Tag Archives: Tensions

Simmering North Korea tensions knock back Wall Street

Simmering North Korea tensions knock back Wall Street

By Sruthi Shankar

(Reuters) – U.S. indexes were trading at session lows on Thursday afternoon, with the Dow and the Nasdaq posting triple-digit point declines, as investors fretted over escalating tensions between the United States and North Korea.

North Korea said it was completing plans to fire four intermediate-range missiles over Japan to land near the U.S. Pacific island territory of Guam in an unusually detailed threat.

The threat followed U.S. President Donald Trump’s warning on Tuesday that any threats by Pyongyang would be “met with fire and fury like the world has never seen”.

“Markets are looking for any reason at all for a reset. That reset is being triggered by North Korea geopolitical concern and stretched valuations,” said Peter Kenny, senior market strategist at Global Markets Advisory Group, New York.

Trump’s comments on Tuesday ended the Dow’s nine-day streak of record closes.

Investors on Thursday scampered to safe-haven assets such as gold and the Swiss franc, helping the precious metal hit a more two-month high.

The CBOE Volatility Index <.VIX>, the most widely followed barometer of expected near-term stock market volatility, rose to a near three-month high of 15.36.

At 12:36 p.m. ET (1636 GMT), the Dow Jones Industrial Average <.DJI> was down 158.98 points, or 0.72 percent, at 21,889.72 and the S&P 500 <.SPX> was down 27.37 points, or 1.11 percent, at 2,446.65.

The last time the S&P 500 fell over 1 percent was on May. 17.

The Nasdaq Composite <.IXIC> was down 115.35 points, or 1.82 percent, at 6,236.98. Apple <AAPL.O> was down 2.3 percent, weighing most on the index.

Shares of Macy’s <M.N> tumbled 9.5 percent and Kohl’s <KSS.N> 6.7 percent after the department store operators reported a drop in quarterly same-store sales that stoked concerns that their turnaround may still be a long way off.

Retailers’ results are being keenly watched by investors to gauge the companies’ strategy to counter No. 1 online retailer Amazon.com’s <AMZN.O> growth.

Data showed U.S. producer prices unexpectedly fell in July, recording their biggest drop in nearly a year, while another set showed the number of Americans filing for unemployment benefits unexpectedly rose last week.

“This inflation data for the month was not good. Wall Street was expecting more inflation. Every August we have some reason to run up the alarm”, Kenny said.

However, Federal Reserve Bank of New York President William Dudley suggested on Thursday that the central bank was on track to raise interest rates once more as he expects sluggish inflation to rise over the next several months.

Blue Apron <APRN.N> slumped as much as 19.1 percent to a record low after the meal-kit delivery service provider reported a bigger-than-expected loss in its first quarterly report as a public company.

Perrigo <PRGO.N> surged 17.6 percent after the drugmaker raised its full-year adjusted profit forecast. Declining issues outnumbered advancers on the NYSE by 2,461 to 444. On the Nasdaq, 2,303 issues fell and 567 advanced.

(Reporting by Sruthi Shankar in Bengaluru; Editing by Sriraj Kalluvila)

Qatar Airways evaluates routes opened by boycotting countries

FILE PHOTO: Qatar Airways aircraft at Hamad International Airport in Doha, Qatar June 12, 2017. REUTERS/Naseem Zeitoon/File Photo

DOHA (Reuters) – Qatar Airways is evaluating whether it will use air routes which media reports said were opened this week by countries embroiled in a political dispute with Qatar, the airline’s chief executive said on Wednesday.

Qatari-owned aircraft are blocked from using the airspace of Saudi Arabia, Bahrain, Egypt and the United Arab Emirates as part of economic sanctions enforced by the four countries in June.

Qatar Airways is studying “the flexibility and benefit” of one “very short route” while another route off the Egyptian coast was “useless” to the airline, Chief Executive Akbar al-Baker said at a Doha press conference.

Al-Baker did not say where the short route was located or when the airline would decide if it would use the routes.

The United Nation’s aviation agency said on Aug. 8 Bahrain and the United Arab Emirates had agreed to open some of its airspace to Qatari aircraft, according to media reports.

Saudi Arabia, Bahrain, Egypt and the UAE severed ties with Qatar on June 5, accusing it of supporting Islamist militants.

Qatar has denied the allegations.

The airspace closures have forced Qatar Airways to fly longer, more expensive routes, prompting Doha to call for the UN’s International Civil Aviation Organization to intervene.

 

(Reporting by Tom Finn, writing by Alexander Cornwell. Editing by Jane Merriman)

 

China, Vietnam meeting canceled amid South China Sea tensions

Honour guards raise an Association of Southeast Asian Nations (ASEAN) flag at a flag-raising ceremony to mark the 50th anniversary of the regional group at Vietnam's Ministry of Foreign Affairs in Hanoi August 8, 2017. REUTERS/Kham

MANILA (Reuters) – A scheduled meeting between the foreign ministers of China and Vietnam was canceled on the sidelines of a regional gathering, Chinese embassy officials said, amid growing tension between the two countries over the South China Sea.

Vietnam had held out for language that noted concern about island-building and criticized militarization in South China Sea in the communique on Sunday from foreign ministers of the Association of South East Asian Nations (ASEAN).

Vietnam has emerged as the most vocal opponent of China’s claims in the waterway, where more than $3 trillion in cargo pass every year.

The Chinese embassy officials gave no reason for the cancellation of the meeting scheduled for Monday in Manila between China’s Wang Yi and Vietnam’s Pham Binh Minh.

A Chinese foreign ministry official said they had “already met”. Vietnam’s foreign ministry did not respond immediately to a request for comment.

State media in Vietnam said the ministers had held a “pull aside” meeting and exchanged views. It showed pictures of them shaking hands.

Although the language in the ASEAN communique reflected that in previous years, some countries pursuing deeper business ties with Beijing, such as Cambodia and the Philippines, had argued for dropping it.

Beijing is sensitive to even a veiled reference by ASEAN to its reclamation of seven reefs and its military installations in the South China Sea, which it claims in almost its entirety despite the competing claims of five other countries.

Tension has risen since June, when Vietnam infuriated China by drilling for oil and gas in an offshore block that Beijing disputes. The exploration was suspended after diplomatic protests from China.

After the ASEAN meeting, China’s foreign minister had called out “some countries” who voiced concern over island reclamation.

Wang said that China had not carried out reclamation for two years. “At this time, if you ask who is carrying out reclamation, it is definitely not China – perhaps it is the country that brings up the issue that is doing it,” he added.

Satellite images have shown that Vietnam has carried out reclamation work in two sites in the disputed seas in recent years.

On Tuesday, the state-run China Daily cited unnamed sources as saying Vietnam had tried to hype up the reclamation issue in the communique, pointing out that Vietnam has accelerated its land reclamation in the South China Sea.

“Undoubtedly, what Vietnam has done is the trick of a thief crying ‘stop thief,'” the paper quoted one of the sources as saying.

Australia, Japan and the United States on Monday urged Southeast Asia and China to ensure that a South China Sea code of conduct they have committed to draw up will be legally binding and said they strongly opposed “coercive unilateral actions”.

China has strongly opposed what it calls interference by countries outside the region in the South China Sea issue.

Meeting Japanese Foreign Minister Taro Kono on the sidelines of a regional security forum in Manila on Monday, Wang urged Japan to respect the efforts of China and ASEAN countries and play a more constructive role for regional peace and stability.

“Don’t always make trouble behind the backs of other countries and provoke quarrels,” the ministry cited Wang as saying.

(Reporting by Christian Shepherd; Additional reporting by Ben Blanchard in BEIJING; Editing by Michael Perry)

China set for easy ride from ASEAN on disputed South China Sea

China set for easy ride from ASEAN on disputed South China Sea

By Manuel Mogato

MANILA (Reuters) – Southeast Asian ministers meeting this week are set to avoid tackling the subject of Beijing’s arming and building of manmade South China Sea islands, preparing to endorse a framework for a code of conduct that is neither binding nor enforceable.

The Association of South East Asian Nations (ASEAN) has omitted references to China’s most controversial activities in its joint communique, a draft reviewed by Reuters shows.

In addition, a leaked blueprint for establishing an ASEAN-China code of maritime conduct does not call for it to be legally binding, or seek adherence to the United Nations Convention on the Law of the Sea (UNCLOS).

The two drafts highlight China’s growing regional clout at a time of uncertainty whether the new U.S. administration will try to check Beijing’s assertiveness in the disputed waters.

The South China Sea chapter in the latest draft communique, a negotiated text subject to changes, is a watered-down version of one issued in Laos last year.

ASEAN expressed “serious concern” in that text, and “emphasised the importance of non-militarisation and self-restraint in all activities, including land reclamation.”

But the latest text calls for avoidance of “unilateral actions in disputed features” instead.

The role of the Philippines as 2017 chair of ASEAN has helped China keep a lid on discord.

Once ASEAN’s most vocal critic of China’s conduct, the Philippines, under President Rodrigo Duterte, has put aside disputes in exchange for Chinese funding pledges of $24 billion.

ASEAN ties with the United States, under President Donald Trump, have been in flux, as questions linger over Washington’s commitment to maritime security and trade in Asia, diminishing the grouping’s bargaining power with Beijing.

A legally binding and enforceable code of conduct has been a goal for ASEAN’s claimant members – Brunei, Malaysia, the Philippines and Vietnam – since a 2002 pact to ensure freedom of navigation and overflight and leave rocks and reefs uninhabited.

That pact, the Declaration of Conduct (DOC) of Parties in the South China Sea, has been largely ignored, particularly by China, which reclaimed seven reefs and can now deploy combat planes on three, besides defense systems already in place.

Analysts and some ASEAN diplomats worry that China’s sudden support for negotiating a code of conduct is a ploy to buy time to further boost its military capability.

“We could have done more to push China to agree to a much stronger document, holding claimant states more accountable,” said one ASEAN diplomat.

The agreed two-page framework is broad and leaves wide scope for disagreement, urging a commitment to the “purposes and principles” of UNCLOS, for example, rather than adherence.

The framework papers over the big differences between ASEAN nations and China, said Patrick Cronin of the Center for a New American Security.

“Optimists will see this non-binding agreement as a small step forward, allowing habits of cooperation to develop, despite differences,” he said.

“Pessimists will see this as a gambit favorable to a China determined to make the majority of the South China Sea its domestic lake.”

CONSENSUS CONSTRAINTS

Diplomats say ASEAN’s requirement of consensus in decision-making allows China to pressure some members to disagree with proposals it dislikes. China has long denied interfering.

A separate ASEAN document, dated May and seen by Reuters, shows that Vietnam pushed for stronger, more specific text.

Vietnam sought mention of respect for “sovereignty, sovereign rights and jurisdiction” not only in accordance with international law, but more specifically, UNCLOS.

Sovereign rights cover entitlements to fish and extract natural resources.

Experts say the uncertain future U.S. commitment to Asia leaves Vietnam in the most exposed position, as it has competing claims with China and relies on imports from its neighbor.

Opposition by China has repeatedly disrupted Vietnam’s efforts to exploit offshore energy reserves, most recently in an area overlapping what Beijing considers its oil concessions.

The code of conduct framework was useful to build confidence, said Philippine security expert Rommel Banlaoi, but was not enough to manage and prevent conflict in the South China Sea.

China claims almost the entire South China Sea, through which about $5 trillion in goods pass every year. Brunei, Malaysia, the Philippines, Taiwan and Vietnam also have claims.

(Writing by Martin Petty; Editing by Clarence Fernandez)

Turkey promises to eliminate anti-China media reports

Chinese Foreign Minister Wang Yi (R) shakes hands with Turkish Foreign Minister Mevlut Cavusoglu during their meeting at Diaoyutai State Guesthouse in Beijing, China, 03 August 2017. REUTERS/Roman Pilipey/Pool

BEIJING (Reuters) – Turkey regards China’s security as akin to its own and will move to stamp out any anti-China reports in its media, Turkish Foreign Minister Mevlut Cavusoglu said on Thursday, after meeting his Chinese counterpart Wang Yi.

China and Turkey have repeatedly vowed to step up cooperation on security and counter-terrorism, amid Beijing’s concerns about ethnic Uighurs from its restive far western region of Xinjiang fighting with militants in the Middle East.

“We take China’s security as our security,” Cavusoglu said, speaking through a Chinese translator during a joint news briefing with Wang in Beijing.

“We absolutely will not allow in Turkey any activities targeting or opposing China. Additionally, we will take measures to eliminate any media reports targeting China,” he added, but did not give details.

Uighurs are a largely Muslim, Turkic-language speaking minority from China’s western Xinjiang region.

Hundreds, possibly thousands, keen to escape unrest in Xinjiang have traveled clandestinely via Southeast Asia to Turkey, with which many see themselves as sharing religious and cultural ties.

Beijing says some Uighurs then end up fighting with Islamist militants in Iraq and Syria. It denies accusations that it restricts the Uighurs’ religious freedoms.

European leaders have been alarmed by Turkish President Tayyip Erdogan’s crackdown on opponents since a failed coup attempt last year, and what critics see as his attack on free speech.

About 150 media outlets have been shut and around 160 journalists jailed, the Turkish Journalists’ Association says.

Turkish authorities say the crackdown is justified by the gravity of the coup attempt, in which rogue soldiers tried to overthrow the government, killing 250 people, mostly civilians.

In 2015, Turkey angered China by expressing concern about reports of restrictions on worship and fasting by Uighurs in Xinjiang during the holy month of Ramadan. Turkish protesters have marched on China’s embassy and consulate in Turkey over the treatment of Uighurs.

The two countries have also quarreled over Thailand’s deportation of Uighur migrants back to China.

But Ankara is keen to tap into Beijing’s ambitious Belt and Road infrastructure investment plan to link China with the rest of Asia and the world. Erdogan visited China in May when President Xi Jinping hosted his first Belt and Road summit.

“China is willing to work with Turkey to enhance the ancient spirit of the Silk Road, … and in jointly promoting the Belt and Road plan unlock new cooperative potential,” Wang added.

(Reporting by Michael Martina; Editing by Clarence Fernandez)

China welcomes U.S. seeking dialogue with North Korea

China welcomes U.S. seeking dialogue with North Korea

By Michael Martina

BEIJING (Reuters) – China on Thursday welcomed comments by Secretary of State Rex Tillerson that the United States does not seek to topple the North Korean government and would like dialogue with Pyongyang at some point, saying China had always supported talks.

Tillerson reiterated that Washington sought to persuade North Korea to give up its missile and nuclear weapons programs through peaceful pressure.

The United States does not seek regime change, the collapse of the regime, an accelerated reunification of the peninsula or an excuse to send the U.S. military into North Korea, Tillerson said.

Speaking to reporters, Chinese Foreign Minister Wang Yi said China “attached great importance” to Tillerson’s remarks and his reiteration of what Wang called the “Four Nos” principle.

“We hope the U.S. side can put this ‘Four Nos’ principle into actual policy towards North Korea,” Wang said.

The United States has recently been paying more attention to security issues on the Korean peninsula, and China has always believed security is the key to resolving the problem, he added.

North Korea says it needs a strong military deterrent to prevent a hostile United States from attacking it.

China hopes all sides can meet each other halfway and through talks find a way of resolving each others security concerns as this is the key for a resolution, Wang said.

In a separate statement sent to Reuters regarding Tillerson’s remarks, the foreign ministry said it had always supported dialogue between the United States and North Korea.

On Saturday, Pyongyang said it had conducted another successful test of an intercontinental ballistic missile that proved its ability to strike the United States.

Tillerson, who will also attend the ASEAN Regional Forum in Manila, is expected to press China and other regional nations to take tougher action against North Korea.

China has signed up for increasingly tough United Nations sanctions against North Korea, but has also pushed for a resumption of dialogue and de-escalation by both Pyongyang and Washington.

Tillerson’s remarks showed “courage”, said the state-run Global Times newspaper, which is usually known for its nationalistic bent.

“Many Americans would think Tillerson is showing weakness, but we see his statement as the most courageous expression from Washington regarding the Korean peninsula issue,” it said in an editorial on Thursday.

“While (Washington) exerts pressure on North Korea, it should leave some alternatives for Pyongyang and make it believe that abandoning its nuclear and missile programs will do more good than insisting on this path.”

Wang also urged all parties not to heighten tension on the Korean peninsula and said China had already clearly condemned North Korea’s latest missile test.

“Regarding North Korea’s recent missile launch, once again in violation of UN Security Council resolutions, China has already clearly expressed our opposition,” Wang said.

“At the same time, we also call on all parties not to take any actions that will lead to an escalation in tensions.”

(Writing by Philip Wen and Ben Blanchard; Editing by Paul Tait and Clarence Fernandez)

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)

Tillerson says he and Trump disagree over Iran nuclear deal

Tillerson says he and Trump disagree over Iran nuclear deal

By Yeganeh Torbati

WASHINGTON (Reuters) – U.S. Secretary of State Rex Tillerson acknowledged on Tuesday that he and President Donald Trump disagree over the 2015 Iran nuclear deal, and said the two men discuss how to use the international agreement to advance administration policies.

Trump at times vowed during the 2016 presidential election campaign to withdraw from the agreement, which was signed by the United States, Russia, China and three European powers to curb Iran’s nuclear program in return for lifting most Western sanctions.

Trump has preserved the deal for now, although he has made clear he did so reluctantly after being advised to do so by Tillerson.

“He and I have differences of views on things like JCPOA, and how we should use it,” Tillerson said at a State Department briefing, using the acronym for the deal, formally called the Joint Comprehensive Plan of Action (JCPOA).

Tillerson said that Washington could “tear it up and walk away” or stay in the deal and hold Iran accountable to its terms, which he said would require Iran to act as a “good neighbor.”

Critics say the deal falls short in addressing Iran’s support for foreign fighters in Iraq and Syria, arms shipments around the Middle East and ballistic missile tests.

The White House did not immediately respond to a request for comment on Tillerson’s remarks.

Trump said in an interview with the Wall Street Journal last month that he predicts Iran will be judged “noncompliant” with the Iran deal at the next deadline in October, and that he would have preferred to do so months ago.

Tillerson expressed a more nuanced view of the deal’s potential benefits on Tuesday.

“There are a lot of alternative means with which we use the agreement to advance our policies and the relationship with Iran, and that’s what the conversation generally is around with the president as well,” Tillerson said.

European officials would likely be reluctant to re-impose sanctions, especially the broader measures that helped drive Iran to negotiate over its nuclear program in the first place, he said.

New U.S. sanctions on Iran in July were a breach of the nuclear deal and Tehran had lodged a complaint with the body that oversees the pact’s implementation, a senior Iranian politician said.

Tillerson acknowledged that the United States is limited in how much it can pressure Iran on its own and said it was important to coordinate with the other parties to the agreement.

“The greatest pressure we can put to bear on Iran to change the behavior is a collective pressure,” he said.

(Reporting by Yeganeh Torbati; editing by Grant McCool)

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)

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)