Tag Archives: Tensions

Putin: Russia reserves right to cut further U.S. diplomatic mission

Russian President Vladimir Putin attends a news conference after BRICS (Brazil, Russia, India, China and South Africa) Summit in Xiamen, China September 5, 2017. Sputnik/Mikhail Klimentyev/Kremlin via REUTERS

By Denis Pinchuk

XIAMEN, China (Reuters) – Russia reserves the right to cut further the number of U.S. diplomatic staff in Moscow, Russian President Vladimir Putin said on Tuesday, in response to what he called Washington’s “boorish” treatment of Russia’s diplomatic mission on U.S. soil.

Speaking after U.S. officials ordered Russia to vacate diplomatic premises in several American cities, Putin said he would order the Russian foreign ministry to take legal action over alleged violations of Russia’s property rights.

“That the Americans reduced the number of our diplomatic facilities – this is their right,” Putin told a news conference in the Chinese city of Xiamen, where he was attending a summit of major emerging economies.

“The only thing is that it was done in such a clearly boorish manner. That does not reflect well on our American partners. But it’s difficult to conduct a dialogue with people who confuse Austria and Australia. Nothing can be done about it. Probably such is the level of political culture of a certain part of the U.S. establishment.”

“As for our buildings and facilities, this is an unprecedented thing,” Putin said. “This is a clear violation of Russia’s property rights. Therefore, for a start, I will order the Foreign Ministry to go to court – and let’s see just how efficient the much-praised U.S. judiciary is.”

U.S. President Donald Trump took office in January, saying he wanted to improve ties with Russia. Putin also spoke favorably of Trump.

But relations have been damaged by accusations from U.S. intelligence officials that Russia sought to meddle in the presidential election. Russia has denied interfering in the vote.

Asked by a reporter if he was disappointed with Trump, Putin said: “Whether I am disappointed or not, your question sounds very naive – he is not my bride and, likewise, I am neither his bride nor bridegroom.”

“We are both statesmen. Every nation has interests of its own. In his activities, Trump is guided by the national interests of his country, and I by the interests of mine.”

“I greatly hope that we will be able, just as the current U.S. president said, to find some compromises while resolving bilateral and international problems … taking into account our joint responsibility for international security.”

DIPLOMATIC PARITY

The U.S. order for Russia to vacate some of its diplomatic properties was the latest in a series of tit-for-tat actions that began when former U.S. president Barack Obama, late last year, expelled 35 Russian diplomats.

The Obama administration said it was retaliating for Russian meddling in the U.S. presidential election.

In July, Moscow responded, ordering the United States to cut the number of its diplomatic and technical staff working in Russia by around 60 percent, to 455.

Moscow said the move aimed to bring the number of U.S. and Russian diplomats working on each other’s soil to parity. But Putin said the latest expulsions ordered by Washington brought the number of Russian diplomats on U.S. soil to below parity.

He said the United States was erroneously counting 155 Russian diplomats working at the United Nations headquarters in New York as being Russian diplomats on U.S. soil. If they are removed from the equation, Putin said, Russia has fewer than 455 diplomats in the United States.

“We reserve the right to take a decision on the number of U.S. diplomats in Moscow. But we won’t do that for now. Let’s wait and see how the situation develops further,” he said.

The United States has ordered the closure of the Russian consulate in San Francisco and two buildings housing trade missions in Washington and New York.

U.S.-Russian relations have also been badly strained by Moscow’s annexation of Crimea in 2014 and the subsequent separatist conflict in eastern Ukraine, developments which led Washington to impose economic sanctions on Russia.

Trump, himself battling allegations that his associates colluded with Russia, grudgingly signed into law the new sanctions against Moscow that had been drawn up by Congress.

(Reporting by Denis Pinchuk; Writing by Dmitry Solovyov; Editing by Christian Lowe and Gareth Jones)

After North Korea missile, Britain and Japan agree closer security ties

British Prime Minister Theresa May (3rd L) and members of Japan's National Security Council pose for the media prior to their meeting at Japan's Prime Minister Shinzo Abe's official residence in Tokyo on August 31, 2017. (L-R) Defense Minister Itsunori Onodera, Chief Cabinet Secretary Yoshihide Suga, British Prime Minister Theresa May, Prime Minister Shinzo Abe, Deputy Prime Minister and Finance Minister Taro Aso, Foreign Minister Taro Kono, and Shotaro Yachi, head of the National Security Council. REUTERS/Kazuhiro Nogi/Pool

By William James

TOKYO (Reuters) – Britain and Japan said on Thursday they would cooperate in countering the threat posed by North Korea, two days after it fired a missile over northern Japan, and will call on China to exert its leverage.

Prime Minister Theresa May, looking to strengthen relations with one of her closest allies ahead of Brexit, is visiting Japan as it responds to an increasing military threat.

Terming North Korea’s missile program “a global threat”, Prime Minister Shinzo Abe told a news conference that Japan and Britain would cooperate.

“It is very meaningful that Prime Minister May and I agreed to further strengthen pressure on North Korea and to call on China to play a larger role,” he added.

May agreed, noting that China, North Korea’s lone major ally, had been involved in U.N. Security Council debate earlier this week.

“China does have a particular position in this, they have leverage on North Korea and I believe we should be encouraging China to exercise that leverage to do what we all want – which is to ensure that North Korea is not conducting these illegal acts.”

May toured Japan’s flagship Izumo helicopter carrier for a military briefing with Minister of Defence Itsunori Onodera before attending a national security meeting.

May and Abe agreed on a joint declaration on security cooperation, including plans for British soldiers to take part in military exercises on Japanese soil and for collaboration to address the threat of cyber and militant attacks when Japan hosts the Olympics in 2020.

North Korea featured heavily in the talks after it launched a ballistic missile on Tuesday that passed over Japanese territory, prompting international condemnation.

May’s office had said the two leaders were expected to discuss the possibility of further sanctions on North Korea, but neither Abe nor May touched on the issue at the news conference.

The Global Times, a publication of the official People’s Daily of China’s ruling Communist Party, criticized an earlier comment of May’s comment calling for more pressure from China.

“Beijing does not need London to teach it how to deal with North Korea,” the newspaper said.

Asked about the United States, Japan and Britain looking to impose new sanctions on North Korea, Chinese Foreign Ministry spokeswoman Hua Chunying said the situation could only be resolved peacefully through dialogue.

“We think it is regrettable that some countries selectively overlook the relevant Security Council resolutions’ demand to advance dialogue, and stubbornly emphasize pressure and sanctions,” she told a daily news briefing.

‘OUTWARD-LOOKING’

Apart from security, May’s trip has focused on trade and investment. She is keen to convince nervy investors that Britain’s exit from the European Union will not make it a less attractive business partner.

Both May and Abe addressed a delegation of British business leaders and senior representatives from major Japanese investors in Britain, such as carmakers Nissan, Toyota and conglomerate Hitachi.

Abe told the gathering that May had assured him Britain’s negotiations on leaving the European Union would be transparent.

May said Japanese investment after Britain’s vote to leave the EU was a vote of confidence and she pledged to build close trade ties with Japan.

“I very much welcome the commitment from Japanese companies such as Nissan, Toyota, Softbank and Hitachi,” May said.

“I am determined that we will seize the opportunity to become an ever more outward-looking global Britain, deepening our trade relations with old friends and new allies.”

During a two-hour train ride between Kyoto and Tokyo late on Wednesday, the two leaders discussed Brexit, with May talking Abe through the details of a series of papers published in recent weeks setting out her negotiating position.

May said on Wednesday Japan’s upcoming trade deal with the EU could offer a template for a future Japan-Britain trade agreement, the latest attempt to show investors that Brexit will not lead to an overnight change in business conditions.

Japan has been unusually open about its concerns over Brexit, worrying that 40 billion pounds ($51.68 billion) of Japanese investment in the British economy could suffer if trading conditions change abruptly when Britain leaves the bloc.

(Additional reporting by Tim Kelly, Elaine Lies, Linda Sieg, Kiyoshi Takenaka and Takashi Umekawa, and Michael Martina in BEIJING; Editing by Clarence Fernandez, Robert Birsel and Nick Macfie)

U.S. bombers drill over Korean peninsula after latest North Korea launch

U.S. bombers drill over Korean peninsula after latest North Korea launch

By Jack Kim and Kaori Kaneko

SEOUL/TOKYO (Reuters) – South Korean and Japanese jets joined exercises with two U.S. nuclear-capable bombers above and near the Korean peninsula on Thursday, two days after North Korea fired a missile over Japan, sharply raising tension.

The drills, involving two supersonic U.S. B-1B bombers, four U.S. stealth F-35B jets as well as South Korean and Japanese fighter jets, came at the end of annual joint U.S.-South Korea military exercises focused mainly on computer simulations.

“North Korea’s actions are a threat to our allies, partners and homeland, and their destabilizing actions will be met accordingly,” said General Terrence J. O’Shaughnessy, Pacific Air Forces commander, who made an unscheduled visit to Japan.

“This complex mission clearly demonstrates our solidarity with our allies and underscores the broadening cooperation to defend against this common regional threat. Our forward deployed force will be the first to the fight, ready to deliver a lethal response at a moment’s notice if our nation calls.”

North Korea has made no secret of its intention to develop the knowhow to launch a nuclear-tipped missile at the United States and has recently threatened the U.S. Pacific territory of Guam. It denounced the U.S. exercises in traditionally robust fashion.

“The U.S. imperialists and the south Korean puppet forces do not hide their bellicose nature, claiming that the exercises are to ‘counter’ the DPRK’s ballistic rocket launches and nuclear weapons development,” the North’s KCNA news agency said, referring to North Korea by its official name, the Democratic People’s Republic of Korea (DPRK).

“But the wild military acts of the enemies are nothing but the rash act of those taken aback by the intermediate-to-long range strategic ballistic rocket launching drill conducted by the army of the DPRK as the first military operation in the Pacific.”

U.S. President Donald Trump has warned North Korea it would face “fire and fury” if it threatened the United States and that the U.S. military was “locked and loaded” in case of any provocation.

Trump on Wednesday declared “talking is not the answer” to resolving the long-standing impasse.

“The U.S. has been talking to North Korea, and paying them extortion money, for 25 years,” Trump, who last week said North Korean leader Kim Jong Un was “starting to respect” the United States, wrote on Twitter.

“Talking is not the answer!”

However, U.S. Defence Secretary Jim Mattis, when asked by reporters just hours later if the United States had run out of diplomatic solutions with North Korea, replied: “No.”

“We are never out of diplomatic solutions,” Mattis said before a meeting with his South Korean counterpart at the Pentagon. “We continue to work together, and the minister and I share a responsibility to provide for the protection of our nations, our populations and our interests.”

Japanese Defence Minister Itsunori Onodera spoke to Mattis by telephone and agreed to keep putting pressure on North Korea in a “visible” form, Japan’s defense ministry said. Japanese Prime Shinzo Abe said he and visiting British Prime Minister Theresa May agreed to urge China, North Korea’s lone major ally, to do more to rein in the North.

They also discussed the possibility of adopting a new U.N. Security Council resolution over North Korea, a British government source said.

SANCTION OPTIONS

The 15-member Security Council on Tuesday condemned the firing of an intermediate range ballistic missile over Japan as “outrageous” and demanded that North Korea halt its weapons program, but the U.S.-drafted statement did not threaten new sanctions.

Japan was pushing the United States to propose new U.N. Security Council sanctions, which diplomats said could target North Korea’s laborers working abroad, oil supply and textile exports.

Diplomats expected resistance from Russia and fellow veto-wielding power China, particularly given new measures were only recently imposed after North Korea staged two long-range missile launches in July.

A U.S. ban on travel to North Korea comes into effect on Friday, curbing one of its few remaining supplies of foreign currency.

China again urged restraint from all parties.

Defence ministry spokesman Ren Guoqiang told a monthly briefing that China would never allow war or chaos on the Korean peninsula, its doorstep, and military means were not an option.

“China strongly demands all sides to exercise restraint and remain calm and not do anything to worsen tensions,” Ren said, adding that Chinese forces were maintaining a normal state of alert along the North Korean border.

Chinese foreign ministry spokeswoman Hua Chunying said the situation on the peninsula was serious.

“I also want to stress that the current tense situation on the peninsula isn’t a screenplay or a video game,” she told reporters.

“It’s real, and is an immense and serious issue that directly involves the safety of people from both the north and south of the peninsula, as well as peace and stability of the entire region.”

‘KEY MILESTONE’

The Pentagon’s Missile Defense Agency and the crew of the guided-missile destroyer USS John Paul Jones conducted a “complex missile defense flight test” off Hawaii on Wednesday, resulting in the intercept of a medium-range ballistic missile target, the agency said.

The agency’s director, Lieutenant General Sam Greaves, called the test “a key milestone” in giving U.S. Navy Aegis Ballistic Missile Defense ships an enhanced capability, but did not mention North Korea.

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

North Korea routinely says it will never give up its weapons programs, calling them necessary to counter perceived American hostility.

For an interactive on North Korea’s missile capabilities, click: http://fingfx.thomsonreuters.com/gfx/rngs/NORTHKOREA-MISSILES/010041L63FE/index.html

For a graphic on North Korean missile trajectories, ranges, click: http://fingfx.thomsonreuters.com/gfx/rngs/NORTHKOREA-MISSILES/010050CG0RT/NORTHKOREA-MISSILES.png

For a graphic on Kim’s new act of defiance, click: http://fingfx.thomsonreuters.com/gfx/rngs/NORTHKOREA-MISSILES/010050KV1C3/index.html

(Additional reporting by Tim Kelly, Linda Sieg, William James and Nubohiro Kubo in TOKYO, Michael Martina and Ben Blanchard in BEIJING; Writing by Lincoln Feast and Nick Macfie; Editing by Raju Gopalakrishnan, Robert Birsel)

Germany keen to avoid new ‘ice age’ in ties between Russia, West

U.S. Secretary of State Rex Tillerson (R) and German Foreign Minister Sigmar Gabriel walk out to meet the press where Tillerson made a statement about the flooding in Houston, Texas, but declined questions, prior to a bilateral meeting, at the State Department, in Washington, U.S., August 29, 2017. REUTERS/Mike Theiler

WASHINGTON (Reuters) – Germany and Europe want to ensure that new U.S. sanctions against Russia do not lead to a new “ice age” in ties between Russia and the West, German Foreign Minister Sigmar Gabriel said on Tuesday.

Gabriel said he spoke with U.S. Secretary of State Rex Tillerson about the sanctions in a meeting in Washington, adding that he was grateful that U.S. President Donald Trump had agreed to coordinate on further measures with U.S. allies.

“We as Europeans have great concerns that this will have unintended consequences for Europe. We don’t want to completely destroy our business relations with Russia, especially in the energy sector,” Gabriel said.

Trump this month approved new sanctions on Moscow for its 2014 annexation of Ukraine’s Crimea peninsula and for what U.S. intelligence agencies say was its meddling in the U.S. presidential election, a charge Russia denies.

Gabriel has criticized the United States for the move, saying the new punitive measures expose European companies involved in energy projects in Russia to fines for breaching U.S. law.

Economy Minister Brigitte Zypries even urged the EU to retaliate against the United States if the new sanctions on Russia should end up penalizing German firms.

Gabriel said European leaders were concerned that the latest sanctions would not only have economic consequences, but could also “lead to a new ice age between Russia and the United States and the West.”

Despite European concerns about the sanctions, Gabriel insisted that Moscow must do its part to implement a fragile ceasefire agreement in place for eastern Ukraine, including the withdrawal of heavy weapons.

“That would be a starting point for improved relations,” Gabriel said.

German Chancellor Angela Merkel and French President on Monday called for Russia and Ukraine to increase their efforts to implement the ceasefire agreement.

The conflict between Ukrainian forces and Russian-backed separatists has claimed more than 10,000 lives since it erupted in 2014. Germany and France have tried to convince both sides to implement a peace deal agreed in Minsk in 2015 but with little success so far.

(Reporting by Andrea Shalal; Editing by Hugh Lawson)

Canadian pastor escaped execution due to foreign citizenship

Pastor Hyeon Soo Lim speaks at the Light Presbyterian Church in Mississauga.

TORONTO (Reuters) – A Canadian pastor whom North Korea released this month after two years of imprisonment escaped execution and torture during his captivity because of his nationality, he told CBC News in his first interview since his return.

Hyeon Soo Lim, the pastor from Toronto, said in an interview broadcast on Saturday that he was never harmed and that he would not hesitate to go back to North Korea if the country allowed him. A transcript of the interview was posted on the Canadian public broadcaster’s website.

“If I’m just Korean, maybe they kill me,” Lim said. “I’m Canadian so they cannot, because they cannot kill the foreigners.”

Lim, formerly the senior pastor at one of Canada’s largest churches, had disappeared on a mission to North Korea in early 2015. He was sentenced to hard labor for life in December 2015 on charges of attempting to overthrow the Pyongyang regime.

He said North Korea treated him well despite forcing him to dig holes and break coal by hand all day in a labor camp.

Lim told CBC News that he was “coached and coerced” into confessing that he traveled under the guise of humanitarian work as part of a “subversive plot” to overthrow the government and set up a religious state.

North Korea let him go on humanitarian grounds. The announcement came during heightened tensions between Washington and Pyongyang, although authorities have not said there was any connection between his release and efforts to defuse the standoff over North Korea’s nuclear program.

Lim said he felt no anger at the Kim Jong Un regime for sentencing him to prison.

“No, I thanked North Korea,” he said. “I forgive them.”

 

(Reporting by Denny Thomas; Editing by Lisa Von Ahn)

 

Russian nuclear bombers fly near North Korea in rare show of force

A Russian TU-95 bomber flies over around southern part of Japan in this handout picture taken by Japan Air Self-Defence Force and released by the Joint Staff Office of the Defense Ministry of Japan August 23, 2017. Picture taken August 23, 2017. Joint Staff Office of the Defense Ministry of Japan/HANDOUT via REUTERS

By Andrew Osborn

MOSCOW (Reuters) – Russian nuclear-capable strategic bombers have flown a rare mission around the Korean Peninsula at the same time as the United States and South Korea conduct joint military exercises that have infuriated Pyongyang.

Russia, which has said it is strongly against any unilateral U.S. military action on the peninsula, said Tupolev-95MS bombers, code named “Bears” by NATO, had flown over the Pacific Ocean, the Sea of Japan, the Yellow Sea and the East China Sea, prompting Japan and Seoul to scramble jets to escort them.

The flight, which also included planes with advanced intelligence gathering capabilities, was over international waters and was announced by the Russian Defence Ministry on the same day as Moscow complained about the U.S.-South Korean war games.

“The US and South Korea holding yet more large-scale military and naval exercises does not help reduce tensions on the Korean Peninsula,” Maria Zakharova, a spokeswoman for the foreign ministry, told a news briefing in Moscow.

“We urge all sides to exercise maximum caution. Given the arms build-up in the region, any rash move or even an unintended incident could spark a military conflict.”

The United States and South Korea began the long-planned joint military exercises on Monday, heightening tensions with Pyongyang which called the drills a “reckless” step towards nuclear conflict.

Some military experts regard the hulking Russian turboprop bombers which made the flight near the Korean Peninsula as a relic of the Cold War. But Russia has upgraded the aircraft since the Soviet fall and, since 2007, has used the planes to back its diplomacy with shows of force and to probe other countries’ airspaces.

Moscow said the bombers had been accompanied by Sukhoi-35S fighter jets and A-50 early warning and control aircraft.

The A-50s, the Russian equivalent of the Boeing E-3 Sentry AWACS aircraft, are designed to track aerial and ground targets at a long range, among other capabilities.

TENSIONS

Moscow did not say how many aircraft had taken part or when the mission had taken place.

“Our long-range aviation pilots, according to an established plan, regularly carry out flights over neutral waters over the Atlantic, the Arctic, the Black Sea and the Pacific Ocean from their bases and from tactical airfields,” the defense ministry said in the same statement.

It said the TU-95MS bombers were refueled in mid-air during the mission, and that during parts of the route they had been escorted by South Korean and Japanese military jets.

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 also complained about possible plans by Japan to deploy a U.S. anti-missile system on its soil.

Foreign Ministry Spokeswoman Zakharova said on Thursday that if Tokyo did go ahead and opt to deploy such a system it would be disproportional to the North Korean missile threat and could upset wider strategic stability in the region.

Japan has at least twice before this year been forced to scramble its jets to intercept Russian aircraft.

The daily Izvestia newspaper reported in October last year that Russia was close to finishing setting up a new division of heavy bombers to patrol “the Japan-Guam-Hawaiian Islands triangle.”

(Additional reporting by Dmitry Solovyov; Editing by Ralph Boulton)

North Korea presses rocket program, but amid signs of drama easing

North Korean leader Kim Jong-Un smiles during a visit to the Chemical Material Institute of the Academy of Defense Science in this undated photo released by North Korea's Korean Central News Agency (KCNA) in Pyongyang on August 23, 2017. KCNA/via REUTERS

By Christine Kim

SEOUL (Reuters) – North Korean leader Kim Jong Un has ordered more solid-fuel rocket engines, state media reported on Wednesday, as he pursues nuclear and missile programs amid a standoff with Washington, but there were signs of tension easing.

The report carried by the KCNA news agency lacked the traditionally robust threats against the United States after weeks of unbridled acrimony, and U.S. President Donald Trump expressed optimism about a possible improvement in relations.

“I respect the fact that he is starting to respect us,” Trump said of Kim at a raucous campaign rally in Phoenix, Arizona.

“And maybe – probably not, but maybe – something positive can come about,” he said.

The KCNA report, about a visit by Kim to a chemical institute, came not long after U.S. Secretary of State Rex Tillerson appeared to make a peace overture, welcoming what he called recent restraint shown by the reclusive North.

Kim was briefed about the process of manufacturing intercontinental ballistic missile (ICBM) warhead tips and solid-fuel rocket engines during his tour of the Chemical Material Institute of the Academy of Defence Science, KCNA said.

“He instructed the institute to produce more solid-fuel rocket engines and rocket warhead tips by further expanding engine production process and the production capacity of rocket warhead tips and engine jets by carbon/carbon compound material,” KCNA said.

North Korea has conducted two nuclear tests and dozens of missile tests since the beginning of last year, significantly raising tension on the heavily militarized Korean peninsula and in defiance of U.N. Security Council resolutions. Two ICBM tests in July resulted in a new round of tougher global sanctions.

The last missile test on July 28 put the U.S. mainland in range, prompting heated exchanges that raised fears of a new conflict on the peninsula.

Tillerson, however, noted what he called the restraint the North had shown and said on Tuesday he hoped a path could be opening for dialogue.

SIMULATED WAR DRILLS

South Korea and the United States are conducting an annual military exercise this week involving computer simulations of a war.

The drills, which the North routinely describes as preparation for invasion, run until Aug. 31, and included South Korean a civil defense exercise on Wednesday that saw traffic halted, movie screenings interrupted and hundreds of thousands of people directed to underground shelters.

The KCNA report said Kim had given “special thanks and special bonus” to officials of the institute, calling them heroes. A photograph showed Kim in a gray pinstriped suit, smiling before a large flow chart that described some kind of manufacturing process.

There was none of the fiery rhetoric of recent weeks, when Kim threatened to fire missiles into the sea near the U.S. Pacific territory of Guam after Trump warned North Korea it would face “fire and fury” if it threatened the United States.

But there were some signs of tension after the United States imposed new North Korea-related sanctions, targeting Chinese and Russian firms and individuals for supporting North Korea’s weapons programs.

The U.S. Treasury 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.

China reacted with irritation, saying the United States should “immediately correct its mistake” of imposing unilateral sanctions on Chinese companies and individuals.

Chinese Foreign Ministry spokeswoman Hua Chunying said all sides, especially the United States and North Korea, needed to exercise restraint.

“We hope all sides can be brave enough to shoulder their responsibilities, show goodwill to each other and take correct actions to help further ease tensions,” she told a regular press briefing.

Singapore-registered companies Velmur Management and Transatlantic Partners were named in the U.S. Treasury’s sanction statement as providing oil to North Korea and working with designated individuals.

Singapore’s Ministry of Foreign Affairs said U.S. authorities had informed them prior to the designations and it was investigating.

“Singapore will strictly fulfil its obligations under the UNSCRs and international law, and not allow our financial system to be abused for the conduct of illicit activities,” the ministry said in a statement, referring to U.N. Security Council resolutions.

Both Velmur and Transatlantic are represented by business service providers in Singapore that manage their local registrations.

Rivkin, which provides secretarial services for Velmur, said it would end its business relationship with the company and file a suspicious transaction report on their dealings to the police.

A representative for MEA Business Consultancy, which is located at the registered address for Transatlantic, said it provided services for the firm but only for registration purposes.

The United States has long urged China to do more to rein in North Korea, which counts Beijing as its lone major ally. Data released on Wednesday showed China’s trade with North Korea fell in July from a month earlier as a ban on coal purchases from its isolated neighbor slowed imports.

The United States is technically still at war with the North because their 1950-53 conflict ended in a truce, not a peace treaty. The North routinely says it will never give up its weapons programs, saying they are necessary to counter U.S. hostility.

(Additional reporting by Steve Holland in PHOENIX, David Brunnstrom and Doina Chiacu in WASHINGTON, Josephine Mason and Ben Blanchard in BEIJING and Fathin Ungku and Karishma Singh in SINGAPORE; Writing by Nick Macfie; Editing by Paul Tait, Robert Birsel)

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)

Japan urges pressure on North Korea as U.S. spells out choices

FILE PHOTO: Japanese Foreign Minister Taro Kono gestures during a news conference on the sidelines of the 50th Association of Southeast Asia Nations (ASEAN) Regional Forum (ARF) in Manila, Philippines August 7, 2017. REUTERS/Dondi Tawatao

By Kiyoshi Takenaka and Stephanie Nebehay

TOKYO/GENEVA (Reuters) – Japan said on Tuesday the world must keep pressure on North Korea to rein in its nuclear and missile programs as the United States spelt out the choice for impoverished Pyongyang between belligerence and prosperity.

North Korea has pursued its weapons tests in defiance of U.N. Security Council resolutions and sanctions and ignored all calls, including from major ally China, to stop, prompting a bellicose exchange of rhetoric between the North and the United States.

North Korea justifies its weapons programs, including its recent threat to fire missiles towards the U.S. Pacific territory of Guam, by pointing to perceived U.S. hostility, such as military exercises with South Korea this week.

Japanese Foreign Minister Taro Kono said pressure must be maintained until the North demonstrated it would give up its nuclear program.

“It’s not the time to discuss (the resumption of) six-party talks,” Kono said, referring to international negotiations involving both Koreas, the United States, Russia, China and Japan for the denuclearization of the Korean peninsula.

“It’s time to exert pressure,” he told reporters.

U.S. President Donald Trump’s top priority is to protect the United States and its allies against the “growing threat” from North Korea and America is ready to use “the full range of capabilities” at its disposal, a U.S. envoy said.

U.S. disarmament ambassador Robert Wood told a U.N.-sponsored Conference on Disarmament in Geneva the “path to dialogue still remains an option” for Pyongyang and it had the choice between poverty and belligerence and prosperity and acceptance.

There was no immediate reply from the North Korean delegate in the room.

‘CRAZY’ TO SHARE TIMELINE

The head of the U.S. military’s Pacific Command said diplomacy was key.

Admiral Harry Harris was in South Korea to observe annual joint military drills with the South Korean military, which the North called a step towards nuclear conflict masterminded by U.S. and South Korean “war maniacs”.

“So we hope and we work for diplomatic solutions to the challenge presented by Kim Jong Un,” Harris told reporters at a U.S. air base in Osan, about an hour from the capital, Seoul, referring to the North Korean leader.

He said diplomacy was “the most important starting point” in response to the North’s threat, when asked what actions by North Korea might trigger a preemptive U.S. strike against it.

“As far as a timeline, it would be crazy for me to share with you those tripwires in advance. If we did that, it would hardly be a military strategy,” he said.

The United States and South Korea began the long-planned exercises on Monday, called the Ulchi Freedom Guardian, which the allies have said are purely defensive.

The drills end on Aug. 31 and involve tens of thousands of troops as well as computer simulations designed to prepare for war with a nuclear-capable North Korea.

A North Korean army spokesman repeated a threat of retaliation against the United States for readying a preemptive strike and a war of aggression, using the drills as an excuse to mount such an attack.

“The U.S. will be wholly held accountable for the catastrophic consequences to be entailed by such reckless aggressive war maneuvers, as it chose a military confrontation,” the unidentified spokesman said in comments carried by the North’s official KCNA news agency.

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

(Additional reporting by Christine Kim in Pyeongtaek, South Korea, Tim Kelly in Tokyo; Writing by Jack Kim and Nick Macfie; Editing by Robert Birsel)

Merkel attacks Turkey’s ‘misuse’ of Interpol warrants

German Chancellor Angela Merkel, top candidate of the Christian Democratic Union Party (CDU), presents the new interactive election campaign ahead of the upcoming federal election in Berlin, Germany August 18, 2017. REUTERS/Hannibal Hanschke

BERLIN (Reuters) – German Chancellor Angela Merkel criticized Turkey’s use of an Interpol arrest warrant to detain a German writer in Spain, telling an election town hall event on Sunday that this amounted to abuse of the international police agency.

Dogan Akhanli was stopped in Spain on Saturday after Ankara issued a “red notice”. The German-Turkish writer was released on Sunday but must remain in Madrid while Spain assesses Turkey’s extradition request.

“It is not right and I’m very glad that Spain has now released him,” Merkel said. “We must not misuse international organisations like Interpol for such purposes.”

Relations between Turkey and the European Union have been under growing strain since last year’s failed military coup in Turkey. European-Turkish nationals are among the 50,000 people detained since then in what critics condemn as an indiscriminate crackdown by President Recep Tayyip Erdogan.

Merkel has been more muted in her criticism of Erdogan than other German politicians, with critics charging her with being beholden to Erdogan because of Turkey’s role as a buffer against a renewed flood of Syrian war refugees arriving in Europe.

“(Dogan’s) is one of many cases, unfortunately,” Merkel said, in a sharpening of her tone toward Ankara. “That’s why we have massively changed our Turkish policy recently … because it’s quite unacceptable that Erdogan does this.”

On Saturday Erdogan urged Turks in Germany to “teach a lesson” to Germany’s “anti-Turkish” mainstream parties in next month’s parliamentary election, despite German Foreign Minister Sigmar Gabriel’s warning he should keep out of German politics.

“Who are you to talk to the president of Turkey? Talk to Turkey’s foreign minister. Know your place,” Erdogan said at a rally for his AK Party in the southwestern province of Denizli.

European countries with large Turkish diasporas have grown increasingly uneasy at what they see as Ankara’s attempts to use ethnic Turkish populations to influence domestic politics.

“President Erdogan is trying to instrumentalise ethnic Turkish communities, especially in German and Austria,” Austrian Foreign Minister Sebastian Kurz told Die Welt newspaper. “He polarises and brings Turkish conflicts into the EU.”

The final days before elections in the Netherlands this year were overshadowed by violent protests by local affiliates of Erdogan’s party. German security officials have expressed concern about a possible repetition in Germany.

Interpol did not immediately respond to a request for comment on Merkel’s remarks.

(Reporting by Thomas Escritt in Berlin and Daren Butler in Istanbul; Editing by Jon Boyle and Sandra Maler)