama’s nomination of Merrick Garland, voted 54-45 to confirm Gorsuch.

(Reporting by Lawrence Hurley; Editing by Will Dunham)

Oil prices jump 2 percent after U.S. launches missile strike in Syria

Crude oil storage tanks are seen from above at the Cushing oil hub, appearing to run out of space to contain a historic supply glut that hammered prices, in Cushing, Oklahoma,

By Henning Gloystein

SINGAPORE (Reuters) – Oil prices surged more than 2 percent on Friday after the United States launched dozens of cruise missiles at an airbase in Syria.

U.S President Donald Trump said he had ordered missile strikes against a Syrian airfield from which a deadly chemical weapons attack was launched earlier this week, declaring he acted in America’s “national security interest” against Syrian President Bashar al-Assad.

After tepid trading before the news, Brent crude futures, the international benchmark for oil, jumped to $56.08 per barrel before easing to be up 1.6 percent at $55.75 per barrel at 0310 GMT.

U.S. West Texas Intermediate (WTI) crude futures also climbed by over 2 percent, to a high of $52.94 a barrel before receding to be up 1.8 percent at $52.61.

Both benchmarks hit their highest levels since early March.

The strikes rattled global markets. While oil prices surged as traders priced in what has in the past been called a Middle East risk premium, and safe-haven products like gold jumped, stock markets and the U.S. dollar slumped.

“The U.S cruise missile strikes have seen crude oil jump over two percent in a straight line,” said Jeffrey Halley, senior market analyst at futures brokerage OANDA in Singapore.

Halley said the strikes had potentially big implications for oil markets.

“What will be the response of Iran and Russia, two of the world’s largest oil producers and staunch allies of the Assad regime?… We will have to wait for these answers as the day moves on,” he said.

U.S. officials said the military had fired 59 cruise missiles against a Syrian airbase controlled by Assad’s forces, in response to a poison gas attack on Tuesday in a rebel-held area.

Officials said the United States had informed Russia ahead of the strikes. The strikes did not target sections of the Syrian base where Russian forces were believed to be present.

(Reporting by Henning Gloystein; Editing by Kenneth Maxwell and Richard Pullin)

Trump’s son-in-law, Kushner, flies into Iraq with top U.S. general

U.S. President Donald Trump's son-in-law and senior advisor Jared Kushner (L) speaks with Marine Corps Gen. Joseph F. Dunford Jr., chairman of the Joint Chiefs of Staff, before departing for Iraq from Ramstein Air Base, Germany April 3, 2017. DoD/Navy Petty Officer 2nd Class Dominique A. Pineiro/Handout via REUTERS

By Phil Stewart

BAGHDAD (Reuters) – U.S. President Donald Trump’s son-in-law, Jared Kushner, flew into Iraq on Monday with the top U.S. military officer to get a first-hand assessment of the battle against Islamic State from U.S. commanders on the ground and to meet Iraqi officials.

For Kushner, who has not been to Iraq before, the trip comes at a critical time as Trump examines ways to accelerate a U.S.-led coalition campaign that U.S. and Iraqi officials say has so far been largely successful in uprooting Islamic State militants in Iraq and Syria.

The visit appears to demonstrate the far-reaching portfolio of Kushner, 36, who is part of Trump’s innermost circle and who has been given a wide range of domestic and foreign policy responsibilities, including working on a Middle East peace deal.

Marine General Joseph Dunford, the chairman of the U.S. military’s Joint Chiefs of Staff, said he invited Kushner and Tom Bossert, White House homeland security adviser, to accompany him so they could hear “first-hand and unfiltered” from military advisers about the situation on the ground and interact with U.S. forces.

“I said, ‘Hey, next time I go to Iraq, if you’re interested, come and it’d be good,” Dunford said, adding he extended the invitation weeks ago.

That kind of ground-level awareness of the war helps inform strategic decisions, Dunford said, adding it was the same reason he regularly leaves Washington to visit Iraq.

“The more appreciation you could have for what’s actually happening on the ground, the more informed you are when you start talking about the strategic issues,” Dunford said.

Kushner, who is married to Trump’s daughter Ivanka Trump, did not speak with reporters during the flight to Iraq.

Dunford’s spokesman, Navy Captain Greg Hicks, said Kushner was traveling on behalf of Trump to express the president’s support and commitment to Iraq’s government and U.S. personnel helping combat Islamic State.

Trump, who campaigned on defeating Islamic State, has yet to announce any dramatic shift in war strategy.

U.S. ROLE AFTER MOSUL FIGHT

The trip to Iraq comes as Iraqi security forces engage in fierce, house-to-house fighting to retake Mosul, Islamic State’s last major stronghold in Iraq and the city where leader Abu Bakr al-Baghdadi declared a caliphate nearly three years ago.

Nearly 290,000 people have fled the city to escape the fighting, according to the United Nations.

Although the loss of Mosul would deal a major defeat to Islamic State, U.S. and Iraqi officials are preparing for smaller battles even after the city is recaptured and expect the group to go underground to fight as a traditional insurgency.

What happens to the U.S. military role in Iraq after Mosul is recaptured remain unclear.

Influential Shi’ite cleric Moqtada al-Sadr has previously called on Iraq’s government to order the withdrawal of U.S. and allied forces after the battle of Mosul is over.

Dunford said Iraqi Prime Minister Haider al-Abadi understood the need for continued U.S. military support.

“It’s not our judgment that the Iraqis will be self sustaining and self sufficient in the wake of Mosul. More importantly, it’s not Prime Minister Abadi’s assessment,” Dunford said.

Across the border in Syria, a U.S.-backed campaign to isolate Islamic State’s de facto capital of Raqqa is advancing ahead of an eventual assault on the city.

U.S.-backed Syrian forces repelled a major counter-attack by Islamic State militants holding out at the country’s largest dam and in the nearby town of Tabqa, the group and activists said on Sunday. The dam is a strategic target in the military campaign, located about 40 km (25 miles) to the east of Raqqa.

(Reporting by Phil Stewart; Editing by Giles Elgood)

Trump signs revised travel ban order, leaves Iraq off

U.S. President Donald Trump delivers his first address to a joint session of Congress from the floor of the House of Representatives iin Washington, U.S., February 28, 2017. REUTERS/Jim Lo Scalzo/Pool

By Steve Holland and Julia Edwards Ainsley

WASHINGTON (Reuters) – President Donald Trump signed a revised executive order on Monday banning citizens from six Muslim-majority nations from traveling to the United States but removing Iraq from the list, after his controversial first attempt was blocked in the courts.

The new order, which the White House said Trump had signed, keeps a 90-day ban on travel to the United States by citizens of Iran, Libya, Syria, Somalia, Sudan and Yemen.

White House spokeswoman Sarah Huckabee Sanders said the new order would take effect on March 16. The delay aims to limit the disruption created by the original Jan. 27 order before a U.S. judge suspended it on Feb. 3.

Trump, who first proposed a temporary travel ban on Muslims during his presidential campaign last year, had said his original executive order was a national security measure meant to head off attacks by Islamist militants.

It came only a week after Trump was inaugurated, and it sparked chaos and protests at airports, as well as a wave of criticism from targeted countries, Western allies and some of America’s leading corporations.

“It is the president’s solemn duty to protect the American people,” Secretary of State Rex Tillerson told reporters after Trump signed the new order. “As threats to our security continue to evolve and change, common sense dictates that we continually re-evaluate and reassess the systems we rely upon to protect our country.”

The leader of the minority Democrats in the Senate, Chuck Schumer, said he expected the revised order to have the same uphill battle in the courts as the original version.

“A watered down ban is still a ban,” he said in a statement. “Despite the administration’s changes, this dangerous executive order makes us less safe, not more, it is mean-spirited, and un-American. It must be repealed.”

Trump’s original ban resulted in more than two dozen lawsuits in U.S. courts. Attorney General Bob Ferguson of Washington state, which succeeded in having the previous ban suspended, said he was “carefully reviewing” the new order.

IRAQ’S NEW VETTING

Iraq was taken off the banned list because the Iraqi government has imposed new vetting procedures, such as heightened visa screening and data sharing, and because of its work with the United States in countering Islamic State militants, a senior White House official said.

Defense Secretary Jim Mattis, who along with several other senior Cabinet members had lobbied for Iraq’s removal, was consulted on the new order and the updated version “does reflect his inputs,” Pentagon spokesman Captain Jeff Davis said.

Thousands of Iraqis have fought alongside U.S. troops for years or worked as translators since the U.S.-led invasion in 2003. Many have resettled in the United States after being threatened for working with U.S. troops.

The White House official said the new executive order also ensures that tens of thousands of legal permanent residents in the United States – or green card holders – from the listed countries would not be affected by the travel ban.

The original order barred travelers from the seven nations from entering for 90 days and all refugees for 120 days. Refugees from Syria were to be banned indefinitely but under the new order they are not given separate treatment.

Trump’s first order was seen by opponents as discrimination against Muslims. The White House official said the new order had nothing to do with religion and that the administration would reset the clock on the 90-day travel ban.

But House of Representatives Democratic leader Nancy Pelosi said “the Trump administration’s repackaging has done nothing to change the immoral, unconstitutional and dangerous goals of their Muslim and refugee ban.”

“NO ALLEGED CHAOS”

Trump publicly criticized judges who ruled against him and vowed to fight the case in the Supreme Court, but then decided to draw up a new order with changes aimed at making it easier to defend in the courts.

Refugees who are “in transit” and already have been approved would be able to travel to the United States.

“There’s going to be a very orderly process,” a senior official from the Department of Homeland Security said. “You should not see any chaos so to speak, or alleged chaos at airports. There aren’t going to be folks stopped tonight from coming into the country because of this executive order.”

The FBI is investigating 300 people admitted into the United States as refugees as part of 1,000 counter-terrorism probes involving Islamic State or individuals inspired by the militant group, congressional sources told Reuters on Monday, citing senior administration officials.

An FBI spokeswoman said the agency was consulting its data to confirm the information.

The White House official said U.S. government agencies would determine whether Syria or other nations had made sufficient security improvements to be taken back into the refugee admissions program.

The new order spells out detailed categories of people eligible to enter the United States, such as for business or medical travel, or people with family connections or who support the United States.

“There are a lot of explicit carve-outs for waivers and given on a case-by-case basis,” the official said.

(Additional reporting by Patricia Zengerle, Doina Chiacu, Mica Rosenberg, Tim Ahmann and Idrees Ali; Editing by Bill Trott and Nick Tattersall)

World stock markets and U.S. dollar retreat before key Trump speech

Men walk past an electronic board showing Japan's Nikkei average outside a brokerage in Tokyo, Japan,

By Sinead Carew

NEW YORK (Reuters) – World stock markets and the U.S. dollar fell on Monday while U.S. Treasury yields rose amid investor caution ahead of a key speech by U.S. President Donald Trump.

The dollar fell ahead of Trump’s State of the Union address, during which he is expected to unveil details on pro-growth policies including infrastructure spending.

“There is setting up for what people expect might be at least a focus on things like fiscal stimulus and infrastructure spending of some kind, that might actually boost risk and cause yields to rise,” said Aaron Kohli, an interest rate strategist at BMO Capital Markets in New York.

U.S. 10-year Treasury notes were last down 7/32 in price to yield 2.342 percent, from a yield of 2.317 percent late Friday. Two-year notes US2YT=RR were last down 1/32 in price to yield 1.169 percent, from a yield of 1.145 percent late Friday.

The dollar was down 0.3 percent against a basket of major currencies after Trump said Monday that tax reform details would not be revealed until after the administration’s proposal on health care.

Investors had hoped for “more clarity around tax reform sooner rather than later” said Bipan Rai, senior macroeconomic strategist at CIBC Capital Markets in Toronto.

At 11:25 a.m. ET, the Dow Jones Industrial Average was down 5.62 points, or 0.03 percent, at 20,816.14, the S&P 500 shed 0.2 points, or 0.01 percent, to 2,367.14, while the Nasdaq Composite added 1.63 points, or 0.03 percent, to 5,846.93.

Europe’s benchmark index of leading 300 shares fell 0.1 percent.

MSCI’s benchmark world stock index slipped 0.03 percent after it hit a record high Thursday.

A proposed 29 billion euro merger between the London Stock Exchange and Deutsche Boerse to create Europe’s biggest stock exchange looked dead in the water due to an inability to meet European antitrust demands. Shares in both companies fell. The London Stock Exchange fell as much as 3 percent while Deutsche Boerse fell as much as 4 percent.

“The regulatory hurdles were always a risk, and with Brexit, there are additional hurdles to clear that seem close to insurmountable now,” said Neil Wilson, senior market analyst at ETX Capital.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.24 percent, while Japan’s Nikkei fell 0.9 percent for its lowest close since Feb. 9 on concerns that a stronger yen would crimp corporate earnings.

The Dow Jones Industrial Average scaled its 11th consecutive record high on Friday, the longest such run since 1987, leading some to suggest it could be prone for a correction.

In Europe, the focus was on France, where the latest polls showed that centrist Emmanuel Macron would score a more convincing victory over far-right and anti-euro Marine Le Pen in the presidential election’s runoff vote.

France’s 10-year bond yield fell to a one-month low of 0.88 percent.

In commodities, Brent crude was up 0.3 percent at $56.14 per barrel while U.S. West Texas Intermediate was up 0.4 percent at $54.20 per barrel as a global supply glut appeared to ease.

(Additional Reporting by Jamie McGeever and Dhara Ranasinghe; Editing by Bernadette Baum)

China say North Korea’s nuclear plan is a problem between U.S. and North Korea

North Korean leader Kim Jong Un watches a performance given with splendor at the People's Theatre on Wednesday to mark the 70th anniversary of the founding of the State Merited Chorus in this photo released by North Korea's Korean Central News Agency (KCNA) in Pyongyang on February 23, 2017. KCNA/via REUTERS

BEIJING (Reuters) – China on Friday dismissed renewed pressure from U.S. President Donald Trump over its role in North Korea, saying the crux of the matter was a dispute between Washington and Pyongyang.

Trump told Reuters in an interview on Thursday that China could solve the national security challenge posed by North Korea “very easily if they want to”, turning up pressure on Beijing to exert more influence to rein in Pyongyang’s increasingly bellicose actions.

China has made clear that it opposes North Korea’s nuclear and missile programs and has repeatedly called for denuclearization of the Korean peninsula and a return to negotiations between Pyongyang and world powers.

It has also insisted it is dedicated to enforcing U.N. sanctions against North Korea.

“We have said many times already that the crux of the North Korean nuclear issue is the problem between the United States and North Korea,” Chinese Foreign Ministry spokesman Geng Shuang told a daily news briefing, responding to Trump’s remarks.

“We hope the relevant parties can shoulder their responsibilities, play the role the should, and together with China play a constructive role for peace and stability on the Korean peninsula and for its denuclearization,” he added.

The official Xinhua news agency said China’s influence on North Korea had been exaggerated.

“The Trump White House needs to make the first move and talk to Pyongyang. The United States stands to lose nothing for trying this,” it said in an English-language commentary.

China announced on Saturday last week it was banning imports of coal from North Korea, after it tested an intermediate-range ballistic missile.

North Korean state media issued a rare reproach of China on Thursday saying its main diplomatic backer was “dancing to the tune” of the United States for halting its coal imports because of its nuclear and missile programs.

The North’s state-run KCNA news agency did not refer directly to China by name but in an unmistakable censure it accused a “neighboring country” of going along with North Korea’s enemies to “bring down its social system”.

Asked about the report, Geng said the U.N. sanctions were a clear signal of opposition from the international community about North Korea’s nuclear and missile programs and that China would enforce them.

However, he also described China and North Korea as being friendly neighbors.

“We are willing to work with North Korea to promote the stable and healthy development of relations,” Geng said, adding North Korea was well aware of China’s position on its nuclear program.

(Reporting by Ben Blanchard; Editing by Robert Birsel)

Kremlin says Putin-Trump meeting possible before July

A billboard showing a pictures of US president-elect Donald Trump and Russian President Vladimir Putin is seen through pedestrians in Danilovgrad, Montenegro,

MOSCOW (Reuters) – The Kremlin said on Monday there was talk of a possible meeting between President Vladimir Putin and U.S. President Donald Trump taking place before a G20 summit in July, but there was nothing specific to report so far.

The two men have never met, but both have said they want to try to mend battered U.S.-Russia ties, which fell to their lowest level since the Cold War after Moscow’s 2014 annexation of Ukraine’s Crimea.

The new U.S. administration is under pressure over Russia however because Michael Flynn, Trump’s national security adviser, is struggling to get past a controversy over a call he had with the Russian ambassador to the United States Sergei Kislyak before Trump took office.

Top White House officials have been reviewing over the weekend Flynn’s contacts and whether he discussed the possibility of lifting U.S. sanctions on Russia once Trump took office, which could potentially be in violation of a law banning private citizens from engaging in foreign policy.

When asked about it on Monday, Kremlin spokesman Dmitry Peskov told a conference call with reporters that Flynn and Kislyak had not discussed lifting sanctions on Moscow.

“Obviously every ambassador informs the center (Moscow) about all the contacts he has so the information gets to us, but we are not willing to comment on internal discussions being held in Washington,” Peskov said.

Asked if there had been talks between any Russian and U.S. representatives on easing sanctions, Peskov said: “We have already said there have not been any (such talks)”.

(Reporting by Maria Tsvetkova; Writing by Denis Pinchuk; Editing by Andrew Osborn)

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