Iran holds talks with Russia over missile defense upgrade

DUBAI (Reuters) – Iran negotiated with Russia at the weekend over buying an upgraded version of the S-300 surface-to-air missile defense system, which it requires to meet its military needs, a foreign ministry spokesman in Tehran was quoted as saying.

Iran was blocked from obtaining the S-300 before it reached a deal with world powers last July on curbing its nuclear program, with Russia having canceled a contract to deliver an older version of the system in 2010 under pressure from the West.

Russia now hopes to reap economic and trade benefits from the nuclear deal and the lifting of sanctions on Iran last month.

Russian Defense Minister Sergei Shoigu visited Tehran on Sunday.

Commenting on the visit, ministry spokesman Hossein Jaberi Ansari told state news agency IRNA: “Iran is negotiating with Russia for providing its military needs… One of the main issues is buying the next-generation S-300 missile system.”

Defense Minister Hossein Dehghan was quoted as saying by the Fars agency on Feb. 10 that Iran would start taking delivery of the S-300 within two months.

Iran has also shown interest in buying the more advanced S-400 system, though no negotiations were being conducted at the moment, Russia’s RIA news agency reported last week.

It was not clear if by “next generation” Ansari was referring to the S-400, which Russia says can hit missiles and aircraft up to 400 km (250 miles) away.

Israel has expressed “dismay” at Russia’s decision to lift the ban on supplying S-300 missiles to Iran, which does not recognize Israel as a nation and has said it will use all its power to destroy it.

Ansari also said Shoigu met Iranian President Hassan Rouhani on Sunday to convey “President (Vladimir) Putin’s special message …regarding bilateral relations and some regional issues.”

(Reporting by Bozorgmehr Sharafedin; editing by John Stonestreet)

Russia presses U.N. Security Council on Syria’s sovereignty

UNITED NATIONS (Reuters) – Russia asked the United Nations Security Council on Friday to call for Syria’s sovereignty to be respected, for cross-border shellings and incursions to be halted and for “attempts or plans for foreign ground intervention” to be abandoned.

Russia circulated a short draft resolution to the 15-member council over concerns about an escalation in hostilities on the Turkey/Syria border and possible plans for a Turkish ground operation. The document does not name Turkey.

The Security Council was meeting on Friday afternoon to discuss the draft.

The draft, seen by Reuters, would have the council express “its grave alarm at the reports of military buildup and preparatory activities aimed at launching foreign ground intervention into the territory of the Syrian Arab Republic.”

On the way into the council meeting, veto powers U.S. Ambassador to the United Nations, Samantha Power, and French U.N. Ambassador Francois Delattre both said the Russian draft resolution has no future.

The draft also demands that states “refrain from provocative rhetoric and inflammatory statements inciting further violence and interference into internal affairs of the Syrian Arab Republic.”

Turkish Foreign Minister Mevlut Cavusoglu told Reuters this week that his country, Saudi Arabia and some European powers wanted ground troops in Syria, though no serious plan had been debated.

Russia’s relations with Turkey hit a low in November when Turkish warplanes downed a Russian bomber near the Syrian-Turkish border, a move described by Russian President Vladimir Putin as a “dastardly stab in the back.”

(Additional reporting by Dmitry Solovyov; Editing by Leslie Adler and Sandra Maler)

Polish president Duda says Russia fomenting new Cold War

WARSAW (Reuters) – Polish President Andrzej Duda accused Russia of fomenting a new Cold War through its actions in Ukraine and Syria, and said Poland was ready to help any future NATO efforts in combating the Islamic State.

In an interview with Reuters, Duda hit back at comments by Russian Prime Minister Dmitry Medvedev, who last week described East-West relations as descending “into a new Cold War” and said NATO was “hostile and closed” toward Russia.

“If Mr Medvedev talks about a Cold War, then looking at Russian actions, it is clear who is seeking a new Cold War,” Duda, allied to Poland’s ruling Law and Justice Party (PiS) said in an interview in his presidential palace in Warsaw.

“If someone is undertaking aggressive military activities in Ukraine and Syria, if someone is bolstering his military presence near his neighbors … then we have an unequivocal answer regarding who wants to start a new Cold War. Certainly, it is not Poland or the NATO alliance.”

The West says it has satellite images, videos and other evidence that show Russia is providing weapons to anti-government rebels in Ukraine, following Russia’s annexation of Crimea from Ukraine in 2014. Russia denies such accusations.

Poland has long been one of the fiercest critics of Russian actions and PiS is especially mistrustful. It wants a summit in Warsaw this year to bolster NATO’s presence in central and east Europe by positioning troops and equipment on Polish soil.

Duda reiterated Polish ambitions for an “intensive” NATO presence on its territory to be agreed at the July summit, which would be “tantamount to a permanent presence” — an arrangement that would be assured by troop rotations. Some NATO allies are reluctant, out of concern over the cost and the further deterioration with Moscow that would be likely to result.

F-16s AND RECONNAISSANCE

Duda’s unexpected election victory last May was the first ballot win for PiS in almost a decade. It helped the party win a parliamentary vote in October on a campaign of conservative values and more economic equality.

A relatively unknown politician before the election, Duda, 43, sees himself as a spiritual and political heir to Poland’s late president, Lech Kaczynski. Kaczynski, the twin brother of PiS leader Jaroslaw, died in a plane crash in 2010.

Local critics say Duda and Prime Minister Beata Szydlo merely follow the lead of Jaroslaw Kaczynski rather than make their own policy — an accusation he rejected in the interview, saying he was there to implement PiS’s agreed program.

Duda said Poland was ready to participate in any NATO efforts in Syria, but without sending troops, an offer the Polish government has made before. In return, it wants NATO to bolster its presence in eastern Europe.

“We are not shirking our responsibility here,” Duda said. “There are no decisions yet, but we are a member of the alliance.”

Duda said Poland would be willing to use some of its fleet of F-16 fighter jets for reconnaissance missions and to participate in training missions.

A coalition led by the United States is bombing Islamic State targets in Syria and Iraq, where the militant group occupies swathes of territory.

The United States is pressing NATO to play a bigger role in the campaign, putting Washington at odds with Germany and France. They fear the strategy would risk confrontation with Russia, which is conducting its own air strikes in the region in support of its ally, Syrian President Bashar al-Assad.

All 28 NATO allies are already part of a 66-nation anti-Islamic State coalition, so the United States is looking to NATO to provide equipment, training and the expertise it gained in Afghanistan, where Poland also had troops.

(Additional reporting by Adrian Krajewski, writing by Justyna Pawlak, Editing by Larry King)

Russia warns Assad not to snub Syria ceasefire plan

MOSCOW (Reuters) – President Bashar al-Assad was out of step with the views of his main ally, Russia, when he said he planned to fight on until he re-established control over all of Syria, Russia’s envoy to the United Nations was quoted as saying on Thursday.

In the first public sign of cracks in the alliance between Moscow and Damascus, the envoy, Vitaly Churkin, said Russia had helped Assad turn the tide of the war so it was now incumbent on him to follow Russia’s line and commit to peace talks.

Churkin said Russia was working toward a peaceful settlement for Syria, and that attempting to take back control over the whole country would be a futile exercise which would allow the conflict to drag on indefinitely.

Asked in an interview with Kommersant newspaper about Assad’s comments that he would keep fighting until all rebels were defeated, Churkin said: “Russia has invested very seriously in this crisis, politically, diplomatically, and now also in the military sense.

“Therefore we of course would like that Bashar al Assad should take account of that.”

“I heard President Assad’s remarks on television… Of course they do not chime with the diplomatic efforts that Russia is undertaking…. The discussions are about a ceasefire, a cessation of hostilities in the foreseeable future. Work is underway on this.”

Moscow and Damascus have been in lock-step since the end of September last year, when Russia launched air strikes on Syria which focused on attacking rebels opposed to Assad’s rule.

The Russian strikes saved Assad’s forces from imminent collapse and turned the tide of the fighting in his favor, exasperating the United States and its allies which have been working for years to defeat him.

Western diplomats expressed hope that Russia could use its influence over Assad to persuade him to start talks with armed opposition groups and eventually agree to step down.

Unofficial reports have emerged of Assad refusing to meet opposition figures proposed by Moscow as potential negotiating partners, but Churkin’s remarks are the first public sign that Moscow is frustrated with Assad’s reluctance to compromise.

On Assad’s comments about fighting on in Syria, Churkin said in the interview: “In this case I think that we ought to be guided not by what he (Assad) says, with all my respect to the remarks of such a high-ranking person, but by what he does in the end.

“If the Syrian authorities… follow Russia’s lead in the resolution of this crisis, then they have a chance to get out of it with their dignity intact.”

“But if in some way they are knocked off that path — and this again is my personal opinion — then a very difficult situation could arise. Including for the Syrians themselves. Because whatever the capabilities of the Syrian army, it was the effective operations of Russian air forces that allowed them to push their opponents back from Damascus.”

“If they take the position that they don’t need any ceasefire, and they need to fight on to the end and to victory, then this conflict is going to carry on for a very long time. And it’s frightening to imagine that,” Churkin said.

(Reporting by Alexander Winning; Editing by Christian Lowe)

United States wants NATO to step up fight against Islamic State

BRUSSELS (Reuters) – The United States is pressing NATO to play a bigger role against Islamic State in Syria and Iraq, putting Washington at odds with Germany and France which fear the strategy would risk confrontation with the alliance’s old Cold War foe Russia.

All 28 NATO allies are already part of a 66-nation anti-Islamic State coalition, so the United States is looking to NATO as an institution to bring its equipment, training and the expertise it gained leading a coalition in Afghanistan.

“It is worth exploring how NATO, as NATO, could make an appropriate contribution, leveraging for example its unique capabilities, such as force generation,” U.S. Secretary of Defense Ash Carter said after meeting allies at NATO headquarters in Brussels last week and referring to NATO’s know-how in drumming-up troops, planes and ships from allies.

Seeking to recapture the Islamic State strongholds of Raqqa in Syria and Mosul in Iraq, Washington wants a bigger European response to the chaos and failing states near Europe’s borders.

Carter’s call for NATO’s help came as defense ministers from the anti-Islamic State coalition met last week at NATO headquarters in Brussels for the first time, albeit with NATO insignia removed from the walls.

Despite support from Britain, the U.S. push has not been received well by France and Germany.

Given Russia’s concerns over NATO expansion in eastern Europe, Paris and Berlin are worried that deeper NATO involvement in Syria could be taken by Moscow as a provocation that the alliance is seeking to extend its influence.

As the Russian-backed Syrian government advance nears NATO’s southeastern border, growing hostility between Russia and Turkey only makes some members of the alliance more reluctant, diplomats say.

Notwithstanding an agreement between Russia and the United States to avoid accidental military air incidents, France and Germany worry Russia’s targeting of opposition groups other than Islamic State increases the risks.

“NATO and Russia would not be fighting a common enemy,” a NATO diplomat said.

NON-COMBAT OPTIONS

Carter has sought to distinguish between Syria’s civil war and the fight against Islamic State, saying the campaign against the militant group will go on regardless, and has pushed allies to accelerate their efforts.

In that vein, Washington tested waters by making a request for NATO to provide its surveillance AWACS aircraft to the anti-Islamic State coalition fighting militants in Syria.

Germany pushed back on the AWACS request. That has forced a compromise by which NATO will send the planes to allied countries so as to free-up allies to send more of their own equipment to fight Islamic State in Syria, diplomats said.

France also sought assurances that the AWACS request did not mean NATO as an institution was being involved more deeply in the anti-Islamic State coalition.

Still, NATO Supreme Allied Commander General Philip Breedlove said planning for a bigger alliance role was “a natural shift … a natural evolvement of the thinking.”

“All our nations are under greater pressure, so this is just beginning. There is no detail but there are lots of opportunities that are being considered,” he said.

NATO involvement in Syria could help answer critics who say the alliance has watched passively as Russia has widened its role there. It could also address concerns expressed by southern allies, such as Spain, Italy and Portugal, that NATO does not have a strategy to address risks on the Mediterranean, the entry point for huge numbers of people fleeing conflict in the Middle East.

British Defense Secretary Michael Fallon said NATO might not yet be ready to move ahead along the lines suggested by Washington, “but the very fact that we brought together 45 members of the anti-IS coalition, inside NATO headquarters, shows you that we want to see a stronger governance of the coalition.”

“We want to be able to measure the progress of the campaign and to review it more regularly,” Fallon told Reuters.

For the moment, discussions on various options include more NATO training of Iraqi troops and police, as well as strengthening government departments in areas taken back from Islamic State, according a U.S. defense official.

The United States has made clear it does not see a role for Western combat troops. “Territory retaken from ISIL (Islamic State) has to be occupied and governed by people who are from the area and want to live there,” Carter said.

(Additional reporting by Phil Stewart in Washington and Sabine Siebold in Berlin; Editing by Robin Pomeroy)

Saudis and Russia agree to oil output freeze, Iran still an obstacle

DOHA (Reuters) – Top oil exporters Russia and Saudi Arabia agreed on Tuesday to freeze output levels but said the deal was contingent on other producers joining in – a major sticking point with Iran absent from the talks and determined to raise production.

The Saudi, Russian, Qatari and Venezuelan oil ministers announced the proposal after a previously undisclosed meeting in Doha. It could become the first joint OPEC and non-OPEC deal in 15 years, aimed at tackling a growing oversupply of crude and helping prices recover from their lowest in over a decade.

Saudi Oil Minister Ali al-Naimi said freezing production at January levels – near record highs – was an adequate measure and he hoped other producers would adopt the plan. Venezuelan Oil Minister Eulogio Del Pino said more talks would take place with Iran and Iraq on Wednesday in Tehran.

“The reason we agreed to a potential freeze of production is simple: it is the beginning of a process which we will assess in the next few months and decide if we need other steps to stabilize and improve the market,” Naimi told reporters.

“We don’t want significant gyrations in prices, we don’t want reduction in supply, we want to meet demand, we want a stable oil price. We have to take a step at a time,” he said.

Oil prices jumped to $35.55 per barrel after the news about the secret meeting but later pared gains to trade near $33 on concerns that Iran may reject the deal and that even if Tehran agreed it would not help ease the growing global glut.

OPEC member Iran, Saudi Arabia’s regional arch rival, has pledged to steeply increase output in the coming months as it looks to regain market share lost after years of international sanctions, which were lifted in January following a deal with world powers over its nuclear program.

“Our situation is totally different to those countries that have been producing at high levels for the past few years,” a senior source familiar with Iran’s thinking told Reuters.

Iranian Oil Minister Bijan Zanganeh also indicated Tehran would not agree to freezing its output at January levels, saying the country would not give up its appropriate share of the global oil market.

SPECIAL TERMS

The fact that output from OPEC kingpin Saudi Arabia and non-OPEC Russia – the world’s two top producers and exporters – is near record highs complicates any agreement since Iran is producing at least 1 million barrels per day below its capacity and pre-sanctions levels.

However, two non-Iranian sources close to OPEC discussions told Reuters that Iran may be offered special terms as part of the output freeze deal. “Iran is returning to the market and needs to be given a special chance but it also needs to make some calculations,” said one source.

Russian Deputy Prime Minister Arkady Dvorkovich said freezing output was not a problem for his country as he anyway expected its production to be flat this year versus 2015.

An Iraqi oil ministry source said Baghdad was also happy to freeze production if all parties agreed.

“The agreement (if successful) should support oil prices but there are reasons to be cautious. Not all OPEC members have signed up to the deal – notably Iran and Iraq. History would also suggest that compliance may be an issue,” said Capital Economics’ analyst Jason Tuvey.

OPEC has been quarrelling for decades over output levels and Russia, which last agreed to cooperate with OPEC back in 2001, never followed through on its pledge and raised exports instead.

Also complicating any potential agreement is the geo-political rivalry in the Middle East between Sunni Muslim power Saudi Arabia and Shi’ite Iran. Saudi Arabia and its Gulf allies are fighting proxy conflicts with Russia and Iran in the region, including in Syria and Yemen.

In Syria’s five-year-old civil war, Riyadh politically and financially backs some rebel groups battling President Bashar al-Assad’s government, which has gained the upper hand with the help of Russian warplanes and Iranian-backed Shi’ite militias.

RUSSIAN BUDGET

The Doha meeting came after more than 18 months of declining oil prices, knocking crude below $30 a barrel for the first time in over a decade from as high as $115 a barrel in mid-2014.

The slump was triggered by booming U.S. shale oil output and a decision by Saudi Arabia and its OPEC Gulf allies to raise production to fight for market share and drive higher-cost production out of the market.

But although U.S. output has begun to decline and global demand has been robust it has still not been enough to offset booming global production which has led to oil stockpiles rising to record levels.

Saudi Arabia has long insisted it would reduce supply only if other OPEC and non-OPEC members agreed, but Russia – the world’s biggest oil producer and No.2 exporter – has said it would not join in as its Siberian fields were different from those of OPEC.

The mood began to change in January as oil prices fell below $30 per barrel.

While Venezuela has been the hardest-hit producer, current oil prices are a fraction of what Russia needs to balance its budget as it heads towards parliamentary elections this year. Saudi finances are also suffering badly, running a $98 billion budget deficit last year, which it seeks to trim this year.

But while talking about potential cooperation with OPEC, Russia raised its output to a new record high in January. For a table on OPEC and Russian output, click here

“Even if they do freeze production at January levels, you have still got global inventory builds which are going to weigh on prices. So whilst it’s a positive step, I don’t think it will have a huge impact on supply/demand balances, simply because we were oversupplied in January anyway,” said Energy Aspects’ analyst Dominic Haywood.

(Additional reporting by Alex Lawler, Reem Shamseddine, Ahmad Ghaddar and Amanda Cooper; Writing by Dmitry Zhdannikov; Editing by Dale Hudson and Pravin Char)

Turkey seeks allies’ support for ground operation as Syria war nears border

ANKARA/ISTANBUL (Reuters) – Turkey, Saudi Arabia and some European allies want ground troops deployed in Syria as a Russian-backed government advance nears NATO’s southeastern border, Turkey’s foreign minister said, but Washington has so far ruled out a major offensive.

Syrian government forces made fresh advances on Tuesday, as did Kurdish militia, both at the expense of rebels whose positions have been collapsing in recent weeks under the Russian-backed onslaught.

The offensive, supported by Iranian-backed Shi’ite militias as well as Russian air strikes, has brought the Syrian army to within 25 km (15 miles) of Turkey’s frontier, while Kurdish fighters, regarded by Ankara as hostile insurgents, have extended their presence along the border.

The advances have increased the risk of a military confrontation between Russia and Turkey. Turkish artillery returned fire into Syria for a fourth straight day on Tuesday, targeting the Kurdish YPG militia which Ankara says is being backed by Moscow.

“Some countries like us, Saudi Arabia and some other Western European countries have said that a ground operation is necessary,” Turkish Foreign Minister Mevlut Cavusoglu told Reuters in an interview.

However, this kind of action could not be left to regional powers alone. “To expect this only from Saudi Arabia, Turkey and Qatar is neither right nor realistic. If such an operation is to take place, it has to be carried out jointly, like the (coalition) air strikes,” he said.

Turkish President Tayyip Erdogan said the “brutal operation” by Russian and Syrian forces was aimed at forging a YPG corridor along Turkey’s border, something Ankara has long feared would fuel Kurdish separatist ambition on its own soil.

Turkey accused Russia on Monday of an “obvious war crime” after missile attacks in northern Syria killed scores of people, and warned the YPG it would face the “harshest reaction” if it tried to capture a town near the Turkish border.

Russian air support for the Syrian government offensive has transformed the balance of power in the five-year-old war in the past three weeks.

World powers meeting in Munich last week agreed to a pause in the fighting, but that is not set to begin until the end of this week and was not signed by the warring Syrian parties.

The U.N. Syria envoy, Staffan de Mistura, held talks with Syria’s foreign minister on Tuesday aimed at securing a cessation of hostilities and said Damascus had a duty to let the world body bring in humanitarian aid.

Damascus says its objectives are to recapture Aleppo, Syria’s biggest city before the war, and seal off the border with Turkey that has served as the main supply route into rebel-held territory for years.

Those would be the government’s biggest victories of the war so far and probably end rebel hopes of overthrowing President Bashar al-Assad by force, their objective since 2011 with the encouragement of the West, Arab states and Turkey.

SYRIAN MILITARY GAINS

Kurdish forces continued their push eastwards toward Islamic State-held territory northeast of Aleppo.

The Syrian Observatory for Human Rights, a British-based group which monitors the war, said the Kurdish-backed Syria Democratic Forces (SDF) – of which the YPG is a part – took a village near the town of Marea. That is the last major settlement before territory held by the radical militants stretching into Iraq.

The Syrian army also made advances, with state media saying it had taken two villages north of Aleppo near the town of Tal Rifaat, which fell to the SDF on Monday. With the help of Russian air strikes it also advanced from the coastal city of Latakia, fighting to take the town of Kansaba.

With hundreds of thousands trapped in areas the government aims to seize, Turkey and others accuse Moscow of deliberately firing on civilian targets such as hospitals to force residents to flee and depopulate territory.

Almost 50 civilians were killed when missiles hit at least five medical facilities and two schools in rebel-held areas on Monday, according to the United Nations, which called the attacks a blatant violation of international law.

At least 14 were killed in the northern town of Azaz, the last rebel stronghold before the border with Turkey north of Aleppo. Prime Minister Ahmet Davutoglu said a Russian missile was responsible and vowed that Turkey would not let Azaz fall into YPG hands.

Russia’s foreign ministry said Turkey was using Azaz as a supply route for Islamic State and “other terrorist groups”, while the Kremlin strongly rejected Turkish accusations it had committed a war crime after the missile strikes.

“We categorically do not accept such statements, the more so as every time those making these statements are unable to prove their unfounded accusations in any way,” President Vladimir Putin’s spokesman Dmitry Peskov told reporters.

“Our relations (with Turkey) are in a deep crisis. Russia regrets this. We are not the initiators of this.”

DOUBTS OVER GROUND TROOPS

The advances by the YPG risk creating friction between Turkey and its allies, including the United States.

Ankara sees the Syrian Kurdish militia as an extension of the Kurdistan Workers Party (PKK) which has fought a three-decade insurgency for Kurdish autonomy in Turkey’s southeast. But the United States sees the YPG as one of the few effective ground forces fighting Islamic State militants in Syria, and has lent the group military support.

Washington has so far ruled out sending its own ground troops into Syria, apart from small numbers of special forces.

Sunni Arab Gulf states including Saudi Arabia and the United Arab Emirates (UAE) said this month they were ready to send ground forces as part of an international coalition against Islamic State, providing Washington takes the lead.

But Turkey’s focus on the YPG means it cannot necessarily count on support from NATO, which, while reluctant to pressure Ankara in public, is working behind closed doors to discourage it from targeting the Kurds and escalating with Russia.

(Additional reporting by Lisa Barrington in Beirut, Darya Korsunskaya and Dmitry Solovyov in Moscow, Robin Emmott in Brussels, Noah Barkin in Berlin, Daren Butler in Istanbul, Stephanie Nebehay in Geneva; writing by David Dolan and Nick Tattersall; editing by Peter Graff and David Stamp)

Russia warns of new Cold War as east Ukraine violence surges

MUNICH (Reuters) – Violence in eastern Ukraine is intensifying and Russian-backed rebels have moved heavy weaponry back to the front line, international monitors warned on Saturday as Moscow responded by accusing the West of dragging the world back 50 years.

Russian Prime Minister Dmitry Medvedev described East-West relations as having “fallen into a new Cold War” and said NATO was “hostile and closed” toward Russia, in the latest sign that peace efforts have made scant progress almost two years since Moscow annexed Crimea.

“I sometimes wonder – are we in 2016 or 1962?,” Medvedev asked in a speech to the Munich Security Conference.

Implementation of a deal agreed in Minsk a year ago, which would allow for the lifting of sanctions on Russia, and a lull in violence late last year raised hopes that the conflict that has killed more than 9,000 people could be resolved quickly.

But Lamberto Zannier, who heads the Organisation for Security and Co-operation in Europe (OSCE) monitoring eastern Ukraine, said the situation had “become difficult again.”

“We see a multiplication of incidents, violations of the ceasefire,” he told Reuters at the Munich Security Conference. “We’ve seen cases of redeployment of heavy armaments closer to the contact line … and multiple rocket launchers, artillery being used,” he said, referring to the heavy weaponry that is meant to be removed under the Minsk deal.

Medvedev accused Kiev of trying to shift the blame onto Moscow for the continued shelling in the industrial regions of eastern Ukraine now under rebel control.

“The Minsk agreements have to be observed by everyone. But we believe that it’s first and foremost up to the Kiev authorities to do that,” he said.

The West says it has satellite images, videos and other evidence to show Russia is providing weapons to the rebels and that Moscow has troops engaged in the conflict that erupted following Russia’s annexation of Ukraine’s Crimea in 2014.

Russia denies such accusations.

NATO’s Supreme Allied Commander Gen. Philip Breedlove said Russia had the power to “dial up and down” the conflict as it wished to put pressure on the government in Kiev but he said NATO did not want, nor currently see, a new Cold War.

AMNESTY

Extended at the end of last year, the Minsk peace deal signed by Russia, Ukraine, France and Germany aims to give Ukraine back control of its border with Russia, see all heavy weapons withdrawn, return hostages and allow an internationally monitored local election in the east.

Zannier said the vote could not happen until there was a ceasefire and even then it would be difficult to do by mid-year because international observers need to be in place.

Medvedev said Ukraine, not Russia, was in breach of the Minsk deal because Kiev was yet to change Ukraine’s constitution to grant special status to eastern Ukraine.

Russia wants an amnesty for mainly Russian-speaking people in the east who seized government buildings during the upheaval of early 2014, when pro-European protesters toppled Russia-backed President Viktor Yanukovich.

“Without this amnesty, these people won’t be able to participate in the elections,” Medvedev said.

Kiev’s Western backers acknowledge the government of President Petro Poroshenko must speed up reforms, especially those tied to its $10-billion International Monetary Fund bailout, but say Russia must respect Ukraine’s sovereignty.

“Neither the people of Ukraine nor their partners in the international community believe they have done enough,” U.S. Secretary of State John Kerry said.

(Additional reporting by Warren Stroebel; Editing by Helen Popper and David Evans)

Russia keeps bombing despite Syria truce, Assad vows to fight on

MUNICH/AMMAN (Reuters) – Major powers agreed on Friday to a pause in combat in Syria, but Russia pressed on with bombing in support of its ally President Bashar al-Assad, who vowed to fight until he regained full control of the country.

Although billed as a potential breakthrough, the “cessation of hostilities” agreement does not take effect for a week, at a time when Assad’s government is poised to win its biggest victory of the war with the backing of Russian air power.

If implemented, the deal hammered out at five hours of late night talks in Munich would allow humanitarian aid to reach besieged towns. It was described by the countries that took part as a rare diplomatic success in a conflict that has fractured the Middle East, killed at least 250,000 people, made 11 million homeless and sent hundreds of thousands fleeing into Europe.

But several Western countries said there was no hope for progress without a halt to the Russian bombing, which has decisively turned the balance of power in favor of Assad.

U.S. Secretary of State John Kerry said that if the peace plan fails, more foreign troops could enter the conflict.

“If the Assad regime does not live up to its responsibilities and if the Iranians and the Russians do not hold Assad to the promises that they have made…then the international community obviously is not going to sit there like fools and watch this. There will be an increase of activity to put greater pressure on them,” Kerry, who was in Munich, told Dubai-based Orient TV.

“There is a possibility there will be additional ground troops.”

U.S. President Barack Obama has ruled out sending U.S. ground troops to Syria, but Saudi Arabia this month offered ground forces to fight Islamic State.

Rebels said the town of Tal Rifaat in northern Aleppo province was the target of intensive bombing by Russian planes on Friday morning. The British-based Syrian Observatory for Human Rights, a monitoring body, said warplanes believed to be Russian also attacked towns in northern Homs.

The news agency AFP quoted Assad as saying he would continue to fight terrorism while talks took place. He would retake the entire country, although this could take a long time, he said.

Another week of fighting would give the Damascus government and its Russian, Lebanese and Iranian allies time to press on with the encirclement of Aleppo, Syria’s biggest city before the war, which they are now on the verge of capturing.

They are also close to sealing the Turkish border, lifeline of rebel territory for years.

Those two victories would reverse years of insurgent gains, effectively ending the rebels’ hopes of dislodging Assad through force, the cause they have fought for since 2011 with the encouragement of Arab states, Turkey and the West.

The cessation of hostilities agreement falls short of a formal ceasefire, since it was not signed by the main warring parties – the opposition and government forces.

Implementing it will now be the key, Kerry said: “What we need to see in the next few days are actions on the ground.”

Two Syrian rebel commanders told Reuters they had been sent “excellent quantities” of ground-to-ground Grad missiles by foreign backers in recent days to help confront the Russian-backed offensive.

Foreign opponents of Assad including Saudi Arabia and Turkey have been supplying vetted rebel groups with weapons via a Turkey-based operations center. Some of the vetted groups have received military training overseen by the U.S. Central Intelligence Agency.

RUSSIAN TARGETS

Russia suggested it might not stop its air strikes, even when the cessation of hostilities takes effect in a week.

Foreign Minister Sergei Lavrov said Moscow would not stop bombing fighters from Islamic State and a rebel group called the Nusra Front, which is affiliated with al Qaeda, neither of which were covered by the cessation deal: “Our airspace forces will continue working against these organizations,” he said.

Moscow has always said that those two jihadist groups are the principal targets of its air campaign. Western countries say Russia has in fact been mostly attacking other insurgent groups. Nusra fighters often operate in areas where other rebel groups are also active.

Turkey’s foreign minister said on Friday Russia was targeting schools and hospitals in Syria.

NATO Secretary General Jens Stoltenberg said Moscow must halt strikes on insurgents other than Islamic State for any peace deal to work.

“Russia has mainly targeted opposition groups and not ISIL (Islamic State). Air strikes of Russian planes against different opposition groups in Syria have actually undermined the efforts to reach a negotiated, peaceful solution,” he said.

Britain and France said a peace deal could only be reached if Moscow stops bombing insurgents other than Islamic State.

The complex, multi-sided civil war in Syria has drawn in most regional and global powers, producing the world’s worst humanitarian emergency and attracting jihadist recruits from around the world.

The United States has been leading its own air campaign against Islamic State fighters since 2014, when that group, also known as ISIS or ISIL, swept through much of eastern Syria and northern Iraq, declaring a caliphate.

U.S. Defense Secretary Ash Carter said on Friday he expected Saudi Arabia and the United Arab Emirates to send commandos to help recapture Islamic State’s eastern Syrian stronghold, Raqqa.

Assad said he believed Saudi Arabia and Turkey were planning to invade his country. Russia has said Saudi ground troops would make the war last forever.

Saudi Arabia’s foreign minister said the main objective in Syria was still to remove Assad, and “we will achieve it”.

The main battlefields in the civil war are in the west of the country, far from Islamic State’s strongholds, where Washington has largely steered clear, leaving the field to Russia which began its air campaign on Sept. 30 last year.

Kerry had entered the Munich talks pushing for a rapid halt to fighting, with Western officials saying Moscow was holding out for a delay.

The tactic of agreeing to a break in hostilities while battling for gains on the ground is one Moscow’s allies used in eastern Ukraine only a year ago. A ceasefire there eventually took hold, but only after Russian-backed separatists overran a besieged town after the deal was reached.

HIGH HOPES

Diplomats from countries backing the plan met on Friday to discuss sending in urgent humanitarian aid.

“I sense now that all of the ISSG (International Syria Support Group) members want to get aid to the besieged areas and also the hard-to-reach areas,” said Jan Egeland, the head of the Norwegian Refugee Council, who chaired the meeting in Geneva.

“Convoys can go very soon if and when we have the permission and the green light from the parties.”

The group, which includes Russia and Iran, had given “excellent feedback” and would meet again on Wednesday, Egeland told reporters after the 3 hour meeting.

The sides in Munich called for a resumption of political peace talks, which collapsed last week in Geneva before they began after the opposition demanded a halt to bombardment.

Syria’s main opposition alliance cautiously welcomed the plan, but said it would not agree to join political talks unless the agreement proved effective.

World powers all say they support a “political transition”, but there has been disagreement for years over whether that requires Assad to leave power, as Western countries have been demanding in vain since 2011.

A senior French diplomat said it would be Moscow’s fault if it kept bombing and the peace process failed: “The Russians said they will continue bombing the terrorists. They are taking a political risk because they are accepting a negotiation in which they are committing to a cessation of hostilities.

“If in a week there is no change because of their bombing, then they will bear the responsibility.”

(Additional reporting by Denis Dyomkin, Shadia Nasralla, and Robin Emmott in Munich, and Suleiman al-Khalidi in Amman; writing by Peter Graff and Anna Willard; editing by Andrew Roche)

Ukraine sees Russian hand in cyber attacks on power grid

KIEV (Reuters) – Hackers used a Russian-based internet provider and made phone calls from inside Russia as part of a coordinated cyber attack on Ukraine’s power grid in December, Ukraine’s energy ministry said on Friday.

The incident was widely seen as the first known power outage caused by a cyber attack, and has prompted fears both within Ukraine and outside that other critical infrastructure could be vulnerable.

The ministry, saying it had completed an investigation into the incident, did not accuse the Russian government directly of involvement in the attack, which knocked out electricity supplies to tens of thousands of customers in central and western Ukraine and prompted Kiev to review its cyber defenses.

But the findings chime with the testimony of the U.S. intelligence chief to Congress this week, which named cyber attacks, including those targeting Washington’s interests in Ukraine, as the biggest threat to U.S. national security.

Relations between Kiev and Moscow soured after Russia annexed the Crimean peninsula in March 2014 and pro-Russian separatist violence erupted in Ukraine.

Hackers targeted three power distribution companies in December’s attack, and then flooded those companies’ call centers with fake calls to prevent genuine customers reporting the outage.

“According to one of the power companies, the connection by the attackers to its IT network occurred from a subnetwork … belonging to an (internet service) provider in the Russian Federation,” the ministry said in a statement.

Deputy Energy Minister Oleksander Svetelyk told Reuters hackers had prepared the attacks at least six months in advance, adding that his ministry had ordered tighter security procedures.

“The attack on our systems took at least six months to prepare – we have found evidence that they started collecting information (about our systems) no less than 6 months before the attack,” Svetelyk said by phone.

Researchers at Trend Micro, one of the world’s biggest security software firms, said this week that the software used to infect the Ukrainian utilities has also been found in the networks of a large Ukrainian mining company and a rail company.

The researchers said one possible explanation was that it was an attempt to destabilize Ukraine as a whole. It was also possible these were test probes to determine vulnerabilities that could be exploited later, they said.

(Writing by Matthias Williams; additional reporting by Eric Auchard; Editing by Ruth Pitchford)