Israel sees Syrian army growing beyond pre-civil war size

An Israeli soldier rides an armoured vehicle during an army drill after the visit of Israeli Defence Minister Avigdor Lieberman in the Israeli-occupied Golan Heights, Israel August 7, 2018. REUTERS/Amir Cohe

MEROM GOLAN, Golan Heights (Reuters) – Israel’s defense minister said on Tuesday that Syria was building up its ground forces beyond their pre-civil war size, an assessment that suggests President Bashar al-Assad’s army has recovered from a critical manpower shortage earlier in the war.

The Syrian military was hit by major defections in the first years of the conflict, which began in 2011, and by 2015 Assad acknowledged that “a shortfall in human capacity” meant the army could not fight everywhere for fear of losing vital ground.

Russia intervened militarily soon afterward to turn the tide of war and has been helping arm and train the Syrian army. Iran has also backed Assad, sending military advisers and allied Shi’ite militia from across the region to support his troops.

Pro-government forces in the Syrian conflict have also included local militias raised by the Lebanese Hezbollah with Iranian support, including the National Defence Forces.

“Across the way we see the Syrian military, which is not satisfied with just taking over all of Syrian territory but is expressly building a broad-based, new ground army that will return to its previous proportions and beyond,” Defence Minister Avigdor Lieberman told reporters during a tour of the Golan Heights.

Israel closely monitors the military capacity of Syria, an adversary against which it has fought three wars. It captured part of the Golan Heights from Syria in 1967 and has occupied it since.

With Assad now regaining control, Israel has voiced worry that he might defy a 44-year-old Golan demilitarisation deal that had stabilized their standoff.

An Israeli soldier is dressed-up playing the role of the enemy takes part in a army drill after the visit of Israeli Defence Minister Avigdor Lieberman in the Israeli-occupied Golan Heights, Israel August 7, 2018. REUTERS/Amir Cohen

An Israeli soldier is dressed-up playing the role of the enemy takes part in an army drill after the visit of Israeli Defence Minister Avigdor Lieberman in the Israeli-occupied Golan Heights, Israel August 7, 2018. REUTERS/Amir Cohen

In a Twitter statement, Lieberman said that Israel’s tanks, deployed on parts of the strategic plateau that it captured from Syria in a 1967 war, were “our crushing strike force and will know how to defend the border in any eventuality”.

In a May interview, Assad also said Syria had improved its air defenses with Russian help.

The Golan saw large tank battles in 1967 and the subsequent Israel-Syria war in 1973. Israel annexed its side of the Golan in 1981, in a move not recognized internationally.

In a July 19 briefing, the chief of Israel’s armored corps told reporters that while the number of Israeli tanks fielded was unlikely to grow, a new, improved tank model would be introduced in 2021.

(Writing by Dan Williams and Angus McDowall, Editing by William Maclean)

U.S., Turkey agree to try to resolve disputes after relations dive

U.S. Secretary of State Mike Pompeo arrives at Royal Malaysian Air Force base in Subang, Malaysia August 2, 2018. REUTERS/Lai Seng Sin

By David Brunnstrom

SINGAPORE (Reuters) – U.S. Secretary of State Mike Pompeo and Turkish Foreign Minister Mevlut Cavusoglu agreed on Friday to try to resolve a series of disputes, after relations between the NATO allies sank to their lowest point in decades.

Their meeting in Singapore followed Washington’s imposition on Wednesday of sanctions on two Turkish ministers over the case of Andrew Brunson, a U.S. pastor on trial in Turkey for backing terrorism.

State Department spokeswoman Heather Nauert described their conversation on the sidelines of a regional ministers’ meeting as constructive. “They agreed to continue to try to resolve the issues between our two countries,” she said.

Cavusoglu said he had repeated Turkey’s message that “the threatening language and sanctions does not achieve anything”, but added that he and Pompeo would take steps to resolve their differences when they returned home.

“Of course you can’t expect all issues to be resolved in a single meeting,” he told Turkish television channels. “But we have agreed to work together, closely cooperate and keep the dialogue in the coming period,” he added, also describing the talks as very constructive.

Washington imposed sanctions on Justice Minister Abdulhamit Gul and Interior Minister Suleyman Soylu, accusing them of playing leading roles in organizations responsible for the arrest and detention of Brunson, an evangelical Christian who has lived in Turkey for more than two decades. The move sent the Turkish lira to record low.

Within hours Turkey vowed to retaliate ‘without delay’ but since then the tone of comments from Ankara has moderated and so far it has taken no such step. Finance minister Berat Albayrak, who is President Tayyip Erdogan’s son-in-law, also said relations with the United States would never break down, despite the temporary escalation.

Pompeo told reporters the United States had put Turkey on notice “that the clock had run and it was time for Pastor Brunson to be returned”.

“I hope they’ll see this for what it is, a demonstration that we’re very serious,” he said of the sanctions. “We consider this one of the many issues that we have with the Turks.”

“Brunson needs to come home. As do all the Americans being held by the Turkish government. Pretty straightforward. They’ve been holding these folks for a long time. These are innocent people,” he said. “We are going to work to see if we can find a way forward; I am hopeful that we can.”

The United States has also been seeking the release of three locally employed embassy staff detained in Turkey.

ATTEMPTED COUP

Brunson is charged with supporting a group Ankara blames for orchestrating an attempted coup in 2016. He denies the charges but faces up to 35 years in jail.

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

Turkey has been trying to have Gulen extradited from the United States for two years.

Finance Minister Albayrak said on Thursday the sanctions would have a limited impact on the Turkish economy, although investors’ deepening concern over ties with the United States, also a major trading partner, sent the lira to record lows.

On Friday, the currency fell to 5.1140 against the dollar. The sell-off also hammered Turkish stocks and debt risk profile.

Brunson was in a Turkish prison for 21 months until he was transferred to house arrest last week. On Tuesday, a court rejected his appeal to be released altogether during his trial.

Washington and Ankara are also at odds over the Syrian war, Turkey’s plan to buy missile defenses from Russia and the U.S. conviction of a Turkish state bank executive on Iran sanctions-busting charges this year.

Brunson’s case has resonated with President Donald Trump and particularly with Vice President Mike Pence, who has close ties to evangelical Christians. Pence has been pressing behind the scenes for action, aides said.

(Additional reporting by Humeyra Pamuk in Istanbul; Editing by Nick Macfie, Paul Tait and David Stamp)

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)

Facebook says it uncovers new meddling before 2018 U.S. elections

FILE PHOTO: Facebook logo is seen at a start-up companies gathering at Paris' Station F in Paris, France on January 17, 2017. REUTERS/Philippe Wojazer/File Photo

By Joseph Menn and Paresh Dave

(Reuters) – Facebook Inc has identified a new coordinated political influence campaign to mislead users and organize rallies ahead of November’s U.S. congressional elections, taking down dozens of fake accounts on its site, the company said on Tuesday.

A Russian propaganda arm tried to tamper in the 2016 U.S. election by posting and buying ads on Facebook, according to the company and U.S. intelligence agencies. Moscow has denied involvement.

Facebook on Tuesday said they had removed 32 pages and accounts from Facebook and Instagram, part of an effort to combat foreign meddling in U.S. elections, attempts that lawmakers have called dangerous for democracy.

The company said it was still in the early stages of its investigation and did not yet know who may be behind the influence campaign for 2018 elections that will determine whether or not the Republican Party keeps control of Congress.

Chief Operating Officer Sheryl Sandberg said on a call with reporters that the attempts to manipulate public opinion would likely become more sophisticated to evade Facebook’s scrutiny, calling it an “arms race.”

“This kind of behavior is not allowed on Facebook because we don’t want people or organizations creating networks of accounts to mislead others about who they are, or what they’re doing,” the company said in a blogpost.

More than 290,000 accounts followed at least one of the pages and that about $11,000 had been spent on about 150 ads, Facebook said. The pages had created about 30 events since May 2017.

Facebook for months has been on the defensive about influence activity on its site and concerns over user privacy tied to longstanding agreements with developers that allowed them access to private user data.

DIVISIVE ISSUES

Facebook identified influence activity around at least two issues, including a counter-protest to a “Unite the Right II” rally set next week in Washington. The other was the #AbolishICE social media campaign aimed at the U.S. Immigration and Customs Enforcement agency.

In the blog post, Facebook said it was revealing the influence effort now in part because of the rally. A previous event last year in Charlottesville, South Carolina, led to violence by white supremacists.

Facebook said it would tell users who had expressed interest in the counter-protest what action it had taken and why.

Facebook officials on a call with reporters said that one known account from Russia’s Internet Research Agency was a co-administrator of one of the fake pages for seven minutes, but the company did not believe that was enough evidence to attribute the campaign to the Russian government.

The company previously had said 126 million Americans may have seen Russian-backed political content on Facebook over a two-year period, and that 16 million may have been exposed to Russian information on Instagram.

Adam Schiff, the top Democrat on the U.S. House of Representatives Intelligence Committee, in a statement urged Facebook to move against foreign groups trying to sway American voters and to warn legitimate users that such activity, as seen in 2016, is recurring this year.

“Today’s announcement from Facebook demonstrates what we’ve long feared: that malicious foreign actors bearing the hallmarks of previously-identified Russian influence campaigns continue to abuse and weaponize social media platforms to influence the U.S. electorate,” Schiff said.

Senate Intelligence Committee Chairman Richard Burr, a Republican, said in a statement there would be a hearing on Wednesday about the online threat to U.S. election security.

Burr said the goal of influence operations “is to sow discord, distrust, and division in an attempt to undermine public faith in our institutions and our political system. The Russians want a weak America.”

Washington imposed punitive sanctions on Russia following U.S. intelligence agency conclusions that Moscow interfered to undermine the 2016 U.S. elections, one of the reasons U.S.-Russian relations are at a post-Cold War low. Both U.S. President Donald Trump and Russian President Vladimir Putin have said, however, that they want to improve ties between the two nuclear powers.

Facebook disclosed in September that Russians under fake names had used the social network to try to influence U.S. voters in the months before and after the 2016 election, writing about divisive issues, setting up events and buying ads.

U.S. intelligence agencies said Russian state operators ran the campaign combining fake social media posts and hacking into Democratic Party networks, eventually becoming an effort to help Republican candidate Trump, who scored a surprise victory over Democrat Hillary Clinton.

Over the past several months, the company has taken steps meant to reassure U.S. and European lawmakers that further regulation is unnecessary. Chief Executive Officer Mark Zuckerberg says the company has 20,000 people working to police and protect the site.

Costs associated with that effort are part of the reason Facebook said last week that it expects its profit margins to decline, a warning that sent shares tumbling about 25 percent, the biggest one-day loss of market cap in U.S. stock market history. Shares of Facebook were up about 1.5 percent in Tuesday’s midafternoon trading, part of a broader tech rebound.

(Joseph Menn and Paresh Dave in San Francisco; additional reporting by Munsif Vengattil in Bengaluru, Kevin Drawbaugh in Washington; writing by Peter Henderson; Editing by Saumyadeb Chakrabarty and Grant McCool)

Pentagon creating software ‘do not buy’ list to keep out Russia, China

FILE PHOTO: An aerial view of the Pentagon building in Washington, June 15, 2005. REUTERS/Jason Reed

By Mike Stone

WASHINGTON (Reuters) – The Pentagon is working on a software “do not buy” list to block vendors who use software code originating from Russia and China, a top Defense Department acquisitions official said on Friday.

Ellen Lord, the undersecretary of defense for acquisition and sustainment, told reporters the Pentagon had been working for six months on a “do not buy” list of software vendors. The list is meant to help the Department of Defense’s acquisitions staff and industry partners avoid buying problematic code for the Pentagon and suppliers.

“What we are doing is making sure that we do not buy software that has Russian or Chinese provenance, for instance, and quite often that’s difficult to tell at first glance because of holding companies,” she told reporters gathered in a conference room near her Pentagon office.

The Pentagon has worked closely with the intelligence community, she said, adding “we have identified certain companies that do not operate in a way consistent with what we have for defense standards.”

Lord did not provide any further details on the list.

Lord’s comments were made ahead of the likely passage of the Pentagon’s spending bill by Congress as early as next week. The bill contains provisions that would force technology companies to disclose if they allowed countries like China and Russia to examine the inner workings of software sold to the U.S. military.

The legislation was drafted after a Reuters investigation found that software makers allowed a Russian defense agency to hunt for vulnerabilities in software used by some agencies of the U.S. government, including the Pentagon and intelligence agencies.

Security experts said allowing Russian authorities to look into the internal workings of software, known as source code, could help adversaries like Moscow or Beijing to discover vulnerabilities they could exploit to more easily attack U.S. government systems.

Lord added an upcoming report on the U.S. military supply chain will show that the Pentagon depends on foreign suppliers, including Chinese firms, for components in some military equipment.

She said the Pentagon also wants to strengthen its suppliers’ ability to withstand cyber attacks and will test their cybersecurity defenses by attempting to hack them.

The Pentagon disclosed the measures as the federal government looks to bolster cyber defenses following attacks on the United States that the government has blamed on Russia, North Korea, Iran, and China.

The Department of Homeland Security this week disclosed details about a string of cyber attacks that officials said put hackers working on behalf of the Russian government in a position where they could manipulate some industrial systems used to control infrastructure, including at least one power generator.

(Reporting by Mike Stone; Editing by Chris Sanders, Bernadette Baum and Jonathan Oatis)

Turkish court rules that U.S. pastor move from jail to house arrest

FILE PHOTO: A prison vehicle, believed to be carrying jailed U.S. pastor Andrew Brunson, leaves from the Aliaga Prison and Courthouse complex in Izmir, Turkey July 18, 2018. REUTERS/Kemal Aslan

By Ezgi Erkoyun and Daren Butler

ISTANBUL (Reuters) – A Turkish court ruled on Wednesday that an American pastor be transferred from jail to house arrest, his lawyer said, after nearly two years in detention on terrorism charges in a case which has strained ties between Ankara and Washington.

Andrew Brunson, a Christian pastor from North Carolina who has worked in Turkey for more than 20 years, was detained in October 2016 and indicted on charges of helping the group which Ankara says was behind a failed military coup earlier that year.

Brunson’s lawyer Ismail Cem Halavurt confirmed Turkish media reports that the court had ruled for him to be moved to house arrest. He will have to wear an electronic ankle bracelet and is banned from leaving the country, Halavurt said.

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

It said Brunson’s defense had been completed and evidence for the case was almost all collected.

Brunson’s detention deepened a rift between NATO allies Washington and Ankara – also at odds over the Syrian war and Turkey’s plan to buy missile defenses from Russia – and financial markets took his transfer order as a positive sign.

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

Brunson was indicted on charges 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.

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

President Donald 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 defense system.

(Reporting by Daren Butler and Tuvan Gumrukcu; Writing by Dominic Evans; editing by David Stamp)

Trump’s U.N. envoy: ‘Every day I feel like I put body armor on’

FILE PHOTO: U.S. Ambassador to the United Nations Nikki Haley addresses a United Nations General Assembly meeting ahead of a vote on a draft resolution that would deplore the use of excessive force by Israeli troops against Palestinian civilians at U.N. headquarters in New York, U.S., June 13, 2018. REUTERS/Mike Segar/File Photo

By Michelle Nichols

UNITED NATIONS (Reuters) – U.S. President Donald Trump came into office disparaging the United Nations and appointed politician Nikki Haley as the ambassador to carry out his disruptive agenda, but she has also shown Trump how the world body serves his purposes, specifically on North Korea.

The U.N. Security Council’s unanimous adoption of tougher sanctions three times last year that put pressure on Pyongyang to enter talks on scrapping its nuclear weapons program is the example Haley gave Trump in a phone call in June.

In an interview with Reuters, Haley recalled telling Trump: “We would not be in the situation we are with North Korea without the U.N. because that was the only way to get the international community on the same page.”

The United States and other countries believe the sanctions helped to bring North Korean leader Kim Jong Un around to meeting with Trump at a historic summit in Singapore in June.

Haley said Trump asked her what she thought of the United Nations, then 17 months into her post and after the United States became the first country to quit the U.N. Human Rights Council. She said she rattled off a litany of complaints.

“Unbelievably bureaucratic, it wastes a lot of money, it has some real biases against Israel, against us at times, it ignores a lot that’s going on that needs attention.”

Haley’s relay of their phone call illustrates how she guides the president who shuns the international forums and pacts the United States has helped build over decades. When Trump took office, he called the U.N. “just a club for people to get together, talk and have a good time.”

Some diplomats have said they see the former South Carolina governor as the stable face of U.S. foreign policy. When Trump leaves them confused, some say they look to her for interpretation.

“My job is to give clarity to everything the administration’s doing so that no one wonders where we are. I always wanted to make sure there was no gray. That it was black and white,” Haley said in the interview during a trip last month to India, the country from which her parents emigrated to the United States.

Richard Gowan, a U.N. expert at the European Council on Foreign Relations, described Haley’s job as selling the “administration’s anti-U.N. positions to the public.”

“That annoys other diplomats,” Gowan added.

RUSSIA TENSIONS

Haley has long taken a tougher public stance on Russia than her boss. In May she described Russian expansionism in Ukraine as “outrageous” and said the U.S. position “will not waver.”

Days later, however, Trump urged the Group of Seven countries to reinstate Russia, booted out for its 2014 annexation of Crimea from Ukraine.

Two weeks before Trump’s July 16 summit with Russian President Vladimir Putin in Helsinki, Haley told Reuters that “basically what the president is saying is it’s better for us to have communication than not.”

But then the summit turned into a nightmare for the White House when Trump, at the joint news conference, sided with Putin’s denials of Russian interference in the 2016 U.S. election rather than the conclusions of his own intelligence agencies.

A political outcry in Washington drowned out Trump’s message that the two nuclear powers should improve their relations, which are at a post-Cold War low.

Haley has not responded to Reuters’ requests for comment on the summit.

Differences over Russia also caused rare public friction for Haley within the administration when she announced in April that Washington was going to sanction Moscow over its support of Syria’s government. Trump then decided not to go ahead.

“The president has every right to change his mind, every right,” Haley said. Trump never raised the incident with her, she said.

Her U.N. counterparts describe her as charming and yet very tough. She sees herself as a fighter.

“I don’t see (my role) as pushing an ‘America First’ policy, I see it as defending America because every day I feel like I put body armor on. I just don’t know who I’m fighting that day,” Haley said.

Haley carved out a high-profile role within the Trump administration from the moment she was offered the job, telling the president she would only accept it if she was made a member of the Cabinet and the National Security Council.

“She’s got an eye and ear for where the politics of an issue are,” said a senior Western diplomat, who, like all those consulted at the United Nations, would only speak on condition of anonymity.

Those kinds of instincts have helped put the 46-year-old mother of two on the list of possible Republican presidential candidates. She dismisses the presidential chatter and said it has never come up with Trump, who intends to run again in 2020, “because he knows he doesn’t need to raise it.”

(Reporting by Michelle Nichols; Editing by Mary Milliken and Grant McCool)

Exclusive: North Korean fuel prices drop, suggesting U.N. sanctions being undermined

FILE PHOTO: North Koreans take a truck through a path amongst the fields, along the Yalu River, in Sakchu county, North Phyongan Province, North Korea, June 20, 2015. REUTERS/Jacky Chen/File Photo

By Hyonhee Shin

SEOUL (Reuters) – Gasoline prices in North Korea have nearly halved since late March, market data analyzed by Reuters shows, adding weight to suspicions that fuel is finding its way into the isolated economy from China and elsewhere despite U.N. sanctions.

The United Nations Security Council passed a resolution in December to ban nearly 90 percent of refined petroleum exports to North Korea over its nuclear and missile programs.

But as North Korean leader Kim Jong Un has moved to improve relations with the United States, China and South Korea, concerns have grown that the policy of “maximum pressure” through sanctions and isolation, is losing steam.

Kim and U.S. President Donald Trump agreed to work toward denuclearization at their summit in Singapore on June 12. Experts say any fuel aid in breach of sanctions could erode the diplomatic progress.

China said on Tuesday it strictly abided by U.N. sanctions, but indicated it may have resumed some fuel shipments to North Korea in the second quarter of this year.

Gasoline was sold by private dealers in the North Korean capital Pyongyang at about $1.24 per kg as of Tuesday, down 33 percent from $1.86 per kg on June 5 and 44 percent from this year’s peak of $2.22 per kg on March 27, according to Reuters analysis of data compiled by the Daily NK website. Diesel prices are at $0.85 per kg, down about 17 percent from March.

The website is run by North Korean defectors who collect prices via phone calls with multiple traders in the North after cross-checks to corroborate their information, offering a rare glimpse into the livelihoods of ordinary North Koreans.

In North Korea, gas is sold via informal channels such as street stalls and informal markets and by weight rather than by volume, as it is in South Korea, the United States and elsewhere, so North Koreans prefer to quote “per kg” rates, said Kang Mi-jin, who works at Daily NK. A 200 liter barrel of petrol holds around 180 kg.

U.S. prices stand at around 75 cents per liter or $2.839 per gallon.

“My assessment is that there was a greater inflow (of fuel supplies) from abroad, especially China since Kim’s trips there,” said Kang, who speaks regularly to sources inside North Korea.

Kim first visited China to meet President Xi Jinping in March, and they held two more summits, in May and June.

SANCTIONS

The latest fuel data comes amid mounting suspicion in Washington that North Korea may be using the recent diplomatic thaw to get a lifeline from China.

North Korea gets most of its fuel from China, its biggest trading partner, and some from Russia. Washington and Seoul officials have said the North imports some 4.5 million barrels of refined petroleum products and 2 million barrels of crude oil each year.

Last year’s U.N. resolution capped refined imports at 500,000 barrels a year.

Chinese Foreign Ministry spokesman Geng Shuang told reporters on Tuesday that China has consistently and strictly abided by U.N. Security Council resolutions on North Korea.

China had exported 7,432 tonnes of refined oil products to North Korea in the first six months of this year, out of a total of 60,000 tonnes a year stipulated by the U.N. sanctions.

China had reported its exports to the Security Council’s sanctions committee in a timely manner, Geng added.

“The relevant situation is totally open and transparent,” he said, without elaborating.

Since official Chinese customs data showed no gasoline and diesel exports to North Korea from January to March, Geng’s comments suggested China resumed some shipments some time after Kim and Xi’s first meeting.

Overall, China’s trade with North Korea in the first half of this year tumbled 56 percent on the back of the tightening sanctions, customs data showed on Monday.

Last week, U.S. Secretary of State Mike Pompeo accused North Korea of “illegally smuggling petroleum products into the country at a level that far exceeds quotas” established by the UN.

“Illegal ship-to-ship transfers are the most prominent means by which this is happening. Every UN member state must step up enforcement,” he wrote on Twitter, without naming any country.

China and Russia delayed a U.S. push last week for a UN Security Council panel to order a halt to refined petroleum exports to North Korea, asking for more detail on a U.S. accusation that Pyongyang breached sanctions, diplomats said.

The United States provided a list to the committee earlier this month of 89 illicit North Korean transactions and a few select photos, seen by Reuters.

Seoul’s foreign ministry said last week that the authorities were investigating two ships with Panama and Sierra Leone flags suspected to have illegally transferred North Korean coal into South Korea via Russia.

NO MAJOR SUFFERING

North Korean rice prices have also been stable since a spike last September, when the UN Security Council imposed new sanctions. Rice has hovered around $0.62 per kg throughout this year.

Stable fuel and rice prices suggest no immediate signs of major suffering in North Korea despite South Korea’s recent estimates the impoverished state’s economy contracted at its sharpest rate in two decades last year.

South Korea’s central bank said North Korea’s gross domestic product shrank 3.5 percent last year, marking the biggest decline since 1997, citing international sanctions and drought.

While other defectors reported some suffering in remote rural regions, Daily NK’s Kang said fuel demand has been steady in North Korea, and overall living conditions have improved in line with a booming unofficial market economy.

The unofficial markets, known as jangmadang, have grown to account for about 60 percent of the economy, according to the Institute for Korean Integration of Society.

“I’ve seen signs the economy was slowly improving over the past five years, and in last year things are still developing but perhaps not as fast as before,” a Western consultant who makes regular trips to North Korea told Reuters.

Kim, who vowed not to let the people “tighten their belt again” in his first-ever public speech in 2012, announced in April a shift in focus from nuclear programs to the economy. Analysts say that will be difficult while sanctions remain in place.

“I don’t think there is an outcry in the markets now, but there could be one toward the end of this year,” said Kim Byeong-yeon, a North Korea economy specialist at the Seoul National University.

(Reporting by Hyonhee Shin. Additional reporting by Josh Smith and Cynthia Kim in SEOUL and Ben Blanchard in BEIJING. Editing by Lincoln Feast.)

Trump invites Putin to Washington despite U.S. uproar over Helsinki summit

U.S. President Donald Trump walks from Marine One as he arrives on the South Lawn of the White House in Washington, U.S., July 18, 2018. REUTERS/Joshua Roberts

By Steve Holland and Doina Chiacu

WASHINGTON (Reuters) – President Donald Trump has invited Russian President Vladimir Putin to Washington this autumn, the White House said on Thursday, a daring rebuttal to the torrent of criticism in the United States over Trump’s failure to publicly confront Putin at their first summit for Moscow’s meddling in the 2016 election.

Four days after Trump stunned the world by siding with Putin in Helsinki over his intelligence agencies, the president asked national security adviser John Bolton to issue the invitation to the Russian leader, said White House spokeswoman Sarah Sanders.

What happened at Monday’s one-on-one between Trump and Putin with only interpreters present remained a mystery, even to top officials and U.S. lawmakers who said they had not been briefed.

Trump’s director of national intelligence, Dan Coats, said in response to a question at the Aspen Security Forum in Colorado: “Well, you’re right, I don’t know what happened at that meeting.”

The coveted invitation was sure to be seen as a victory by Putin, whose last official visit to the United States was in July 2007, when he spent two days at the Bush family compound.

Both Trump and Putin earlier on Thursday praised their first meeting as a success and blamed forces in the United States for trying to belittle its achievements, Trump citing discussions on counterterrorism, Israel’s security, nuclear proliferation, cyber attacks, trade, Ukraine, Middle East peace and North Korea.

In one Twitter post, Trump blamed the media. “The Summit with Russia was a great success, except with the real enemy of the people, the Fake News Media.”

In Moscow, Putin said the summit “was successful overall and led to some useful agreements” without elaborating on the agreements.

Top Senate Democrat Chuck Schumer criticized the invitation. “Until we know what happened at that two hour meeting in Helsinki, the president should have no more one-on-one interactions with Putin. In the United States, in Russia, or anywhere else,” he said in a statement.

Coats, who on Monday roundly defended the intelligence agencies’ findings of Russian meddling, also advised against a one-on-one meeting with Putin, saying he “would look for a different way of doing it.”

An official visit by a Russian president to the United States is a rare event: the last time was in June 2010 with Dmitri Medvedev, now Russian prime minister.

A senior White House official said Bolton extended the official invitation to Putin on Thursday via his Russian counterpart. No date has been set and it was unclear whether it would be timed for the U.N. General Assembly in late September.

FILE PHOTO: U.S. President Donald Trump and Russian President Vladimir Putin shake hands as they hold a joint news conference after their meeting in Helsinki, Finland July 16, 2018. REUTERS/Grigory Dukor

FILE PHOTO: U.S. President Donald Trump and Russian President Vladimir Putin shake hands as they hold a joint news conference after their meeting in Helsinki, Finland July 16, 2018. REUTERS/Grigory Dukor

REJECTION OF PUTIN PROPOSAL

The week was one of the toughest for Trump since he took office 18 months ago as aides struggled with damage control and convincing Americans that the president did not favor Russian interests over his own country’s. Forty-two percent of registered voters said they approved of Trump’s overall job performance, according to a Reuters/Ipsos opinion poll taken after the summit.

Bolton on Tuesday laid out four talking points for the crisis-hit White House, according to one official: that Trump stress he supports U.S. intelligence agencies, that there was never any Russian collusion with his campaign, that Russian meddling is unacceptable and the United States is doing everything it can to protect elections in 2018 and beyond.

With Trump under fierce criticism in the United States, the White House on Thursday rejected Putin’s proposal that Russian authorities be present for the questioning of Americans it accuses of “illegal activities,” including a former U.S. ambassador to Moscow.

It was the latest about-face in a week of multiple reversals. Critics complained that Trump was given ample opportunity at a joint news conference on Monday to scold Putin over Russian interference in the election but instead accepted Putin’s denials over the word of American intelligence agencies.

Trump on Tuesday said he misspoke during the news conference. On Wednesday, Trump answered “no” to a reporter’s question on whether Russia was still targeting the United States, only to have Sanders say later he was saying “no” to answering any questions – not to the question itself.

Republican and Democratic U.S. lawmakers grappled with Trump’s conflicting statements as they discussed ways to show their opposition to what they saw in Helsinki, including strengthening sanctions.

On Monday, Putin described the proposal when he was asked about the possible extradition of 12 Russian intelligence officers indicted in the United States on charges of interfering in the 2016 election by carrying out cyber attacks on Democratic Party networks.

Putin indicated he would permit American law enforcement officials to observe questioning by Russian officials of the indicted Russians and vice versa for Russian investigations. He mentioned London-based financier Bill Browder, a onetime investor in Russia who said he exposed corruption there. Standing alongside Putin, Trump called the idea “an incredible offer.”

Sanders on Thursday said, “It is a proposal that was made in sincerity by President Putin, but President Trump disagrees with it,” a day after saying the proposal was going to be discussed by Trump’s team. “Hopefully President Putin will have the 12 identified Russians come to the United States to prove their innocence or guilt.”

(Reporting by Steve Holland, Doina Chiacu, Richard Cowan, Lisa Lambert, Susan Heavey in Washington and Andrew Osborn and Olesya Astakhova in Moscow; Writing by Doina Chiacu and Mary Milliken; Editing by Will Dunham and Grant McCool)

White House rejects Putin proposal to interview U.S. citizens

Russia's President Vladimir Putin attends a meeting with Russian ambassadors and representatives to international organisations in Moscow, Russia, July 19, 2018. REUTERS/Sergei Karpukhin

WASHINGTON (Reuters) – U.S. President Donald Trump has rejected a proposal by Russian President Vladimir Putin that Russian investigators be allowed to question U.S. citizens, including former ambassador to Moscow Michael McFaul, the White House said on Thursday.

“It is a proposal made in sincerity by President Putin, but President Trump disagrees with it,” White House spokeswoman Sarah Sanders said in a statement. “Hopefully, President Putin will have the 12 identified Russians come to the United States to prove their innocence or guilt.”

Putin said after a summit with Trump in Helsinki on Monday that he might be willing to let U.S. Justice Department investigators question 12 Russians charged with interfering with the 2016 U.S. election if the United States agreed to let Russian investigators question several U.S. citizens.

(Reporting by Steve Holland; Writing by David Alexander)