U.S. imposes major sanctions on Russian oligarchs, officials

FILE PHOTO: Russian tycoon and President of RUSAL Oleg Deripaska listens during the "Regions in Transformation: Eurasia" event in Davos, Switzerland January 22, 2015. REUTERS/Ruben Sprich/File Photo

By Lesley Wroughton and Patricia Zengerle

WASHINGTON (Reuters) – The United States imposed major sanctions on Friday against 24 Russians, striking at allies of President Vladimir Putin in one of Washington’s most aggressive moves to punish Moscow for what it called a range of “malign activity,” including alleged meddling in the 2016 U.S. election.

The action, taken under pressure from the U.S. Congress, freezes the U.S. assets of “oligarchs” such as aluminum tycoon Oleg Deripaska, a close associate of Putin, and lawmaker Suleiman Kerimov, whose family controls Russia’s largest gold producer, Polyus.

The sanctions are largely a reply to what U.S. intelligence agencies say was Russian interference in the presidential election, although the Treasury Department painted them as a response to a series of adversarial actions by Moscow.

U.S. President Donald Trump has been under fire for not taking strong action against Russia after a series of diplomatic disputes reminiscent of the Cold War era and the sanctions could complicate his hopes for good relations with Putin.

The sanctions are aimed at seven Russian oligarchs and 12 companies they own or control, plus 17 senior Russian government officials. They freeze the U.S. assets of the people and companies named and forbid Americans in general from doing business with them.

Russian Security Council Secretary Nikolai Patrushev said, however, Moscow’s contacts with the U.S. government would not be brought to an end by the sanctions. Russia denies interfering in the U.S. election.

They could hurt the Russian economy, especially the aluminum, financial and energy sectors, and are a clear message to Putin and his inner circle of U.S. displeasure.

In announcing the sanctions, Treasury Secretary Steve Mnuchin said in a statement, “The Russian government operates for the disproportionate benefit of oligarchs and government elites.”

He said Moscow “engages in a range of malign activity around the globe, including continuing to occupy Crimea and instigate violence in eastern Ukraine, supplying the Assad regime with material and weaponry as they bomb their own civilians, attempting to subvert Western democracies, and malicious cyber activities.”

Shares in Russian aluminum producer Rusal were down 2.2 percent on Moscow’s exchange after the company was named on the sanctions list.

Russian state companies under the U.S. sanctions will receive additional government support, Russian Industry and Trade Minister Denis Manturov said, according to Interfax.

MUELLER INVESTIGATION

U.S. intelligence agencies last year accused Russia of using hacking and disseminating false information and propaganda to disrupt the 2016 elections and eventually try to ensure Trump defeated Democratic candidate Hillary Clinton.

Special Counsel Robert Mueller is investigating whether Trump’s election campaign colluded with Russia, something that Trump denies. Mueller has indicted 13 Russians and three organizations in his probe.

Elizabeth Rosenberg, a former senior U.S. Treasury Department official who is now a senior fellow at the Center for a New American Security think tank, said the sanctions were significant, although there is more to do.

“I’m impressed by how aggressive this is,” she said. “I thought it would be serious and this is certainly a very serious statement of U.S. policy.

“I would hasten to say that Russia hawks may welcome this but wouldn’t find it satisfying. And by no means would this be the sum total of what the U.S. government should do to advance its concerns.”

Trump has faced fierce criticism – including from fellow Republicans – for doing too little to punish Russia for the election meddling, aggression in Ukraine, and support of President Bashar al-Assad in Syria’s civil war.

He angered many members of Congress by failing for months to implement sanctions on Russia that lawmakers passed nearly unanimously last year.

But pressure for the United States to take action against Russia, especially from U.S. lawmakers, has been increasing.

Putin’s government has been blamed for the poisoning of a former Russian double agent living in Britain last month and the United States and several European states announced plans to expel more than 100 Russian diplomats in response.

In February, the White House blamed Russia for the international “NotPetya” cyber attack, which has been called the most destructive and costly in history.

On March 15, the Trump administration said it would impose sanctions on 19 people and five entities, including Russian intelligence services, for cyber attacks stretching back at least two years.

Friday’s sanctions were authorized by the Countering America’s Adversaries Through Sanctions Act, known as CAATSA, which Trump reluctantly signed into law in August.

Chris Painter, the former top cyber diplomat at the U.S. State Department, said the latest sanctions are unlikely to deter the Kremlin unless Trump formally condemns Putin.

Painter, who left government last year, criticized Trump’s rhetoric toward Putin – including a congratulatory call last month when Putin won another presidential term in a widely criticized election.

“We need the head of our country saying, ‘This is not going to happen,'” Painter said. “That’s a critical piece.”

(Reporting by Lesley Wroughton and Patricia Zengerle; Additional reporting by Doina Chiacu, Tim Ahmann and Susan Heavey; Writing by Alistair Bell; Editing by Yara Bayoumy and Bill Trott)

Special Report: How a secret Russian airlift helps Syria’s Assad- Russia

Russian President Vladimir Putin (R) and Syrian President Bashar al-Assad visit the Hmeymim air base in Latakia Province, Syria December 11, 2017. Picture taken December 11, 2017. To match Special Report RUSSIA-FLIGHTS/ Sputnik/Mikhail Klimentyev/ via REUTERS/File Photo

By Rinat Sagdiev, Maria Tsvetkova and Olena Vasina

MOSCOW/KIEV (Reuters) – In a corner of the departures area at Rostov airport in southern Russia, a group of about 130 men, many of them carrying overstuffed military-style rucksacks, lined up at four check-in desks beneath screens that showed no flight number or destination.

When a Reuters reporter asked the men about their destination, one said: “We signed a piece of paper – we’re not allowed to say anything. Any minute the boss will come and we’ll get into trouble.

“You too,” he warned.

The chartered Airbus A320 waiting on the tarmac for them had just flown in from the Syrian capital, Damascus, disgorging about 30 men with tanned faces into the largely deserted arrivals area. Most were in camouflage gear and khaki desert boots. Some were toting bags from the Damascus airport duty-free.

The men were private Russian military contractors, the latest human cargo in a secretive airlift using civilian planes to ferry military support to Syrian President Bashar al-Assad in his six-year fight against rebels, a Reuters investigation of the logistical network behind Assad’s forces has uncovered.

The Airbus they flew on was just one of dozens of aircraft that once belonged to mainstream European and U.S. aviation companies, then were passed through a web of intermediary companies and offshore firms to Middle Eastern airlines subject to U.S. sanctions – moves that Washington alleges are helping Syria bypass the sanctions.

The flights in and out of Rostov, which no organization has previously documented, are operated by Cham Wings, a Syrian airline hit with U.S. sanctions in 2016 for allegedly transporting pro-Assad fighters to Syria and helping Syrian military intelligence transport weapons and equipment. The flights, which almost always land late at night, don’t appear in any airport or airline timetables, and fly in from either Damascus or Latakia, a Syrian city where Russia has a military base.

The operation lays bare the gaps in the U.S. sanctions, which are designed to starve Assad and his allies in Iran’s Revolutionary Guard and the Hezbollah militia of the men and materiel they need to wage their military campaign.

It also provides a glimpse of the methods used to send private Russian military contractors to Syria – a deployment the Kremlin insists does not exist. Russian officials say Moscow’s presence is limited to air strikes, training of Syrian forces and small numbers of special forces troops.

Reuters reporters staked out the Rostov airport, logged the unusual flights using publicly available flight-tracking data, searched aircraft ownership registries and conducted dozens of interviews, including a meeting at a fashionable restaurant with a former Soviet marine major on a U.S. government blacklist.

Asked about the flights and the activities of Russian private military contractors in Syria, a spokesman for Russian President Vladimir Putin referred Reuters to the Defence Ministry – which didn’t reply to the questions. The Syrian government also didn’t reply to questions.

In response to detailed Reuters questions, Cham Wings said only that information on where it flies was available on its website.

The flights to Rostov aren’t mentioned on the site. But the journeys do appear in online flight-tracking databases. Reporters traced flights between the Rostov airport and Syria from Jan. 5, 2017, to March 11, 2018. In that time, Cham Wings aircraft made 51 round trips, each time using Airbus A320 jets that can carry up to 180 passengers.

The issue of military casualties is highly sensitive in Russia, where memories linger of operations in Chechnya and Afghanistan that dragged on for years. Friends and relatives of the contractors suspect Moscow is using the private fighters in Syria because that way it can put more boots on the ground without risking regular soldiers, whose deaths have to be accounted for.

Forty-four regular Russian service personnel have died in Syria since the start of the operation there in September 2015, Russian authorities have said. A Reuters tally based on accounts from families and friends of the dead and local officials suggests that at least 40 contractors were killed between January and August 2017 alone.

One contractor killed in Syria left Russia on a date that tallies with one of the mysterious nighttime flights out of Rostov, his widow said. The death certificate issued by the Russian consulate in Damascus gave his cause of death as “haemorrhagic shock from shrapnel and bullet wounds.”

FILE PHOTO: Russian President Vladimir Putin (L) welcomes Syrian President Bashar al-Assad during a meeting in the Black Sea resort of Sochi, Russia November 20, 2017. Sputnik/Mikhail Klimentyev/Kremlin via REUTERS/File Photo

FILE PHOTO: Russian President Vladimir Putin (L) welcomes Syrian President Bashar al-Assad during a meeting in the Black Sea resort of Sochi, Russia November 20, 2017. Sputnik/Mikhail Klimentyev/Kremlin via REUTERS/File Photo

TRYING TO CHOKE OFF ASSAD’S ACCESS TO AIRCRAFT

To sustain his military campaign against rebels, Assad and his allies in Russia, Iran and the Hezbollah militia need access to civilian aircraft to fly in men and supplies. Washington has tried to choke off access to the aircraft and their parts through export restrictions on Syria and Iran and through Treasury Department sanctions blacklisting airlines in those countries. The Treasury Department has also blacklisted several companies outside Syria, accusing them of acting as middlemen.

“These actions demonstrate our resolve to target anyone who is enabling Assad and his regime,” John E. Smith, director of the Treasury Department’s Office of Foreign Assets Control, said in testimony to a congressional committee in November.

In recent years, dozens of planes have been registered in Ukraine to two firms, Khors and Dart, that were founded by a former Soviet marine major and his onetime military comrades, according to the Ukraine national aircraft register. The planes were then sold or leased and ended up being operated by Iranian and Syrian airlines, according to the flight-tracking data.

One of the companies, Khors, and the former marine major, Sergei Tomchani, have been on a U.S. Commerce Department blacklist since 2011 for allegedly exporting aircraft to Iran and Syria without obtaining licenses from Washington.

But in the past seven years, Khors and Dart have managed to acquire or lease 84 second-hand Airbus and Boeing aircraft by passing the aircraft through layers of non-sanctioned entities, according to information collated by Reuters from national aircraft registers. Of these 84 aircraft, at least 40 have since been used in Iran, Syria and Iraq, according to data from three flight-tracking websites, which show the routes aircraft fly and give the call sign of the company operating them.

In September, the U.S. Treasury Department added Khors and Dart to its sanctions blacklist, saying they were helping sanctioned airlines procure U.S.-made aircraft. Khors and Dart, as well as Tomchani, have denied any wrongdoing related to supplying planes to sanctioned entities.

The ownership histories of some of the aircraft tracked by Reuters showed how the U.S. restrictions on supplies to Iranian and Syrian airlines may be skirted. As the ownership skips from one country to the next, the complex paper trail masks the identity of those involved in Syria’s procurement of the planes.

One of the Cham Wings Airbus A320 jets that has made the Rostov-Syria trip was, according to the Irish aircraft register, once owned by ILFC Ireland Limited, a subsidiary of Dublin-based AerCap, one of the world’s biggest aircraft-leasing firms.

In January 2015, the aircraft was removed from the Irish register, said a spokesman for the Irish Aviation Authority, which administers the register. For the next two months, the aircraft, which carried the identification number EI-DXY, vanished from national registers before showing up on the aircraft register in Ukraine.

The Ukrainian register gave its new owner as Gresham Marketing Ltd, which is registered in the British Virgin Islands. The owners of the company are two Ukrainians, Viktor Romanika and Nikolai Saverchenko, according to corporate documents leaked from the Panamanian law firm Mossack Fonseca. Ukrainian business records show they are managers in small local businesses. Contacted by phone, Romanika said he knew nothing and hung up. Saverchenko couldn’t be reached by phone and didn’t respond to a letter delivered to the address listed for him.

In March 2015, Gresham leased EI-DXY to Dart, according to the Ukrainian aircraft register. The identification number was changed to a Ukrainian number, UR-CNU. On Aug. 20, 2015, Khors became the aircraft’s operator, the register showed.

A Cham Wings aircraft is seen at Rostov Airport in Russia, January 17, 2018. Picture taken January 17, 2018. REUTERS/Stringer

A Cham Wings aircraft is seen at Rostov Airport in Russia, January 17, 2018. Picture taken January 17, 2018. REUTERS/Stringer

A representative of the Ukraine State Aviation Service said the register was not intended as official confirmation of ownership but that there had been no complaints about the accuracy of its information.

From April that year, the aircraft was flown by Cham Wings, according to data from the flight-tracking websites.

Gillian Culhane, a spokeswoman for AerCap, the firm whose subsidiary owned the plane in 2015, didn’t respond to written questions or answer repeated phone calls seeking comment about what AerCap knew about the subsequent owners and operators of the plane. Dart and Khors didn’t respond to questions about the specific aircraft.

Four lawyers specializing in U.S. export rules say that transactions involving aircraft that end up in Iran or Syria carry significant risks for Western companies supplying the planes or equipment. Even if they had no direct dealings with a sanctioned entity, the companies supplying the aircraft can face penalties or restrictions imposed by the U.S. government, the lawyers said.

The lawyers, however, said that the legal exposure for aircraft makers such as Boeing and Airbus was minimal, because the trade involves second-hand aircraft that are generally more than 20 years old, and the planes had been through a long chain of owners before ending up with operators subject to sanctions.

Two of the lawyers, including Edward J. Krauland, who leads the international regulation and compliance group at law firm Steptoe & Johnson, said U.S. export rules apply explicitly to Boeing aircraft because they’re made in the United States. But they can also apply to Airbus jets because, in many cases, a substantial percentage of the components is of U.S. origin.

Boeing said in a statement: “The aircraft transactions described that are the subject of your inquiry did not involve The Boeing Company. Boeing maintains a robust overall trade control and sanctions compliance program.” An Airbus spokesman said, “Airbus fully respects all applicable legal requirements with regard to transactions with countries under U.N., EU, UK and U.S. sanctions.”

WAR-ZONE FLIGHTS

When Reuters sent a series of questions to Khors and Dart about their activities, Tomchani, the former marine major, called the reporter within minutes.

He said he was no longer a shareholder in either firm but was acting as a consultant to them, and that the questions had been passed on to him. He invited the reporter to meet the following day at the high-end Velyur restaurant in Kiev, the Ukrainian capital.

In the 90-minute meeting, he denied providing aircraft to Iran or Syria. Instead, he said, Khors and Dart had provided aircraft to third parties, which he did not identify. Those third parties, he said, supplied the planes on to the end users.

“We did not supply aircraft to Iran,” Tomchani, a man of military bearing in his late 50s, said as he sipped herbal tea. “We have nothing to do with supplying aircraft to Cham Wings.”

Neither Dart nor Khors could have sold or leased aircraft to Cham Wings because they were not the owners of the aircraft, he said.

Tomchani used to serve in a marine unit of the Soviet armed forces in Vladivostok, on Russia’s Pacific coast. In 1991, after quitting the military with the rank of major, he set up Khors along with two other officers in his unit. Tomchani and his partners made a living by flying Soviet-built aircraft, sold off cheap after the collapse of the Soviet Union, in war zones.

Khors flew cargoes in Angola for the Angolan government and Defence Ministry and aid agencies during its civil war. Tomchani said his companies also operated flights in Iraq after the U.S.-led invasion in 2003, transporting private security contractors.

Ukraine’s register of business ownership showed that Tomchani ceased to be a shareholder in Khors after June 2010 and that he gave up his interest in Dart at some point after April 2011. He told Reuters he sold his stakes to “major businessmen,” but declined to name them.

He did say, however, that the people listed at the time of the interview in Ukraine’s business register as the owners of the two companies were merely proxies. One of the owners in the register was a mid-ranking Khors executive, one was an 81-year-old accountant for several Kiev firms, and another was someone with the same name and address as a librarian from Melitopol in southeast Ukraine.

According to the business register, the owner of 25 percent in Khors is someone called Vladimir Suchkov. The address listed for him in the register is No. 33, Elektrikov Street, Kiev. That’s the same address as the one listed in Ukrainian government procurement documents for military unit No. A0515, which comes under the command of the Ukrainian Defence Ministry’s Main Intelligence Directorate.

Tomchani said he and Suchkov were old acquaintances. “He wasn’t a bad specialist,” Tomchani said. “A young lad, but not bad.” He said he believed Suchkov was living in Russia.

Reuters was unable to contact Suchkov. A telephone number listed for him was out of service. The Ukrainian Intelligence Directorate’s acting head, Alexei Bakumenko, told Reuters that Suchkov doesn’t work there.

Reuters found no evidence of any other link between the trade in aircraft and Ukraine’s broader spy apparatus. Ukrainian military intelligence said it has no knowledge of the supply of aircraft to Syria, has no connection to the transport of military contractors from Russia to Syria, and hasn’t cooperated with Khors, Dart or Cham Wings.

On Jan. 9 this year, Dart changed its name to Alanna, and listed a new address and founders, according to the Ukrainian business register. On March 1, a new company, Alanna Air, took over Alanna’s assets and liabilities, the register showed.

CONTRACTORS COME BACK IN CASKETS

Although Moscow denies it is sending private military contractors to Syria, plenty of people say that’s untrue. Among them are dozens of friends and former colleagues of the fighters and people associated with the firm that recruits the men – a shadowy organization known as Wagner with no offices, not even a brass plaque on a door.

It was founded by Dmitry Utkin, a former military intelligence officer, according to people interviewed during this investigation. Its first combat role was in eastern Ukraine in support of Moscow-backed separatists, they said. Reuters was unable to contact Utkin directly. The League of Veterans of Local Conflicts, which according to Russian media has ties to Utkin, declined to pass on a message to him, saying it had no connection to the Wagner group.

Russia has 2,000 to 3,000 contractors fighting in Syria, said Yevgeny Shabayev, local leader of a paramilitary organization in Russia who is in touch with some of the men. In a single battle in February this year, about 300 contractors were either killed or wounded, according to a military doctor and two other sources familiar with the matter.

A Russian private military contractor who has been on four missions to Syria said he arrived there on board a Cham Wings flight from Rostov. The flights were the main route for transporting the contractors, said the man, who asked to be identified only by his first name, Vladimir. He said the contractors occasionally use Russian military aircraft too, when they can’t all fit on the Cham Wings jets.

Two employees at Rostov airport talked to Reuters about the men on the mysterious flights to Syria.

“Our understanding is that these are contractors,” said an employee who said he assisted with boarding for several of the Syria flights. He pointed to their destination, the fact there were no women among them and that they carried military-style rucksacks. He spoke on condition of anonymity, saying he wasn’t authorized to speak to the media.

Reuters wasn’t able to establish how many passengers were carried between Russia and Syria, and it is possible that some of those on board were not in Syria in combat roles. Some may have landed in Damascus, then flown to other destinations outside Syria.

Interviews with relatives of contractors killed in Syria also indicate the A320 flights to Rostov are used to transport Russian military contractors. The widow of one contractor killed in Syria said the last time she spoke to her husband by phone was on Jan. 21 last year – the same day, according to flight-tracking data, that a Cham Wings charter flew to Syria.

“He called on the evening of the 21st … There were men talking and the sound of walkie-talkies. And by the 22nd he was already not reachable. Only text messages were reaching him,” said the woman, who had previously visited her husband at a training camp for the contractors in southern Russia.

After he was killed, she said, his body was delivered to Russia. She received a death certificate saying he had died of “haemorrhagic shock from shrapnel and bullet wounds.”

The widows of two other contractors killed in Syria described how their husbands’ bodies arrived back home. Like the first widow, they spoke on condition of anonymity. They said representatives of the organization that recruited their husbands warned of repercussions if they spoke to the media.

The two contractors had been on previous combat tours, their widows said. The women said they received death certificates giving Syria as the location of death. Reuters saw the certificates: On one, the cause of death was listed as “carbonization of the body” – in other words, he burned to death. The other man bled to death from multiple shrapnel wounds, the certificate said.

One of the widows recounted conversations with her husband after he returned from his first tour of duty to Syria. He told her that Russian contractors there are often sent into the thick of the battle and are the first to enter captured towns, she said.

Syrian government forces then come into the town and raise their flags, he told her, taking credit for the victory.

((Additional reporting by Christian Lowe, Anton Zverev, Gleb Stolyarov and Denis Pinchuk in Moscow and Joel Schectman and Lesley Wroughton in Washington; editing by Kari Howard and Richard Woods))

Erdogan, Putin mark start of work on Turkey’s first nuclear power plant

The leaders of Turkey and Russia marked the official start of work to build Turkey's first nuclear power station on Tuesday, launching construction of the $20 billion Akkuyu plant

By Tulay Karadeniz

ANKARA (Reuters) – The leaders of Turkey and Russia marked the official start of work to build Turkey’s first nuclear power station on Tuesday, launching construction of the $20 billion Akkuyu plant in the southern province of Mersin.

The plant will be built by Russian state nuclear energy agency Rosatom and will be made up of four units each with a capacity of 1,200 megawatts.

Construction site of the Akkuyu Nuclear Power Plant is seen during the groundbreaking ceremony in Mersin, Turkey April 3, 2018. Depo Photos via REUTERS

Construction site of the Akkuyu Nuclear Power Plant is seen during the groundbreaking ceremony in Mersin, Turkey April 3, 2018. Depo Photos via REUTERS

Russian President Vladimir Putin and Turkey’s Tayyip Erdogan marked the start to construction, watching by video link from Ankara.

“When all four units go online, the plant will meet 10 percent of Turkey’s energy needs,” Erdogan said, adding that despite delays Turkey still planned to start generating power at the first unit in 2023.

Speaking at a later news conference with Putin, Erdogan said the cost of the project may exceed the planned $20 billion for the 4,800 megawatt (MW) plant, part of Erdogan’s “2023 vision” marking 100 years since the founding of modern Turkey and intended to reduce Turkey’s dependence on energy imports.

Since Russia was awarded the contract in 2010, the project has been beset by delays.

Last month, sources familiar with the matter said Akkuyu was likely to miss its 2023 target start-up date, but Rosatom, which is looking for local partners to take a 49 percent stake in the project, said it is committed to the timetable.

The Interfax news agency cited the head of Rosatom saying the sale of the 49 percent stake was likely to be postponed from this year until 2019.

Turkish companies have been put off by the size of the financing required as well as by concerns they will not receive a sufficient share of the lucrative construction side of the deal, two industry sources have said.

Erdogan told the news conference Turkey may cooperate with Russia on defense projects besides the S-400 missile defense system which Moscow has agreed to supply to Ankara. He did not give further details.

Turkey signed an agreement to buy the S-400 system in late December in a move which raised concern in the West because it cannot be integrated into NATO’s military architecture.

Iranian President Hassan Rouhani will join Erdogan and Putin for a three-way summit on Syria in Ankara on Wednesday.

(Additional reporting by Ece Toksabay and Denish Pinchuk in Ankara and Andrey Ostroukh in Moscow; Writing by Dominic Evans and Daren Butler; Editing by Robin Pomeroy)

Kremlin says Trump suggested Putin visit the White House

U.S. President Donald Trump and Russia's President Vladimir Putin talk during the family photo session at the APEC Summit in Danang, Vietnam November 11, 2017. REUTERS/Jorge Silva

MOSCOW (Reuters) – A Kremlin aide said on Monday that U.S. President Donald Trump suggested the White House as the venue for a summit with Russia’s Vladimir Putin when they discussed the idea of meeting in a telephone call last month.

Since that call, on March 20, preparations for a possible summit have not progressed because of a diplomatic row, the aide, Yuri Ushakov, said.

“When our presidents spoke on the phone, Trump proposed having the first meeting in Washington, in the White House,” Ushakov told reporters at a briefing.

“Trump called Putin last month to congratulate him on his election victory and told reporters he believed he and Putin would meet “in the not too distant future.”

White House press secretary Sarah Sanders did not confirm an invitation had been issued to Putin, but said the two had discussed a number of venues for a potential meeting, including the White House.

“We have nothing further to add at this time,” she told reporters on Monday.

Rolling out a welcome for Putin in the White House, rather than at a neutral location, could anger Trump’s domestic critics, who accuse Russia of hostile acts against Western countries, including the United States.

Some current and former members of Trump’s team are under investigation for alleged collusion with Russia in the run-up to Trump’s inauguration. Trump denies any collusion.

Since the March 20 phone call, Washington expelled 60 Russian diplomats and closed a Russian consulate over allegations that Russia was behind the poisoning of former Russian spy and his daughter in Britain.

Russia denies involvement and has retaliated against the diplomatic sanctions in kind.

“Against the backdrop of these events, it’s difficult to discuss the possibility of holding a summit”, Ushakov said.

“We want to believe that the discussions (on a proposed summit) will begin,” Ushakov said.

“We want to hope that… one day, at one time or another we can arrive at the start of a serious and constructive dialogue.”

(Reporting and writing by Denis Pinchuk; Additional reporting by Jeff Mason in Washington; Editing by Christian Lowe and Robin Pomeroy)

Yulia Skripal, poisoned with her Russian double-agent father, is getting better

Police officers stand guard outside of the home of former Russian military intelligence officer Sergei Skripal, in Salisbury, Britain, March 6, 2018. REUTERS/Toby Melville

By Guy Faulconbridge and Andrew MacAskill

LONDON (Reuters) – The daughter of former Russian double agent Sergei Skripal is getting better after spending three weeks in critical condition due to a nerve toxin attack at his home in England, the hospital where she is being treated said on Thursday.

After the first known use of a military-grade nerve agent on European soil since World War Two, Britain blamed Russian President Vladimir Putin for the attempted murder, and the West has expelled around 130 Russian diplomats.

Russia has denied using Novichok, a nerve agent first developed by the Soviet military, to attack Skripal. Moscow has said it suspects the British secret services are trying to frame Russia to stoke anti-Russian hysteria.

British counter-terrorism police said they now believe Skripal and his 33-year-old daughter Yulia were poisoned with a nerve toxin that had been left on the front door of their home in the genteel English cathedral city of Salisbury.

“I’m pleased to be able to report an improvement in the condition of Yulia Skripal,” Christine Blanshard, Medical Director for Salisbury District Hospital, said in a statement.

“She has responded well to treatment but continues to receive expert clinical care 24 hours a day,” she said.

Her father remained in a critical but stable condition, the hospital said. Last week, a British judge said the Skripals might have suffered permanent brain damage as a result of the attack.

Police said on Thursday they had placed a cordon around a children’s play area near the Skripal’s modest house as a precaution.

Yulia and her 66-year-old father were found slumped on a bench outside a shopping center in Salisbury on March 4.

Britain has blamed the attempted murder on Russia, and expelled 23 Russians it said were spies working under diplomatic cover in retaliation.

Russia, which denies carrying out the attack, responded by throwing out 23 British diplomats. Moscow has since accused the British secret services of trying to frame Russia to stoke anti-Russian hysteria.

“ENOUGH IS ENOUGH”

The attack on Skripal, a former colonel in Russian military intelligence who betrayed dozens of Russian agents to Britain’s MI6 spy service, has plunged Moscow’s relations with the West to a new post-Cold War low.

British Foreign Secretary Boris Johnson said late on Wednesday the Kremlin had underestimated the Western response to the attack, which also injured a British policeman.

Johnson told an audience of ambassadors in London that 27 countries had now moved to expel Russian diplomats over Moscow’s suspected involvement.

“These expulsions represent a moment when a feeling has suddenly crystallized, when years of vexation and provocation have worn the collective patience to breaking point, and when across the world – across three continents – there are countries who are willing to say enough is enough,” Johnson said.

Maria Zakharova, a spokeswoman for Russia’s Foreign Ministry, told reporters in Moscow on Thursday Britain was breaking international law by refusing to provide information on Yulia Skripal despite the fact she was a Russian citizen.

Kremlin spokesman Dmitry Peskov said Russia was watching closely a media report that Britain might limit London’s role in marketing Russian debt to investors.

Skripal, recruited by British spies while in Spain, ended up in Britain after a Cold War-style spy swap that brought 10 Russian spies captured in the United States back to Moscow in exchange for those accused by Moscow of spying for the West.

His house, which featured a good-luck horseshoe on the front door, was bought for 260,000 pounds ($360,000) in 2011. Skripal was listed as living there under his own name.

Since emerging from the world of high espionage and betrayal, he has lived modestly in the cathedral city of Salisbury and kept out of the spotlight until he and his daughter were found unconscious on March 4.

In the years since he found refuge in Britain, he lost both a wife and son.

The attack on Skripal has been likened to the killing of ex-KGB agent Alexander Litvinenko in Britain. Litvinenko, a critic of Putin, died in London in 2006 after drinking green tea laced with radioactive polonium 210.

Russia denied any involvement in that killing.

An inquiry led by senior British judge Robert Owen found that former KGB bodyguard Andrei Lugovoy and another Russian, Dmitry Kovtun, carried out the murder of Litvinenko as part of an operation probably directed by Russia’s Federal Security Service.

(Additional reporting by Michael Holden and Costas Pitas in London and Vladimir Soldatkin in Moscow; Writing by Richard Balmforth and Guy Faulconbridge; Editing by Gareth Jones and Raissa Kasolowsky)

Russia buries victims of mall blaze as flags fly at half mast

A woman reacts during a gathering to commemorate the victims of a shopping mall fire in Kemerovo on the day of national mourning in the far eastern city of Vladivostok, Russia March 28, 2018. REUTERS/Yuri Maltsev

By Polina Ivanova and Andrew Osborn

KEMEROVO/MOSCOW (Reuters) – Funerals began in Russia on Wednesday for the 64 people, most of them children, whose deaths in a fire at a Siberian shopping mall have roused public anger over official corruption and incompetence.

Flags on government buildings across Russia flew at half mast, state TV and radio stations removed light entertainment shows from their schedules, and lawmakers in Moscow observed a minute of silence.

The fire at the Winter Cherry mall in the city of Kemerovo on Sunday killed 41 children. Investigators have not confirmed the cause of the fire, but the high death toll has been blamed on reported shortcomings in the mall’s safety procedures.

At a funeral service in an Orthodox church in Kemerovo, about 3,600 km (2,200 miles) east of Moscow, women wailed as prayers were sung over three coffins, including two small caskets for children.

Sergei and Natalia Agarkov buried two school-age children, Konstantin and Maria. The children’s grandmother, Nadezhda Agarkova, was also killed.

All three had gone to see a film at a cinema on the top floor of the shopping center and had been unable to get out of the auditorium when the fire broke out. Russian media reported the doors had been locked.

“This tragedy is made even worse by the fact that children became victims of the blaze. Great grief is upon all of us and there are no words that would express our common pain,” the priest told the mourners, who held candles and repeatedly crossed themselves.

President Vladimir Putin, visiting the disaster scene on Tuesday, promised angry residents that those responsible for what he called criminal negligence would be punished and declared Wednesday a national day of mourning.

Putin on Wednesday ordered similar shopping centers across Russia to be inspected to make sure they were well prepared in the event of a fire.

Some victims’ relatives say they believe a cover-up is under way and that the death toll is higher than 64, something Putin has denied. Investigators on Wednesday said they had opened a criminal case into a Ukrainian prankster who they said had spread disinformation about the death toll.

ANTI-GOVERNMENT PROTEST

Investigators say their main theory is that an electrical short circuit caused the fire.

Almost all the bodies have been recovered, many of which could be identified only via DNA testing. A further 14 people remain in hospital.

Russia has rigorous fire safety rules and a system of regular inspections, but these efforts are undermined by endemic corruption which affects many aspects of life in the country of 144 million people.

Moscow reduced the number of inspections for certain businesses after complaints that inspectors were extorting bribes in exchange for turning a blind eye to violations.

But some business owners in Kemerovo said this meant that safety shortcomings were not being identified.

The governor of the region where the fire took place, Aman Tuleyev, sacked two senior officials on Wednesday, the RIA news agency reported.

Investigators have also detained and charged five people over the fire, including a security guard who they accuse of turning off the public address system and the mall’s manager who is accused of violating fire safety regulations.

At least one vigil held in memory of the dead in cities across Russia has turned into an anti-government demonstration.

At a Moscow gathering on Tuesday attended by several thousand people, including opposition leader Alexei Navalny, protesters held banners reading “Bribes kill children” and “We demand a real investigation”.

Some chanted “Putin – resign!”, ten days after Putin secured a comfortable election win for another six-year term in office.

(Reporting by Polina Ivanova in Kemerovo; Writing by Andrew Osborn; Editing by Christian Lowe and Raissa Kasolowsky)

Russia says it will respond in kind to West’s expulsions

A general view shows the U.S. embassy in Moscow, Russia March 27, 2018. REUTERS/Tatyana M

By Christian Lowe and Katya Golubkova

MOSCOW (Reuters) – Russia said on Wednesday it would respond in kind to the mass expulsion of Russian diplomats by the West over the poisoning of former Russian double agent Sergei Skripal in the English city of Salisbury.

What began as a row between London and Moscow after Britain accused Russia of using a nerve agent to poison Skripal and his daughter has now snowballed into an international chorus of rebuke for the Kremlin, with even some friendly governments ejecting Russian diplomats.

Adding to the list on Wednesday, Slovakia, Malta and Luxembourg each recalled their ambassador in Moscow for consultations, while Montenegro said it would expel a Russian diplomat. Slovakia and Montenegro, while both members of the U.S.-led NATO alliance, are traditionally close to Russia.

The biggest demarche came from the United States, which on Monday said it was expelling 60 Russian diplomats. That dented Russian President Vladimir Putin’s hopes of forging a friendly relationship with U.S. President Donald Trump.

Valentina Matviyenko, a Kremlin loyalist and speaker of the upper house of parliament, said Russia would retaliate.

“Without a doubt, Russia, as is diplomatic practice, will respond symmetrically and observe parity when it comes to the number of diplomats,” RIA news agency quoted her as saying.

Russian Defence Minister Sergei Shoigu said a Russian military aircraft had, for the first time since the Cold War, conducted a training flight via the North Pole to North America, RIA news agency reported.

There was no immediate indication that the flight was linked to Russia’s standoff with the West. The U.S. navy is holding a five-week training exercise in the Arctic Circle.

COLD WAR ECHOES

In total, more than 100 Russian diplomats are to be sent home from states ranging from Denmark to Australia, the biggest Western expulsion of Russian diplomats since the height of the Cold War.

Moscow has denied being behind the attack on the Skripals and says its adversaries are using it to whip up a campaign of “Russophobia.”

Skripal, 66, a double agent who was swapped in a spy exchange deal in 2010 and went to live in England, and Yulia Skripal, 33, were found unconscious on a public bench in a shopping center in Salisbury on March 4. They remain critically ill in hospital from the attack in which, British authorities say, a Soviet-era nerve toxin called Novichok was used.

Russia has already expelled 23 British diplomats, a tit-for-tat response to Britain’s expulsion of the same number of staff at the Russian embassy in London.

Adding to a drum beat of tough rhetoric coming from Moscow and London, the Russian foreign ministry raised the prospect British intelligence services had poisoned Skripal and his daughter.

“If convincing evidence to the contrary is not presented to the Russian side we will consider that we are dealing with an attempt on the lives of our citizens,” the ministry said in a statement.

In Australia, whose government said on Tuesday it would expel two diplomats, the Russian ambassador, Grigory Loginov, told reporters the world will enter into a “Cold War situation” if the West persists with its bias against Russia.

Two days after the United States announced the expulsion of Russian diplomats, there was still no sign of how exactly Russian planned to respond – an indication, perhaps, that the scale of the Western action caught Moscow off guard.

Interfax news agency quoted Russian Deputy Foreign Minister Sergei Ryabkov as saying Moscow would assess the level of hostility in Washington and London before deciding how to retaliate.

(Additional reporting by Reuters bureaux; Editing by Richard Balmforth)

Putin, amid emotional scenes at fatal shopping mall fire scene, pledges action as anger mounts

Russian President Vladimir Putin visits the site of fire, that killed at least 64 people at a busy shopping mall, in Kemerovo, Russia March 27, 2018. Sputnik/Alexei Druzhinin/Kremlin via REUTERS

By Polina Ivanova and Andrew Osborn

KEMEROVO/MOSCOW (Reuters) – President Vladimir Putin flew to the scene of a deadly shopping mall fire in Siberia that killed 64 people and promised angry residents on Tuesday that those responsible for what he called criminal negligence would be harshly punished.

The fire, at the Winter Cherry mall in the city of Kemerovo, killed 41 children, according to the Interfax news agency, and the calamitous way it was handled has stirred anger and focused attention on corruption and lax fire safety standards.

Putin, re-elected only this month, laid flowers at a memorial to the victims in the coal-producing region about 3,600 km (2,200 miles) east of Moscow, before chairing a meeting and declaring a national day of mourning be held on Wednesday.

People attend a rally after the shopping mall fire, near the regional administration's building in the Siberian city of Kemerovo, Russia March 27, 2018. REUTERS/Marina Lisova

People attend a rally after the shopping mall fire, near the regional administration’s building in the Siberian city of Kemerovo, Russia March 27, 2018. REUTERS/Marina Lisova

“What’s happening here? This isn’t war, it’s not an unexpected methane explosion at a coal mine. People came to relax, children. We’re talking about demography and losing so many people,” Putin angrily told officials.

“Why? Because of some criminal negligence, because of slovenliness. How could this ever happen?,” he added. “The first emotion when hearing about the number of dead and dead children is not to cry but to wail. And when you listen to what has been said here, speaking honestly, other emotions arise.”

Investigators said fire exits had been illegally blocked, the public address system had not been switched on, the fire alarm system was broken, and children had been locked inside cinemas.

The fire swept through the upper floors of the shopping center, where a cinema complex and children’s play area were located, on Sunday afternoon.

Hundreds of angry protesters, many of them crying, gathered in central Kemerovo. The mayor, Ilya Seredyuk, tried to speak, but his words were often drowned out by chants calling on him to resign.

“Why don’t they tell us the truth?,” shouted one protester.

Many locals do not believe the official death toll of 64 and suspect that hundreds of people were killed in the blaze and that a cover-up is underway, something Putin has flatly denied.

Relatives of the victims say they have compiled a list of 85 people, most of them children, who are still missing.

Opposition leader Alexei Navalny called on people to attend a protest event later on Tuesday in Moscow.

RAW ANGER

Public anger in Kemerovo was reflected in protesters’ placards.

“How many victims are there really,?” read one, while another suggested corrupt officials had taken a bribe to sign off on the mall’s fire safety.

“Vova and Aman to prison!” read another banner, referring to Putin and the local governor.

One senior regional official, Sergei Tsivilev, got down on his knees to apologize to the crowd.

Natalia and Sergei Agarkov, whose two children were killed in the tragedy along with their grandmother stood on the square holding photographs of their dead loved ones.

“Masha was 10, Kostya was eight,” Sergei told Reuters. “Masha … was really good at sport. She should have ran out, but everything was locked. I identified them yesterday. I didn’t see Kostya, but recognized him by his little boots.”

Alexander Bastrykin, head of Russia’s Investigative Committee, which handles major crimes, told Putin the fire alarm system in the mall had been out of order since March 19 and that a security guard had not turned on the public address system to warn people to evacuate the building.

He said five people had already been detained.

Replying to Putin, Bastrykin said: “Most of the staff ran away and left children and parents and their children to their fate.”

“Those workers who should have been responsible for people’s safety, for organizing an evacuation, they were the first to run away,” he said.

(Additional reporting by Alexander Reshetnikov and Maria Kiselyova; Writing by Christian Lowe and Andrew Osborn; Editing by Richard Balmforth)

Before expulsions, a brick-by-brick hardening of U.S. stance toward Moscow

By Phil Stewart and Matt Spetalnick

WASHINGTON (Reuters) – America’s most sweeping expulsion of Russian diplomats since the Cold War may have seemed like a dramatic escalation in Washington’s response to Moscow, but the groundwork for a more confrontational U.S. posture had been taking shape for months — in plain sight.

While President Donald Trump’s conciliatory rhetoric toward Moscow has dominated headlines, officials at the U.S. State Department, Pentagon and White House made a series of lower-profile decisions over the past year to counter Russia around the world – from Afghanistan to North Korea to Syria.

The State Department earlier in March announced plans to provide anti-tank missiles to Ukraine to defend against Russia-backed separatists in eastern Ukraine. Trump’s predecessor as president, Barack Obama, had declined to do so over fears of provoking Moscow.

In Syria last month, the U.S. military killed or injured as many as 300 men working for a Kremlin-linked private military firm after they attacked U.S. and U.S.-backed forces. The White House, meanwhile, firmly tied Russia to deadly strikes on civilians in Syria’s eastern Ghouta region.

Both the White House and Pentagon’s top policy documents unveiled in January portrayed Russia as an adversary that had returned to the center of U.S. national security planning.

That was all before the United States said on Monday it would expel 60 Russian diplomats, joining governments across Europe in punishing the Kremlin for a nerve agent attack on a former Russian spy in Britain that they have blamed on Moscow.

Russia has denied any involvement.

With Monday’s announcement, however, it was unclear whether Trump is promoting – or just acquiescing to – the tougher U.S. stance developed by his advisers and generals.

Trump’s critics sought to portray him as a reluctant actor in any get-tough approach to Russia, even though one senior administration official described him as involved “from the beginning” in the expulsions of Russian diplomats.

“It is disturbing how grudgingly he came to this decision,” said U.S. Representative Adam Smith, the top Democrat on the House Armed Services Committee.

Still, the Trump administration’s actions run counter to widespread perception, fueled by the president’s own statements, that Trump has softened America’s stance toward Russian President Vladimir Putin amid a U.S. investigation into Moscow’s meddling in the 2016 presidential election.

Regardless of the tough actions, the inconsistent messaging may undermine Washington’s strategy to deter Moscow’s aggressive behavior, experts warn.

“U.S. signaling is all undercut by Trump’s lack of seriousness about Russia,” said Andrew Weiss, a Russia expert at the Carnegie Endowment for International Peace.

Just last Tuesday, Trump congratulated Putin on his re-election, drawing sharp criticism from fellow Republicans.

But in another sign of mixed messaging, Trump two days later named John Bolton, a strident Russia hawk, to become his national security adviser.

DOWNWARD SPIRAL

Although the nerve agent attack was the official trigger for the U.S. expulsions, Trump administration officials warned that the attack should not be viewed in isolation, citing a series of destabilizing and aggressive actions by Moscow.

In Afghanistan, Trump’s top commander on the ground accused Russia again last week of arming Taliban militants.

On North Korea, Trump himself told Reuters in January that Russia was helping Pyongyang evade United Nations sanctions.

And less than two weeks ago, the Trump administration imposed the first sanctions against Russia for election meddling and cyber attacks, though it held off on punishing business magnates close to Putin.

U.S. officials and experts widely expect ties to further deteriorate, at least in the near term, and caution that Russia’s next steps could extend far beyond retaliation against American diplomats.

“The risk of escalation doesn’t just come from tit-for-tat punishments,” said Matthew Rojansky, a Russia expert at the Wilson Center think tank in Washington, citing the potential for more aggressive moves from the Middle East to the cyber realm.

U.S. officials have said the Trump administration still seeks to avoid a complete rupture in bilateral relations. One official said Russian cooperation was still sought to address thorny diplomatic issues like North Korea and Iran.

(Additional reporting by John Walcott; editing by Mary Milliken and G Crosse)

Trump expels 60 Russians, closes Seattle consulate after UK chemical attack: officials

FILE PHOTO: The Russian embassy on Wisconsin Avenue in Washington December 29, 2016. REUTERS/James Lawler Duggan

WASHINGTON (Reuters) – U.S. President Donald Trump on Monday ordered the expulsion of 60 Russians from the United States and closed the Russian consulate in Seattle over a nerve agent attack earlier this month in Britain, senior U.S. officials said.

The order includes 12 Russian intelligence officers from Russia’s mission to the United Nations headquarters in New York and reflects concerns that Russian intelligence activities have been increasingly aggressive, senior U.S. administration officials told reporters, speaking on condition of anonymity.

(Reporting by Roberta Rampton, Editing by Franklin Paul)