Trump ally Stone denies collusion with Russia

U.S. political consultant Roger Stone, a longtime ally of President Donald Trump, speaks to reporters after appearing before a closed House Intelligence Committee investigating Russian interference in the 2016 U.S. presidential election at the U.S. Capitol in Washington, U.S., September 26, 2017. REUTERS/Kevin Lamarque

By Patricia Zengerle

WASHINGTON (Reuters) – Republican political consultant Roger Stone, a longtime ally of President Donald Trump, flatly denied allegations of collusion between the president’s associates and Russia during the 2016 U.S. election in a meeting with lawmakers on Tuesday.

In a 47-page opening statement seen by Reuters before his appearance before the House of Representatives Intelligence Committee, Stone said he viewed it “as a political proceeding” and accused some committee members of making “provably false” statements to create the impression of collusion with Russia.

After spending almost three hours behind closed doors taking questions from committee members, Stone again denied accusations that he had engaged in improper conduct during the 2016 campaign but was much more contentious than in the rambling statement.

“I am aware of no evidence whatsoever of collusion by the Russian state or anyone in the Trump campaign,” Stone told reporters.

The House panel is one of the main congressional committees investigating allegations that Russia sought to interfere in the 2016 U.S. election and probing whether any Trump associates colluded with Moscow.

Russia denies any such efforts, and Trump has dismissed any talk of collusion.

Stone said he had had a frank exchange with committee members, but described some clashes between Democrats and Republicans. He said he answered all of their questions except for refusing to identify an “opinion journalist” who had acted as a go-between between Stone and Julian Assange.

Assange is the publisher of WikiLeaks, which released emails stolen from Democrats that helped Trump’s campaign.

After Stone spoke, Representative Adam Schiff, the top Democrat on the Intelligence Committee, said Stone had declined to answer one line of questions, and the panel might have to subpoena him to return and do so.

Schiff declined to say whether those questions were related to Assange.

TIES TO TRUMP CAMPAIGN MANAGER

Stone, one of Trump’s closest political advisers in the years before he ran for president, was formerly a partner in a lobbying firm with Paul Manafort, a Trump campaign manager. Manafort has also been scrutinized in the investigations into Russia and the election. In August, FBI agents raided his home.

Stone said Manafort’s attorneys had informed his attorneys that federal prosecutors planned to indict Manafort.

Stone said he had not heard from Robert Mueller, the special counsel investigating Russian involvement in the election and possible collusion, and there were currently no plans for a similar appearance before the Senate Intelligence Committee.

Stone said he had spoken to Trump “recently,” but not about his appearance before the committee.

Mike Conaway, the Republican lawmaker overseeing the investigation, said he had no response to Stone. But he said he had watched Stone’s remarks to reporters “and they were very accurate.”

In his written statement, Stone also accused the committee of cowardice because he was not allowed to testify in an open forum. He said he wanted the transcript of his interview to be released.

“I am most interested in correcting a number of falsehoods, misstatements, and misimpressions regarding allegations of collusion between Donald Trump, Trump associates, The Trump Campaign and the Russian state,” Stone said in the statement.

U.S. intelligence agencies have concluded that Russia sought to influence the election to boost Trump’s chances of defeating former Secretary of State Hillary Clinton, his Democratic opponent.

In his statement, Stone acknowledged his reputation as a tough political strategist, but said he did not engage in any illegal activities.

“There is one ‘trick’ that is not in my bag and that is treason,” he said.

(Reporting by Patricia Zengerle; Editing by Susan Thomas and Jonathan Oatis)

Russia tells Facebook to localize user data or be blocked

FILE PHOTO: A 3D model of the Facebook logo is seen in front of a Russian flag in this photo illustration taken in Zenica, Bosnia and Herzegovina, May 22, 2015. REUTERS/Dado Ruvic

MOSCOW (Reuters) – Russia will block access to Facebook next year unless the social network complies with a law that requires websites which store the personal data of Russian citizens to do so on Russian servers, Russian news agencies reported on Tuesday.

The threat was made by Russia’s communications watchdog Roskomnadzor, agencies said, the organization which blocked access to LinkedIn’s website last November in order to comply with a court ruling that found the social networking firm guilty of violating the same data storage law.

That case set a precedent for the way foreign Internet firms operate in Russia and other companies are now under pressure from the regulator to comply with the law, which was approved by President Vladimir Putin in 2014 and entered into force in September 2015.

“Everyone needs to abide by the law,” the Interfax news agency cited Roskomnadzor head Alexander Zharov as telling reporters on Tuesday. “In 2018, everything will be as it should be for sure,” he said, referring to Facebook.

“In any case, we will either get the law implemented or the company will cease to work on the territory of the Russian Federation as unfortunately happened to LinkedIn. There can’t be any exceptions here.”

Twitter Inc had already notified Roskomnadzor that it would aim to localize the personal data of its users by the middle of 2018, Zharov said.

“We understand clearly that Facebook has a significant number of users on the territory of the Russian Federation,” Zharov was cited as saying. “On the other hand, we understand that this is not a unique service, and that there are other social media.”

Asked to comment on the regulator’s demands for Facebook to localize the data of its Russian users, Kremlin spokesman Dmitry Peskov said the U.S. firm had to comply with the law like everyone else.

(Reporting by Dmitry Solovyov; Editing by Andrew Osborn)

Oil hits highest since July 2015 as producers say market rebalancing

A gas station worker pumps gas into a car at a gas station of the state oil company PDVSA in Caracas, Venezuela August 29, 2017.

By Jessica Resnick-Ault

NEW YORK (Reuters) – Oil prices hit a more than two-year high on Monday after major producers said the global market was on its way toward re-balancing, while Turkey threatened to cut oil flows from Iraq’s Kurdistan region toward its ports.

The November Brent crude futures contract was up $1.51, or 2.5 percent, at $58.37 a barrel by 11:33 a.m. EDT, its highest since July, 2015.

U.S. West Texas Intermediate crude for November delivery rose $1.02, or 2 percent, to $51.68 a barrel, close to highs last seen in May.

“It’s all driven by the idea is that the production cut is starting to work and the rebalance is underway,” said Gene McGillian, director of market research at Tradition Energy in New York.

Even as both contracts rallied, concerns about U.S. production growth weighed on WTI, widening the spread between the two, he said.

The discount of the WTI to Brent futures widened to $6.61, the widest since August 2015.

Turkey has said it could cut off a pipeline that carries oil from northern Iraq to the global market, putting more pressure on the Kurdish autonomous region over its independence referendum.

The Iraqi government does not recognize the referendum and has called on foreign countries to stop importing Kurdish crude oil.

“If this boycott call proves successful, a good 500,000 fewer barrels of crude oil per day would reach the market,” Commerzbank said in a note.

The Organization of the Petroleum Exporting Countries, Russia and several other producers have cut production by about 1.8 million barrels per day (bpd) since the start of 2017, helping to lift oil prices by about 15 percent in the past three months.

Kuwaiti Oil Minister Essam al-Marzouq, who chaired Friday’s meeting in Vienna of the Joint Ministerial Monitoring Committee, said output curbs were helping to cut global crude inventories to their five-year average, OPEC’s stated target.

Russia’s energy minister said no decision on extending output curbs beyond the end of March was expected before January, although other ministers suggested such a decision could be taken before the end of this year.

Iran expects to maintain overall crude and condensate exports at around 2.6 million bpd for the rest of 2017, a senior official from the country’s state oil company said.

The energy minister from the United Arab Emirates said the country’s compliance with OPEC’s supply cuts was 100 percent.

Nigeria is pumping below its agreed output cap, its oil minister said.

 

 

(Additional reporting by Osamu Tsukimori in Tokyo and Fanny Potkin in London; Editing by Marguerita Choy and Jane Merriman)

 

U.S. challenged by rising North Korea tensions, Russia urges calm

U.S. challenged by rising North Korea tensions, Russia urges calm

By Michelle Nichols and David Brunnstrom

UNITED NATIONS (Reuters) – Russia urged “hot heads” to calm down on Friday as the United States admitted it felt “challenged” by North Korea’s warning that it could test a hydrogen bomb over the Pacific and President Donald Trump and Kim Jong Un traded more insults.

Trump called the North Korean leader a “madman” on Friday, a day after Kim dubbed him a “mentally deranged U.S. dotard” who would face the “highest level of hard-line countermeasure in history” in retaliation for Trump saying the U.S. would “totally destroy” North Korea if it threatened the U.S. or its allies.

“We have to calm down the hot heads,” Russian Foreign Minister Sergei Lavrov told reporters at the United Nations, where world leaders gathered this week for the annual U.N. General Assembly. “We continue to strive for the reasonable and not the emotional approach…of the kindergarten fight between children.”

U.S. Secretary of State Rex Tillerson expressed hope in an interview with ABC that sanctions and “voices from every corner of the world” could lead North Korea back to talks, but admitted intensifying rhetoric had left Washington “quite challenged.”

North Korea’s Foreign Minister Ri Yong Ho, warned on Thursday that Kim could consider a hydrogen bomb test of an unprecedented scale over the Pacific. Ri, who is due to speak to the United Nations on Saturday, added that he did not know Kim’s exact thoughts.

In response, Tillerson said U.S. diplomatic efforts would continue but all military options were still on the table.

North Korea’s six nuclear tests to date have all been underground, and experts say an atmospheric test, which would be the first since one by China in 1980, would be proof of the success of its weapons program.

A senior U.S. official, speaking on condition of anonymity, said Washington was taking Kim’s threat seriously and added that any atmospheric test would be a “game-changer.”

But he said there were questions about North Korea’s technical capabilities and Washington did not give “too much credence” to Pyongyang taking such action. “There’s a certain amount of bluster that’s taken for granted when you’re dealing with North Korea,” the official told Reuters.

‘UNACCEPTABLE’

Pyongyang conducted its sixth and largest nuclear test on Sept. 3 and has launched dozens of missiles this year as it accelerates a program aimed at enabling it to target the United States with a nuclear-tipped missile.

Lavrov on Friday again pushed a proposal by Moscow and Beijing for a dual suspension of North Korean weapons tests and the U.S.-South Korean military drills to kick-start talks. Lavrov suggested that a neutral European country could mediate.

He described the exchange of insults between the U.S. and North Korean leaders was “quite bad, unacceptable.”

U.S. Treasury and gold prices rose while the Japanese yen strengthened on Friday as the exchange of barbs fueled geopolitical jitters and drove investors into assets considered safer during times of turmoil.

The latest round of rhetoric began on Tuesday when Trump, in his first address to the United Nations, made the threat to destroy North Korea, a country of 26 million people. He also called Kim a “rocket man” on a suicide mission.

“His remarks … have convinced me, rather than frightening or stopping me, that the path I chose is correct and that it is the one I have to follow to the last,” Kim said in the statement carried by the North’s official KCNA news agency on Friday, promising to make Trump “pay dearly for his speech.”

South Korea said it was the first direct statement of its kind by a North Korean leader. Japan, the only country to suffer an atomic attack, called the North Korean threat to conduct an atmospheric test “totally unacceptable”.

‘MADMAN’

Trump on Friday tweeted: “Kim Jong Un of North Korea, who is obviously a madman who doesn’t mind starving or killing his people, will be tested like never before.”

The White House said on Friday that Trump and South Korean President Moon Jae-in had agreed to Seoul’s “acquisition and development of highly advanced military assets” and to increased deployment of U.S. strategic assets in and around South Korea on a rotational basis.” It did not name specific weapons systems.

On Thursday Trump announced new U.S. sanctions that he said allows the targeting of companies and institutions that finance and facilitate trade with North Korea. Then when asked if diplomacy was still a possible, he said: “Why not?”

The additional sanctions on Pyongyang, including on its shipping and trade networks, showed Trump was giving more time for economic pressure to weigh on North Korea. U.S. Treasury Secretary Steven Mnuchin said banks doing business in North Korea would not be allowed to operate in the United States.

KCNA also published rare criticism of official Chinese media, saying comments on North Korea’s nuclear program had damaged ties and suggested Beijing, its neighbor and only major ally, had sided with Washington.

KCNA said Chinese media was “openly resorting to interference in the internal affairs of another country” and driving a wedge between the two countries.

China’s Foreign Ministry spokesman Lu Kang said: “All relevant sides should exercise restraint and dedicate themselves to easing the situation rather than irritating each other.”

The rhetoric has started to rattle some in other countries. French Sports Minister Laura Flessel said France’s team would not travel to the 2018 Winter Olympic Games in South Korea if its security could not be guaranteed.

The 2018 Games are to be staged in Pyeongchang, just 80 km (50 miles) from the demilitarized zone between North and South Korea, the world’s most heavily armed border.

(Corrects typographical error to ‘dual’ in paragraph 12.)

(Additional reporting by Linda Sieg in TOKYO, Michael Martina, Ben Blanchard and Christian Shepherd in BEIJING, David Brunnstrom, Arshad Mohammed, John Irish and Jeff Mason in NEW YORK, Doina Chaicu and Matt Spetalnick in WASHINGTON, Soyoung Kim in SEOUL; Writing by Yara Bayoumy and Michelle Nichols; Editing by Chizu Nomiyama and Grant McCool)

Russian submarine fires cruise missiles at jihadi targets in Syria

A still image taken from a video footage and released by Russia's Defence Ministry on September 22, 2017, shows a missile hitting a building which Defence Ministry said was an Islamic State target in Syria. Russian Defence Ministry/Handout via REUTERS TV

MOSCOW (Reuters) – A Russian submarine fired cruise missiles at jihadi targets in Syria’s Idlib province on Friday, the Russian Defence Ministry said, saying it had targeted Islamist militants who had tried to trap a group of Russian military policemen earlier in the week.

The strike, launched from the Mediterranean by Russia’s ‘Veliky Novgorod’ submarine, was part of a counter-offensive against a jihadi attack on government-held parts of northwest Syria near Hama on Tuesday.

The Russian Defence Ministry on Wednesday said 29 Russian military policemen had been surrounded by jihadis as a result of that attack and that Russia had been forced to break them out in a special operation backed by air power.

On Friday, it said in a statement it had fired Kalibr cruise missiles at the same jihadis from a distance of 300 kilometers (186.41 miles) striking command centers, armored vehicles and the bases of jihadis who had taken part in the original attack.

(Reporting by Polina Devitt; Editing by Andrew Osborn)

Ukraine President says Trump backs U.N. deployment along border with Russia

U.S. President Donald Trump meets with Ukraine President Petro Poroshenko during the U.N. General Assembly in New York, U.S., September 21, 2017. REUTERS/Kevin Lamarque

KIEV (Reuters) – Ukrainian President Petro Poroshenko on Thursday said U.S. President Donald Trump had expressed his support for the deployment of U.N. peacekeepers across Ukraine’s eastern conflict zone and along its whole border with Russia.

After a meeting with Trump in New York, Poroshenko said in a televised briefing: I am extremely satisfied with the current unprecedented level of cooperation between Ukraine and the USA.”

He said Trump supported Ukraine’s proposal to deploy peacekeepers “including on the uncontrolled part of the Ukraine-Russia border, which would prevent the possibility of penetration by Russian troops or Russian weapons.”

 

 

 

(Reporting by Alessandra Prentice; editing by John Stonestreet)

 

Belarus plays down Western fears of aggression stirred by joint war games with Russia

Tanks and an armoured vehicle take part in the Zapad 2017 war games at a range near the town of Borisov, Belarus September 20, 2017. REUTERS/Vasily Fedosenko

By Andrei Makhovsky

BORISOV FIRING RANGE, Belarus (Reuters) – Belarus said on Wednesday the West had no reason to fear attack by its close ally Russia or that Moscow could leave behind forces after war games it is holding with Minsk for a possible occupation of Western neighbors.

Russia has repeatedly said the exercises, code named “Zapad” or “West” which began on Sept. 14, are purely defensive in nature and do not target a third country or group of countries.

NATO has voiced concern that Moscow could use the war games as a cover to station troops and equipment in Belarus. The U.S.-led alliance has said the drills lack transparency and the number of troops taking part could be much larger than the 12,700 servicemen declared by Moscow and Minsk.

Russia’s neighbors have said they fear Moscow could use the exercises as a rehearsal for an occupation of adjacent nations like Poland, Ukraine or the three Baltic republics – all of which were under Moscow’s rule before the Communist Soviet Union broke up in 1991. Poland and the Baltics are now members of NATO and the European Union, while Ukraine is pursuing such ties.

“The attempt to discredit the exercises is extremely unprofessional,” said Belarussian President Alexander Lukashenko.

“We won’t wage war on anyone. Do not expect any attack from us – especially on Ukraine,” he told reporters at a firing range 75 km (47 miles) east of Belarus’s capital Minsk after overseeing the last day of Zapad maneuvers.

“All the troops will be back to the sites of their permanent deployment,” he said, dressed in camouflage uniform as supreme commander. “In a week, this issue will become irrelevant.”

On an overcast and rainy day, he watched from a vantage point as allied troops of Russia and Belarus repelled a simulated attack by forces of three fictitious neighboring nations on Belarus. Aircraft zeroed in on ground targets after mock dogfighting, after which a ground offensive unfolded.

Hours earlier, Lithuanian President Dalia GrybauskaitÄ— made the exercises the centerpiece of her annual speech to the United Nations General Assembly in New York.

“Even as we speak, around 100,000 Russian troops are engaged in offensive military exercise ‘Zapad 2017’ on the borders of the Baltic States, Poland and even in the Arctic,” she said.

“The Kremlin is rehearsing aggressive scenarios against its neighbors, training its army to attack the West. The exercise is also part of information warfare aimed at spreading uncertainty and fear.”

The Kremlin said on Wednesday it had provided exhaustive information on the exercises before they were held to the military attaches of all interested countries and allowed their observers to attend the event to allay any concerns.

“I think that upon receiving this information Ms. Grybauskaite will have a chance to change her point of view,” President Vladimir Putin’s spokesman Dmitry Peskov told reporters.

Polish Prime Minister Beata Szydlo also voiced disquiet at the exercises and said Warsaw opposed any lifting of Western sanctions imposed on Russia over its annexation of Ukraine’s Crimea region and role in its separatist conflict.

“We are very concerned by what is happening in Belarus, from the exercises there,” Szydlo said during a visit to Bulgaria.

(Additional reporting by Dmitry Solovyov in Moscow and Angel Krasimirov in Sofia; writing by Dmitry Solovyov; editing by Mark Heinrich)

Exclusive: From Russia with fuel – North Korean ships may be undermining sanctions

Exclusive: From Russia with fuel - North Korean ships may be undermining sanctions

By Polina Nikolskaya

MOSCOW (Reuters) – At least eight North Korean ships that left Russia with a cargo of fuel this year headed for their homeland despite declaring other destinations, a ploy that U.S. officials say is often used to undermine sanctions.

Reuters has no evidence of wrongdoing by the vessels, whose movements were recorded in Reuters ship-tracking data. Changing a ship’s destination once underway is not forbidden and it is unclear whether any of the ships unloaded fuel in North Korea.

But U.S. officials say that changing destination mid-voyage is a hallmark of North Korean state tactics to circumvent the international trade sanctions imposed over Pyongyang’s nuclear weapons program.

Changing course and the complex chain of different firms –many offshore — involved in shipments can complicate efforts to check how much fuel is supplied to North Korea and monitor compliance with a cap on fuel imports under U.N. sanctions.

“As part of North Korea’s efforts to acquire revenue, the regime uses shipping networks to import and export goods,” U.S. Assistant Secretary of the Treasury Marshall S. Billingslea told the Congressional Foreign Affairs Committee this month.

“North Korea employs deceptive practices to conceal the true origins of these goods. Pyongyang has been found to routinely falsify a vessel’s identity and documentation.”

VOYAGE OF THE MA DU SAN

The eight vessels identified in the tracking data set sail from the Far Eastern Russian port of Vladivostok or nearby Nakhodka and registered China or South Korea as their destination with the Information System for State Port Control.

After leaving Russia, they were next recorded off the North Korean ports of Kimchaek, Chongjin, Hungnam or Najin. None went on to China and most went back to Russia.

All had a cargo of diesel, a source at the company that services vessels in Vladivostok said. Their cargo capacity ranged from 500 tonnes to 2,000 tonnes.

One of the vessels was the Ma Du San, owned by North Korea’s Korea Kyongun Shipping Co. It took on a cargo of 545 tonnes of marine fuel at Vladivostok’s Pervaya Rechka terminal, owned by Russia’s Independent Petroleum company (IPC).

Reuters obtained a bill of lading — a receipt for goods issued when a ship loads up — dated May 19 showing the Ma Du San’s cargo came from Khabarovskiy NPZ, a refinery owned by IPC.

The ship set sail on May 20. Documents filed with Russia’s Information System for State Port Control stated its next destination as the Chinese port of Zhanjiang and the bill of lading showed it as Busan in South Korea.

The Ma Du San’s next recorded location after Vladivostok was inside the perimeter of the port of Kimchaek — all the other ships were tracked only in the vicinity of ports. North Korean ships intermittently turn off their transponders, and satellites cannot track them at such times, U.S. officials say.

Allegations outlined in two U.S. Treasury Department sanctions orders and a legal complaint filed by the U.S. government match the information Reuters obtained on the Ma Du San though the U.S. documents do not name the vessel involved.

SANCTIONS BLACKLIST

On June 1, the U.S. Treasury Department included IPC on its sanctions blacklist, saying it provided oil to North Korea and may have been involved in circumventing sanctions.

On Aug. 22, the U.S. government sanctioned two more companies, both registered in Singapore — Transatlantic Partners and Velmur Management Pte. Ltd.

The legal complaint, also filed on Aug. 22, accused the two firms of money laundering on behalf of sanctioned North Korean banks seeking to buy petroleum products, citing a bill of lading for May 19 for a cargo of diesel sold by IPC to Velmur and loaded in Vladivostok — the same date as the bill of lading for the Ma Du San.

Andrey Serbin, who represents Transatlantic Partners, said the firm had not received payments from a sanctions-hit bank and that ownership of the fuel changed after it was loaded.

“We sold the fuel to a Chinese company,” Serbin, who has been blacklisted by the U.S. government for “operating in the energy industry in the North Korean economy” and working to purchase fuel for delivery to North Korea, said of several shipments where the company acted as middleman.

“There’s no way we can control them (the goods),” he said.

Serbin did not identify the vessels Transatlantic Partners loaded fuel on to, but a source in a company that services ships in Vladivostok said the Ma Du San was among them.

The bill of lading named the recipient of the Ma Du San’s cargo as a company called LLC Sky Shipping Limited. Reuters was unable to find any record of such a firm.

Velmur said it could not have known where the cargo would end up and did not knowingly help anyone dodge sanctions.

IPC did not respond to a request for comment. Its parent company, Bermuda-registered Alliance Oil Company Ltd., denied having any contractual relations with North Korean companies when U.S. sanctions were imposed on IPC.

The U.S. Treasury and State departments declined to answer questions about Reuters’ findings.

Russia’s foreign ministry did not respond to questions about fuel exports to North Korea but has said Russia complies with the sanctions. Russia’s customs service said it could not provide information about movement of goods across borders.

Since the U.S. sanctions were imposed on IPC, all North Korean-flagged vessels that had been in Vladivostok port have left, according to the tracking data.

They departed with no cargo, an employee with a shipping agent in Vladivostok said. This is confirmed by documents seen by Reuters.

Russian supplies of oil and oil products to North Korea are much smaller than volumes shipped by China, Pyongyang’s only major ally. Beijing has acted to reduce the flows, but Russia’s trade in all goods with North Korea more than doubled in the first quarter of 2017 to $31.4 million.

Moscow’s trade with Pyongyang is under closer scrutiny following a series of missile launches by North Korea and a test involving what it said was a hydrogen bomb.

(Additional reporting by David Brunnstrom in WASHINGTON, Chen Aizhu in BEIJING, James Pearson in SEOUL, Katya Golubkova, Gleb Stolyarov, Vladimir Soldatkin and Olesya Astakhova in MOSCOW; Editing by Christian Lowe and Timothy Heritage)

Helicopter mistakenly fires on parked vehicles in Russia war games: media

A view shows turrets of armoured vehicles during the Zapad-2017 war games.

MOSCOW (Reuters) – A military helicopter on a rural training exercise in western Russia mistakenly fired rockets at a group of parked vehicles, knocking at least one person to the ground, footage posted by Russian news sites and on social media showed.

A video clip published on Tuesday by the independent news site Fontanka.ru showed a helicopter firing a salvo of rockets at a military truck covered in camouflage netting in open countryside, with three vehicles with no military markings visible, parked a few meters away.

A man in civilian clothes who had been standing close to the truck was engulfed in a cloud of dust. The person filming the clip, who was slightly further away, could be seen sprawled on the ground.

Russia is currently staging the “Zapad 2017” war games in the area, major exercises on NATO’s eastern flank that were inspected on Monday by Russian President Vladimir Putin.

Fontanka.ru said the incident occurred on Sept. 18 and left one person with concussion. It did not give details on the source of the video.

A second video from the same location, which was posted on social media by Russian investigative bloggers Conflict Intelligence Team, showed the aftermath, including a smashed window in a white jeep nearest to the truck, and shrapnel damage to the military truck.

Reuters could not independently verify the videos.

The Russian Defence Ministry’s western military district, in a statement cited by Interfax news agency, said that during a training exercise a helicopter’s targeting system had mistakenly acquired a target, but denied anyone had been injured.

The representative cited by Interfax did not say when the incident happened, or where, or if the exercise was part of the “Zapad-2017” war games.

“As a result of a strike by an unguided rocket, a cargo vehicle with no people on board was damaged,” Interfax quoted a representative of the military district as saying.

The Western military district includes north-western Russia and the Russian exclave of Kaliningrad, all areas where the “Zapad-2017” exercises are focused.

Russia’s defense ministry in Moscow did not immediately respond to a Reuters request for comment. Asked by reporters about the incident, Kremlin spokesman Dmitry Peskov referred questions to the defense ministry.

(The online version of the story has been corrected to fix a typo in the second paragraph.)

(Reporting by Maria Vasilyeva and Christian Lowe; Editing by Dmitry Solovyov and Raissa Kasolowsky)

Korean peninsula draws range of military drills in show of force against North Korea

North Korean leader Kim Jong Un watches the launch of a Hwasong-12 missile in this undated photo released by North Korea's Korean Central News Agency (KCNA) on September 16, 2017. KCNA via REUTERS

By Ben Blanchard and Hyonhee Shin

BEIJING/SEOUL (Reuters) – The U.S. military staged bombing drills with South Korea over the Korean peninsula and Russia and China began naval exercises ahead of a U.N. General Assembly meeting on Tuesday where North Korea’s nuclear threat is likely to loom large.

The flurry of military drills came after Pyongyang fired another mid-range ballistic missile over Japan on Friday and the reclusive North conducted its sixth and most powerful nuclear test on Sept. 3 in defiance of United Nations sanctions and other international pressure.

A pair of U.S. B-1B bombers and four F-35 jets flew from Guam and Japan and joined four South Korean F-15K fighters in the latest drill, South Korea’s defense ministry said.

The joint drills were being conducted “two to three times a month these days”, Defence Minister Song Young-moo told a parliamentary hearing on Monday.

In Beijing, the official Xinhua news agency said China and Russia began naval drills off the Russian far eastern port of Vladivostok, not far from the Russia-North Korea border.

Those drills were being conducted between Peter the Great Bay, near Vladivostok, and the southern part of the Sea of Okhotsk, to the north of Japan, it said.

The drills are the second part of China-Russian naval exercises this year, the first part of which was staged in the Baltic in July. Xinhua did not directly link the drills to current tension over North Korea.

China and Russia have repeatedly called for a peaceful solution and talks to resolve the issue.

On Sunday, however, U.S. Ambassador to the United Nations Nikki Haley said the U.N. Security Council had run out of options on containing North Korea’s nuclear program and the United States might have to turn the matter over to the Pentagon.

In response, Chinese Foreign Ministry spokesman Lu Kang said the most pressing task was for all parties to enforce the latest U.N. resolutions on North Korea fully, rather than “deliberately complicating the issue”.

Military threats from various parties have not promoted a resolution to the issue, he said.

“This is not beneficial to a final resolution to the peninsula nuclear issue,” Lu told a daily news briefing.

U.S. President Donald Trump has vowed that North Korea will never be able to threaten the United States with a nuclear-tipped ballistic missile.

Asked about Trump’s warning last month that the North Korean threat to the United States would be met with “fire and fury”, Haley said: “It was not an empty threat.”

Washington has also asked China to do more to rein in its neighbor and ally, while Beijing has urged the United States to refrain from making threats against the North.

 

FUEL PRICES SURGE

The U.N. Security Council unanimously passed a U.S.-drafted resolution a week ago mandating tougher new sanctions against Pyongyang that included banning textile imports and capping crude and petrol supply.

North Korea on Monday called the resolution “the most vicious, unethical and inhumane act of hostility to physically exterminate” its people, system and government.

“The increased moves of the U.S. and its vassal forces to impose sanctions and pressure… will only increase our pace toward the ultimate completion of the state nuclear force,” the North’s foreign ministry spokesman said in a statement carried by its official KCNA news agency.

Gasoline and diesel prices in the North have surged since the latest nuclear test in anticipation of a possible oil ban, according to market data analyzed by Reuters on Monday.

The international community must remain united and enforce sanctions against North Korea after its repeated launch of ballistic missiles, Japanese Prime Minister Shinzo Abe said in an editorial in the New York Times on Sunday.

Such tests were in violation of Security Council resolutions and showed that North Korea could now target the United States or Europe, he wrote.

Abe also said diplomacy and dialogue would not work with North Korea and concerted pressure by the entire international community was essential to tackle the threats posed by the north and its leader, Kim Jong Un.

However, the official China Daily argued on Monday that sanctions should be given time to bite and that the door must be left open to talks.

“With its Friday missile launch, Pyongyang wanted to give the impression that sanctions will not work,” it said in an editorial. “Some people have fallen for that and immediately echoed the suggestion, pointing to the failure of past sanctions to achieve their purpose.

“But that past sanctions did not work does not mean they will not. It is too early to claim failure because the latest sanctions have hardly begun to take effect. Giving the sanctions time to bite is the best way to make Pyongyang reconsider,” the newspaper said.

Pyongyang has launched dozens of missiles as it accelerates a weapons program designed to provide the ability to target the United States with a powerful, nuclear-tipped missile.

It says such programs are needed as a deterrent against invasion by the United States, which has 28,500 troops stationed in South Korea. On Saturday, it said it aimed to reach an “equilibrium” of military force with the United States.

The United States and South Korea are technically still at war with North Korea because the 1950-53 Korean conflict ended with a truce and not a peace treaty.

 

(Reporting by Ben Blanchard in BEIJING, Hyonhee Shin and Soyoung Kim in SEOUL; Editing by Paul Tait and Simon Cameron-Moore)