Eyeing Russia, U.S. military shifts toward more global war games

U.S. army soldiers leave Black Hawk helicopter during Suwalki gap defence exercise in Mikyciai, Lithuania, June 17, 2017. REUTERS/Ints Kalnins

By Andrea Shalal

STUTTGART, Germany (Reuters) – The U.S. military is moving toward more global exercises to better prepare for a more assertive Russia and other worldwide threats, a senior officer said in an interview with Reuters.

Air Force Brigadier General John Healy, who directs exercises for U.S. forces in Europe, said officials realized they needed to better prepare for increasingly complex threats across all domains of war – land, sea, air, space and cyber.

Some smaller-scale war games with a global focus had already occurred, but the goal was to carry out more challenging exercises by fiscal year 2020 that involved forces from all nine U.S. combatant commands – instead of focusing on specific regions or one military service, such as the Marines.

“What we’re eventually going toward is a globally integrated exercise program so that we (are) … all working off the same sheet of music in one combined global exercise,” Healy said in an interview this week.

He said war games and training were imperative to rehearse for possible conflicts and they needed to reflect the global nature of today’s military threats, including cyber warfare.

Healy said Russia was his main focus in Europe, and officials were keeping a close watch on Moscow’s Zapad military exercises that begin next month and which experts say could involve about 100,000 troops.

He said Russian observers attended recent U.S. and NATO exercises in the Black Sea region, but Moscow had not extended a similar invitation to its own war games. “They’re not being as transparent as we are,” he said.

Moscow says its war games will involve less than 13,000 troops and so do not require invitations to outside observers.

Healy said an initial assessment of a range of exercises conducted across Europe this summer with over 40,000 U.S. and allied forces had been positive, but a deeper assessment would be completed in October.

As a deterrent to Russia after its 2014 annexation of the Crimea region of Ukraine, U.S. and NATO forces have boosted their presence and training in Europe.

This has included the addition of four NATO battle groups with 1,000 soldiers each in Estonia, Lithuania, Latvia and Poland, all of which have borders with Russia.

Next year, the U.S. military plans 11 major exercises that will take in a range of NATO allies from Iceland to Britain, the Baltic states, and possibly Finland, according to Healy. Those exercises too will bring together air, ground and naval forces.

(Reporting by Andrea Shalal; editing by Mark Heinrich)

U.S. says ‘grave’ consequences if Syria’s al Qaeda dominates Idlib province

A general view taken with a drone shows the Clock Tower of the rebel-held Idlib city, Syria June 8, 2017. Picture taken June 8, 2017. REUTERS/Ammar Abdullah

By Suleiman Al-Khalidi

AMMAN (Reuters) – The United States warned a takeover of rebel-held northwestern Idlib province by Syrian jihadists linked to a former al Qaeda affiliate would have grave consequences and make it difficult to dissuade Russia from renewing bombing that recently stopped.

In an online letter posted late on Wednesday, the top State Department official in charge of Syria policy, Michael Ratney, said the recent offensive by Hayat Tahrir al Sham, spearheaded by former al Qaeda offshoot Nusra Front, had cemented its grip on the province and put “the future of northern Syria in big danger”.

“The north of Syria witnessed one of its biggest tragedies,” said Ratney who was behind secret talks in Amman with Moscow over the ceasefire in southwest Syria announced by U.S. President Donald Trump and Russian President Vladimir Putin in July. It was the first such U.S.-Russian effort under the Trump administration to end Syria’s civil war.

“In the event of the hegemony of Nusra Front on Idlib, it would be difficult for the United States to convince the international parties not to take the necessary military measures,” the top State Department diplomat said.

Mainly Islamist rebels swept through Idlib province in 2015, inflicting a string of defeats on the Syrian army until Russia stepped in to reverse the tide of the civil war in favour of President Bashar al Assad.

Idlib province, the only Syrian province that is entirely under rebel control, has been a major target of Russian and Syrian aerial strikes that caused hundreds of civilians casualties.

The agricultural region had a respite since a Russian-Turkish brokered accord reached last May approved four de-escalation zones across Syria, among them one in Idlib province.

Many locals fear the jihadists’ hold on Idlib will again make the province a target of relentless attacks by Russian and Syrian forces and turn it into another devastated Aleppo or Mosul.

More than two million people live in Idlib, which has become an overcrowded refuge for many of the displaced, including rebel fighters and their families.

“JOLANI AND HIS GANG”

“Everyone should know that Jolani and his gang are the ones who bear responsibility for the grave consequences that will befall Idlib,” said Ratney, referring to former Nusra head Abu Mohammad al Jolani who effectively leads Hayat Tahrir al Sham.

In less than three days Jolani’s fighters overran their powerful rival, the more mainstream Ahrar al Sham group, seizing control of a strategic border strip with Turkey in some of the heaviest inter-rebel fighting since the start of the conflict.

An emboldened Hayat Tahrir al Sham has sought to allay fears it did not seek to dominate the whole province but suspicions run high among many in the region about their ultimate goals to monopolise power.

The jihadists have linked up with Western-backed Free Syria Army (FSA) groups who continue to maintain a foothold in several towns in the province. The south of the region is still in the hands of rival groups, including Ahrar al Sham but the jihadists have been trying to extend their control.

Ratney told rebel groups, who have been forced to work with the jihadists out of expediency or for self preservation, to steer away from the group before it was “too late.”

He said Washington would consider any organisation in Idlib province that was a front for the militants a part of al Qaeda’s network.

The expanding influence of the former al Qaeda has triggered civilian protests across towns in the province with some calling for the group to leave towns and not interfere in how they are run.

Nusra and its leaders would remain a target of Washington even if they adopted new names in an attempt to deny Washington and other powers a pretext to attack them, the U.S. official said.

The jihadist sweep across Idlib province has raised concerns that the closure of some crossing points on the border with Turkey could choke off the flow of aid and essential goods.

Washington remained committed to delivering aid in channels that avoided them falling into the hands of the hardline jihadists, Ratney said echoing similar concerns by NGO’s and aid bodies after their recent gains.

The main border crossing of Bab al Hawa with Turkey which the al Qaeda fighters threatened to take over has however been re-opened with a resumption of aid and goods to the province that has relieved many people.

(Reporting by Suleiman Al-Khalidi; Editing by Andrew Hay)

Russia takes over U.S. compound in Moscow in retaliation over sanctions

Russia takes over U.S. compound in Moscow in retaliation over sanctions

MOSCOW (Reuters) – Russian authorities on Wednesday took over a summer-house compound in Moscow leased by the U.S. embassy, five days after the Kremlin ordered Washington to slash its diplomatic presence in Russia.

In retaliation for new U.S. sanctions, President Vladimir Putin has ordered the United States to cut around 60 percent of its diplomatic staff in Russia by Sept. 1, and said Moscow would seize a dacha country villa used by U.S. embassy staff and a warehouse.

U.S. employees cleared out the dacha on Tuesday and a Reuters journalist who visited the property on Wednesday saw a large metal padlock securing the front gate.

The one-storey building and courtyard, previously used by diplomatic staff at weekends and to host embassy parties, was empty and cleared of barbecue equipment and garden furniture.

Two policemen in a car in front of the main entrance said they had been instructed to guard the property and did not expect any visits from U.S. or Russian officials.

“I don’t know when this situation will change,” one of the policemen said.

Maria Olson, a spokeswoman for the U.S. embassy, had no immediate comment when contacted by Reuters. She was quoted by Russia’s Interfax news agency as saying the embassy had retrieved all its possessions from the villa, and from the warehouse.

Putin said on Sunday Russia had ordered the United States to cut 755 of its 1,200 diplomatic staff in its embassy and consular operations, though many of those let go will be Russian citizens, with the United States allowed to choose who leaves.

The ultimatum issued by the Russian leader is a display to voters at home that he is prepared to stand up to Washington – but is also carefully calibrated to avoid directly affecting the U.S. investment he needs, or burning his bridges with U.S. President Donald Trump.

One local Russian employee at the embassy, who declined to be named when speaking to the media, said staff were still in the dark about their future employment.

“They say they will have to cut a lot of jobs – not just diplomats and technical staff, but also in the ancillary services, including drivers, janitors and cooks,” he said. “I hope I won’t be in trouble, but who knows.”

(Reporting by Jack Stubbs and Dmitry Solovyov; Editing by Richard Balmforth)

Exclusive: Russian losses in Syria jump in 2017, Reuters estimates show

A portrait of Russian private military contractor Yevgeni Chuprunov is seen at his grave in Novomoskovsk, in Tula region, Russia June 1, 2017. REUTERS/Maria Tsvetkova

By Maria Tsvetkova

BELORECHENSK, Russia (Reuters) – Ten Russian servicemen have been killed fighting in Syria so far this year, according to statements from the Defence Ministry.

But based on accounts from families and friends of the dead and local officials, Reuters estimates the actual death toll among Russian soldiers and private contractors was at least 40.

That tally over seven months exceeds the 36 Russian armed personnel and contractors estimated by Reuters to have been killed in Syria over the previous 15 months, indicating a significant rise in the rate of battlefield losses as the country’s involvement deepens.

Most of the deaths reported by Reuters have been confirmed by more than one person, including those who knew the deceased or local officials. In nine cases, Reuters corroborated a death reported in local or social media with another source.

The data may be on the conservative side, as commanders encourage the families of those killed to keep quiet, relatives and friends of several fallen soldiers, both servicemen and contractors, said on condition of anonymity.

(For a graphic on Russian casualties in Syria’s conflict click http://tmsnrt.rs/2hjq3Et)

The true level of casualties in the Syrian conflict is a sensitive subject in a country where positive coverage of the conflict features prominently in the media and ahead of a presidential election next year that incumbent Vladimir Putin is expected to win.

The scale of Russian military casualties in peace time has been a state secret since Putin issued a decree three months before Russia launched its operation in Syria. While Russia does not give total casualties, it does disclose some deaths.

Discrepancies in data may be explained partly by the fact that Russia does not openly acknowledge that private contractors fight alongside the army; their presence in Syria would appear to flout a legal ban on civilians fighting abroad as mercenaries.

Kremlin spokesman Dmitry Peskov told reporters on Wednesday that any Russian private citizens fighting alongside the Syrian army are volunteers. “If there are Russian citizens in Syria as volunteers and so on, they have nothing to do with the state,” Peskov said in response to a question about the Reuters story on a daily conference call with media.

The Defence Ministry denied Reuters findings on Russian losses. “This is not the first time that Reuters is attempting to discredit by any means Russia’s operation aiming to destroy Islamic State terrorists and return peace to Syria,” ministry spokesman Igor Konashenkov said in a statement on Wednesday.

He said the Russian military is focused on delivering humanitarian aid and negotiating peace in Syria, and called information about Russian private military contractors “a myth”.

The government has previously denied understating casualty figures in Syria, where Moscow entered the conflict nearly two years ago in support of President Bashar al-Assad, one of its closest Middle East allies.

Months after soldiers die, Russia quietly acknowledges some losses, including private military contractors. Their families get state posthumous medals and local authorities sometimes name schools, which fallen soldiers attended as children, after them.

Of the 40 killed, Reuters has evidence that 21 were private contractors and 17 soldiers. The status of the remaining two people is unclear.

MISSION CREEP?

Little is known about the nature of operations in Syria involving Russian nationals. Russia initially focused on providing air support to Syrian forces, but the rate of casualties points to more ground intervention.

The last time Russia lost airmen in Syria was in August, 2016, and it suffered its first serious casualties on the ground this year in January, when six private military contractors died in one day.

Reuters has previously reported gaps between its casualty estimates and official figures, although the difference widened markedly this year.

Russian authorities disclosed that 23 servicemen were killed in Syria over 15 months in 2015-2016, whereas Reuters calculated the death toll at 36, a figure that included private contractors.

IN IT FOR THE MONEY?

One private contractor whose death in Syria was not officially acknowledged was 40-year-old Alexander Promogaibo, from the southern Russian town of Belorechensk. He died in Syria on April 25, his childhood friend Artur Marobyan told Reuters.

Promogaibo had earlier fought in the Chechen war with an elite Russian paratroops unit, according to Marobyan, who was his classmate at school.

He said his dead friend had struggled to get by while working as a guard in his hometown and needed money to build a house to live with his wife and small daughter.

Last year he decided to join private military contractors working closely with the Russian Defence Ministry in Syria and was promised a monthly wage of 360,000 roubles ($6,000), about nine times higher than the average Russian salary.

According to multiple sources, Russian private military contractors are secretly deployed in Syria under command of a man nicknamed Wagner.

Private military companies officially don’t exist in Russia. Reuters was unable to get in touch with commanders of Russian private contractors in Syria through people who know them.

“I told him it was dangerous and he wouldn’t be paid the money for doing nothing, but couldn’t convince him,” Marobyan said, recalling one of his last conversations with Promogaibo.

According to Marobyan, he got the job offer at a military facility belonging to Russia’s military intelligence agency (GRU) near the village of Molkino. The agency is a part of the Defence Ministry and does not have its own spokesperson.

The Kremlin did not reply to requests for comment.

Promogaibo went there for physical fitness tests and failed twice. He was accepted only after showing up for the third time having losing 55 kg after seven months of training.

“He left (Russia) in February,” said Marobyan, who only learnt that his friend had been killed in Syria when his body was delivered to his hometown in early May.

One more person who knew Promogaibo said he died in Syria.

Reuters was unable to find out where in Syria Promogaibo was killed.

Igor Strelkov, former leader of pro-Russian rebels in eastern Ukraine who stayed in touch with Russian volunteers who switched to battlefields in Syria, said in late May that military contractors from Russia recently fought near the Syrian town of Homs alongside Iranian-backed Hezbollah.

GRAVESTONES COVERED UP

Fifty-one-year-old Russian Gennady Perfilyev, a lieutenant colonel, was deployed in Syria as a military adviser. He was killed in shelling during a reconnaissance trip on April 8, his former classmates at Chelyabinsk Higher Tank Command School said.

“Several grammas of metal hit his heart,” Pave Bykov, one of his classmates, told Reuters.

One more classmate confirmed to Reuters Perfilyev was killed in Syria on a reconnaissance trip.

His name has not appeared in the Defence Ministry’s official notices of military deaths in Syria.

He was buried at a new heavily guarded military cemetery outside Moscow where visitors have to show their passports and are asked at the entrance whose grave they want to visit.

On Perfilyev’s gravestone, his name and the date of his death are covered by his portrait.

Several other servicemen killed in Syria and buried nearby also have photos obscuring their names and the dates of their death, which if visible would make it easier to trace how and where they died.

Names on other graves, of non-Syrian casualties, were visible.

Asked if this was a special secrecy measure, a cemetery official, Andrei Sosnovsky, said the names were covered up temporarily until proper monuments could be built.

($1 = 59.8930 roubles)

(Additional reporting by Denis Pinchuk in Moscow, Natalya Shurmina in Yekaterinburg, Russia; Editing by Andrew Osborn and Mike Collett-White)

Trump administration sends conflicting signals on Russia sanctions

U.S. Vice President Mike Pence (L) arrives with Secretary of State Rex Tillerson (R) to attend a joint press conference held by U.S. President Donald Trump and Colombian President Juan Manuel Santos at the White House in Washington, U.S., May 18, 2017. REUTERS/Yuri Gripas

By Yeganeh Torbati

WASHINGTON (Reuters) – President Donald Trump grudgingly accepted new congressional sanctions on Russia, the top U.S. diplomat said on Tuesday, remarks in contrast with those of Vice President Mike Pence, who said the bill showed Trump and Congress speaking “with a unified voice.”

The U.S. Congress voted last week by overwhelming margins for sanctions to punish the Russian government over interference in the 2016 presidential election, annexation of Crimea and other perceived violations of international norms.

U.S. Secretary of State Rex Tillerson told reporters that he and Trump did not believe the new sanctions would “be helpful to our efforts” on diplomacy with Russia.

Trump has been clear that he wants to improve relations with Russia, a desire that has been hamstrung by findings of U.S. intelligence agencies that Russia interfered to help the Republican against Democrat Hillary Clinton. U.S. congressional panels and a special counsel are investigating. Moscow denies any meddling and Trump denies any collusion by his campaign.

Tillerson, who did business in Russia when he was chief executive of Exxon Mobil, has said repeatedly that the world’s two major nuclear powers cannot have such a bad relationship.

“The action by the Congress to put these sanctions in place and the way they did, neither the President nor I were very happy about that,” Tillerson said. “We were clear that we didn’t think it was going to be helpful to our efforts, but that’s the decision they made, they made it in a very overwhelming way. I think the president accepts that.”

Tillerson stopped short of saying definitively that Trump would sign the sanctions, saying only that “all indications are he will sign that bill.”

Vice President Mike Pence, at a press conference in Georgia with Prime Minister Giorgi Kvirikashvili, said unequivocally that “President Trump will sign the Russia sanctions bill soon.”

Pence acknowledged that the administration objected to earlier versions of the sanctions bill because it did not grant enough flexibility to the administration, but said it “improved significantly” in later versions.

“And let me say that in signing the sanction, our President and our Congress are speaking with a unified voice,” Pence said.

White House spokeswoman Sarah Sanders said on Tuesday the sanctions bill was under review and would be signed.

“There’s nothing holding him back,” Sanders said at a news briefing. Trump has until Aug. 9 to sign the bill, or veto it, or it will automatically become law.

In retaliation for the sanctions, Russian President Vladimir Putin said on Sunday that the U.S. diplomatic mission in Russia must reduce its staff by 755 people. Russia is also seizing two properties near Moscow used by American diplomats.

Tillerson said Putin probably believes his response was a symmetrical action to Washington seizing two Russian properties in the United States and expelling 35 diplomats last December.

“Of course it makes our lives more difficult,” he said.

Tillerson said he and Russian Foreign Minister Sergei Lavrov would meet in Manila on the margins of next weekend’s meetings of the Association of Southeast Asian Nations.

(Reporting by Yeganeh Torbati; additional reporting by Ayesha Rascoe and Patricia Zengerle; editing by Grant McCool)

Trump signs Russia sanctions law, but slams it as ‘flawed’

U.S. President Donald Trump meets with Russian President Vladimir Putin during their bilateral meeting at the G20 summit in Hamburg, Germany July 7, 2017. REUTERS/Carlos Barria

By Roberta Rampton and Patricia Zengerle

WASHINGTON (Reuters) – U.S. President Donald Trump grudgingly signed into law on Wednesday new sanctions against Russia that Congress had approved overwhelmingly last week, criticizing the legislation as having “clearly unconstitutional” elements.

After signing a bill that runs counter to his desire to improve relations with Moscow, and which also affects Iran and North Korea, the Republican president laid out a lengthy list of concerns.

“While I favor tough measures to punish and deter aggressive and destabilizing behavior by Iran, North Korea, and Russia, this legislation is significantly flawed,” Trump said in a statement announcing the signing.

The Republican-controlled Congress approved the legislation by such a large margin on Thursday that it would have thwarted any effort by Trump to veto the bill.

The legislation has already provoked countermeasures by Russian President Vladimir Putin, who has ordered big cuts to the number of staff at the U.S. diplomatic mission to Russia.

Congress approved the sanctions to punish the Russian government over interference in the 2016 presidential election, annexation of Ukraine’s Crimea and other perceived violations of international norms.

Trump said he was concerned about the sanctions’ effect on work with European allies, and on American business.

“My administration … expects the Congress to refrain from using this flawed bill to hinder our important work with European allies to resolve the conflict in Ukraine, and from using it to hinder our efforts to address any unintended consequences it may have for American businesses, our friends, or our allies,” he said.

The president also complained about what he said were “clearly unconstitutional provisions” in the legislation relating to presidential powers to shape foreign policy.

The new sanctions measure, the first major foreign policy legislation approved by Congress since Trump took office in January, includes a provision allowing Congress to stop any effort by the president to ease existing sanctions on Russia.

Trump has long said he would like improved ties with Russia. But any such efforts by his administration have been hamstrung by findings by U.S. intelligence agencies that Russia interfered to help the Republican against Democratic presidential candidate Hillary Clinton. U.S. congressional committees and a special counsel are investigating. Moscow denies any meddling and Trump denies any collusion by his campaign.

In a second statement on the legislation, Trump said that, “Despite its problems, I am signing this bill for the sake of national unity.”

“It represents the will of the American people to see Russia take steps to improve relations with the United States,” he added.

The legislation will affect a range of Russian industries and might further hurt the Russian economy, already weakened by 2014 sanctions imposed after Russia annexed Crime from Ukraine.

It also cracks down on Iran and North Korea for activities that include their missile development programs and human rights abuses, including seeking to punish foreign banks that do business with North Korea.

NO FANFARE FOR BILL SIGNING

After Congress approved the sanctions, the Kremlin ordered the United States to cut about 60 percent of its diplomatic staff in Russia. Putin said on Sunday that Russia had ordered the United States to cut 755 of its 1,200 embassy and consulate staff by September, and was seizing two diplomatic properties.

Besides angering Moscow, the legislation has upset the European Union, which has said the new sanctions might affect its energy security and prompt it to act, too.

Trump’s fellow Republicans praised him for signing the bill.

However, one Republican senator, Lindsey Graham, while welcoming the signing, was critical of the low-key way it was done, without the typical array of television cameras and reporters present.

“The fact (that) he does this kind of quietly I think reinforces the narrative that the Trump administration is not really serious about pushing back on Russia. And I think that is a mistake, too, because Putin will see this as a sign of weakness,” Graham said in a CNN interview.

Several provisions of the sanctions target the Russian energy sector, with new limits on U.S. investment in Russian companies. American companies also would be barred from participating in energy exploration projects where Russian firms have a stake of 33 percent or higher.

The legislation includes sanctions on foreign companies investing in or helping Russian energy exploration, although the president could waive those sanctions.

It would give the Trump administration the option of imposing sanctions on companies helping develop Russian export pipelines, such as the Nord Stream 2 pipeline carrying natural gas to Europe, in which German companies are involved.

(Reporting by Roberta Rampton and Patricia Zengerle; Additional reporting by Doina Chiacu, Susan Heavey and Caren Bohan; Writing by Frances Kerry; Editing by Jonathan Oatis)

VP Pence says Russia’s stance must change before ties improve

U.S. 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 August 1, 2017. REUTERS/Irakli Gedenidze

By Margarita Antidze

TBILISI (Reuters) – U.S. Vice President Mike Pence said on Tuesday that relations with Russia would not improve until Moscow changed its stance on Ukraine and withdrew support for “regimes like Iran and Syria and North Korea”.

The U.S. Congress voted last week for new sanctions on Russia and, at a news conference in Georgia’s capital Tbilisi, Pence said the “lifting of sanctions will require Russia to reverse the actions that caused sanctions to be imposed in the first place”.

“Russia’s destabilizing activities in Ukraine, their support for rogue regimes like Iran and Syria and North Korea … their posture has to change,” he said at a joint news conference with Georgian Prime Minister Giorgi Kvirikashvili.

Pence said U.S. President Donald Trump would sign the new sanctions on Russia into law this week and said that Trump and Congress were “speaking with a unified voice”.

Keeping to previous U.S. administrations’ line, Pence also condemned Russia’s presence in Georgia.

Moscow, whose annexation of Crimea in 2014 prompted U.S. and EU sanctions, still has troops stationed in Georgia after a 2008 war over the breakaway region of South Ossetia, backing Georgia’s Abkhazia, a region also controlled by pro-Russian separatists.

Pence also said the U.S. was still behind Georgia’s application to become a member of NATO.

“We’ll continue to work closely with this prime minister and the government of Georgia broadly to advance the policies that will facilitate becoming a NATO member,” he said.

NATO promised Georgia membership in 2008, and three ex-Soviet Baltic nations – Estonia, Latvia and Lithuania – are already members. Pence has reassured them during this tour that Washington firmly backs NATO’s doctrine of collective defense.

In the Estonian capital of Tallinn on Monday, he assured them of U.S. support if they faced aggression from Russia.

Asked about Pence’s visit, Kremlin spokesman Dmitry Peskov said nations had the right to choose their partners.

“The only problem for us, is when this involves the expanding of various alliances and their infrastructure toward our borders. This is a cause of concern for us,” Peskov told reporters on a conference call.

During his visit, Pence attended Georgian-American military exercises, which began in Georgia on Sunday. About 2,800 soldiers from the United States, Britain, Germany, Turkey, Ukraine, Slovenia, Armenia and Georgia are taking part in the maneuvers, which will last for two weeks.

On Wednesday, Pence visits Montenegro, which joined NATO in June. The tiny Balkan nation won praise from Washington for joining despite pressure against the move from Russia.

(Writing by Dmitry Solovyov; Additional reporting by Dmitry Solovyov in Moscow; Editing by Maayan Lubell)

Trump to sign Russia sanctions, Moscow retaliates

FILE PHOTO - U.S. President Donald Trump shakes hands with Russia's President Vladimir Putin during their bilateral meeting at the G20 summit in Hamburg, Germany July 7, 2017. REUTERS/Carlos Barria/File Photo

By Eric Beech and Andrew Osborn

WASHINGTON/MOSCOW (Reuters) – U.S. President Donald Trump will sign legislation that imposes sanctions on Russia, the White House said on Friday, after Moscow ordered the United States to cut hundreds of diplomatic staff and said it would seize two U.S. diplomatic properties in retaliation for the bill.

The U.S. Senate had voted almost unanimously on Thursday to slap new sanctions on Russia, forcing Trump to choose between a tough position on Moscow and effectively dashing his stated hopes for warmer ties with the country or to veto the bill amid investigations in possible collusion between his campaign and Russia.

By signing the bill into law, Trump can not ease the sanctions against Russia unless he seeks congressional approval.

Moscow’s retaliation, announced by the Foreign Ministry on Friday, had echoes of the Cold War. If confirmed that Russia’s move would affect hundreds of staff at the U.S. embassy, it would far outweigh the Obama administration’s expulsion of 35 Russians in December.

The legislation was in part a response to conclusions by U.S. intelligence agencies that Russia meddled in the 2016 U.S. presidential election, and to further punish Russia for its annexation of Crimea in 2014.

Late on Friday, the White House issued a statement saying Trump would sign the bill after reviewing the final version. The statement made no reference to Russia’s retaliatory measures.

Russia had been threatening retaliation for weeks. Its response suggests it has set aside initial hopes of better ties with Washington under Trump, something the U.S. leader, before he was elected, had said he wanted to achieve.

Relations were already languishing at a post-Cold War low because of the allegations that Russian cyber interference in the election was intended to boost Trump’s chances, something Moscow flatly denies. Trump has denied any collusion between his campaign and Russian officials.

The Russian Foreign Ministry complained of growing anti-Russian feeling in the United States, accusing “well-known circles” of seeking “open confrontation”.

President Vladimir Putin had warned on Thursday that Russia would have to retaliate against what he called boorish U.S. behavior. Putin’s spokesman, Dmitry Peskov, told reporters on Friday that the Senate vote was the last straw.

Russian foreign minister Sergei Lavrov told U.S. Secretary of State Rex Tillerson by telephone that Russia was ready to normalize relations with the United States and to cooperate on major global issues.

Lavrov and Tillerson “agreed to maintain contact on a range of bilateral issues”, the Russian Foreign Ministry said.

The ministry said the United States had until Sept. 1 to reduce its diplomatic staff in Russia to 455 people, the number of Russian diplomats left in the United States after Washington expelled 35 Russians in December.

‘EXTREME AGGRESSION’

It was not immediately clear how many U.S. diplomats and other workers would be forced to leave either the country or their posts, but the Interfax news agency cited an informed source as saying “hundreds” of people would be affected.

A diplomatic source told Reuters that it would be for the United States to decide which posts to cut, whether occupied by U.S. or Russian nationals.

An official at the U.S. Embassy, who declined to be named because they were not allowed to speak to the media, said the Embassy employed around 1,100 diplomatic and support staff in Russia, including Russian and U.S. citizens.

Russian state television channel Rossiya 24 said over 700 staff would be affected but that was not confirmed by the foreign ministry or the U.S. embassy.

The Russian Foreign Ministry’s statement said the passage of the bill confirmed “the extreme aggression of the United States in international affairs”.

Deputy Foreign Minister Sergei Ryabkov met outgoing U.S. ambassador John Tefft on Friday to inform him of the counter measures, Russian news agencies reported. The U.S. Embassy said Tefft had expressed his “strong disappointment and protest”.

Most U.S. diplomatic staff, including around 300 U.S. citizens, work in the main embassy in Moscow, with others based in consulates in St Petersburg, Yekaterinburg and Vladivostok.

The Russian Foreign Ministry said it was also seizing a Moscow dacha compound used by U.S. diplomats for recreation, from Aug. 1, as well as a U.S. diplomatic warehouse in Moscow.

In December, the outgoing Obama administration seized two Russian diplomatic compounds – one in New York and another in Maryland – at the same time as it expelled Russian diplomats.

Trump and Putin met for the first time at a G20 summit in Germany this month in what both sides described as a productive encounter, but Russian officials have become increasingly convinced that Congress and Trump’s political opponents will not allow him to mend ties, even if he wants to.

The European Union has also threatened to retaliate against new U.S. sanctions on Russia, saying they would harm the bloc’s energy security by targeting projects including a planned new pipeline to bring Russian natural gas to northern Europe.

A European Commission spokesman in Brussels said the bloc would be following the sanctions process closely.

(Additional reporting by Dmitry Solovyov, Polina Devitt, Jack Stubbs and Denis Pinchuk in Moscow, Patricia Zengerle and Ayesha Rascoe in Washington; Editing by Kevin Liffey, Grant McCool and Christian Schmollinger)

U.S. lawmakers reach deal for Senate Russia sanctions vote

Senator Bob Corker (R-TN) arrives for a health care vote on Capitol Hill in Washington, U.S. July 26, 2017. REUTERS/Eric Thayer

By Patricia Zengerle, Andrew Osborn and Philip Blenkinsop

WASHINGTON/MOSCOW/BRUSSELS (Reuters) – U.S. lawmakers reached an agreement on Wednesday paving the way for the U.S. Senate to pass a bill as soon as this week to impose new sanctions on Russia and bar President Donald Trump from easing sanctions on Moscow without Congress’ approval.

Earlier on Wednesday, Russia warned it was edging closer to retaliation against Washington after the House of Representatives backed new U.S. sanctions on Moscow, while the European Union said the move might affect its energy security and it stood ready to act too.

“I am glad to announce that we have reached an agreement that will allow us to send sanctions legislation to the president’s desk,” Senator Bob Corker, the Republican chairman of the U.S. Senate Foreign Relations Committee, said in a statement on Wednesday evening.

He said the Senate would move to approve sanctions on Russia and Iran that it originally passed in mid-June, as well as sanctions on North Korea developed by the House of Representatives and included in a bill the House passed overwhelmingly on Wednesday.

Before the latest agreement, some senators had objected to the North Korea measures and it had looked like the sanctions bill, already delayed since mid-June, could languish into September.

If the bill passes the Senate as expected, it would be sent to the White House for Trump to sign into law or veto. It is, however, expected to garner enough support to override a Trump veto.

The House voted 419-3 on Tuesday to impose new sanctions on Moscow and force Trump to obtain lawmakers’ approval before easing any punitive measures on Russia.

“This is rather sad news from the point of view of Russia-U.S. ties,” said Dmitry Peskov, a Kremlin spokesman. “We are talking about an extremely unfriendly act.”

He said President Vladimir Putin would decide if and how Moscow would retaliate once the sanctions became law. Russia’s deputy foreign minister warned the move was taking bilateral relations into uncharted waters, killing off hopes of improving them in the near future.

DOGGED BY RUSSIA ALLEGATIONS

Trump, whose presidency has been embroiled in a distracting dispute over his associates’ alleged ties to Moscow, is on the defensive over accusations Russia helped elect him last year. He has said he wants to mend relations with Russia that are languishing at a post-Cold War low.

Trump had denied that there was any collusion between his campaign and Russia.

Most White House watchers believe Trump will reluctantly sign off on the new sanctions, given deep support for them among U.S. lawmakers and his desire to avoid being accused of being soft on Moscow.

Representative Ed Royce, the Republican chairman of the House Foreign Affairs Committee, said Trump would have little choice. The Senate passed a version of the legislation, without the North Korea sanctions, on June 15 by 98-2.

“I think the president will sign it,” Royce said on NBC’s Meet the Press Daily on Wednesday.

The issue has rattled Russia, which fears that its economy, weakened by 2014 Western sanctions imposed over its role in the Ukraine crisis, will now find it harder to recover and grow. Foreign investors could be scared off.

The European Union frets that new U.S. restrictions could pose obstacles to its companies doing business with Russia and threaten the bloc’s energy supply lines.

The Kremlin’s alleged interference in the 2016 U.S. presidential election is one reason lawmakers have pushed for the new sanctions.

HOPES FADE FOR DETENTE

Peskov said Moscow would wait until the sanctions became law before fully analyzing them and deciding how to respond.

Moscow had hoped that Trump, who made upbeat statements about Putin before winning the White House, would work to repair the U.S.-Russia relationship. But it has watched with frustration as the vote-meddling allegations killed off hopes of any detente.

The Russian Foreign Ministry said this month that too many American spies were operating in Russia under diplomatic cover and it might expel some to retaliate for the expulsion of 35 Russian diplomats last year by then-President Barack Obama’s administration.

Many Russian politicians increasingly believe Trump’s political foes and Congress have left the U.S. president with little room for maneuver on Russia and they have nothing to lose by retaliating.

In Brussels, European Commission President Jean-Claude Juncker said the EU was ready to act “within a matter of days” if it felt the new U.S. sanctions undermined the bloc’s energy security.

Brussels fears the new sanctions will damage European firms and oil and gas projects on which the EU is dependent.

The Russia section of the bill includes sanctions on a range of industries.

Several provisions target Russian energy, with new limits on U.S. investment in Russian companies. U.S. firms also would be barred from participating in energy exploration projects where Russian firms have a stake of 33 percent or higher.

The bill includes sanctions on foreign firms investing in or helping Russian energy exploration, although the president could waive those sanctions.

The bill would give the Trump administration the option of imposing sanctions on firms helping develop Russian export pipelines, such as the Nord Stream 2 pipeline carrying natural gas to Europe, in which German companies are involved.

In a concession to allies, those sanctions are optional, not mandatory.

The European Commission said a number of EU concerns had been taken into account in the most recent version of the bill, but said it could lead to sanctions on any company, including European, that worked on Russian energy export pipelines.

(Additional reporting by Dmitry Solovyov and Katya Golubkova in Moscow, Alissa de Carbonnel in Brussels and Susan Heavey in Washington; Editing by Yara Bayoumy, James Dalgleish, Toni Reinhold)

House approves new Russia sanctions, defying Trump

A rainbow shines over the U.S. Capitol in Washington, U.S. July 24, 2017. REUTERS/Joshua Roberts

By Patricia Zengerle and Amanda Becker

WASHINGTON (Reuters) – The U.S. House of Representatives voted overwhelmingly on Tuesday to slap new sanctions on Russia and force President Donald Trump to obtain lawmakers’ permission before easing any sanctions on Moscow, in a rare rebuke of the Republican president.

It was unclear how quickly the bill would make its way to the White House for Trump to sign into law or veto. The bill still must be passed by the Senate, which is mired in debate over efforts to overhaul the U.S. healthcare system as lawmakers try to clear the decks to leave Washington for their summer recess.

The sanctions bill comes as lawmakers investigate possible meddling by Russia in the 2016 presidential election and potential collusion by Republican Trump’s campaign.

Moscow has denied it worked to influence the election in Trump’s favor, and he has denied his campaign colluded.

The White House said the president had not yet decided whether he would sign the measure. Rejecting the bill – which would potentially hamper his hopes of pursuing improved relations with Moscow – would carry a risk that his veto could be overridden by lawmakers.

“While the president supports tough sanctions on North Korea, Iran and Russia, the White House is reviewing the House legislation and awaits a final legislative package for the president’s desk,” said spokeswoman Sarah Sanders.

House members backed the bill, which also imposes sanctions on Iran and North Korea, by a near-unanimous margin of 419-3, with strong support from Trump’s fellow Republicans as well as Democrats, despite objections from Trump, who wanted more control over the ability to impose sanctions.

The Republican-controlled Senate passed an earlier version of the bill with near-unanimous support. The House added the North Korea measures after becoming frustrated with the Senate’s failure to advance a bill it passed in May.

Representative Ed Royce, the Republican chairman of the House Foreign Affairs Committee, said the three countries “are threatening vital U.S. interests and destabilizing their neighbors. It is well past time that we forcefully respond.”

But the combined bill has run into objections from some senators, who are unhappy that the House added the North Korea sanctions after holding up the measure for more than a month.

Senate leaders have not said when they might consider the House bill. Senator Bob Corker, the Republican chairman of the Senate Foreign Relations Committee, said he was not sure the bill would “fly through” his chamber.

“The only language we agreed to was Iran and Russia. So adding North Korea on, I just don’t know how we’re going to deal with it yet,” Corker told reporters. “The better route would have been to send over what had been agreed to.”

The bill had raised concerns in the European Union, where U.S. allies depend on supplies of Russian gas. But House members said the bill was tweaked to try to alleviate the worries of Europeans and the energy sector.

INVESTIGATIONS

The intense focus on Russia, involving several congressional probes and a separate investigation by a Justice Department-appointed special counsel, Robert Mueller, has overshadowed Trump’s agenda.

The scrutiny has angered and frustrated the president, who calls the investigations a politically motivated witch hunt fueled by Democrats who cannot accept his upset win in last November’s election against Democratic candidate Hillary Clinton, a former U.S. secretary of state.

Without offering evidence, Trump lashed out on Twitter on Tuesday about “Ukrainian efforts to sabotage” his presidential campaign in order to aid Clinton. The Ukrainian embassy in Washington denied the accusations.

The Senate Judiciary Committee had been set to compel Trump’s former campaign manager, Paul Manafort, to testify at a hearing on Wednesday, but rescinded the subpoena late on Tuesday as negotiations over his participation continued.

Manafort has started turning over documents to the committee and is negotiating a date to be interviewed, the panel said in a statement.

The committee is looking at a June 2016 meeting in New York with a Russian lawyer organized by Trump’s eldest son, Donald Trump Jr. Trump Jr. released emails this month that showed he welcomed the prospect of receiving damaging information at the meeting about Clinton.

On Friday, the panel had asked that Manafort and Trump Jr. appear at the Wednesday hearing, but a witness list released on Tuesday evening included neither of their names.

Manafort met with Senate Intelligence Committee staff on Tuesday morning, his spokesman said.

On Tuesday, Trump’s son-in-law, Jared Kushner, spent three hours with the House of Representatives intelligence panel, his second straight day on Capitol Hill answering questions about his contacts with Russians during the campaign.

Kushner had a “very productive session” with the House Intelligence Committee, Democratic Representative Adam Schiff said after the meeting.

Republican Representative Michael Conaway said Kushner was “straightforward and forthcoming. He wanted to answer every question that we had.”

Kushner, who is now a top aide in Trump’s White House, told reporters on Monday he had no part in any Kremlin plot..

U.S. House Republicans on Tuesday rejected a legislative effort by Democrats to obtain Treasury Department documents that could show any ties between the finances of Trump, his inner circle and the Russian government.

(Reporting by Patricia Zengerle and Amanda Becker; Additional reporting by Doina Chiacu, Steve Holland, Susan Cornwell, Susan Heavey and Karen Friefeld; Writing by Roberta Rampton; Editing by Grant McCool and Peter Cooney)