Trump tastes election defeat but finds some wins at White House watch party

Sunset is seen over the White House, on the day of the U.S. midterm election, in Washington, D.C., U.S., November 6, 2018. REUTERS/Carlos Barria

By Steve Holland

WASHINGTON (Reuters) – By the time President Donald Trump and his team tucked into hamburgers and hot dogs at a White House election watch party on Tuesday night, he was ready for the bad news.

His closest aides tried to focus him on the positives.

Working on just a few hours’ sleep after a heavy final day of campaigning, Trump spent much of Tuesday on the phone, checking in with friends and advisers, talking to state and national Republican Party officials and White House aides to get a picture of what to expect.

What he heard from them was that Republicans would likely lose control of the House of Representatives but hang on to control of the Senate, adding seats to its majority there.

So when word came in that the projections were broadly correct, it did not come as a shock.

“It’s disappointing but it’s not surprising,” said Trump senior adviser Kellyanne Conway.

The House loss meant Trump will face investigations into his tax returns, his businesses and his administration by Democratic lawmakers. His legislative agenda, including a vague proposal for a middle-class income tax cut, is likely stalled.

At his watch party, Trump was upbeat. In his only public comment on Tuesday night, he tweeted: “Tremendous success tonight. Thank you to all!”

He followed up with a tweet on Wednesday morning taking credit for Republican wins.

“Those that worked with me in this incredible Midterm Election, embracing certain policies and principles, did very well. Those that did not, say goodbye! Yesterday was such a very Big Win, and all under the pressure of a Nasty and Hostile Media!,” Trump said.

In another message on Twitter, Trump said he had received congratulations “from foreign nations (friends) that were waiting me out, and hoping, on Trade Deals. Now we can all get back to work and get things done!” He did not name any countries.

BLAME FOR HOUSE SETBACKS

One Trump adviser said the president was probably not prepared for the onslaught of investigations that Democrats were likely to launch.

“I don’t think he fully comprehends what this means by giving the gavel to (Democratic House leader) Nancy Pelosi and her cronies,” the adviser said, asking to remain unidentified.

Some Trump advisers were already anonymously assigning blame for the expected loss of about 30 House seats, focusing on Corry Bliss, head of a political action committee that distributed money to House Republican candidates, and Republican National Committee Chair Ronna McDaniel.

There was also grousing about House Speaker Paul Ryan, who announced plans to resign at the end of the year instead of leaving sooner.

But there was some satisfaction among Trump and his aides that the losses were not as bad as had been projected by strategists who said a Democratic “blue wave” would take away 40 House seats.

The party that controls the White House usually loses seats in the first congressional midterm elections two years after a presidential victory. President Barack Obama’s Democrats lost 63 seats in 2010.

“Trump should be feeling good right now. They finished strong. They picked up seats in the Senate and they minimized the ‘blue wave’ in the House. These midterms are historically tough for a White House,” said Republican strategist Scott Reed.

Trump and his advisers felt that adding at least two seats to the Republicans’ Senate majority helped blunt the impact of the House outcome.

BURGERS AND BIG SCREENS

For Trump, the evening unfolded at a watch party in the White House residence, where the East Room and the State Dining Room were set up with large-screen TVs. Buffet tables were laden with some of Trump’s favorite foods.

The guest list included major donors Sheldon Adelson, Harold Hamm and Stephen Schwartzman, Cabinet members like Steven Mnuchin of Treasury and Kirstjen Nielsen of Homeland Security, evangelical leader Jerry Falwell, top aides like Conway, his wife Melania and children Ivanka, Eric and Donald Trump Jr., Ivanka’s husband Jared Kushner, and Vice President Mike Pence.

Cheers rang out among the guests when Republican victories were scored, particularly when Democrat Andrew Gillum conceded defeat in the Florida governor’s race.

Trump was described by aides as content in how he performed on the campaign trail, not prone to soul-searching, and believing his focus on illegal immigration – he warned of an “invasion” from a caravan of Central American migrants weaving through Mexico – had helped give his candidates a needed boost.

Trump held 30 get-out-the-vote rallies in the past two months, including 11 in the last six days across eight states, the last three on Monday when he returned to the White House about 3 a.m.

Aides said the president was delighted at the projected victories by Republican Senate candidates he had campaigned for, such as Marsha Blackburn of Tennessee, Rick Scott of Florida, Mike Braun of Indiana and Josh Hawley of Missouri, as well as Republican Brian Kemp’s victory in the Georgia governor’s race.

White House spokeswoman Sarah Sanders said Trump’s agenda remained the same, and that he would be willing to work with Democrats on immigration, the opioid crisis and funding infrastructure projects.

(Reporting by Steve Holland; Editing by Kieran Murray, Peter Cooney and Chizu Nomiyama)

Second migrant caravan in Guatemala heads toward Mexico

Central American migrants queue at a border connecting Guatemala and Mexico while waiting to cross into Mexico, in Talisman, Mexico October 23, 2018. REUTERS/Ueslei Marcelino

By Delphine Schrank and Sofia Menchu

TAPACHULA, Mexico/GUATEMALA CITY (Reuters) – A group of more than a thousand Central Americans in Guatemala headed toward the Mexican border on Tuesday as the first caravan of migrants paused in southern Mexico on its planned journey toward the U.S. border.

U.S. President Donald Trump has vowed to begin cutting millions of dollars in aid to Central America and called the caravan in Mexico a national emergency as he seeks to boost his Republican Party’s chances in the Nov. 6 congressional elections.

The caravan, which has been estimated at 7,000 to 10,000 mostly Honduran migrants fleeing violence and poverty in their homelands, is currently in the town of Huixtla in Chiapas state around 31 miles (50 km) north of the Guatemalan border.

Mexico’s government said in a statement on Tuesday that it had received 1,699 requests for refugee status, including children. The government estimates there are around 4,500 people in the group.

Hundreds of migrants were resting in Huixtla on Tuesday, as religious groups and companies donated clothes. Local authorities provided vaccines, food and drink.

“When we heard the caravan was coming (we joined)…people in Guatemala are also suffering from poverty. So this is an opportunity to improve my family’s life,” said Elsa Romero, a Guatemalan mother of four.

Migrant Alexander Fernandez said the column planned to move again early on Wednesday morning.

Separately, Casa del Migrante, a migrant shelter in Guatemala City, said more than 1,000 people who set out from Honduras were moving through Guatemala toward the Mexican border. Some local media said there were more than 2,000.

Trump and fellow Republicans have sought to make the caravan and immigration issues in the election, which will determine whether their party keeps control of the U.S. Senate and U.S. House of Representatives.

Honduran authorities say that at least two men have died so far on Mexican roads during the advance of the caravan. One of the men fell off a truck in Mexico, and the other died trying to get onto a truck in Guatemala, authorities said.

The caravan in Mexico is still far from the United States border – more than 1,100 miles (1,800 km).

Mexico, which has refused Trump’s demands that it pay for a border wall between the countries, tries to walk a fine line between showing solidarity with the Central American migrants and responding to Washington’s demands to control its borders.

Mexico hopes to disperse the convoy long before it can reach the border, telling migrants to register with authorities in order to submit applications for asylum in Mexico.

That process can last weeks, and migrants are supposed to stay where they register while applications are processed. If they violate those rules, they face deportation.

(Reporting by Delphine Schrank and Sofia Menchu; editing by Grant McCool)

Mexico vows to meet migrant ‘challenge’ as caravan hits border

Honduran migrants, part of a caravan trying to reach the U.S., storm a border checkpoint to cross into Mexico, in Tecun Uman, Guatemala October 19, 2018. REUTERS/Ueslei Marcelino

By Daina Beth Solomon and Delphine Schrank

MEXICO CITY/CIUDAD HIDALGO, Mexico (Reuters) – Mexico’s government on Friday vowed to meet the challenge of a caravan of Central American migrants heading north that has angered U.S. President Donald Trump, who threatened to shut down the U.S-Mexico border to halt its passage.

Mexican Foreign Minister Luis Videgaray and U.S. Secretary of State Mike Pompeo met in Mexico City and discussed the caravan of several thousand people, which set off from Honduras last weekend, and is now at Mexico’s border with Guatemala.

“It’s a challenge that Mexico is facing, and that’s how I expressed it to Secretary Pompeo,” Videgaray told a news conference alongside his U.S. counterpart.

On Friday afternoon, hundreds of the migrants poured through Guatemala’s frontier posts toward the closed Mexican border on a bridge spanning the Suchiate River that bisects the two countries, Mexican television footage showed.

Mexico’s government has sought assistance from the United Nations High Commissioner for Refugees (UNHCR) to help process migrants claiming refugee status at the border, which could allow it to disperse the train of people and placate Trump.

Pompeo said he and Videgaray spoke of the importance of stopping the caravan before it reaches the U.S. border. Pompeo thanked Mexico for its efforts to address the migrant flow, including calling in the United Nations for assistance.

Several thousand Honduran migrants seeking to escape violence and poverty moved through Guatemala on the way to Mexico, with some hoping to enter the United States.

Earlier on Friday, Videgaray said the caravan had close to 4,000 people and that the migrants could individually present their claims to enter Mexico or seek refugee status.

“We haven’t had a caravan or group of this size seeking refuge at the same time, that’s why we’ve sought the support of the United Nations,” Videgaray told Mexican television.

A Honduran migrant, part of a caravan trying to reach the U.S., yells as others wait to cross into Mexico, in Tecun Uman, Guatemala October 19, 2018. REUTERS/Ueslei Marcelino

A Honduran migrant, part of a caravan trying to reach the U.S., yells as others wait to cross into Mexico, in Tecun Uman, Guatemala October 19, 2018. REUTERS/Ueslei Marcelino

POLICE ON BORDER

Dozens of police in riot gear were deployed along the river bank in the town of Ciudad Hidalgo on Mexico’s border with Guatemala as hundreds of migrants prepared to cross over from the Guatemalan town of Tecun Uman on the other side.

Mexico says the migrants will be processed and that those without a legitimate case to travel onwards or stay in Mexico will be returned to their countries of origin.

UNHCR spokesman Charlie Yaxley said the agency is reinforcing capacity in southern Mexico to offer counseling, legal assistance and humanitarian aid to asylum-seekers.

“UNHCR is concerned that the mobilization of such a large number of people in a single group will overwhelm the capacities that exist in the region,” he told a news conference.

A caravan of Central Americans that formed in southern Mexico in late March also drew the ire of Trump, who on Thursday threatened to deploy the military and close the southern U.S. border if Mexico did not halt the latest procession.

Such a move by Trump would cause chaos on the border, one of the world’s busiest, and badly disrupt trade.

However, by the end of Thursday, the U.S. president was also thanking Mexico for its efforts to contain the caravan.

In contrast to the earlier caravan, which moved deeper into the interior of Mexico before officials began intensive efforts to process the migrants, the Mexican government has focused on the new group right on its southern border with Guatemala.

(Reporting by Veronica Gomez, Julia Love and Daina Beth Solomon in Mexico City; Additional reporting by Delphine Schrank in Ciudad Hidalgo and Tom Miles in Geneva and Edgard Garrido in Tecun Uman; Writing by Dave Graham; Editing by Alistair Bell)

U.S. pastor Brunson arrives home in Turkey after release by court

U.S. pastor Andrew Brunson arrives home after his trial in Izmir, Turkey October 12, 2018. REUTERS/Osman Orsal

By Ezgi Erkoyun and Emily Wither

IZMIR, Turkey (Reuters) – The American evangelical Christian pastor at the center of a row between Ankara and Washington arrived at his home in Turkey on Friday after a Turkish court ruled he could go free, a move that may signal a major step toward mending ties between the allies.

Andrew Brunson arrived at his home in Turkey’s coastal province of Izmir, a Reuters cameraman said, having left the courthouse in a convoy of cars.

He was released after the court sentenced him to three years and 1-1/2 months in prison on terrorism charges but said he would not serve any further jail time. The pastor has lived in Turkey for more than 20 years and was put in prison two years ago and has been under house arrest since July.

U.S. President Donald Trump, who has imposed sanctions on Turkey in an attempt to secure Brunson’s freedom, tweeted: “PASTOR BRUNSON JUST RELEASED. WILL BE HOME SOON!”

Dressed in a black suit, white shirt and red tie, the North Carolina native wept as the decision was announced, witnesses said. Before the judge’s ruling he had told the court: “I am an innocent man. I love Jesus. I love Turkey.”

After the ruling, Brunson’s lawyer told reporters the pastor was likely to leave Turkey. The U.S. military has a plan to fly Brunson back to America on a military aircraft, officials told Reuters.

The diplomatic stand-off over Brunson, who had been pastor of the Izmir Resurrection Church, had accelerated a sell-off in Turkey’s lira currency, worsening a financial crisis.

Brunson had been accused of links to Kurdish militants and supporters of Fethullah Gulen, the cleric blamed by Turkey for a coup attempt in 2016. Brunson denied the accusation and Washington had demanded his immediate release.

Witnesses told the court in the western town of Aliaga that testimonies against the pastor attributed to them were inaccurate.

Brunson’s wife Norine looked on from the visitors’ area.

Supporters of U.S. pastor Andrew Brunson wait near his house in Izmir, Turkey October 12, 2018. REUTERS/Osman Orsal

Supporters of U.S. pastor Andrew Brunson wait near his house in Izmir, Turkey October 12, 2018. REUTERS/Osman Orsal

‘GREAT CHRISTIAN’

Brunson’s mother told Reuters she and his father were elated at the news. “We are overjoyed that God has answered the prayers of so many people around the world,” she said.

Trump has scored points with evangelical Christians, a large part of his political base, by focusing on the Brunson case. The release could boost Trump’s ability to encourage such voters to support Republicans in large numbers in Nov. 6 elections, which will determine whether the party keeps control of Congress.

The heavily conservative constituency voted overwhelmingly for Trump in 2016. He has called Brunson a “great Christian”, and Vice President Mike Pence, the White House’s top emissary to evangelicals, had urged Americans to pray for Brunson.

“We thank God for answered prayers and commend the efforts of @SecPompeo & @StateDept in supporting Pastor Brunson and his family during this difficult time,” Pence wrote on Twitter. “@SecondLady and I look forward to welcoming Pastor Brunson and his courageous wife Norine back to the USA!”

U.S. broadcaster NBC said on Thursday that Washington had done a secret deal with Ankara to secure Brunson’s release.

“After an unjust imprisonment in Turkey for two years, we can all breathe a sigh of relief,” U.S. Ambassador to the United Nations Nikki Haley said on Twitter.

The lira stood at 5.9600 to the dollar at 1530 GMT, slightly weaker on the day after firming 3 percent on Thursday on expectations that Brunson would be freed.

NATO ALLIES

Relations between the two NATO allies are also under strain over U.S. support for Kurdish fighters in northern Syria, Turkey’s plans to buy a Russian missile defense system, and the U.S. jailing of an executive at a Turkish state bank in an Iran sanctions-busting case.

With Brunson’s release, attention may now turn to the fate of a Turkish-U.S. national and former NASA scientist in jail in Turkey on terrorism charges, as well as three local employees of the U.S. consulate who have also been detained.

Washington wants all these people released, while Ankara has demanded the extradition of Gulen. The cleric, who was lived in self-imposed exile in the United States since 1999, denies any role in the attempted coup.

Friday’s decision could be a first step to ease tensions, although Turkey’s presidency took aim at what it said was a prolonged U.S. effort to put pressure on its courts.

“It is with great regret that we have been monitoring U.S. efforts to mount pressure on Turkey’s independent court system for some time,” Fahrettin Altun, the presidency’s communications director, said.

Further moves which have been discussed include the return to Turkey of bank executive Mehmet Hakan Attila to serve out his sentence, the release of the U.S. consular staff, and agreement that the U.S. Treasury avoid draconian steps against Halkbank, the state lender.

“Like the Turkish courts, the Republic of Turkey does not receive instructions from any body, authority, office or person,” Altun, the Turkish official, said. “We make our own rules and make our own decisions that reflect our will.”

(Additional reporting by Mehmet Emin Caliskan in Izmir, Ali Kucukgocmen and Sarah Dadouch in Istanbul and Matt Spetalnick, Susan Heavey and Jonathan Allen in Washington, Writing by Daren Butler, David Dolan and Dominic Evans; Editing by Angus MacSwan, David Stamp, William Maclean)

Trump says expects announcement of new summit with North Korea’s Kim ‘pretty soon’

U.S. President Donald Trump holds a bilateral meeting with South Korean President Moon Jae-in on the sidelines of the 73rd United Nations General Assembly in New York, U.S., September 24, 2018. REUTERS/Carlos Barria

By Jeff Mason and David Brunnstrom

UNITED NATIONS (Reuters) – U.S. President Donald Trump said on Monday he expected a second summit with North Korean leader Kim Jong Un to be announced “pretty soon” but that the location had yet to be determined.

Trump, during a meeting with South Korean President Moon Jae-in at the United Nations, said: “Chairman Kim has been really very open and terrific, frankly. I think he wants to see something happen.”

Moon met with Kim for a third time last week. He said brought Trump a personal message from the North Korean leader saying he was hoping to meet with the U.S. president again soon.

Trump and Kim met for an unprecedented summit on June 12, and Trump has been keen on a second meeting, even though some U.S. officials and most analysts say Pyongyang has yet to show it is prepared to give up a nuclear arsenal that threatens the United States.

U.S. Secretary of State Mike Pompeo told a news briefing earlier on Monday he hoped to travel back to North Korea before the end of the year to make final preparations for a second summit, which he said he was “confident” would happen.

“I expect I’ll be traveling to Pyongyang before too long,” he said.

Asked if that would be before the end of the year, he replied: “Yes. Lord willing, I’ll be traveling before the end of the year.”

Pompeo said he was optimistic that Kim would deliver on his pledge to denuclearize, but this would take time.

“We’re bringing the two senior leaders, the individuals who can actually make the decisions that will move this process forward, bring them together so we can continue to make progress towards what the U.N. Security Council has demanded and what Chairman Kim has promised he would do.

“That’s the effort. There remains work to be done. There will be some time before we get to complete denuclearization for sure.”

At last week’s meeting with Moon, Kim promised to dismantle a missile site and also a nuclear complex – if the United States took “corresponding action.”

However, while appearing to set a positive tone, the commitments fell far short of Washington’s demands for a complete inventory of North Korea’s weapons programs and irreversible steps toward denuclearization.

The mood though is sharply changed from that at last year’s U.N. General Assembly, when Trump threatened to “totally destroy” North Korea and mocked the North Korean leader as “Rocket Man” on a “suicide mission.”

North Korea’s representative to the meeting, Foreign Minister Ri Yong Ho, responded to Trump’s U.N. remarks last year by calling them “the sound of a dog barking” and warning that North Korea could detonate a hydrogen bomb over the Pacific.

Pompeo has proposed a meeting with Ri at the General Assembly this week. U.S. ambassador to the United Nations Nikki Haley said last week the two had agreed to meet but said the meeting could take place later.

(Reporting by Jeff Mason and David Brunnstrom; additional reporting by David Alexander and Lesley Wroughton; Editing by Doina Chiacu and James Dalgleish)

North Korea newspaper blasts ‘double-dealing’ U.S. after Pompeo’s trip canceled

People and soldiers gather to offer flowers to the statues of state founder Kim Il Sung and former leader Kim Jong Il on the Day of Songun at Mansu hill, Pyongyang, North Korea, in this undated photo released by North Korea's Korean Central News Agency (KCNA) on August 26, 2018. KCNA via REUTERS

(Reuters) – North Korea’s state-controlled newspaper on Sunday accused the United States of “double-dealing” and “hatching a criminal plot” against Pyongyang, after Washington abruptly canceled a visit by Secretary of State Mike Pompeo.

Negotiations have been all but deadlocked since U.S. President Donald Trump’s summit with North Korean leader Kim Jong Un in Singapore in June.

Pompeo has pressed for tangible steps toward North Korea’s abandonment of its nuclear arsenal while Pyongyang is demanding that Washington first make concessions of its own.

North Korea’s Rodong Sinmun newspaper said U.S. special units based in Japan were staging an air drill aimed at “the infiltration into Pyongyang”, citing a South Korean media outlet.

“Such acts prove that the U.S. is hatching a criminal plot to unleash a war against the DPRK and commit a crime which deserves merciless divine punishment in case the U.S. fails in the scenario of the DPRK’s unjust and brigandish denuclearisation first,” the paper said.

“We cannot but take a serious note of the double-dealing attitudes of the U.S. as it is busy staging secret drills involving man-killing special units while having a dialogue with a smile on its face,” it noted.

A spokesman at the U.S. Embassy in Seoul said he had no information on the drill alleged in the newspaper. The U.S. military spokesman in South Korea was not immediately available to comment.

The editorial, which did not mention the Pompeo visit, urged Washington to give up the “pointless military gamble” and implement the Singapore agreement, in which the leaders pledged to work towards a complete denuclearization of the Korean Peninsula.

Since the summit, the two sides have struggled to narrow differences over the North’s nuclear weapons program.

Pyongyang is calling for a declaration of peace as part of security guarantees designed to encourage it to abandon its nuclear weapons and ballistic missiles, while the Trump administration says a peace deal and other concessions will only come after more progress on denuclearization.

In part to reassure North Korea, Trump canceled or delayed joint military drills with South Korea, but smaller exercises continue.

Trump partly blamed China for the lack of progress with North Korea and suggested that talks with Pyongyang could be on hold until after Washington resolved its bitter trade dispute with Beijing. China expressed “serious concern” about Trump’s comments, which it called “irresponsible”.

(Reporting by Hayoung Choi, Josh Smith; Editing by Alison Williams)

Russia tells Washington curbs on its banks would be act of economic war

The U.S. dollar sign is seen on an electronic board next to a traffic light in Moscow, Russia August 10, 2018. REUTERS/Maxim Shemetov

By Andrew Osborn and Andrey Ostroukh

MOSCOW (Reuters) – Russia warned the United States on Friday it would regard any U.S. move to curb the activities of its banks as a declaration of economic war which it would retaliate against, stepping up a war of words with Washington over spiraling sanctions.

The warning, from Prime Minister Dmitry Medvedev, reflects Russian fears over the impact of new restrictions on its economy and assets, including the rouble which has lost nearly six percent of its value this week on sanctions jitters.

Economists expect the economy to grow by 1.8 percent this year. But if new sanctions proposed by Congress and the State Department are implemented in full, something that remains uncertain, some economists fear growth would be almost cut to zero in future.

In a sign of how seriously Russia is taking the threat, President Vladimir Putin discussed what the Kremlin called “possible new unfriendly steps by Washington” with his Security Council on Friday.

Moscow’s strategy of trying to improve battered U.S.-Russia ties by attempting to build bridges with President Donald Trump is backfiring after U.S. lawmakers launched a new sanctions drive last week because they fear Trump is too soft on Russia.

That, in turn, has piled pressure on Trump to show he is tough on Russia ahead of mid-term elections.

On Wednesday, the State Department announced a new round of sanctions that pushed the rouble to two-year lows and sparked a wider sell-off over fears Russia was locked in a spiral of never-ending sanctions.

Separate legislation introduced last week in draft form by Republican and Democratic senators, dubbed “the sanctions bill from hell” by one of its backers, proposes curbs on the operations of several state-owned Russian banks in the United States and restrictions on their use of the dollar.

Medvedev said Moscow would take economic, political or other retaliatory measures against the United States if Washington targeted Russian banks.

“I would not like to comment on talks about future sanctions, but I can say one thing: If some ban on banks’ operations or on their use of one or another currency follows, it would be possible to clearly call it a declaration of economic war,” said Medvedev.

“And it would be necessary, it would be needed to react to this war economically, politically, or, if needed, by other means. And our American friends need to understand this,” he said, speaking on a trip to the Russian Far East.

Pedestrians walk by an electronic board showing currency exchange rates of the U.S. dollar against Russian rouble in Moscow, Russia August 10, 2018. REUTERS/Maxim Shemetov

Pedestrians walk by an electronic board showing currency exchange rates of the U.S. dollar against Russian rouble in Moscow, Russia August 10, 2018. REUTERS/Maxim Shemetov

FEW GOOD RETALIATORY OPTIONS

In practice, however, there is little Russia could do to hit back at the United States without damaging its own economy or depriving its consumers of sought-after goods, and officials in Moscow have made clear they do not want to get drawn into what they describe as a mutually-damaging tit-for-tat sanctions war.

The threat of more U.S. sanctions kept the rouble under pressure on Friday, sending it crashing past two-year lows at one point before it recouped some of its losses.

The Russian central bank said the rouble’s fall to multi-month lows on news of new U.S. sanctions was a “natural reaction” and that it had the necessary tools to prevent any threat to financial stability.

One tool it said it might use was limiting market volatility by adjusting how much foreign currency it buys. Central bank data showed on Friday it had started buying less foreign currency on Wednesday, the first day of the rouble’s slide.

The fate of the U.S. bill Medvedev was referring to is not certain.

The full U.S. Congress will not be back in Washington until September, and even then, congressional aides said they did not expect the measure would pass in its entirety.

While it was difficult to assess so far in advance, they said it was more likely that only some of its provisions would be included as amendments in another piece of legislation, such as a spending bill Congress must pass before Sept. 30 to prevent a government shutdown.

(Additional reporting by Tom Balmforth in Moscow and Patricia Zengerle in Washington Writing by Andrew Osborn Editing by William Maclean)

Russia reels, denounces new U.S. sanctions as illegal, unfriendly

FILE PHOTO: National flags of Russia and the U.S. fly at Vnukovo International Airport in Moscow, Russia April 11, 2017. REUTERS/Maxim Shemetov/File Photo

By Andrew Osborn

MOSCOW (Reuters) – Russia condemned a new round of U.S. sanctions as illegal on Thursday after news of the measures sent the rouble tumbling to two-year lows and sparked a wider asset sell-off over fears that Moscow was locked in a spiral of never-ending curbs by the West.

Moscow has been trying with mixed success to improve battered U.S.-Russia ties since Donald Trump won the White House in 2016, and Russia’s political elite was quick to chalk up a summit last month between Trump and Vladimir Putin as a victory.

But initial triumphalism swiftly turned sour as anger over what some U.S. lawmakers saw as an over deferential performance by Trump and his failure to confront Putin over Moscow’s alleged meddling in U.S. politics galvanized a new sanctions push.

Having bet heavily on improving ties with Washington via Trump, Moscow now finds that Trump is under mounting pressure from U.S. lawmakers to show he is tough on Russia ahead of mid-term elections.

In the latest broadside, the U.S. State Department said on Wednesday it would impose fresh sanctions by the month’s end after determining that Moscow had used a nerve agent against a former Russian double agent, Sergei Skripal, and his daughter, Yulia, in Britain, something Moscow denies.

In an early reaction, the Kremlin said the sanctions were illegal and unfriendly and that the U.S. move was at odds with the “constructive atmosphere” of Trump and Putin’s encounter in Helsinki.

The new sanctions come in two tranches. The first, which targets U.S. exports of sensitive national-security related goods, comes with deep exemptions and many of the items it covers have already been banned by previous restrictions.

However, the second tranche, activated after 90 days if Moscow fails to provide “reliable assurances” it will no longer use chemical weapons and allow on-site inspections by the United Nations or other international observer groups, is more serious.

NBC, citing U.S. officials, said the second tranche could include downgrading diplomatic relations, suspending the state airline Aeroflot’s ability to fly to the United States and cutting off nearly all exports and imports.

The State Department’s announcement fueled already worsening investor sentiment about the possible impact of more sanctions on Russian assets and the rouble at one point slid by over 1 percent against the dollar, hitting a two-year low, before recouping some of its losses.

The U.S. move also triggered a sell-off in Russian government bonds and the dollar-denominated RTS index fell to its lowest since April 11.

“There is local panic on the currency market,” BCS Brokerage said in a note. “At times, the number of those who want to ditch the rouble is becoming so high so there is not enough liquidity.”

ILLEGAL

The Kremlin said the new sanctions were “illegal and do not correspond to international law.”

“…Such decisions taken by the American side are absolutely unfriendly and can hardly be somehow associated with the constructive – not simple but constructive – atmosphere that there was at the last meeting of the two presidents,” Kremlin spokesman Dmitry Peskov said.

Washington had become an unpredictable player on the international stage, Peskov added, saying “anything could be expected” from it and that it was important that Russia’s financial system, which he described as stable, was prepared.

In a sign the Kremlin was not eager to escalate an already difficult situation however, Peskov said it was too early to talk about Russian countermeasures.

He criticized the U.S. decision to link the sanctions to the British nerve agent case, an incident the Kremlin has long cast as a Western plot to damage its reputation and provide a pretext for more sanctions.

Skripal, a former colonel in Russia’s GRU military intelligence service, and his 33-year-old daughter were found slumped unconscious on a bench in the southern English city of Salisbury in March after a liquid form of the Novichok type of nerve agent was applied to his home’s front door.

European countries and the United States expelled 100 Russian diplomats after the attack, in the strongest action by Trump against Russia since he came to office.

Konstantin Kosachyov, head of the upper house of parliament’s international affairs committee, was cited by the Interfax news agency as saying it looked like Washington was now behaving like “a police state.”

Dmitri Trenin, director of the Carnegie Moscow Center and a former colonel in the Russian army, said the State Department’s move looked like the latest salvo in what he called a hybrid war.

“Sanctions are the U.S. weapon of choice,” Trenin wrote on Twitter.

“They are not an instrument, but the policy itself. Russia will have to brace for more to come over the next several years, prepare for the worst and push back where it can.”

At variance with Moscow over Ukraine and Syria, Western sanctions have already drastically reduced Western involvement in Russian energy and commodities projects, including large-scale financing and exploration of hard-to-recover and deep water resources.

Proposed U.S. legislation prepared by several senators calls on Trump to widen the sanctions further to include virtually all Russian energy projects and effectively bar Western companies from any involvement in the country.

Introduced by Republican and Democratic senators last week in draft form, Senator Lindsey Graham, one of the measure’s lead sponsors, has called it “the sanctions bill from hell.”

(Additional reporting by Dmitry Zhdannikov, Tom Balmforth, Denis Pinchuk, Andrey Ostroukh; Editing by Richard Balmforth)

Trump invites Putin to Washington despite U.S. uproar over Helsinki summit

U.S. President Donald Trump walks from Marine One as he arrives on the South Lawn of the White House in Washington, U.S., July 18, 2018. REUTERS/Joshua Roberts

By Steve Holland and Doina Chiacu

WASHINGTON (Reuters) – President Donald Trump has invited Russian President Vladimir Putin to Washington this autumn, the White House said on Thursday, a daring rebuttal to the torrent of criticism in the United States over Trump’s failure to publicly confront Putin at their first summit for Moscow’s meddling in the 2016 election.

Four days after Trump stunned the world by siding with Putin in Helsinki over his intelligence agencies, the president asked national security adviser John Bolton to issue the invitation to the Russian leader, said White House spokeswoman Sarah Sanders.

What happened at Monday’s one-on-one between Trump and Putin with only interpreters present remained a mystery, even to top officials and U.S. lawmakers who said they had not been briefed.

Trump’s director of national intelligence, Dan Coats, said in response to a question at the Aspen Security Forum in Colorado: “Well, you’re right, I don’t know what happened at that meeting.”

The coveted invitation was sure to be seen as a victory by Putin, whose last official visit to the United States was in July 2007, when he spent two days at the Bush family compound.

Both Trump and Putin earlier on Thursday praised their first meeting as a success and blamed forces in the United States for trying to belittle its achievements, Trump citing discussions on counterterrorism, Israel’s security, nuclear proliferation, cyber attacks, trade, Ukraine, Middle East peace and North Korea.

In one Twitter post, Trump blamed the media. “The Summit with Russia was a great success, except with the real enemy of the people, the Fake News Media.”

In Moscow, Putin said the summit “was successful overall and led to some useful agreements” without elaborating on the agreements.

Top Senate Democrat Chuck Schumer criticized the invitation. “Until we know what happened at that two hour meeting in Helsinki, the president should have no more one-on-one interactions with Putin. In the United States, in Russia, or anywhere else,” he said in a statement.

Coats, who on Monday roundly defended the intelligence agencies’ findings of Russian meddling, also advised against a one-on-one meeting with Putin, saying he “would look for a different way of doing it.”

An official visit by a Russian president to the United States is a rare event: the last time was in June 2010 with Dmitri Medvedev, now Russian prime minister.

A senior White House official said Bolton extended the official invitation to Putin on Thursday via his Russian counterpart. No date has been set and it was unclear whether it would be timed for the U.N. General Assembly in late September.

FILE PHOTO: U.S. President Donald Trump and Russian President Vladimir Putin shake hands as they hold a joint news conference after their meeting in Helsinki, Finland July 16, 2018. REUTERS/Grigory Dukor

FILE PHOTO: U.S. President Donald Trump and Russian President Vladimir Putin shake hands as they hold a joint news conference after their meeting in Helsinki, Finland July 16, 2018. REUTERS/Grigory Dukor

REJECTION OF PUTIN PROPOSAL

The week was one of the toughest for Trump since he took office 18 months ago as aides struggled with damage control and convincing Americans that the president did not favor Russian interests over his own country’s. Forty-two percent of registered voters said they approved of Trump’s overall job performance, according to a Reuters/Ipsos opinion poll taken after the summit.

Bolton on Tuesday laid out four talking points for the crisis-hit White House, according to one official: that Trump stress he supports U.S. intelligence agencies, that there was never any Russian collusion with his campaign, that Russian meddling is unacceptable and the United States is doing everything it can to protect elections in 2018 and beyond.

With Trump under fierce criticism in the United States, the White House on Thursday rejected Putin’s proposal that Russian authorities be present for the questioning of Americans it accuses of “illegal activities,” including a former U.S. ambassador to Moscow.

It was the latest about-face in a week of multiple reversals. Critics complained that Trump was given ample opportunity at a joint news conference on Monday to scold Putin over Russian interference in the election but instead accepted Putin’s denials over the word of American intelligence agencies.

Trump on Tuesday said he misspoke during the news conference. On Wednesday, Trump answered “no” to a reporter’s question on whether Russia was still targeting the United States, only to have Sanders say later he was saying “no” to answering any questions – not to the question itself.

Republican and Democratic U.S. lawmakers grappled with Trump’s conflicting statements as they discussed ways to show their opposition to what they saw in Helsinki, including strengthening sanctions.

On Monday, Putin described the proposal when he was asked about the possible extradition of 12 Russian intelligence officers indicted in the United States on charges of interfering in the 2016 election by carrying out cyber attacks on Democratic Party networks.

Putin indicated he would permit American law enforcement officials to observe questioning by Russian officials of the indicted Russians and vice versa for Russian investigations. He mentioned London-based financier Bill Browder, a onetime investor in Russia who said he exposed corruption there. Standing alongside Putin, Trump called the idea “an incredible offer.”

Sanders on Thursday said, “It is a proposal that was made in sincerity by President Putin, but President Trump disagrees with it,” a day after saying the proposal was going to be discussed by Trump’s team. “Hopefully President Putin will have the 12 identified Russians come to the United States to prove their innocence or guilt.”

(Reporting by Steve Holland, Doina Chiacu, Richard Cowan, Lisa Lambert, Susan Heavey in Washington and Andrew Osborn and Olesya Astakhova in Moscow; Writing by Doina Chiacu and Mary Milliken; Editing by Will Dunham and Grant McCool)

Turkish court keeps U.S. pastor in jail; Trump calls on Erdogan to act

A Turkish soldier stands guard in front of the Aliaga Prison and Courthouse complex in Izmir, Turkey July 18, 2018. REUTERS/Kemal Aslan

By Ezgi Erkoyun

ALIAGA, Turkey (Reuters) – A Turkish court decided on Wednesday to keep an American pastor in jail, dashing hopes that he could be released during his trial on terrorism and spying charges, a case that has deepened a rift with NATO ally Washington.

Andrew Brunson, a Christian pastor from North Carolina who has lived in Turkey for more than two decades, was indicted on charges of helping the group that Ankara blames for a failed 2016 coup against President Tayyip Erdogan, as well as supporting outlawed PKK Kurdish militants.

Brunson, who denies the charges, faces up to 35 years in jail if found guilty.

“It is really hard to stay in jail and be separated from my wife and children,” Brunson, wearing a black suit and a white shirt, told the court in Turkish.

“There is no concrete evidence against me. The disciples of Jesus suffered in his name, now it is my turn. I am an innocent man on all these charges. I reject them. I know why I am here. I am here to suffer in Jesus’s name.”

U.S. President Donald Trump late on Wednesday said in a tweet that Erdogan “should do something to free this wonderful Christian husband and father,” saying that Brunson has “been held hostage far too long.”

The U.S. Senate passed a bill last month including a measure that prohibits Turkey from buying F-35 Joint Strike Fighter jets because of Brunson’s imprisonment and Turkey’s purchase of Russia’s S-400 air defense system.

The U.S. envoy to Turkey said he was “disappointed” by the ruling of the court in the Aegean province of Izmir, where Brunson had been living.

“Our government is deeply concerned about his status and the status of other American citizens and Turkish local employees of the U.S. diplomatic mission who have been detained under state of emergency rules,” Charge d’Affaires Philip Kosnett told reporters outside the courtroom.

“We have great respect for both Turkey’s traditional role as a haven for people of faiths and Turkey’s legal traditions,” he said. “We believe this case is out of step with these traditions.”

NEW WITNESSES

Erdogan has previously linked Brunson’s fate to that of Fethullah Gulen, a U.S.-based Muslim cleric who Turkey accuses of masterminding the failed coup. Gulen denies any involvement in the coup, in which at least 250 people were killed.

The spokesman of Turkey’s ruling AK Party, Mahir Unal, said that just as Washington had responded repeatedly to Ankara’s requests for Gulen’s extradition by saying it was a matter for the U.S. courts, so Brunson’s fate was a judicial matter.

Brunson was pastor of the Izmir Resurrection Church, serving a small Protestant congregation in Turkey’s third-largest city, south of the Aegean town of Aliaga where he is now on trial.

His lawyer Ismail Cem Halavurt had raised hopes that Brunson could be released as the prosecution witnesses finish testifying.

But Halavurt said on Wednesday the prosecution has added the testimony of two new anonymous witnesses to the case and that the court would reconvene on Oct. 12 to hear them and view new evidence.

Turkey’s lira weakened against the dollar immediately after the ruling, reflecting investor worries about tensions with the United States.

Brunson’s trial is one of several legal cases that have raised tensions between Washington and Ankara. A U.S. judge sentenced a Turkish bank executive in May to 32 months in prison for helping Iran evade U.S. sanctions, while two locally employed U.S. consulate staff in Turkey have been detained.

The two NATO allies are also at odds over U.S. policy in Syria, where Washington’s ally in the fight against Islamic State is a Kurdish militia that Turkey says is an extension of the PKK, which has waged a three-decade insurgency in southeast Turkey.

In a statement late on Wednesday, four Republican U.S. senators called for the immediate release of Brunson and other U.S. citizens being held in Turkey, warning of legislative reprisals otherwise.

“We encourage the Administration to use all the tools at their disposal to ensure the release of these innocent people before Congress is forced to press for even stricter legislative measures that will be difficult to unwind,” Senators Thom Tillis, Jeanne Shaheen, James Lankford, and Lindsey Graham said.

(Writing by Ezgi Erkoyun and Humeyra Pamuk; Editing by John Stonestreet and Leslie Adler)