Defense Secretary Mattis promises support to Ukraine, but no arms

Ukrainian President Petro Poroshenko (R) shakes hands with U.S. Secretary of Defense James Mattis during a meeting in Kiev, Ukraine August 24, 2017. Mykola Lazarenko/Ukrainian Presidential Press Service/Pool via REUTERS

By Idrees Ali and Pavel Polityuk

KIEV (Reuters) – U.S. Defense Secretary Jim Mattis on a visit to Ukraine on Thursday said Washington would continue to put pressure on Russia over what he called its aggressive behavior, but stopped short of promising to provide lethal weapons to Kiev.

Mattis said Russia has not abided by the Minsk ceasefire agreement meant to end separatist violence in eastern Ukraine.

“Despite Russia’s denials, we know they are seeking to redraw international borders by force, undermining the sovereign and free nations of Europe,” Mattis told reporters, alongside Ukrainian President Petro Poroshenko.

Mattis’s visit, timed to coincide with Ukrainian Independence Day, is the second high-profile show of U.S. support in as many months, after U.S. Secretary of State Rex Tillerson came to Kiev in July.

Ukraine has counted on U.S. support against Russia since a pro-Western government took power following street protests in 2014 when the Kremlin-backed president fled the country.

But some of President Donald Trump’s comments during the election campaign last year, such as appearing to recognize Crimea as part of Russia, stoked fears in Kiev that Trump might mend ties with Moscow at Ukraine’s expense.

Kiev wants the U.S. to supply lethal defensive weapons to Ukraine — a move that the previous administration under Barack Obama shied away from.

“On the defensive lethal weapons, we are actively reviewing it, I will go back now having seen the current situation and be able to inform the Secretary of State and the President in very specific terms what I recommend for the direction ahead,” Mattis said.

(Reporting by Idrees Ali and Pavel Polityuk; editing by Matthias Williams and Richard Balmforth)

Russia sends nuclear-capable bombers on mission near South Korea, Japan

A Tupolev Tu-95MS strategic bomber, the carrier of nuclear rockets, lands at the Yemelyanovo airport near Russia's Siberian city of Krasnoyarsk, June 8, 2011. REUTERS/Ilya Naymushin

MOSCOW (Reuters) – Russian nuclear-capable strategic bombers have flown over the Pacific Ocean, the Sea of Japan, the Yellow Sea and the East China Sea, prompting Japan and South Korea to scramble jets to escort them, Russia said on Thursday.

Russia’s Defence Ministry said in a statement the Tupolev-95MS bombers, code named “Bears” by NATO, flew over neutral waters and were accompanied by Russian Sukhoi-35S fighter jets and A-50 early warning and control aircraft.

It gave no details about the overall number of aircraft that had taken part in what it called a pre-arranged flight and did not say when or why the mission took place.

The TU-95MS bombers were refueled in mid-air during the mission, the ministry said.

During parts of the route, the bombers were escorted by South Korean and Japanese military jets, it added.

Russia, which shares a border with North Korea, has repeatedly voiced concerns about rising tensions on the Korean Peninsula caused by Pyongyang’s nuclear missile program, and has complained about Japan’s plans to deploy a U.S. anti-missile system on its soil.

(Reporting by Dmitry Solovyov; Editing by Andrew Osborn)

Poland to allocate additional $55 bllion on defense by 2032: deputy minister

FILE PHOTO: Polish troops parade during National Army Day parade in Warsaw, Poland August 15, 2016. Agencja Gazeta/Slawomir Kaminski/via REUTERS

By Lidia Kelly

WARSAW (Reuters) – Poland will allocate an additional 200 billion zlotys ($55 billion) on defense over the next 15 years to modernize its army amid signs of growing aggression from Russia, a deputy defense minister said.

Russia’s Zapad military exercises next month in Belarus and western Russia, the largest in years, have raised concerns for their lack of transparency, with NATO worried the official number of troops participating might be understated.

NATO Secretary-General Jens Stoltenberg will visit Poland on Thursday and Friday to check on deployment of U.S. troops in the east of the country and to meet Polish, Romanian and Turkish government officials.

Poland, alarmed by what it sees as Russia’s assertiveness on NATO’s eastern flank, has lobbied hard for the stationing of NATO troops on its soil, especially since Moscow’s annexation of Crimea in 2014.

“The government has approved a legislative amendment … which gives us nearly 200 billion zlotys over the next 15 years,” deputy defense minister Tomasz Szatkowski said, adding that this was in line with plans to raise defense spending gradually to reach 2.5 percent of gross domestic product.

“This is not a trivial amount,” he told Reuters in an interview.

The Polish government agreed in June to raise defense spending gradually from 2 pct to 2.5 percent of GDP. This means that annual spending would nearly double to about 80 billion zlotys by 2032.

HARD CHOICES

Szatkowski, architect of a new national concept for defense, said that although the ministry would be getting almost all the money needed to implement the strategy, some “hard choices” will have to be made.

The plan is to increase the size of the army nearly twofold and revamp the equipment. Nearly two-thirds of equipment dates from the Soviet era when the country was in the Moscow-led Warsaw Pact.

The navy, though, will fare less well from modernization. The ministry has canceled the purchase of two classes of surface vessels, including multi-task frigates used to protect other warships.

“We cannot afford to expand the transport fleet,” Szatkowski said. Higher spending on artillery, engineering or assault helicopters will come at the cost of expanding the airborne forces.

Warsaw plans to acquire fifth-generation fighter jets, but Szatkowski said that this would not happen until the second half of the next decade.

Szatkowski defended the spending plans which have been criticized as “unrealistic”.

“Nobody can release from us the obligation of planning and creating a coherent vision and proving there is money for it – something that is happening for the first time on such a scope in the history of Polish defense planning,” he said.

(Writing by Lidia Kelly; Editing by Richard Balmforth)

U.S. targets Chinese and Russia entities over North Korea

Treasury Secretary Steven Mnuchin walks through the lobby of Trump Tower in New York City, U.S., August 15, 2017. REUTERS/Brendan McDermid

By David Brunnstrom and Doina Chiacu

WASHINGTON (Reuters) – The United States is imposing new North Korea-related sanctions, targeting Chinese and Russian firms and individuals for supporting Pyongyang’s weapons programs, U.S. officials announced on Tuesday, but stopped short of an anticipated focus on Chinese banks.

The Office of Foreign Assets Control designated six Chinese-owned entities, one Russian, one North Korean and two based in Singapore. They included a Namibia-based subsidiary of a Chinese company and a North Korean entity operating in Namibia.

Six individuals including four Russians, one Chinese and one North Korean were targeted, the Treasury Department said.

The move follows toughened United Nations sanctions agreed this month after North Korea tested its first two intercontinental ballistic missiles in July.

The Treasury Department said the new sanctions targeted those helping already-designated individuals supporting North Korea’s nuclear and ballistic missile programs and its energy trade. They included three Chinese coal importers.

The steps also targeted those helping North Korea send workers abroad and enabling sanctioned North Korea entities to get access to the U.S. and international financial system.

“Treasury will continue to increase pressure on North Korea by targeting those who support the advancement of nuclear and ballistic missile programs, and isolating them from the American financial system,” Treasury Secretary Steven T. Mnuchin said in a statement.

“It is unacceptable for individuals and companies in China, Russia, and elsewhere to enable North Korea to generate income used to develop weapons of mass destruction.”

A new round of U.S. sanctions had been expected, but Washington appeared to delay them while securing Chinese and Russian support for tougher U.N. steps.

U.S. officials and U.N. diplomats say the threat of U.S. “secondary sanctions” against Chinese firms with North Korean ties and trade pressure helped persuade China to drop opposition to the U.N. sanctions.

The latest steps stopped short of targeting Chinese financial institutions dealing with North Korea, a step that would have greatly angered Beijing. The Trump administration is still hoping China will pressure Pyongyang.

“The sanctions target a range of North Korea’s illicit activities and the focus on Chinese facilitators is another message to Beijing,” said Anthony Ruggiero, a Foundation for Defense of Democracies senior fellow and former U.S. Treasury official.

“However, there are missing elements. There’s no focus on the efforts of Chinese banks that facilitate these transactions. In addition, these Chinese networks likely have additional front companies operating on behalf of the network and those were not sanctioned.”

China is North Korea’s neighbor and main trading partner and U.S. foreign policy experts say Chinese companies have long had a key role in financing Pyongyang.

The Chinese and Russians embassies in Washington did not respond to requests for comment. China has said in the past it is strongly opposed to unilateral sanctions outside the U.N. framework, and has accused the United States of using “long-arm” jurisdiction in targeting Chinese entities.

(Additional reporting by Yeganeh Torbati; Editing by David Alexander and Jeffrey Benkoe)

Turkey detains suspected Islamic State militant for planning to bring down U.S. plane: Dogan

Russian national Renat Bakiev, a suspected Islamic State militant who allegedly planned to use a drone to bring down a U.S. plane at the Incirlik air base, is escorted by police officers as he arrives to a hospital for a medical check in the city of Adana, Turkey, August 10, 2017. Dogan News Agency via REUTERS

ANKARA (Reuters) – Turkish authorities have detained a suspected Islamic State militant of Russian origin after he allegedly planned to use a drone to bring down a U.S. plane at the Incirlik air base, Dogan News Agency said on Thursday.

Dogan, citing security officials, said Russian national Renat Bakiev was detained after police surveillance showed him scouting the southern city of Adana, where the base is located, with the aim of carrying out his attack.

Bakiev told authorities that he was a member of Islamic State and planned to use a drone to bring down a U.S. plane and carry out an attack against U.S. nationals, Dogan said.

Authorities said he had also scouted an association of the Alevi religious minority in Adana. He described Alevis as “enemies of Allah”, and criticized President Tayyip Erdogan, while being interrogated, Dogan said.

Turkey has been a partner in the U.S.-led coalition against Islamic State forces, providing the coalition with access to Incirlik air base to wage strikes against the militants.

Ankara has detained more than 5,000 Islamic State suspects and deported some 3,290 foreign militants from 95 different countries in recent years, according to Turkish officials. It has also refused entry to at least 38,269 individuals.

(Reporting by Dirimcan Barut and Tuvan Gumrukcu; Editing by David Dolan and Dominic Evans)

FBI raided former Trump campaign manager Manafort’s home in July

FILE PHOTO: Paul Manafort, senior advisor to Republican U.S. presidential candidate Donald Trump, exits following a meeting of Donald Trump's national finance team at the Four Seasons Hotel in New York City, U.S., June 9, 2016. REUTERS/Brendan McDermid/File Photo

By Sarah N. Lynch and Patricia Zengerle

WASHINGTON (Reuters) – FBI agents seized documents and other material last month at the Virginia home of Paul Manafort, President Donald Trump’s former campaign manager, as part of a special counsel’s probe into alleged Russian meddling in the 2016 U.S. presidential election, a spokesman for Manafort said on Wednesday.

The predawn raid was conducted at Manafort’s home in the Washington suburb of Alexandria without advance warning on July 26, a day after Manafort had met with Senate Intelligence Committee staff members, the Washington Post reported, citing unidentified people familiar with the probe.

The search warrant was wide-ranging and FBI agents working with Robert Mueller, the special counsel named by the U.S. Justice Department in May to head the investigation, departed the home with various records, the Post said. Investigators were looking for tax documents and foreign banking records, the New York Times reported.

Manafort spokesman Jason Maloni confirmed the raid had taken place.

“FBI agents executed a search warrant at one of Mr. Manafort’s residences. Mr. Manafort has consistently cooperated with law enforcement and other serious inquiries and did so on this occasion as well,” Maloni said in an email.

The raid was the latest indication of the intensifying of Mueller’s probe, which Trump has derided as a “witch hunt.” Allegations of possible collusion between people associated with Trump’s campaign and Moscow have dogged the Republican president since he took office in January.

U.S. intelligence agencies concluded that Russia interfered in the presidential race, in part by hacking and releasing emails embarrassing to Trump’s Democratic opponent, Hillary Clinton, to help him get elected.

Manafort has been a key figure in the congressional and federal investigations into the matter. Mueller’s team is examining money-laundering accusations against Manafort, poring over his financial and real estate records in New York as well as his involvement in Ukrainian politics, two officials told Reuters last month.

Congressional committees are looking at a June 2016 meeting in New York with a Russian lawyer organized by Trump’s eldest son, Donald Trump Jr., who released emails last month that showed he welcomed the prospect of receiving damaging information about Clinton at the meeting. Manafort attended the meeting.

The Federal Bureau of Investigation did not immediately return a request for comment on the raid. Joshua Stueve, a spokesman for Mueller’s office, declined to confirm the raid.

Manafort has been cooperating with the congressional committees in their Russia probes, meeting with staff members behind closed doors and turning over documents. He also has been in talks with them about testifying publicly.

He met with investigators from Senate Intelligence Committee staff last month and has been negotiating an appearance before the Judiciary Committee.

Committee leaders said they wanted to discuss not just the campaign, but also Manafort’s political work on behalf of interests in Ukraine. Russia’s aggression in Ukraine was one reason the U.S. Congress defied Trump and passed new sanctions on Russia last month.

Manafort previously worked as a consultant to a pro-Russia political party in Ukraine and helped support the country’s Kremlin-backed former leader, Viktor Yanukovich. According to a financial audit reported by the New York Times, he also once owed $17 million to Russian shell companies.

A Senate Judiciary Committee aide said the panel on Aug. 2 received approximately 20,000 pages of documents from Trump’s presidential campaign that it requested for its own Russia investigation, as well as about 400 pages of documents from Manafort the same day.

(Reporting by Sarah N. Lynch, Patricia Zengerle and Richard Cowan; Writing by Doina Chiacu; Editing by Will Dunham)

Cyber threats prompt return of radio for ship navigation

Cargo ships navigate the Panama Canal during an organized media tour by Italy's Salini Impregilo, one of the main sub contractors of the Panama Canal Expansion project, on the outskirts of Colon city, Panama May 11, 2016

By Jonathan Saul

LONDON (Reuters) – The risk of cyber attacks targeting ships’ satellite navigation is pushing nations to delve back through history and develop back-up systems with roots in World War Two radio technology.

Ships use GPS (Global Positioning System) and other similar devices that rely on sending and receiving satellite signals, which many experts say are vulnerable to jamming by hackers.

About 90 percent of world trade is transported by sea and the stakes are high in increasingly crowded shipping lanes. Unlike aircraft, ships lack a back-up navigation system and if their GPS ceases to function, they risk running aground or colliding with other vessels.

South Korea is developing an alternative system using an earth-based navigation technology known as eLoran, while the United States is planning to follow suit. Britain and Russia have also explored adopting versions of the technology, which works on radio signals.

The drive follows a series of disruptions to shipping navigation systems in recent months and years. It was not clear if they involved deliberate attacks; navigation specialists say solar weather effects can also lead to satellite signal loss.

Last year, South Korea said hundreds of fishing vessels had returned early to port after their GPS signals were jammed by hackers from North Korea, which denied responsibility.

In June this year, a ship in the Black Sea reported to the U.S. Coast Guard Navigation Center that its GPS system had been disrupted and that over 20 ships in the same area had been similarly affected.

U.S. Coast Guard officials also said interference with ships’ GPS disrupted operations at a port for several hours in 2014 and at another terminal in 2015. It did not name the ports.

A cyber attack that hit A.P. Moller-Maersk’s IT systems in June 2017 and made global headlines did not involve navigation but underscored the threat hackers pose to the technology dependent and inter-connected shipping industry. It disrupted port operations across the world.

The eLoran push is being led by governments who see it as a means of protecting their national security. Significant investments would be needed to build a network of transmitter stations to give signal coverage, or to upgrade existing ones dating back decades when radio navigation was standard.

U.S. engineer Brad Parkinson, known as the “father of GPS” and its chief developer, is among those who have supported the deployment of eLoran as a back-up.

“ELoran is only two-dimensional, regional, and not as accurate, but it offers a powerful signal at an entirely different frequency,” Parkinson told Reuters. “It is a deterrent to deliberate jamming or spoofing (giving wrong positions), since such hostile activities can be rendered ineffective,” said Parkinson, a retired U.S. airforce colonel.

 

KOREAN STATIONS

Cyber specialists say the problem with GPS and other Global Navigation Satellite Systems (GNSS) is their weak signals, which are transmitted from 12,500 miles above the Earth and can be disrupted with cheap jamming devices that are widely available.

Developers of eLoran – the descendant of the loran (long-range navigation) system created during World War II – say it is difficult to jam as the average signal is an estimated 1.3 million times stronger than a GPS signal.

To do so would require a powerful transmitter, large antenna and lots of power, which would be easy to detect, they add.

Shipping and security officials say the cyber threat has grown steadily over the past decade as vessels have switched increasingly to satellite systems and paper charts have largely disappeared due to a loss of traditional skills among seafarers.

“My own view, and it is only my view, is we are too dependent on GNSS/GPS position fixing systems,” said Grant Laversuch, head of safety management at P&O Ferries. “Good navigation is about cross-checking navigation systems, and what better way than having two independent electronic systems.”

Lee Byeong-gon, an official at South Korea’s Ministry of Oceans and Fisheries, said the government was working on establishing three sites for eLoran test operations by 2019 with further ones to follow after that.

But he said South Korea was contending with concerns from local residents at Gangwha Island, off the west coast.

“The government needs to secure a 40,000 pyeong (132,200 square-meter) site for a transmitting station, but the residents on the island are strongly opposed to having the 122 to 137 meter-high antenna,” Lee told Reuters.

In July, the United States House of Representatives passed a bill which included provisions for the U.S. Secretary of Transportation to establish an eLoran system.

“This bill will now go over to the Senate and we hope it will be written into law,” said Dana Goward, president of the U.S. non-profit Resilient Navigation and Timing Foundation, which supports the deployment of eLoran.

“We don’t see any problems with the President (Donald Trump) signing off on this provision.”

The previous administrations of Presidents George W. Bush and Barack Obama both pledged to establish eLoran but never followed through. However, this time there is more momentum.

In May, U.S. Director of National Intelligence Daniel Coats told a Senate committee the global threat of electronic warfare attacks against space systems would rise in coming years.

“Development will very likely focus on jamming capabilities against … Global Navigation Satellite Systems (GNSS), such as the U.S. Global Positioning System (GPS),” he said.

 

SPOOFING DANGERS

Russia has looked to establish a version of eLoran called eChayka, aimed at the Arctic region as sea lanes open up there, but the project has stalled for now.

“It is obvious that we need such a system,” said Vasily Redkozubov, deputy director general of Russia’s Internavigation Research and Technical Centre.

“But there are other challenges apart from eChayka, and (Russia has) not so many financial opportunities at the moment.”

Cost is a big issue for many countries. Some European officials also say their own satellite system Galileo is more resistant to jamming than other receivers.

But many navigation technology experts say the system is hackable. “Galileo can help, particularly with spoofing, but it is also a very weak signal at similar frequencies,” said Parkinson.

The reluctance of many countries to commit to a back-up means there is little chance of unified radio coverage globally for many years at least, and instead disparate areas of cover including across some national territories and shared waterways.

The General Lighthouse Authorities of the UK and Ireland had conducted trials of eLoran but the initiative was pulled after failing to garner interest from European countries whose transmitters were needed to create a signal network.

France, Denmark, Norway and Germany have all decided to turn off or dismantle their old radio transmitter stations.

Britain is maintaining a single eLoran transmitter in northern England.

Taviga, a British-U.S. company, is looking to commercially operate an eLoran network, which would provide positioning, navigation and timing (PNT).

“There would need to be at least one other transmitter probably on the UK mainland for a timing service,” said co-founder Charles Curry, adding that the firm would need the British government to commit to using the technology.

Andy Proctor, innovation lead for satellite navigation and PNT with Innovate UK, the government’s innovation agency, said: “We would consider supporting a commercially run and operated service, which we may or may not buy into as a customer.”

Current government policy was “not to run large operational pieces of infrastructure like an eLoran system”, he added.

 

(Additional reporting by Terje Solsvik in Oslo, Jacob Gronholt-Pedersen in Copenhagen, Yuna Park in Seoul, Gleb Stolyarov in Moscow, Sophie Louet in Paris, Madeline Chambers in Berlin and Mark Hosenball in London; Editing by Pravin Char)

 

Tillerson says U.S., Russia can settle problems, ease tension

U.S. Secretary of State Rex Tillerson answers questions during a news conference in Manila, Philippines August 7, 2017.

By Karen Lema

MANILA (Reuters) – U.S. Secretary of State Rex Tillerson said on Monday he believes Washington and Russia can find a way to ease tensions, saying it wouldn’t be useful to cut ties over the single issue of suspected Russian meddling in the U.S. election.

Tillerson said Russia had also expressed some willingness to resume talks about the crisis in Ukraine, where a 2015 ceasefire between Kiev’s forces and Russian-backed separatists in the eastern part of the country is regularly violated.

“We should find places we can work together… In places we have differences we’re going to have to continue to find ways to address those,” Tillerson told reporters.

Tillerson met his Russian counterpart, Sergei Lavrov, on the sidelines of an international gathering in Manila on Sunday, where he also asked about Moscow’s retaliation against new U.S. sanctions.

Tillerson said he told Lavrov the United States would respond to the Kremlin’s order for it to cut about 60 percent of its diplomatic staff in Russia by September 1.

“We have not made a decision on how we will respond to Russia’s request to remove U.S. diplomatic personnel. I asked several clarifying questions…I told him we would respond by September first,” Tillerson said.

The meeting was their first since President Donald Trump reluctantly signed into law the sanctions that Russia said amounted to a full-scale trade war and ended hopes for better ties.

Lavrov on Sunday said he believed his U.S. colleagues were ready to continue dialogue with Moscow on complex issues despite tensions.

Tillerson said he discussed Russia’s suspected meddling in the 2016 U.S. presidential election with Lavrov to “help them understand how serious this incident had been and how seriously it damaged the relationship” between the two nations.

But Tillerson said that should not irreversibly damage ties.

“The fact that we want to work with them on areas that are of serious national security interest to us, and at the same time having this extraordinary issue of mistrust that divides us, that is just what we in the diplomatic part of our relationship are required to do,” Tillerson said.

The United States sent its special representative on Ukraine, Kurt Volker, a former U.S. envoy to NATO, to Ukraine last month to assess the situation in the former Soviet republic.

Washington cites the conflict as a key obstacle to improved relations between Russia and the United States.

“We appointed a special envoy to engage with Russia but also coordinating with all parties. This is full visibility to all parties. We are not trying to cut some kind of deal on the side,” Tillerson said.

 

(Editing by Martin Petty and Nick Macfie)

 

U.S. Vice President Pence’s hawkish tone on Russia contrasts with Trump approach

Vice President Mike Pence delivers a speech during a meeting with U.S. troops taking part in NATO led joint military exercises Noble Partner 2017 at the Vaziani military base near Tbilisi, Georgia. REUTERS/Irakli Gedenidze

By Roberta Rampton

WASHINGTON (Reuters) – When President Donald Trump scolded U.S. lawmakers on Thursday for clamping down on Moscow with new sanctions, his message clashed with the one that Vice President Mike Pence pushed during a four-day trip this week to Eastern Europe.

As he toured Estonia, Georgia and Montenegro, Pence said the sanctions passed overwhelmingly by Congress would send a unified message to Russia that it must change its behavior.

Trump, by contrast, took to Twitter to complain that the sanctions legislation, which he grudgingly signed, would send U.S.-Russia relations to “an all-time & very dangerous low.”

While some Republicans played down the divergence, critics said it exemplified an incoherent policy that would unsettle allies and fail to placate Moscow.

“There are some policies where a good cop/bad approach can work,” said Michael McFaul, a U.S. ambassador to Russia under former Democratic President Barack Obama.

But McFaul added that in the case of the Trump administration’s policy toward Russia, Moscow was likely to view the mixed signals as a sign of policy disarray.

If the Republican president continues to want improved relations with Russia, “he’s not achieving his goal,” McFaul said.

The White House’s two-track approach is mirrored in Moscow.

After Trump signed the new sanctions into law on Wednesday, Russian Prime Minister Dmitry Medvedev, the No. 2 in the Russian ruling hierarchy, launched a blistering attack on the White House.

Yet Russian President Vladimir Putin — who has tried to cultivate a personal rapport with Trump in phone conversations and face-to-face meetings at a summit in Germany — has not uttered a word in public about the sanctions since Trump approved them.

Trump has repeatedly said he wants better ties with Russia. But the country has loomed large over the first six months of his administration as a special counsel and U.S. congressional panels investigate allegations Moscow meddled in the 2016 U.S. election to help Trump and also examine any potential role by Trump aides.

Moscow denies any meddling and Trump denies any collusion by his campaign.

After Congress passed the sanctions legislation with a large enough margin to override a presidential veto, Trump signed it on Wednesday but criticized it as infringing on his authority and said he could make “far better deals” with governments than Congress could.

As a countermeasure to the sanctions, Putin called for reducing the staff of the U.S. diplomatic mission by 755 people and for the seizure of two properties near Moscow used by American diplomats.

‘SMALL AND BULLYING LEADER’

Jarrod Agen, deputy chief of staff to Pence, insisted that Trump and Pence were “completely aligned” on Russia.

“It was the president’s decision to send the vice president to the region. It was the president’s decision to deliver the message that the vice president delivered,” Agen told Reuters.

He added that Pence and Trump spoke every day during his trip and sometimes multiple times a day.

The disconnect between Pence and Trump on Russia is an anomaly. Pence usually goes to lengths to emphasize his loyalty to his boss and to downplay any differences.

Their different tone on Russia dates back to the U.S. presidential campaign. While Trump often praised Putin, Pence called the Russian president a “small and bullying leader” during a vice presidential debate last October.

During his trip this week, Pence condemned Russia for its “occupation of Georgia’s soil” as he spoke to U.S. and Georgian troops engaged in joint exercises only 40 miles (64 km) away from Russian troops in South Ossetia.

In Montenegro, Pence accused Russia of trying to “destabilize” the western Balkans – a message criticized by Moscow.

Russia’s Foreign Ministry said it was “regrettable to note that Washington is sliding ever deeper into the primitive ideology of the Cold War era, which is completely detached from reality.”

Traditional Republican conservatives – who favor a hard line on Moscow – have taken some comfort in Pence’s message, as have foreign leaders concerned about the impact of a rapprochement between Trump and Putin.

“What he (Pence) is saying is good and helpful and should be the policy of the Trump administration – and so for those of us who want it to be that way, we’re happy to embrace it,” said Danielle Pletka, senior vice president for foreign and defense policy studies at the American Enterprise Institute.

“None of us know what Donald Trump thinks in his heart of hearts about Russia,” Pletka said. But she added: “If (Trump) were not comfortable with Pence making this trip, Pence would not be making this trip.”

Republican Bob Corker, chairman of the Senate Foreign Relations Committee, said he would not “read a lot” into the different tones struck by Pence and Trump, although he welcomed Pence’s trip to the European countries.

Corker described Pence as the administration’s “ombudsman” on policy and said Defense Secretary Jim Mattis, Secretary of State Rex Tillerson and Trump’s national security adviser, H.R. McMaster, were key to developing Trump’s foreign policy.

A former U.S. official, who spoke on condition of anonymity, was at pains to explain the disconnect between Pence and Trump on Russia.

“We are dealing with a major, open split between the president and basically the rest of his administration with the possible exception of Tillerson,” the former official said.

(Additional reporting by Patricia Zengerle, Arshad Mohammed and Christian Lowe; Editing by Caren Bohan, Peter Cooney and Alister Doyle)

Grand jury issues subpoenas in connection with Trump Jr., Russian lawyer meeting: sources

Donald Trump Jr. stands onstage with his father Republican U.S. presidential nominee Donald Trump after Trump's debate against Democratic nominee Hillary Clinton at Hofstra University in Hempstead, New York, U.S. September 26, 2016. REUTERS/Brian Snyder

By Karen Freifeld and John Walcott

WASHINGTON (Reuters) – A grand jury has issued subpoenas in connection with a June 2016 meeting that included President Donald Trump’s son, his son-in-law and a Russian lawyer, two sources told Reuters on Thursday, signaling an investigation is gathering pace into suspected Russian meddling in the 2016 U.S. election.

The sources added that U.S. Special Counsel Robert Mueller had convened the grand jury investigation in Washington to help examine allegations of Russian interference in the vote. One of the sources said it was assembled in recent weeks.

Russia has loomed large over the first six months of the Trump presidency. U.S. intelligence agencies have concluded that Russia worked to tilt the presidential election in Trump’s favor. Mueller, who was appointed special counsel in May, is leading the probe, which also examines potential collusion by the Trump campaign with Russia.

Moscow denies any meddling and Trump denies any collusion by his campaign, while regularly denouncing the investigations as political witch hunts.

At a rally in Huntington, West Virginia, on Thursday night, Trump said: “Most people know there were no Russians in our campaign. … We didn’t win because of Russia. We won because of you.”

Mueller’s use of a grand jury could give him expansive tools to pursue evidence, including issuing subpoenas and compelling witnesses to testify. The Wall Street Journal earlier reported a grand jury was impaneled.

A spokesman for Mueller declined comment.

A grand jury is a group of ordinary citizens who, working behind closed doors, considers evidence of potential criminal wrongdoing that a prosecutor is investigating and decides whether charges should be brought.

“This is a serious development in the Mueller investigation,” said Paul Callan, a former prosecutor.

“Given that Mueller inherited an investigation that began months ago, it would suggest that he has uncovered information pointing in the direction of criminal charges. But against whom is the real question.”

A lawyer for Trump, Jay Sekulow, appeared to downplay the significance of a grand jury, telling Fox News: “This is not an unusual move.”

U.S. stocks and the dollar weakened following the news, while U.S. Treasury securities gained.

It was not immediately clear to whom subpoenas were issued and the sources did not elaborate.

Some lawyers said it would put pressure on potential witnesses to cooperate with Mueller’s investigation.

“When someone gets a subpoena to testify, that can drive home the seriousness of the investigation,” said David Sklansky, a professor at Stanford Law School and a former federal prosecutor.

In 2005, a grand jury convened by Special Counsel Patrick Fitzgerald returned an indictment of Lewis “Scooter” Libby, a top aide to then-Vice President Dick Cheney.

“A special counsel can bring an indictment and it has happened before,” said Renato Mariotti, a partner at the law firm Thompson Coburn and a former federal prosecutor.

DAMAGING INFORMATION

News last month of the meeting between Donald Trump Jr. and a Russian lawyer who he was told had damaging information about his father’s presidential rival, Democrat Hillary Clinton, fueled questions about the campaign’s dealings with Moscow.

The Republican president has defended his son’s behavior, saying many people would have taken that meeting.

Trump’s son-in-law and White House senior adviser Jared Kushner and former Trump campaign manager Paul Manafort also attended the meeting.

One of the sources said major Russian efforts to interfere in the election on Trump’s behalf began shortly after the June meeting, making it a focus of Mueller’s investigation.

Ty Cobb, special counsel to the president, said he was not aware that Mueller had started using a new grand jury.

“Grand jury matters are typically secret,” Cobb said. “The White House favors anything that accelerates the conclusion of his work fairly. … The White House is committed to fully cooperating with Mr. Mueller.”

John Dowd, one of Trump’s personal lawyers, said: “With respect to the news of the grand jury, I can tell you President Trump is not under investigation.”

A spokesman for Manafort declined to comment.

Lawyers for Trump Jr. and Kushner did not immediately respond to requests for comment.

‘NOT THINKING OF FIRING MUELLER’

Trump has questioned Mueller’s impartiality and members of Congress from both parties have expressed concern that Trump might dismiss him. Republican and Democratic senators introduced two pieces of legislation on Thursday seeking to block Trump from firing Mueller.

Sekulow denied that was Trump’s plan.

“The president is not thinking of firing Bob Mueller,” Sekulow said.

One source briefed on the matter said Mueller was investigating whether, either at the meeting or afterward, anyone affiliated with the Trump campaign encouraged the Russians to start releasing material they had been collecting on the Clinton campaign since March 2016.

Another source familiar with the inquiry said that while the president himself was not now under investigation, Mueller’s investigation was seeking to determine whether he knew of the June 9 meeting in advance or was briefed on it afterward.

Reuters earlier reported that Mueller’s team was examining money-laundering accusations against Manafort and hoped to push him to cooperate with their probe into possible collusion between Trump’s campaign and Russia. It is not known if the grand jury is investigating those potential charges.

(Additional reporting by Noeleen Walder, Jan Wolfe, Anthony Lin, Jonathan Stempel, Tom Hals, Julia Ainsley, Joel Schectman, Yara Bayoumy, Patricia Zengerle and Eric Beech; Writing by Phil Stewart; Editing by Bill Trott and Peter Cooney)