Trump urges bipartisan compromises but continues hard line immigration policies

U.S. President Donald J. Trump (C) stands at the podium as U.S. Vice President Mike Pence (L) and Speaker of the House U.S. Rep. Paul Ryan (R-WI) (R) look on during his first State of the Union address to a joint session of Congress inside the House Chamber on Capitol Hill in Washington, U.S., January 30, 2018.

By Steve Holland and Jeff Mason

WASHINGTON (Reuters) – U.S. President Donald Trump urged lawmakers on Tuesday to work toward bipartisan compromises, but pushed a hard line on immigration, insisting on a border wall and other concessions from Democrats as part of any deal to protect the children of illegal immigrants.

Trump, in his first State of the Union speech, gave no ground on the contentious issue of whether to shield young immigrants known as “Dreamers” from deportation.

Aiming to keep conservative supporters happy as he looks to November congressional elections, Trump stood by a set of principles opposed by Democrats, including the border wall with Mexico and new restrictions on how many family members that legal immigrants can bring into the United States.

“Tonight, I call upon all of us to set aside our differences, to seek out common ground, and to summon the unity we need to deliver for the people we were elected to serve,” Trump said in his address.

Trump used the hour-and-20-minute speech, given annually by presidents to Congress, to try to overcome doubts about his presidency at a time when he is battling a probe into his campaign’s alleged ties with Russia and suffering low job approval ratings.

Trump made no mention of the federal probe into whether his campaign colluded with Russia in the 2016 presidential election, a controversy that is dogging his presidency. Trump has denied collusion and has called the probe a “witch hunt.”

The speech was short on details about Trump’s policy proposals.

But his sober, measured approach was welcomed by the public. A CNN/SSRS snap poll said 48 percent of those surveyed had a “very positive” response to the speech and 22 percent “somewhat positive.”

There was little sign of unity inside the House of Representatives chamber where Trump spoke. Republican lawmakers cheered wildly at the president’s applause lines. Democrats often sat in their seats silently and many booed when he laid out his immigration proposals.

DENOUNCES NORTH KOREAN LEADERSHIP

Turning to foreign policy late in the speech, Trump denounced the “depraved character” of North Korea’s leadership and said Pyongyang’s “reckless pursuit of nuclear missiles could very soon threaten our homeland.”

“We are waging a campaign of maximum pressure to prevent that from happening,” he said. In a surprise moment, he singled out a North Korea defector in the crowd, Ji Seong-ho, as an example of what he called the reclusive country’s brutal nature.

Trump also said he had signed an order to keep open the U.S. military prison at Guantanamo Bay, Cuba, for foreign terrorism suspects. Former Democratic President Barack Obama had vowed to close the prison, which has been condemned by human rights groups, but was unable to shut it down completely.

Whether Trump would follow through on his appeal for bipartisan harmony was far from clear. Trump’s past attempts at a unifying message have been undermined by his later rancorous tweets and divisive statements that angered Democrats and frequently annoyed lawmakers in his own Republican Party.

The unity plea will first be put to the test in his drive for a compromise on protecting 1.8 million Dreamers – people brought illegally to the country as children – who face a March 5 deadline on whether they can begin to be deported.

Republicans welcomed Trump’s immigration proposals, with U.S. Senator James Lankford of Oklahoma saying Trump tried to strike a middle ground.

“My Democratic colleagues can say he didn’t move enough, but you can’t deny he moved a lot. There are people in his core base who think he has moved way too far.”

But Senator Patrick Leahy, a Vermont Democrat and the longest-serving senator, said Trump’s words about unity, after a year of “divisive actions, petty insults and disgraceful race-baiting … ring hollow.”

Trump said he was “extending an open hand” for an immigration deal and that he would provide Dreamers a pathway to citizenship over 10 to 12 years in exchange for funding the border wall, which he promised during his campaign, and restrictions on legal immigration.

He called his plan a “down-the-middle compromise,” but some Democrats hissed when he said he wanted to rein in “chain migration,” the ability of legal immigrants to bring a wide-ranging number of family members into the country.

“Let’s come together, set politics aside and finally get the job done,” Trump said.

INFRASTRUCTURE PLAN

Trump took credit for U.S. economic gains including a soaring stock market and a low jobless rate. He boasted about the economic growth he believes will result from tax cuts Republicans pushed through Congress late last year.

“This is our new American moment. There has never been a better time to start living the American Dream,” he said.

Trump said he would like a compromise over a plan to rebuild aging roads, bridges and other infrastructure. He said he wanted legislation to generate at least $1.5 trillion through a combination of federal, state and local spending as well as private-sector contributions.

Market reaction was muted, with S&P 500 futures drifting higher, but investors saying there was little new for Wall Street in the speech.

“Futures lifted a bit because it was not a negative speech. He was calm. He celebrated America. He avoided his own failures,” said Tim Ghriskey, chief investment officer at Cresset Wealth Advisors in Chicago.

While Trump spoke of compromise, his speech provided some reminders of partisan battles over the past year.

He singled out a speech guest, 12-year-old Preston Sharp, for leading an effort to put American flags on the graves of 40,000 veterans, saying the initiative was “why we proudly stand for the national anthem.”

His criticism of National Football League players who refused to stand for the anthem in protest against police shootings of minorities and racial disparities in the justice system, dominated headlines last autumn.

(Additional reporting by Richard Cowan, Susan Cornwell, Roberta Rampton, Makini Brice, Eric Beech and Eric Walsh; Editing by Peter Cooney)

Ending North Korea oil supplies would be seen as act of war, says Russia

North Korean leader Kim Jong Un gives field guidance at the Pyongyang Pharmaceutical Factory, in this undated photo released by North Korea's Korean Central News Agency (KCNA) in Pyongyang January 25, 2018.

MOSCOW (Reuters) – The delivery of oil and oil products to North Korea should not be reduced, Moscow’s ambassador to Pyongyang was cited as saying by RIA news agency on Wednesday, adding that a total end to deliveries would be interpreted by North Korea as an act of war.

The U.N. and United States have introduced a wave of sanctions aimed at curbing North Korea’s development of nuclear weapons, including by seeking to reduce its access to crude oil and refined petroleum products.

“We can’t lower deliveries any further,” Russia’s envoy to Pyongyang, Alexander Matzegora, was quoted by RIA as saying in an interview.

Quotas set by the U.N. allow for around 540,000 tonnes of crude oil a year to be delivered to North Korea from China, and over 60,000 tonnes of oil products from Russia, China and other countries, he was quoted as saying.

“[This] is a drop in the ocean for a country of 25 million people,” Matzegora said.

Shortages would lead to serious humanitarian problems, he said, adding: “Official representatives of Pyongyang have made it clear that a blockade would be interpreted by North Korea as a declaration of war, with all the subsequent consequences.”

Last week, the United States imposed further sanctions on North Korea, including on its crude oil ministry.

In his first annual State of the Union speech to the U.S. Congress on Tuesday, President Donald Trump vowed to keep up the pressure on North Korea it from developing missiles which could threaten the United States.

North Korea on Saturday condemned the latest U.S. sanctions. and Russian deputy foreign minister Igor Morgulov said Russia had no obligation to carry out sanctions produced by the U.S.

The ambassador also denied charges by Washington that Moscow, in contravention of U.N. sanctions, was allowing Pyongyang to use Russian ports for transporting coal.

“We double-checked [U.S.] evidence. We found that the ships mentioned did not enter our ports, or if they did, then they were carrying cargo that had nothing to do with North Korea,” he is cited as saying.

Reuters reported earlier that North Korea had shipped coal to Russia last year which was then delivered to South Korea and Japan in a likely violation of U.N. sanctions.

(Reporting by Jack Stubbs; Writing by Polina Ivanova; Editing by Richard Balmforth)

CIA director expects Russia will try to target U.S. mid-term elections

CIA Director Mike Pompeo delivers remarks at "Intelligence Beyond 2018," a forum hosted by the American Enterprise Institute for Public Policy Research, in Washington, U.S., January 23, 2018.

LONDON (Reuters) – CIA Director Mike Pompeo said Russia will target U.S. mid-term elections later this year as part of the Kremlin’s attempt to influence domestic politics across the West, and warned the world had to do more to push back against Chinese meddling.

Russia has been accused of meddling in the 2016 U.S. presidential election and Special Counsel Robert Mueller is investigating the allegations, which Moscow denies, and whether there was any collusion involving President Donald Trump’s associates.

In an interview with the BBC aired on Tuesday, U.S. intelligence chief Pompeo said Russia had a long history of information campaigns and said its threat would not go away.

Asked if Russia would try to influence the mid-term elections, he said: “Of course. I have every expectation that they will continue to try and do that.

“But I am confident that America will be able to have a free and fair election. That we’ll push back in a way that is sufficiently robust that the impact they have on our election won’t be great.”

He also said the Chinese posed a threat of equal concern, and were “very active” with a world class cyber capability.

“We can watch very focused efforts to steal American information, to infiltrate the United States with spies, with people who are going to work on behalf of the Chinese government against America,” he said.

“We see it in our schools, in our hospitals and medical systems, we see it throughout corporate America. These efforts we have to all be more focused on. We have to do better at pushing back against Chinese efforts to covertly influence the world.”

GLOBAL INFLUENCE

The Kremlin, which under Vladimir Putin has clawed back some of the global influence lost when the Soviet Union collapsed, has denied meddling in elections in the West. It says anti-Russian hysteria is sweeping through the United States and Europe.

In the interview, Pompeo also repeated his message that North Korea was close to developing missiles which could be used in a nuclear attack on the United States.

“I think that we collectively, the United States and our intelligence partners around the world, have developed a pretty clear understanding of (North Korean leader) Kim Jong Un’s capability,” he said.

“We talk about him having the ability to deliver a nuclear weapon to the United States in a matter of a handful of months.”

The CIA chief defended Trump over accusations from a book which suggested the president was unfocused, unprepared and unfit for his office.

“It’s absurd, the claim that the president isn’t engaged and doesn’t have a grasp on these important issues is dangerous and false,” Pompeo said.

Asked if Trump’s use of Twitter posed any national security issues, he said: “Hasn’t caused us any trouble.”

He added: “We deliver nearly every day, personally, to the president the most exquisite truth that we know from the CIA. Whatever the facts may be we deliver them unvarnished as accurately and as forcefully as we can.”

(Reporting by Guy Faulconbridge, editing by Michael Holden and Janet Lawrence)

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

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

By Kinda Makieh and Maria Tsvetkova

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

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

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

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

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

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

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

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

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

FLAG ROW

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

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

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

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

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

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

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

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

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

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

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

Tests link Syrian government stockpile to largest sarin attack

A U.N. chemical weapons expert, wearing a gas mask, holds a plastic bag containing samples from one of the sites of an alleged chemical weapons attack in the Ain Tarma neighbourhood of Damascus, Syria August 29, 2013.

By Anthony Deutsch

THE HAGUE (Reuters) – The Syrian government’s chemical weapons stockpile has been linked for the first time by laboratory tests to the largest sarin nerve agent attack of the civil war, diplomats and scientists told Reuters, supporting Western claims that government forces under President Bashar al-Assad were behind the atrocity.

Laboratories working for the Organisation for the Prohibition of Chemical Weapons compared samples taken by a U.N. mission in the Damascus suburb of Ghouta after the Aug. 21, 2013 attack, when hundreds of civilians died of sarin gas poisoning, to chemicals handed over by Damascus for destruction in 2014.

The tests found “markers” in samples taken at Ghouta and at the sites of two other nerve agent attacks, in the towns of Khan Sheikhoun in Idlib governorate on April 4, 2017 and Khan al-Assal, Aleppo, in March 2013, two people involved in the process said.

“We compared Khan Sheikhoun, Khan al-Assal, Ghouta,” said one source who asked not to be named because of the sensitivity of the findings. “There were signatures in all three of them that matched.”

The same test results were the basis for a report by the OPCW-United Nations Joint Investigative Mechanism in October which said the Syrian government was responsible for the Khan Sheikhoun attack, which killed dozens.

The findings on Ghouta, whose details were confirmed to Reuters by two separate diplomatic sources, were not released in the October report to the U.N. Security Council because they were not part of the team’s mandate.

They will nonetheless bolster claims by the United States, Britain and other Western powers that Assad’s government still possesses and uses banned munitions in violation of several Security Council resolutions and the Chemical Weapons Convention.

The OPCW declined to comment. Syria has repeatedly denied using chemical weapons in the conflict now in its seventh year and has blamed the chemical attacks in the rebel-held territory of Ghouta on the insurgents themselves.

Russia has also denied that Syrian government forces have carried out chemical attacks and has questioned the reliability of the OCPW inquiries. Officials in Moscow have said the rebels staged the attacks to discredit the Assad government and whip up international condemnation.

Under a U.S.-Russian deal after the Ghouta attack in 2013, Damascus joined the OPCW and agreed to permanently eliminate its chemical weapons program, including destroying a 1,300-tonne stockpile of industrial precursors that has now been linked to the Ghouta attack.

But inspectors have found proof of an ongoing chemical weapons program in Syria, including the systematic use of chlorine barrel bombs and sarin, which they say was ordered at the highest levels of government.

The sarin attack on Khan Sheikhoun in April last year prompted U.S. President Donald Trump to order a missile strike against the Shayrat air base, from which the Syrian operation is said to have been launched.

Diplomatic and scientific sources said efforts by Syria and Russia to discredit the U.N.-OPCW tests establishing a connection to Ghouta have so far come up with nothing.

Russia’s blocking of resolutions at the Security Council seeking accountability for war crimes in Syria gained new relevance when Russia stationed its aircraft at Shayrat in 2015.

Washington fired missiles at Shayrat in April 2017, saying the Syrian air force used it to stage the Khan Sheikhoun sarin attack on April 4 a few days earlier, killing more than 80 people.

No Russian military assets are believed to have been hit, but Moscow warned at the time it could have serious consequences.

In June, the Pentagon said it had seen what appeared to be preparations for another chemical attack at the same airfield, prompting Russia to say it would respond proportionately if Washington took pre-emptive measures against Syrian forces there.

“SERIOUS LAB WORK”

The chemical tests were carried out at the request of the U.N.-OPCW inquiry, which was searching for potential links between the stockpile and samples from Khan Sheikhoun. The analysis results raised the possibility that they would provide a link to other sarin attacks, the source said.

Two compounds in the Ghouta sample matched those also found in Khan Sheikhoun, one formed from sarin and the stabilizer hexamine and another specific fluorophosphate that appears during sarin production, the tests showed.

“Like in all science, it should be repeated a couple of times, but it was serious matching and serious laboratory work,” the source said.

Independent experts, however, said the findings are the strongest scientific evidence to date that the Syrian government was behind Ghouta, the deadliest chemical weapons attack since the Halabja massacres of 1988 during the Iran-Iraq war.

“A match of samples from the 2013 Ghouta attacks to tests of chemicals in the Syrian stockpile is the equivalent of DNA evidence: definitive proof,” said Amy Smithson, a U.S. nonproliferation expert.

The hexamine finding “is a particularly significant match,” Smithson said, because it is a chemical identified as a unique hallmark of the Syrian military’s process to make sarin.

“This match adds to the mountain of physical evidence that points conclusively, without a shadow of doubt, to the Syrian government,” she said.

NO CHANCE REBELS BEHIND GHOUTA

Smithson and other sources familiar with the matter said it would have been virtually impossible for the rebels to carry out a coordinated, large-scale strike with poisonous munitions, even if they had been able to steal the chemicals from the government’s stockpile.

“I don’t think there is a cat in hell’s chance that rebels or Islamic State were responsible for the Aug. 21 Ghouta attack,” said Hamish de Bretton-Gordon, an independent specialist in biological and chemical weapons.

The U.N.-OPCW inquiry, which was disbanded in November after being blocked by Syria’s ally Russia at the U.N. Security Council, also found that Islamic State had used the less toxic blistering agent sulfur mustard gas on a small scale in Syria.

The Ghouta attack, by comparison, was textbook chemical warfare, Smithson and de Bretton-Gordon said, perfectly executed by forces trained to handle sarin, a toxin which is more difficult to use because it must be mixed just before delivery.

Surface-to-surface rockets delivered hundreds of liters of sarin in perfect weather conditions that made them as lethal as possible: low temperatures and wind in the early hours of the morning, when the gas would remain concentrated and kill sleeping victims, many of them children.

Pre-attack air raids with conventional bombs shattered windows and doors and drove people into shelters where the heavy poison seeped down into underground hiding places. Aerial bombing afterwards sought to destroy the evidence.

The large quantity of chemicals used, along with radar images of rocket traces showing they originated from Syrian Brigade positions, are further proof that the rebels could not have carried out the Ghouta attack, the experts said.

(Reporting by Anthony Deutsch; editing by Giles Elgood)

Netanyahu flies to Moscow for talks on Syria with Putin

Russian President Vladimir Putin and Israeli Prime Minister Benjamin Netanyahu attend a meeting at the Jewish Museum and Tolerance Centre in Moscow, Russia January 29, 2018.

JERUSALEM (Reuters) – Prime Minister Benjamin Netanyahu flew to Moscow on Monday to discuss Israeli concerns about any expansion of Iran’s military foothold in Syria with Russian President Vladimir Putin.

“I will discuss with President Putin Iran’s relentless efforts to establish a military presence in Syria, which we strongly oppose and are also taking action against,” said Netanyahu, without elaborating, before boarding a plane for the visit, scheduled to last several hours.

Israel’s air force said last year it had struck suspected arms shipments to Iran’s ally, the Lebanese Hezbollah group, around 100 times.

Netanyahu said he and Putin “meet periodically in order to ensure the military coordination between the Israel Defense Forces and the Russian forces in Syria”.

Russia intervened in the civil war on behalf of Syrian President Bashar al-Assad in 2015. Iranian forces, Hezbollah and other Shi‘ite Muslim militias also back Assad.

Israel fears Iran could be left with a permanent garrison in Syria, extending a threat posed from neighboring Lebanon by Hezbollah, which has an extensive missile arsenal and last fought a war with the Israeli military in 2006.

Netanyahu said he also planned to discuss with Putin “Iran’s effort to turn Lebanon into one giant missile site, a site for precision missiles against the State of Israel, which we will not tolerate”.

(Reporting by Jeffrey Heller; Editing by Janet Lawrence)

Exclusive: Despite sanctions, North Korea exported coal to South and Japan via Russia

A cargo ship is loaded with coal during the opening ceremony of a new dock at the North Korean port of Rajin July 18, 2014.

By Guy Faulconbridge, Jonathan Saul and Polina Nikolskaya

PARIS/LONDON/MOSCOW (Reuters) – North Korea shipped coal to Russia last year which was then delivered to South Korea and Japan in a likely violation of U.N. sanctions, three Western European intelligence sources said.

The U.N. Security Council banned North Korean exports of coal last Aug. 5 under sanctions intended to cut off an important source of the foreign currency Pyongyang needs to fund its nuclear weapon and long-range missile programs.

But the secretive Communist state has at least three times since then shipped coal to the Russian ports of Nakhodka and Kholmsk, where it was unloaded at docks and reloaded onto ships that took it to South Korea or Japan, the sources said.

A Western shipping source said separately that some of the cargoes reached Japan and South Korea in October last year. A U.S. security source also confirmed the coal trade via Russia and said it was continuing.

“Russia’s port of Nakhodka is becoming a transhipping hub for North Korean coal,” said one of the European security sources, who requested anonymity because of the sensitivity of international diplomacy around North Korea.

Asked to respond to the report, Kremlin spokesman Dmitry Peskov said on Friday that Russia abided by international law.

“Russia is a responsible member of the international community,” he told reporters on a conference call.

Interfax news agency quoted an unidentified official at Russia’s embassy to North Korea on Friday as saying Russia did not buy coal from North Korea and was “not a transit point for coal deliveries to third countries.”

Russia’s mission to the United Nations told the Security Council sanctions committee on Nov. 3 that Moscow was complying with the sanctions.

Two lawyers who specialize in sanctions law told Reuters it appeared the transactions violated U.N. sanctions.

Reuters could not independently verify whether the coal unloaded at the Russian docks was the same coal that was then shipped to South Korea and Japan. Reuters also was unable to ascertain whether the owners of the vessels that sailed from Russia to South Korea and Japan knew the origin of the coal.

The U.S. Treasury on Wednesday put the owner of one of the ships, the UAL Ji Bong 6, under sanctions for delivering North Korean coal to Kholmsk on Sept. 5.

It was unclear which companies profited from the coal shipments.

RUSSIA URGED “DO MORE” ON SANCTIONS

North Korean coal exports were initially capped under a 2016 Security Council resolution that required countries to report monthly imports of coal from North Korea to the council’s sanctions committee within 30 days of the end of each month.

Diplomats, speaking on condition of anonymity, said Russia had not reported any imports of North Korea coal to the committee last year.

The sanctions committee told U.N. member states in November that a violation occurs when “activities or transactions proscribed by Security Council resolutions are undertaken or attempts are made to engage in proscribed transactions, whether or not the transaction has been completed.”

Asked about the shipments identified by Reuters, Matthew Oresman, a partner with law firm Pillsbury Winthrop Shaw Pittman who advises companies on sanctions, said: “Based on these facts, there appears to be a violation of the U.N. Security Council resolution by the parties involved.”

“Also those involved in arranging, financing, and carrying out the shipments could likely face U.S. sanctions,” he said.

Asked about the shipments, a U.S. State Department spokesman said: “It’s clear that Russia needs to do more. All U.N. member states, including Russia, are required to implement sanctions resolutions in good faith and we expect them all to do so.”

The White House did not immediately respond to a request for comment.

The independent panel of experts that reports to the Security Council on violations of sanctions was not immediately available for comment.

North Korea has refused to give up the development of nuclear missiles capable of hitting the United States. It has said the sanctions infringe its sovereignty and accused the United States of wanting to isolate and stifle North Korea.

An independent panel of experts reported to the Security Council on Sept. 5 that North Korea had been “deliberately using indirect channels to export prohibited commodities, evading sanctions.”

Reuters reported last month that Russian tankers had supplied fuel to North Korea at sea and U.S. President Donald Trump told Reuters in an interview on Jan. 17 that Russia was helping Pyongyang get supplies in violation of the sanctions.

The U.S. Treasury on Wednesday imposed sanctions on nine entities, 16 people and six North Korean ships it accused of helping the weapons programs.

TWO ROUTES

Two separate routes for the coal were identified by the Western security sources.

The first used vessels from North Korea via Nakhodka, about 85 km (53 miles) east of the Russian city of Vladivostok.

One vessel that used this route was the Palau-flagged Jian Fu which Russian port control documents show delivered 17,415 tonnes of coal after sailing from Nampo in North Korea on Aug. 3 and docking at berth no. 4 run by LLC Port Livadiya in Nakhodka. It left the port on Aug. 18.

The vessel had turned off its tracking transmitter from July 24 to Aug. 2, when it was in open seas, according to publicly available ship tracking data. Under maritime conventions, this is acceptable practice at the discretion of the ship’s captain, but means the vessel could not be tracked publicly.

Another ship arrived at the same berth — No. 4 — on Aug. 16, loaded 20,500 tonnes of coal and headed to the South Korean port of Ulsan in Aug. 24, according to Russian port control documents.

Reuters was unable to reach the operator of the Jian Fu, which was listed in shipping directories as the China-based Sunrise Ship Management. The Nakhodka-based transport agent of the Jian Fu did not respond to written and telephone requests for comment. LLC Port Livadiya did not respond to a written request for comment.

The second route took coal via Kholmsk on the Russian Pacific island of Sakhalin, north of Japan.

At least two North Korean vessels unloaded coal at a dock in Kholmsk port in August and September after arriving from the ports of Wonsan and Taean in North Korea, Russian port control data and ship tracking data showed.

The Rung Ra 2 docked in Kholmsk three times between Aug 1 and Sept. 12, unloading a total of 15,542 tonnes of coal, while the Ul Ji Bong 6 unloaded a total of 10,068 tonnes of coal on two separate port calls — on Aug. 3 and between Sept. 1 and Sept. 8, according to the official Russian Information System for State Port Control.

The coal did not pass Russian customs because of the UN sanctions taking effect, but was then loaded at the same dock onto Chinese-operated vessels. Those vessels stated their destination in Russian port control documents as North Korea, according to a source in Sakhalin port administration who spoke on condition of anonymity.

Reuters has seen the port control documents which state the destination of the coal as North Korea. But the vessels that loaded the North Korean coal sailed instead for the ports of Pohang and Incheon in South Korea, ship tracking data showed.

In Beijing on Friday, foreign ministry spokeswoman Hua Chunying told reporters she did not know anything about the situation but China was clear in its hope that the UN resolutions are followed fully.

China will not allow any Chinese company or individual to do anything that goes against the resolutions and if there is cast-iron proof this is happening, China will handle it seriously and in accordance with the law, she added.

The U.S. Treasury on Wednesday included the owner of the Ul Ji Bong 6 under sanctions for delivering North Korean coal to Kholmsk after the sanctions took effect.

It was unclear which companies profited from the coal shipments.

Asked about the shipments, a South Korean foreign ministry official said: “Our government is monitoring any sanctions-evading activities by North Korea. We’re working closely with the international community for the implementation of the sanctions.”

The official declined to say whether the ministry was aware of the shipments reported by Reuters.

The Japanese foreign ministry did not immediately respond to a request for comment.

The European security sources said the route via Russia had developed as China, North Korea’s neighbor and lone major ally, cracked down on exports from the secretive Communist state.

“The Chinese have cracked down on coal exports from North Korea so the smuggling route has developed and Russia is the transit point for coal,” one of the European security sources said.

(Writing by Guy Faulconbridge and Jonathan Saul; Additional reporting by Michele Nichols in New York, Oksana Kobzeva and Gleb Stolyarov in Moscow, Hyonhee Shin in Seoul, William James in London, Muyu Xu, Ben Blanchard and Josephine Mason in Beijing, Aaron Sheldrick and Linda Sieg in Tokyo, and Mark Hosenball and Matt Spetalnick in Washington; Editing by Timothy Heritage, Clarence Fernandez and Sonya Hepinstall)

Tech firms let Russia probe software widely used by U.S. government

A general view shows a building, which houses the office of HP Russia, in Moscow, Russia August 30, 2017.

By Dustin Volz, Joel Schectman and Jack Stubbs

WASHINGTON/MOSCOW (Reuters) – Major global technology providers SAP, Symantec and McAfee have allowed Russian authorities to hunt for vulnerabilities in software deeply embedded across the U.S. government, a Reuters investigation has found.

The practice potentially jeopardizes the security of computer networks in at least a dozen federal agencies, U.S. lawmakers and security experts said. It involves more companies and a broader swath of the government than previously reported.

In order to sell in the Russian market, the tech companies let a Russian defense agency scour the inner workings, or source code, of some of their products. Russian authorities say the reviews are necessary to detect flaws that could be exploited by hackers.

But those same products protect some of the most sensitive areas of the U.S government, including the Pentagon, NASA, the State Department, the FBI and the intelligence community, against hacking by sophisticated cyber adversaries like Russia.

Reuters revealed in October that Hewlett Packard Enterprise software known as ArcSight, used to help secure the Pentagon’s computers, had been reviewed by a Russian military contractor with close ties to Russia’s security services.

Now, a Reuters review of hundreds of U.S. federal procurement documents and Russian regulatory records shows that the potential risks to the U.S. government from Russian source code reviews are more widespread.

Beyond the Pentagon, ArcSight is used in at least seven other agencies, including the Office of the Director of National Intelligence and the State Department’s intelligence unit, the review showed. Additionally, products made by SAP, Symantec and McAfee and reviewed by Russian authorities are used in at least eight agencies. Some agencies use more than one of the four products.

McAfee, SAP, Symantec and Micro Focus, the British firm that now owns ArcSight, all said that any source code reviews were conducted under the software maker’s supervision in secure facilities where the code could not be removed or altered. The process does not compromise product security, they said. Amid growing concerns over the process, Symantec and McAfee no longer allow such reviews and Micro Focus moved to sharply restrict them late last year.

The Pentagon said in a previously unreported letter  to Democratic Senator Jeanne Shaheen that source code reviews by Russia and China “may aid such countries in discovering vulnerabilities in those products.”

Reuters has not found any instances where a source code review played a role in a cyberattack, and some security experts say hackers are more likely to find other ways to infiltrate network systems.

But the Pentagon is not alone in expressing concern. Private sector cyber experts, former U.S. security officials and some U.S. tech companies told Reuters that allowing Russia to review the source code may expose unknown vulnerabilities that could be used to undermine U.S. network defenses.

“Even letting people look at source code for a minute is incredibly dangerous,” said Steve Quane, executive vice president for network defense at Trend Micro, which sells TippingPoint security software to the U.S. military.

Worried about those risks to the U.S. government, Trend Micro has refused to allow the Russians to conduct a source code review of TippingPoint, Quane said.

Quane said top security researchers can quickly spot exploitable vulnerabilities just by examining source code.

“We know there are people who can do that, because we have people like that who work for us,” he said.

OPENING THE DOOR

Many of the Russian reviews have occurred since 2014, when U.S.-Russia relations plunged to new lows following Moscow’s annexation of Crimea. Western nations have accused Russia of sharply escalating its use of cyber attacks during that time, an allegation Moscow denies.

Some U.S. lawmakers worry source code reviews could be yet another entry point for Moscow to wage cyberattacks.

“I fear that access to our security infrastructure – whether it be overt or covert – by adversaries may have already opened the door to harmful security vulnerabilities,” Shaheen told Reuters.

In its Dec. 7 letter to Shaheen, the Pentagon said it was “exploring the feasibility” of requiring vendors to disclose when they have allowed foreign governments to access source code. Shaheen had questioned the Pentagon about the practice following the Reuters report on ArcSight, which also prompted Micro Focus to say it would restrict government source code reviews in the future. HPE said none of its current products have undergone Russian source code review.

Lamar Smith, the Republican chairman of the House Science, Space and Technology Committee, said legislation to better secure the federal cybersecurity supply chain was clearly needed.

Most U.S. government agencies declined to comment when asked whether they were aware technology installed within their networks had been inspected by Russian military contractors. Others said security was of paramount concern but that they could not comment on the use of specific software.

A Pentagon spokeswoman said it continually monitors the commercial technology it uses for security weaknesses.

NO PENCILS ALLOWED Tech companies wanting to access Russia’s large market are often required to seek certification for their products from Russian agencies, including the FSB security service and Russia’s Federal Service for Technical and Export Control (FSTEC), a defense agency tasked with countering cyber espionage.

FSTEC declined to comment and the FSB did not respond to requests for comment. The Kremlin referred all questions to the FSB and FSTEC.

FSTEC often requires companies to permit a Russian government contractor to test the software’s source code.

SAP HANA, a database system, underwent a source code review in order to obtain certification in 2016, according to Russian regulatory records. The software stores and analyzes information for the State Department, Internal Revenue Service, NASA and the Army.

An SAP spokeswoman said any source code reviews were conducted in a secure, company-supervised facility where recording devices or even pencils are “are strictly forbidden.”

“All governments and governmental organizations are treated the same with no exceptions,” the spokeswoman said.

While some companies have since stopped allowing Russia to review source code in their products, the same products often remain embedded in the U.S. government, which can take decades to upgrade technology.

Security concerns caused Symantec to halt all government source code reviews in 2016, the company’s chief executive told Reuters in October. But Symantec Endpoint Protection antivirus software, which was reviewed by Russia in 2012, remains in use by the Pentagon, the FBI, and the Social Security Administration, among other agencies, according to federal contracting records reviewed by Reuters.

In a statement, a Symantec spokeswoman said the newest version of Endpoint Protection, released in late 2016, never underwent a source code review and that the earlier version has received numerous updates since being tested by Russia. The California-based company said it had no reason to believe earlier reviews had compromised product security. Symantec continued to sell the older version through 2017 and will provide updates through 2019.

McAfee also announced last year that it would no longer allow government-mandated source code reviews.

The cyber firm’s Security Information and Event Management (SIEM) software was reviewed in 2015 by a Moscow-based government contractor, Echelon, on behalf of FSTEC, according to Russian regulatory documents. McAfee confirmed this.

The Treasury Department and Defense Security Service, a Pentagon agency tasked with guarding the military’s classified information, continue to rely on the product to protect their networks, contracting records show.

McAfee declined to comment, citing customer confidentiality agreements, but it has previously said the Russian reviews are conducted at company-owned premises in the United States.

‘YOU CAN’T TRUST ANYONE’

On its website, Echelon describes itself as an official laboratory of the FSB, FSTEC, and Russia’s defense ministry. Alexey Markov, the president of Echelon, which also inspected the source code for ArcSight, said U.S. companies often initially expressed concerns about the certification process.

“Did they have any? Absolutely!!” Markov wrote in an email.

“The less the person making the decision understands about programming, the more paranoia they have. However, in the process of clarifying the details of performing the certification procedure, the dangers and risks are smoothed out.”

Markov said his team always informs tech companies before handing over any discovered vulnerabilities to Russian authorities, allowing the firms to fix the detected flaw. The source code reviews of products “significantly improves their safety,” he said.

Chris Inglis, the former deputy director of the National Security Agency, the United States’ premier electronic spy agency, disagrees.

“When you’re sitting at the table with card sharks, you can’t trust anyone,” he said. “I wouldn’t show anybody the code.”

(Reporting by Dustin Volz and Joel Schectman in Washington and Jack Stubbs in Moscow.; Editing by Jonathan Weber and Ross Colvin)

Trump warns Erdogan to avoid clash between U.S., Turkish forces

Fighters from the self-defence forces of the Kurdish-led north hold their weapons during a rally in Hasaka, northeastern Syria. REUTERS/Rodi Said

By Idrees Ali and Arshad Mohammed

WASHINGTON (Reuters) – U.S. President Donald Trump urged Turkey on Wednesday to curtail its military operation in Syria and warned it not to bring U.S. and Turkish forces into conflict, but a Turkish source said a White House readout did not accurately reflect the conversation.

Turkey’s air and ground operation in Syria’s Afrin region, now in its fifth day, targets U.S.-backed Kurdish YPG fighters, which Ankara sees as allies of Kurdish insurgents who have fought in southeastern Turkey for decades.

Turkish President Tayyip Erdogan said he would extend the operation to Manbij, a separate Kurdish-held enclave some 100 km (60 miles) east of Afrin, possibly putting U.S. forces there at risk and threatening U.S. plans to stabilize a swath of Syria.

Speaking with Erdogan by telephone, Trump became the latest U.S. official to try to rein in the offensive and to pointedly flag the risk of the two allies’ forces coming into conflict.

“He urged Turkey to deescalate, limit its military actions, and avoid civilian casualties,” a White House statement said. “He urged Turkey to exercise caution and to avoid any actions that might risk conflict between Turkish and American forces.”

The United States has around 2,000 troops in Syria.

However, a Turkish source said the White House statement did not accurately reflect the content of their phone call.

“President Trump did not share any ‘concerns about escalating violence’ with regard to the ongoing military operation in Afrin,” the source said, referring to one comment in the White House summary of their conversation.

“The two leaders’ discussion of Operation Olive Branch was limited to an exchange of views,” the source said.

Trump said in response to Erdogan’s call on the United States to end the delivery of weapons to the YPG that the United States no longer supplied the group with weapons and pledged not to resume the weapons delivery in the future, the source said.

The offensive has opened a new front in Syria’s multi-sided, seven-year-old civil war and complicated U.S. efforts in Syria.

The United States hopes to use the YPG’s control of the area to give it the diplomatic muscle it needs to revive U.N.-led talks in Geneva on a deal that would end Syria’s civil war and eventually lead to the ouster of President Bashar Assad.

DIVERGING INTERESTS

The United States and Turkey, while themselves allies in the North Atlantic Treaty Organization, have diverging interests in Syria, with Washington focused on defeating the Islamic State militant group and Ankara keen to prevent Syria’s Kurds from gaining autonomy and fueling Kurdish insurgents on its soil.

In the short-term, analysts say, the United States has little pressure it can apply on Turkey given the U.S. military’s heavy dependence on a Turkish base to carry out air strikes in Syria against Islamic State.

Its sway is further limited by the United States not having reliable military partners in Syria other than the Kurds, said Gonul Tol, director of the Center for Turkish Studies at Washington’s Middle East Institute think tank.

“The U.S. needs Turkey not to spoil things … until now, Washington has walked a very fine line between working with the Kurdish militia and also preventing a complete breakdown in relations with Ankara,” Tol said.

A U.S. official, speaking on condition of anonymity, said Trump values his relationship with Erdogan, but conceded that the United States has limited leverage and that the Trump administration was unlikely to commit more troops or covert operators to Syria, even if Turkey made a move from Afrin to Manbij.

“The U.S. has effectively said you can do this operation against Afrin because it is outside my area, but please keep it limited,” said Bulent Aliriza, director of the Turkey Project at the Washington-based think tank CSIS. “So it has not felt the need to go beyond the rhetorical means that it has employed.”

Erdogan has looked to bolster ties with Russia and Iran in recent years, in part because of frustration with Washington’s support for the YPG in the fight against Islamic State.

Ankara sees the YPG as an extension of the outlawed Kurdistan Workers Party (PKK) insurgent group, which is deemed a terrorist organization by the United States, the EU and Turkey.

In a clear sign of rapprochement, Ankara is buying an S-400 missile defense system from Russia – unnerving NATO officials, who are already wary of Moscow’s military presence in the Middle East. The S-400 is incompatible with NATO’s systems.

However, analysts say those moves are largely tactical and ultimately Turkey will be open to listening to U.S. concerns about its military operation, given that Ankara needs the European Union for trade and NATO partners for its security.

“I think behind closed doors, he really would not want a complete break in Turkey’s relations with the West,” Tol said.

Max Hoffman, with the Center for American Progress, said the United States still had considerable leverage and could look at imposing sanctions on Turkey in the future, should Turkish forces disregard warnings on Manbij.

(Additional reporting by Doina Chiacu; Editing by Alistair Bell and Paul Tait)

Tillerson, Russia’s Lavrov discuss Syria, North Korea, Ukraine: State Department

Russian Foreign Minister Sergei Lavrov takes his seat during a joint news conference with Yemeni Foreign Minister Abdel-Malek al-Mekhlafi following their meeting in Moscow, Russia January 22, 2018.

WASHINGTON (Reuters) – U.S. Secretary of State Rex Tillerson and his Russian counterpart Sergei Lavrov discussed the ongoing crises in Syria, North Korea and Ukraine in a call on Wednesday, U.S. State Department spokeswoman Heather Nauert said.

“On Syria, the two discussed Russia’s role in ensuring the Assad regime plays a constructive role in the UN-led Geneva process,” Nauert said in statement. Tillerson also pressed “all parties” to implement UN-led action on North Korea and called for an end to escalating violence in Ukraine, she added.

(Reporting by Susan Heavey and Katanga JohnsonEditing by Chizu Nomiyama)