Subdued by Harvey, Congress reconvenes facing fiscal tests

Church Volunteers work to remove Hurricane Harvey flood damage from a home in Houston, Texas, U.S. September 2, 2017.

By Susan Cornwell

WASHINGTON (Reuters) – Hurricane Harvey devastated Texas, but could bring some fiscal order to Washington where Republicans and Democrats will need to put political differences aside in order to approve spending to repair the damage from flooding in and around Houston.

Lawmakers returning to Washington after a month-long break are expected to swiftly agree to an initial request for nearly $8 billion in disaster aid. More requests will follow from the Trump administration, with the fractious Republicans who control the House of Representatives and the Senate determined to look capable of governing in a crisis.

Some estimates say Harvey could cost U.S. taxpayers almost as much as the total federal aid outlay of more than $110 billion for 2005’s record-setting Hurricane Katrina.

That sobering cost and the urgent needs of Harvey’s victims have helped to calm a fiscal storm that had threatened to engulf Congress and President Donald Trump ahead of Oct. 1. The rancor revolves around the deadline for lawmakers to approve a temporary spending measure to keep the government from shutting down, as well as the need to raise the nation’s debt ceiling.

“There’s reason to hope that in the wake of the tragedy in Texas … there will be a renewed sense of community and common purpose that can help get things done,” said Michael Steel, a Republican strategist who once worked as spokesman for former House Speaker John Boehner.

Before Harvey, Trump had threatened to veto such spending and trigger a shutdown if Congress refused to fund his proposed U.S.-Mexico border wall. He has dropped his threat, the Washington Post reported on Friday, making a shutdown less likely.

As of the Labor Day holiday weekend, approval by Congress was widely anticipated in late September of a stopgap bill, or continuing resolution, to continue current spending levels for two to three more months.

The need to help Hurricane Harvey victims “creates another reason as to why you’d want to keep the government open,” Republican Senator Roy Blunt said on NBC’s “Meet the Press” Sunday.

 

FRESH START WITH TRUMP

With much of Washington distracted by tensions with North Korea over its nuclear program, Congress must also raise the federal debt ceiling by the end of September or early October to stave off an unprecedented U.S. government debt default, which would shake global markets.

The debt ceiling caps how much money the U.S. government can borrow, and some conservatives are loath to raise it without spending reforms. U.S. Treasury Secretary Steven Mnuchin on Sunday said Congress should act quickly to increase the debt limit, otherwise relief funding for hurricane-ravaged areas of Texas might be delayed.

“Without raising the debt limit, I am not comfortable that we will get money to Texas this month to rebuild,” Mnuchin said on Fox News Sunday.

Blunt, a junior member of Senate Republican leadership, said it was possible lawmakers could tie legislation raising the debt ceiling to measures providing financial aid for recovery from Harvey. “That’s one way to do it,” he said on Meet the Press.

Montana Republican Senator Steve Daines said Friday he would prefer to see spending reforms attached to the borrowing ceiling. “We need to do something to reduce the debt.”

Senior Republicans were warning Trump not to anger Democrats by carrying through with his threat to curtail the Deferred Action for Childhood Arrivals (DACA) program for immigrant children, which Democrats widely support. Democratic votes will likely be needed to both raise the debt ceiling and prevent a shutdown.

Trump might have listened to them. Sources said on Sunday that he has decided to scrap the program that shields the young immigrants from deportation, but he will give Congress six months to craft a bill to replace it.

With his tendency to send conflicting policy signals and attack fellow Republicans, Trump may present the biggest uncertainty as Congress gets back to work.

The four top Republican and Democratic leaders of the Senate and House are set to hold a rare bipartisan meeting with Trump on Wednesday to chart a path forward for the multiple fiscal issues.

Senate Republican leader Mitch McConnell, who will attend the meetings, spent much of August feuding with Trump, who attacked the Kentuckian repeatedly on Twitter.

One Republican strategist said the Senate leader would not dwell on those tensions. “Basically every Republican senator is looking to put whatever nonsense happened on Twitter in August in the rear view mirror and focus on all the important work that needs to get done in September,” said Josh Holmes, a former chief of staff and campaign manager for McConnell.

 

(Additional reporting by David Morgan and Chris Sanders; Editing by Kevin Drawbaugh and Mary Milliken)

 

Russia pledges ‘harsh response’ to U.S. tit-for-tat measures

A sign outside the entrance to the building of the Consulate General of Russia is shown in San Francisco, California, U.S., August 31, 2017.

By Andrew Osborn

MOSCOW (Reuters) – Russia said on Friday it would respond harshly to any U.S. measures designed to hurt it, a day after the United States told Moscow to close its San Francisco consulate and buildings in Washington and New York.

The warning, from Foreign Minister Sergei Lavrov, came as Russia said it was weighing a response to the U.S. move that will force it to shutter two trade missions in the United States as well as the San Francisco consulate by Sept. 2.

“We’ll react as soon as we finish our analysis,” Lavrov told students in Moscow. “We will respond harshly to things that damage us.”

Separately, a top Kremlin aide complained the U.S. demarche pushed bilateral ties further into a blind alley and fuelled a spiral of tit-for-tat retaliatory measures.

U.S. President Donald Trump took office in January, saying he wanted to improve U.S.-Russia ties which were at a post-Cold War low. But since then, ties have frayed further after U.S. intelligence officials said Russia had meddled in the presidential election, something Moscow denies.

Trump, himself battling allegations his associates colluded with Russia, grudgingly signed new sanctions on Moscow into law this month which had been drawn up by Congress.

When it became clear those measures would become law, Moscow ordered the United States to cut its diplomatic and technical staff in Russia by more than half, to 455 people.

Lavrov hinted on Friday that Russia might look at ordering further reductions in U.S. embassy staff, suggesting Moscow had been generous last time by allowing Washington to keep “more than 150” extra people.

He said Russia had cut the U.S. numbers to tally with the number of Russian diplomats in the United States, but that Moscow had generously included more than 150 Russian staff who work at Russia’s representation office at the United Nations.

Lavrov said Moscow still hoped for better relations and blamed Trump’s political foes for the deteriorating situation.

“I want to say that this whole story with exchanging tit-for-tat sanctions was not started by us,” Lavrov said.

“It was started by the Obama administration to undermine U.S.-Russia relations and to not allow Trump to advance constructive ideas or fulfil his pre-election pledges.”

Barack Obama, then outgoing president, expelled 35 suspected Russian spies in December and seized two Russian diplomatic compounds. President Vladimir Putin paused before responding, saying he would wait to see how Trump handled Russia.

“We thought this administration could exercise common sense, but unfortunately the Russophobes in Congress are not allowing it to,” said Lavrov, who complained that the United States had only given Moscow 48 hours to comply with its latest demands.

 

(Additional reporting by Denis Pinchuk; Editing by Robin Pomeroy)

 

Regional nations plus U.S. condemn Venezuela’s new constituent assembly

Delcy Rodriguez (C), president of the National Constituent Assembly, speaks during a meeting of the Truth Commission in Caracas, Venezuela August 16, 2017. REUTERS/Ueslei Marcelino

By Hugh Bronstein and Mitra Taj

CARACAS/LIMA (Reuters) – A group of 12 regional nations plus the United States rejected Venezuela’s new government-allied legislative superbody, saying they would continue to regard the opposition-controlled congress as the country’s only legitimate law maker.

The move came after an announcement on Friday that the newly-created constituent assembly, elected in late July to re-write the crisis-hit country’s constitution, would supersede congress and pass laws on its own.

The Lima Group, including Peru, Argentina, Brazil, Canada, Colombia and seven other regional governments, late on Friday joined the United States in criticizing the assembly for “usurping” the powers of Venezuela’s tradition congress.

The congress has been controlled by the opposition since 2016, but has been neutered by President Nicolas Maduro’s loyalist Supreme Court, which has tossed out almost every law it has passed.

“We reiterate our rejection of the constituent assembly and its actions,” the 12-member Lima Group said in a statement published by Peru’s foreign ministry.

“We ratify our full support for the Venezuelan congress.” it added.

Maduro has slapped the opposition with several measures blaming it for the unrest that killed more than 125 people in recent months as security forces met rock-throwing protesters with rubber bullets and water cannon. The U.N. says government troops used excessive force in many cases.

One of the measures is the assembly’s new truth commission that will investigate opposition candidates running in October gubernatorial elections, to see if they were involved in the deadly protests. Considering that many opposition figures supported the demonstrations, the commission could hobble their efforts at winning governorships in the upcoming vote.

Anti-government marches have stalled since the assembly was inaugurated on Aug. 5. The opposition was stunned by a threat of U.S. military action in Venezuela issued by President Donald Trump on Aug. 11.

The threat played into Maduro’s hands by supporting his oft-repeated assertion that the U.S. “empire” wants to invade Venezuela to steal its oil. The idea had been easily dismissed as absurd by opposition and U.S. officials before Trump’s surprise statement that “a military option” was on the table for dealing with Venezuela’s political crisis.

Over the days ahead the assembly says it will pass a law against “expressions of hate and intolerance,” which rights groups say is so vaguely worded it could allow for the prosecution of almost anyone who voices dissent.

(Reporting by Hugh Bronstein and Mitra Taj; Editing by Andrew Bolton)

Violence prompts U.S. Congress to discuss militant threats

FILE PHOTO: U.S. Representative Michael McCaul (R-TX) speaks to the news media after a meeting at Trump Tower to speak with U.S. President-elect Donald Trump in New York, U.S., November 29, 2016. REUTERS/Lucas Jackson

WASHINGTON (Reuters) – A U.S. congressional panel next month will hold a hearing on violent extremism, including threats from domestic militants, following a white supremacist rally in Charlottesville, Virginia, that turned deadly.

The chairman of the U.S. House of Representatives Homeland Security Committee, Republican Michael McCaul, announced the Sept. 12 hearing in a letter to the panel’s top Democrat, Bennie Thompson.

The committee holds a hearing once a year, around the anniversary of the Sept. 11, 2001, attacks, to discuss worldwide threats.

A committee aide said the Charlottesville protests had prompted the decision to broaden the hearing to include threats from domestic militants.

But Thompson said the move was “not adequate or appropriate” to address his request for a hearing on threats from white supremacists and neo-Nazi groups.

“The September 12 hearing to cover worldwide threats is an annual hearing that was already scheduled prior to the domestic attacks this weekend,” Thompson said. “It will not allow us to go into the depth necessary to address the far-ranging and multifaceted aspects of the threat posed by domestic terrorist threats from white supremacist and neo-Nazi groups.”

The Homeland Security Committee will invite leaders of the Homeland Security Department, the Federal Bureau of Investigation and the National Counterterrorism Center, McCaul said.

“We must stand together and reject racism, bigotry, and prejudice, including the hateful ideologies promoted by neo-Nazis, the KKK, and all other white supremacy groups,” McCaul wrote in his response to Democrats’ request for a hearing.

A 32-year-old woman was killed on Saturday in Charlottesville when a car plowed into a rival protest to white supremacist demonstrators. A 20-year-old Ohio man said to have harbored Nazi sympathies has been charged with murder.

President Donald Trump on Tuesday said both sides were to blame for the violence, drawing condemnation from both fellow Republicans and Democrats for failing to single out the white nationalists.

(Reporting by Eric Beech and Caren Bohan; Editing by Howard Goller and Leslie Adler)

Wray confirmed by Senate to lead FBI after Comey firing

Wray confirmed by Senate to lead FBI after Comey firing

By Julia Edwards Ainsley

WASHINGTON (Reuters) – The U.S. Senate on Tuesday confirmed former Justice Department lawyer Christopher Wray as FBI chief, nearly three months after the agency’s previous director, James Comey, was fired by President Donald Trump.

Wray, who was confirmed by vote of 92-5, will take charge of the country’s top domestic law enforcement agency during a federal probe into allegations of collusion between the Trump presidential campaign and Russia.

Since the dismissal of Comey on May 9, the Justice Department has appointed Robert Mueller as special counsel to oversee the investigation with the help of the FBI. Russia denies any interference, and Trump has denied collusion with Russia.

Wray vowed in his confirmation hearing last month to remain independent and not be swayed by politics or pressure from the president. He also praised Muller as the “consummate straight shooter.”

He also worked with Comey on the government’s case in the Enron Corp fraud scandal in the early 2000s.

During the confirmation hearing, Republican Senate Judiciary Committee Chairman Chuck Grassley said Wray’s background showed he was committed to independence, an attribute he said was “vitally important” in the next FBI director.

Wray served as assistant attorney general in charge of the criminal division at the Justice Department under former Republican President George W. Bush.

Former Attorney General Eric Holder and former Deputy Attorney General Sally Yates, both Democrats who served under President Barack Obama, endorsed Wray.

(Reporting by Julia Edwards Ainsley; Editing by Peter Cooney)

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

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

By Roberta Rampton and Patricia Zengerle

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

NO FANFARE FOR BILL SIGNING

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

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

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

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

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

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

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

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

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

Senate Democrats offer Republicans help on tax reform – with conditions

The United States Capitol is seen prior to an all night round of health care votes on Capitol Hill in Washington, U.S., July 27, 2017. REUTERS/Aaron P. Bernstein -The United States Capitol is seen prior to an all night round of health care votes on Capitol Hill in Washington, U.S., July 27, 2017. REUTERS/Aaron P. Bernstein -

By David Morgan

WASHINGTON (Reuters) – U.S. Senate Democrats offered to work with Republicans on a bipartisan tax reform package on Tuesday but only if it does not cut taxes for the wealthy, add to the federal deficit or allow Republicans to enact legislation on their own.

The conditional offer may not attract immediate response from Republicans. But it adds to growing signs of interest in bipartisan cooperation since the collapse of Republican healthcare legislation in the Senate last week.

In an Aug 1 letter to President Donald Trump and Republican leaders in the Senate, 45 lawmakers led by Senate Democratic leader Chuck Schumer said a bipartisan effort would raise wages for workers, grow jobs, promote investment and modernize the tax system for U.S. businesses.

“We are writing to express our interest in working with you on bipartisan tax reform,” said the letter, which then cited “prerequisites” for Democratic participation that Republicans would likely find hard to swallow.

Trump, along with Republicans in the Senate and House of Representatives, has called for major tax cuts for businesses and individuals, saying that lower tax rates would drive the economy and grow jobs.

Senator Orrin Hatch, Republican chairman of the tax-writing Senate Finance Committee, told Reuters on Monday that bipartisanship may be necessary to ensure that tax reform succeeds but blamed Democrats for slowing down the legislative process.

In Tuesday’s letter, Democrats said bipartisan tax reform should offer no relief for the wealthy, citing Treasury Secretary Steven Mnuchin’s assertion last November that there would be no absolute tax cut for the upper class.

“We hope you agree. Tax reform cannot be a cover story for delivering tax cuts to the wealthiest,” the Democrats said.

The Democrats also demanded that Republicans abandon their strategy of passing tax legislation in the Senate with a simple majority under a parliamentary procedure called reconciliation.

Republicans control the Senate by a slim 52-48 margin and say they need reconciliation to avoid a Democratic filibuster. They were unable to pass healthcare legislation last week, even with a simple majority.

Democrats also said they would not support deficit-financed tax cuts, which some Republicans view as a viable option.

Forty-three Senate Democrats and two independents signed the letter. Absent were the names of three Democrats facing reelection next year: Heidi Heitkamp of North Dakota, Joe Donnelly of Indiana and Joe Manchin of West Virginia.

(Reporting by David Morgan; Editing by Cynthia Osterman)

Trump tells Republicans to get back on healthcare bill

U.S. President Donald Trump calls on Republican Senators to move forward and vote on a healthcare bill to replace the Affordable Care Act in the Blue Room of the White House in Washington,

By Susan Cornwell

WASHINGTON (Reuters) – U.S. President Donald Trump and members of his administration on Sunday goaded Republican senators to stick with trying to pass a healthcare bill, after the lawmakers failed spectacularly last week to muster the votes to end Obamacare.

For the second day running, the Republican president tweeted his impatience with Congress’ inability to deliver on his party’s seven-year promise to replace the Affordable Care Act, President Barack Obama’s signature healthcare bill commonly known as Obamacare. Members of his administration took to the airwaves to try to compel lawmakers to take action.

But it was unclear whether the White House admonishments would have any impact on Capitol Hill, where Republicans who control both houses signaled last week that it was time to move on to other issues.

Republicans’ zeal to repeal and replace Obamacare was met with both intra-party divisions between moderates and conservatives and also the increasing approval of a law that raised the number of insured Americans by 20 million.

Polling indicates a majority of Americans are ready to move on from healthcare at this point. According to a Reuters/Ipsos poll released on Saturday, 64 percent of 1,136 people surveyed on Friday and Saturday said they wanted to keep Obamacare, either “entirely as is” or after fixing “problem areas.” That is up from 54 percent in January.

With the U.S. legislative branch spinning its wheels, the executive branch pledged to look at rewriting Obamacare regulations. Health and Human Services Secretary Tom Price told ABC’s “This Week” that he would change those regulations that drive up costs or “hurt” patients.

Price sidestepped questions about whether there were administration plans to waive Obamacare’s mandate that individuals have health insurance, saying “all things are on the table to try to help patients.”

But Price also told NBC he would implement Obamacare because it is the “law of the land.”

That Obamacare was still law clearly angered Trump, who has no major legislative accomplishments to show for his first half-year in office. “Don’t give up Republican Senators, the World is watching: Repeal Replace …” the president said in a tweet on Sunday morning.

 

NOT ‘TIME TO MOVE ON’

On Friday, Senate Republicans failed to collect enough votes to repeal even a few parts of Obamacare. That capped a week of failed Senate votes on whether to simply repeal, or repeal and replace, the 2010 law, while Trump repeatedly berated lawmakers in a late attempt to influence the legislation.

“The president will not accept those who said, quote, ‘it’s time to move on,'” Kellyanne Conway, a senior counselor to Trump, said on Fox News Sunday. Senate Majority Leader Mitch McConnell, a Republican, had made exactly that comment before dawn on Friday morning after the failed healthcare vote.

The White House budget director, Mick Mulvaney, said on Sunday lawmakers should stay in session to get something done on healthcare – even if this means postponing votes on other issues such as raising the debt ceiling.

“So yes. They need to stay. They need to work. They need to pass something,” Mulvaney said on CNN.

The House of Representatives has already gone home for its August break and the Senate is expected to do the same by mid-August.

Mulvaney also said Trump was seriously considering carrying out threats he tweeted about on Saturday, when the president said that “if a new HealthCare Bill is not approved quickly, BAILOUTS for Insurance Companies and BAILOUTS for Members of Congress will end very soon!”

That tweet appeared to be referring to the approximately $8 billion in cost-sharing reduction subsidies the federal government pays to insurers to lower the price of health coverage for low-income Americans.

The Saturday tweet also appeared to be a threat to end the employer contribution for members of Congress and their staffs, who were moved from the normal federal employee healthcare benefits program onto the Obamacare insurance exchanges as part of the 2010 healthcare law.

“What he’s saying is, look, if Obamacare is hurting the American people – and it is – then why shouldn’t it hurt insurance companies and more importantly, perhaps for this discussion, members of Congress?” Mulvaney said on Sunday on CNN.

Some Republicans have said they are trying to find a way forward on healthcare. Senate Republican Susan Collins, one of three Republicans who voted against repealing parts of Obamacare on Friday, told NBC that Congress should produce a series of bills with bipartisan input on healthcare, including appropriating the cost-sharing subsidies.

The Senate has one vote scheduled when it reconvenes on Monday afternoon: whether to confirm a U.S. circuit court judge. Senate aides said they had no guidance for the agenda beyond that vote.

 

(Additional reporting by Sarah N. Lynch, Roberta Rampton, and Caren Bohan; Editing by Phil Berlowitz and Mary Milliken)

 

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

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

By Patricia Zengerle, Andrew Osborn and Philip Blenkinsop

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

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

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

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

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

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

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

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

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

DOGGED BY RUSSIA ALLEGATIONS

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

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

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

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

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

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

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

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

HOPES FADE FOR DETENTE

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

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

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

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

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

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

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

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

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

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

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

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

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

Philippine Congress agrees to extend Mindanao martial law to end of year

An anti martial law protestor hold a placard while protesting during the special session on the extension of martial law at the House of Representatives in Quezon City, metro Manila, Philippines July 22, 2017. REUTERS/Dondi Tawatao

By Enrico Dela Cruz

MANILA (Reuters) – Philippine lawmakers on Saturday voted to retain martial law on the southern island of Mindanao until the end of the year, giving President Rodrigo Duterte more time to tackle armed extremists allied with the Islamic State group.

Some 261 legislators agreed to extend military rule in a seven hour-long joint special session of the House of Representatives and the Senate, more than the required two-thirds of the house.

Security officials had told lawmakers that martial law was needed to stabilize a region where Islamic State was gaining influence, and supporters could be inspired to stage uprisings in other areas of Mindanao, joined by foreign jihadists.

Defence Secretary Delfin Lorenzana warned of more serious problems if the government did not have the powers to act swiftly.

“We need martial law because we haven’t addressed yet the existence of other Daesh-inspired groups,” he said, referring to another name for Islamic State.

Duterte placed Mindanao under martial law on May 23 when heavily-armed militants belonging to the Maute and Abu Sayyaf groups along with foreign fighters stormed Marawi City, sparking the biggest security crisis of his presidency.

The battle to liberate Marawi continues two months after, with more than 420 militants, 100 soldiers and 45 civilians killed. Some of those were executed by the rebels, according to the military.

Government troops pulverized and retook some of the Maute strongholds after weeks of artillery attacks and airstrikes, but an estimated 70 militants remained holed up in the downtown area.

“The rebellion in Marawi continues to persist and we want to stop the spread of the evil ideology of terrorism and free the people of Mindanao from the tyranny of lawlessness and violent extremism,” Presidential Spokesman Ernesto Abella said in a statement.

But martial law remains a sensitive issue in the Philippines as it brings back memories of human rights abuses that occurred in the 1970s under the late dictator Ferdinand Marcos.

He was ousted in a “people power” revolt in 1986. Saturday’s vote paves the way for the first ever extension of a period of martial law since the Marcos era.

Opponents expressed fears Duterte might eventually place the entire country under martial law, but the authorities have dismissed that.

Senator Franklin Drilon said the extension until end of the year was too long and Senator Risa Hontiveros, a staunch critic of Duterte, said martial law has “no strategic contribution to the military’s anti-terrorism operations”.

Congressman Edcel Lagman said there was “no factual basis” for martial law and that the siege in Marawi was terrorism, not rebellion.

Rebellion is one of the pre-conditions for declaring martial law under a 1987 constitution that was drafted to prevent a repeat of the Marcos era abuses.

Military chief General Eduardo General Año said retaking Marawi has proven difficult because it was the first time troops had engaged in a “Mosul-type, hybrid urban warfare”, referring to the fighting in the Iraqi city until recently held by Islamic State.

(Reporting by Enrico dela Cruz; Additional reporting by Manuel Mogato; Editing by Martin Petty & Shri Navaratnam)