Obama urges NATO to stand firm against Russia despite Brexit

European Council President Donald Tusk (L-R), U.S. President Barack Obama and European Commission President Jean-Claude Juncker deliver remarks to reporters after their meeting at the NATO Summit in Warsaw, Poland July 8, 2016. REUTERS/Jonathan Ernst

By Yeganeh Torbati and Wiktor Szary

WARSAW (Reuters) – U.S. President Barack Obama urged NATO leaders on Friday to stand firm against a resurgent Russia over its seizure of Crimea from Ukraine, saying Britain’s vote to leave the European Union should not weaken the Western defense alliance.

In an article published in the Financial Times newspaper as he arrived for his last summit of the North Atlantic Treaty Organisation before he leaves office in January, Obama said America’s “special relationship” with Britain would survive the referendum decision he had warned against.

“The special relationship between the U.S. and the UK will endure. I have no doubt that the UK will remain one of NATO’s most capable members,” he said, but noted that the vote raised significant questions about the future of EU integration.

The 28-nation EU will formally agree to deploy four battalions totaling 3,000 to 4,000 troops in the Baltic states and Poland on a rotating basis to reassure eastern members of its readiness to defend them against any Russian aggression.

Host nation Poland set the tone of mistrust of Russia. Its foreign minister, Witold Waszczykowski, told a pre-summit forum: “We have to reject any type of wishful thinking with regard to a pragmatic cooperation with Russia as long as it keeps on invading its neighbors.”

Obama was more diplomatic, urging dialogue with Russia, but he too urged allies to keep sanctions on Moscow until it fully complies with a ceasefire agreement in Ukraine, and to help Kiev defend its sovereignty. Ukraine is not itself a member of NATO.

“In Warsaw, we must reaffirm our determination — our duty under Article 5 of the North Atlantic Treaty — to defend every NATO ally,” Obama said.

“We need to bolster the defense of our allies in central and eastern Europe, strengthen deterrence and boost our resilience against new threats, including cyber attacks.”

Estonia, Latvia, Lithuania and Poland – all NATO members – have requested a permanent NATO presence. They fear Moscow will seek to destabilize their pro-Western governments through cyber attacks, stirring up Russian speakers, hostile broadcasting and even territorial incursions. Critics say the NATO plan is a minimal trip wire that might not deter Russian action.

The head of NATO’s military committee, Czech General Petr Pavel, said Russia was attempting to restore its status as a world power, an effort that includes using its military.

“We must accept that Russia can be a competitor, adversary, peer or partner and probably all four at the same time,” he said.

The Kremlin said it was absurd for NATO to talk of any threat coming from Russia and it hoped “common sense” would prevail at the Warsaw summit. Moscow was and remains open to dialogue with NATO and is ready to cooperate with it, Kremlin spokesman Dmitry Peskov said in a conference call with journalists.

Russia often depicts NATO as an aggressor, whose member states are moving troops and military hardware further into former Soviet territory, which it regards as its sphere of influence.

Russian President Vladimir Putin made several gestures aimed at showing a cooperative face before the summit. At the same time, Moscow highlighted its intention to deploy nuclear-capable missiles in Kaliningrad, a Russian enclave between Poland and Lithuania.

Putin agreed to a meeting of the NATO-Russia Council next week, the second meeting this year of a consultation body that was put on ice after Moscow’s seizure of Crimea in 2014. Russia allowed a U.N. resolution authorizing the EU to intercept arms shipments to Libya in the Mediterranean, and Putin talked by telephone with Obama in the run-up to the NATO meeting.

However, a White House spokesman said they reached no agreement on cooperation in fighting Islamic State militants in Syria during that call on Wednesday.

BRITAIN

Outgoing British Prime Minister David Cameron, who said he will resign after losing the referendum on EU membership last month, will seek to emphasize an active commitment to Western security at his final NATO summit, to offset any concern about Europe’s biggest military spender leaving the EU.

The first item on the summit agenda was the signing of an agreement between the EU and NATO on deeper military and security cooperation.

The U.S.-led alliance is also expected to announce its support for the EU’s Mediterranean interdiction operation. NATO already supports EU efforts to stem a flood of refugees and migrants from Turkey into Greece, in conjunction with an EU-Turkey deal to curb migration in return for benefits for Ankara.

Obama and the other NATO leaders will have a more unscripted discussion of how to deal with Russia over dinner in the same room of the Polish Presidential Palace where the Warsaw Pact was signed in 1955, creating the Soviet-dominated military alliance that was NATO’s adversary during the Cold War.

NATO Secretary-General Jens Stoltenberg sought to balance the new military deployments and air patrols close to Russia’s borders by stressing the alliance would continue to seek “meaningful and constructive dialogue” with Moscow.

“We don’t want a new Cold War,” he told reporters. “The Cold War is history and it should remain history.”

Turkish President Tayyip Erdogan told reporters before leaving Ankara to attend the summit that NATO also needed to adapt to do more to fight a threat from Islamic State militants, who were accused of last week’s deadly attack on Istanbul airport.

“As we have seen from the terrorist attacks first in Istanbul and then in Iraq and Saudi Arabia, international security is becoming more fragile,” Erdogan said.

“The concept of a security threat is undergoing a serious change. In this process, NATO needs to be more active and has to update itself against the new security threats,” he said.

(Additional reporting by Gabriela Baczynska and Robin Emmott in Warsaw, Humeyra Pamuk in Istanbul and Elizabeth Piper in Lodon; Writing by Paul Taylor; Editing by Toby Chopra, Larry King)

Negotiations for U.S. Defense aid for Israel have hit a snag

Israeli soldiers observe the area where the Israeli army is excavating part of a cliff to create an additional barrier along its border with Lebanon, near the community of Shlomi in northern Israel

By Dan Williams, Patricia Zengerle and Matt Spetalnick

JERUSALEM/WASHINGTON (Reuters) – Negotiations meant to enshrine U.S. defense aid for Israel over the next decade have snagged on disputes about the size, scope and fine print of a new multibillion-dollar package, officials say.

Five months into the talks, several U.S. and Israeli officials disclosed details about the disputes to Reuters on condition of anonymity. The U.S. and Israeli governments said negotiations were continuing, declining to elaborate.

Israel is seeking up to $10 billion more than the current 10-year package and billions more than the U.S. administration is offering, partly by asking for guaranteed funding for missile defense projects hitherto funded on an ad hoc basis by the U.S. Congress, the officials said.

U.S. President Barack Obama wants to ensure the funds, thus far spent partly on Israeli arms, are eventually spent entirely on U.S.-made weapons.

The differences partly reflect Israeli Prime Minister Benjamin Netanyahu’s vocal opposition to the international nuclear deal with Iran championed by Obama. The two sides are also at loggerheads over the Palestinians.

Israel has long been a major recipient of U.S. aid, most in the form of military assistance against a backdrop of an ebbing and flowing conflict with the Palestinians and Israel’s neighbors, as well as threats from Iran. Obama has pushed hard for a resolution to the conflict, but has made little headway.

In seeking a sharp increase in military funding, Israel argues it needs to offset military purchases by Iran, Israel’s regional arch-foe, after it secured sanctions relief in the accord limiting its nuclear program.

Israel also wants the U.S. administration to support missile defense projects that have so far relied on ad hoc assistance by the U.S. Congress, citing arms acquisitions by neighboring Arab states as well as Iran as conflicts rage in Syria and Yemen.

Obama’s administration, which has fraught relations with Netanyahu, is offering what it says is a record sum to Israel to assuage fears expressed both there and among his Republican rivals at home that the deal with Iran will endanger Israel.

But the officials say it is less money than Israel has sought overall and Obama also wants changes to allow U.S. defense firms to reap greater benefits from a new deal.

If unresolved before Obama leaves office in January, the impasse could deny him a chance to burnish his legacy with the aid package to Washington’s closest Middle East ally. That would also leave Netanyahu to await the next U.S. president in hopes of securing a better deal.

$10 BILLION MORE

The current Memorandum of Understanding (MOU), signed in 2007 and due to expire in 2018, gave Israel a total of about $30 billion, or an average of $3 billion annually, in so-called “Foreign Military Financing.”

The Israelis, whose annual defense budget is $15 billion, want at least $3.7 billion annually under the same rubric in the new MOU, officials say.

Israel also wants guaranteed missile defense aid built into the MOU for the first time, which could mean hundreds of millions of dollars more per year, bringing the full package to more than $40 billion over the next decade.

U.S. negotiators have proposed a total of between $3.5 billion and $3.7 billion in annual aid to Israel, but it was not clear if this included any money for missile defense.

The Obama administration has balked at Israel’s request to stipulate a separate funding track in the MOU for missile defense projects, one official said. It was not known how much Israel had proposed under the missile defense clause.

Israel wants the missile defense component to be “viewed as the ‘floor’ amount, as Congress can be asked for more on an ad hoc basis if circumstances require,” said one official.

U.S. lawmakers have in recent years given Israel up to $600 million in annual discretionary funds for missile defense, well beyond the $150 million requested by the Obama administration.

Palestinian rocket salvoes in the Gaza wars of 2008-9, 2012 and 2014 helped Israel drum up American sympathy and support for its anti-missile systems, Iron Dome, Arrow and David’s Sling.

More than four-fifths of the U.S. Senate signed a letter last week urging Obama to conclude an increased 10-year aid package.

“These discussions are continuing and we remain hopeful we can reach agreement on a new MOU that will build on the United States’ historic and enduring commitment to Israel’s security,” a White House official said in response to a Reuters request for confirmation of the latest negotiating terms.

The official declined to comment directly on the terms.

The current MOU allows Israel to spend 26.3 percent of the U.S. funds on its own defense industries. The United States wants to phase this provision out gradually so that all of the money is spent on American military products, the sources said.

Israel wants to keep the provision in place, or only partly reduced, they said. It fears a devastating blow to Israeli arms firms that glean some $800 million a year from the current MOU.

In another move to shore up its own defense industries, the United States wants to end a provision allowing Israel to spend around $400 million in annual MOU funds on military fuels.

One official paraphrased Washington’s message to Israel as: “We want (you) to be spending this money on actual security, on weapons systems, ways to make you safer.”

(Writing by Dan Williams and Matt Spetalnick; Editing by Jeffrey Heller and Philippa Fletcher)

U.S. Senate urges quick agreement on defense aid for Israel

An Iron Dome launcher fires an interceptor rocket in the southern Israeli city of

By Patricia Zengerle

WASHINGTON (Reuters) – More than four-fifths of the U.S. Senate have signed a letter urging President Barack Obama to quickly reach an agreement on a new defense aid package for Israel worth more than the current $3 billion per year.

Eighty-three of the 100 senators signed the letter, led by Republican Lindsey Graham and Democrat Chris Coons. Senator Ted Cruz, a 2016 presidential candidate, was one of the 51 Republicans on board. The Senate’s Democratic White House hopeful, Bernie Sanders, was not among the 32 Democrats.

“In light of Israel’s dramatically rising defense challenges, we stand ready to support a substantially enhanced new long-term agreement to help provide Israel the resources it requires to defend itself and preserve its qualitative military edge,” said the letter, which was first reported by Reuters.

It did not provide a figure for the suggested aid. Israel wants $4 billion to $4.5 billion in aid in a new agreement to replace the current memorandum of understanding, or MOU, which expires in 2018. U.S. officials have given lower target figures of about $3.7 billion. They hope for a new agreement before Obama leaves office in January.

The Obama administration wants to cement a new 10-year defense aid deal before he leaves office in January to demonstrate his commitment to Israel’s security, especially after reaching a nuclear agreement with Iran that Israel strongly opposed. Obama and Israeli Prime Minister Benjamin Netanyahu have had a tense relationship.

A White House official said discussions with Israel were continuing.

“We are prepared to sign an MOU with Israel that would constitute the largest single pledge of military assistance to any country in U.S. history,” the official said.

The funding is intended to boost Israel’s military and allow it to maintain a technological advantage over its Arab neighbors.

The letter said the Senate also intends to consider increased U.S. funding for cooperative missile defense programs, similar to increases in the past several years.

Obama has asked for $150 million for such programs, but lawmakers are believed to be willing to send Israel hundreds of millions for programs like its Iron Dome air defense system and the David’s Sling medium- and long-range military defense system.

(Additional reporting by Matt Spetalnick; Editing by Sandra Maler and Bernadette Baum)