Trump to sign Russia sanctions, Moscow retaliates

FILE PHOTO - U.S. President Donald Trump shakes hands with Russia's President Vladimir Putin during their bilateral meeting at the G20 summit in Hamburg, Germany July 7, 2017. REUTERS/Carlos Barria/File Photo

By Eric Beech and Andrew Osborn

WASHINGTON/MOSCOW (Reuters) – U.S. President Donald Trump will sign legislation that imposes sanctions on Russia, the White House said on Friday, after Moscow ordered the United States to cut hundreds of diplomatic staff and said it would seize two U.S. diplomatic properties in retaliation for the bill.

The U.S. Senate had voted almost unanimously on Thursday to slap new sanctions on Russia, forcing Trump to choose between a tough position on Moscow and effectively dashing his stated hopes for warmer ties with the country or to veto the bill amid investigations in possible collusion between his campaign and Russia.

By signing the bill into law, Trump can not ease the sanctions against Russia unless he seeks congressional approval.

Moscow’s retaliation, announced by the Foreign Ministry on Friday, had echoes of the Cold War. If confirmed that Russia’s move would affect hundreds of staff at the U.S. embassy, it would far outweigh the Obama administration’s expulsion of 35 Russians in December.

The legislation was in part a response to conclusions by U.S. intelligence agencies that Russia meddled in the 2016 U.S. presidential election, and to further punish Russia for its annexation of Crimea in 2014.

Late on Friday, the White House issued a statement saying Trump would sign the bill after reviewing the final version. The statement made no reference to Russia’s retaliatory measures.

Russia had been threatening retaliation for weeks. Its response suggests it has set aside initial hopes of better ties with Washington under Trump, something the U.S. leader, before he was elected, had said he wanted to achieve.

Relations were already languishing at a post-Cold War low because of the allegations that Russian cyber interference in the election was intended to boost Trump’s chances, something Moscow flatly denies. Trump has denied any collusion between his campaign and Russian officials.

The Russian Foreign Ministry complained of growing anti-Russian feeling in the United States, accusing “well-known circles” of seeking “open confrontation”.

President Vladimir Putin had warned on Thursday that Russia would have to retaliate against what he called boorish U.S. behavior. Putin’s spokesman, Dmitry Peskov, told reporters on Friday that the Senate vote was the last straw.

Russian foreign minister Sergei Lavrov told U.S. Secretary of State Rex Tillerson by telephone that Russia was ready to normalize relations with the United States and to cooperate on major global issues.

Lavrov and Tillerson “agreed to maintain contact on a range of bilateral issues”, the Russian Foreign Ministry said.

The ministry said the United States had until Sept. 1 to reduce its diplomatic staff in Russia to 455 people, the number of Russian diplomats left in the United States after Washington expelled 35 Russians in December.

‘EXTREME AGGRESSION’

It was not immediately clear how many U.S. diplomats and other workers would be forced to leave either the country or their posts, but the Interfax news agency cited an informed source as saying “hundreds” of people would be affected.

A diplomatic source told Reuters that it would be for the United States to decide which posts to cut, whether occupied by U.S. or Russian nationals.

An official at the U.S. Embassy, who declined to be named because they were not allowed to speak to the media, said the Embassy employed around 1,100 diplomatic and support staff in Russia, including Russian and U.S. citizens.

Russian state television channel Rossiya 24 said over 700 staff would be affected but that was not confirmed by the foreign ministry or the U.S. embassy.

The Russian Foreign Ministry’s statement said the passage of the bill confirmed “the extreme aggression of the United States in international affairs”.

Deputy Foreign Minister Sergei Ryabkov met outgoing U.S. ambassador John Tefft on Friday to inform him of the counter measures, Russian news agencies reported. The U.S. Embassy said Tefft had expressed his “strong disappointment and protest”.

Most U.S. diplomatic staff, including around 300 U.S. citizens, work in the main embassy in Moscow, with others based in consulates in St Petersburg, Yekaterinburg and Vladivostok.

The Russian Foreign Ministry said it was also seizing a Moscow dacha compound used by U.S. diplomats for recreation, from Aug. 1, as well as a U.S. diplomatic warehouse in Moscow.

In December, the outgoing Obama administration seized two Russian diplomatic compounds – one in New York and another in Maryland – at the same time as it expelled Russian diplomats.

Trump and Putin met for the first time at a G20 summit in Germany this month in what both sides described as a productive encounter, but Russian officials have become increasingly convinced that Congress and Trump’s political opponents will not allow him to mend ties, even if he wants to.

The European Union has also threatened to retaliate against new U.S. sanctions on Russia, saying they would harm the bloc’s energy security by targeting projects including a planned new pipeline to bring Russian natural gas to northern Europe.

A European Commission spokesman in Brussels said the bloc would be following the sanctions process closely.

(Additional reporting by Dmitry Solovyov, Polina Devitt, Jack Stubbs and Denis Pinchuk in Moscow, Patricia Zengerle and Ayesha Rascoe in Washington; Editing by Kevin Liffey, Grant McCool and Christian Schmollinger)

Trump, Putin had previously undisclosed visit at G20 dinner

FILE PHOTO - U.S. President Donald Trump shakes hands with Russian President Vladimir Putin during the their bilateral meeting at the G20 summit in Hamburg, Germany July 7, 2017. REUTERS/Carlos Barria/File Photo

By Steve Holland and Patricia Zengerle

WASHINGTON (Reuters) – U.S. President Donald Trump and Russian President Vladimir Putin had a previously undisclosed conversation during a dinner for G20 leaders at a summit earlier this month in Germany, a White House official said on Tuesday.

The two leaders held a formal two-hour bilateral meeting on July 7 in which Trump later said Putin denied allegations that he directed efforts to meddle in the 2016 U.S. presidential election.

Trump’s interactions with the Russian leader were scrutinized closely because of those allegations, which have dominated his first six months in the White House, and Trump’s comments as a presidential candidate praising the former KGB spy.

Trump and Putin first met at the G20 during a gathering of other leaders, which was shown in a video. They later held the bilateral meeting, which was attended briefly by a pool of reporters.

In the evening, both men attended a dinner with G20 leaders. Putin was seated next to U.S. first lady Melania Trump. The U.S. president went over to them at the conclusion of the dinner and visited with Putin, the official said. That conversation had not been previously disclosed.

“There was no ‘second meeting’ between President Trump and President Putin, just a brief conversation at the end of a dinner. The insinuation that the White House has tried to ‘hide’ a second meeting is false, malicious and absurd,” the official said.

In a tweet late on Tuesday, Trump said: “Fake News story of secret dinner with Putin is “sick.” All G 20 leaders, and spouses, were invited by the Chancellor of Germany. Press knew!”

News of the conversation, first reported by Ian Bremmer, the president of political risk consultancy Eurasia Group, could raise renewed concern as Congress and a special counsel investigate allegations by U.S. intelligence agencies that Russia interfered to help Trump, a Republican, win the presidency.

Trump says there was no collusion and Russia denies interference in the election.

Bremmer said Trump got up from his seat halfway through dinner and spent about an hour talking “privately and animatedly” with Putin, “joined only by Putin’s own translator.”

The lack of a U.S. translator raised eyebrows among other leaders at the dinner, said Bremmer, who called it a “breach of national security protocol.”

The White House official said the leaders and their spouses were only permitted to have one translator attend the dinner. Trump sat next to Japanese Prime Minister Shinzo Abe’s wife. His translator spoke Japanese.

“When President Trump spoke to President Putin, the two leaders used the Russian translator, since the American translator did not speak Russian,” the official said.

A U.S. official who was briefed by some of his counterparts about the encounter said some of the leaders who attended the dinner were surprised to see Trump leave his seat and engage Putin in an extended private conversation with no one else from the U.S. side present.

“No one is sure what their discussion was about, and whether it was purely social or touched on bilateral or international issues,” the official said.

FOCUS ON DONALD JR.

As part of the investigations into allegations of Moscow’s meddling, a congressional panel said on Tuesday it wanted to interview Trump’s eldest son, his former campaign chairman and all others who were at a June 2016 meeting with Russian nationals.

The meeting in Trump Tower in New York has grabbed the spotlight in the saga of possible collusion between Moscow and Trump’s campaign as media reports of more participants than originally known have emerged.

Donald Trump Jr., who runs the Trump Organization family business, released emails last week in which he eagerly agreed to meet a woman he was told was a Russian government lawyer who might have damaging information about Democratic election rival Hillary Clinton as part of Moscow’s official support for his father’s campaign.

“Any intelligence out there that suggests that somebody is of interest to us, we have to pursue it,” the U.S. Senate Intelligence Committee chairman, Republican Senator Richard Burr, told reporters.

Trump Jr.’s lawyer, Alan Futerfas, did not immediately respond to requests for comment on Tuesday. Jason Maloni, a spokesman for Paul Manafort, Trump’s campaign manager from March to August, also did not immediately respond to a request for comment.

On July 10, Trump Jr. posted on Twitter: “Happy to work with the committee to pass on what I know.”

MOSCOW-BASED DEVELOPER

A man who works for a Moscow-based developer with ties to Trump was identified on Tuesday as the eighth person to attend the Trump Tower meeting.

Lawyer Scott Balber confirmed Ike Kaveladze’s name to Reuters after CNN reported that his client had been identified by special counsel Robert Mueller’s prosecutors and was cooperating in their investigation.

Balber represented Trump in the New York businessman’s 2013 lawsuit against comedian and television host Bill Maher, demanding the $5 million Maher offered to give to charity if Trump could prove his father was not an orangutan.

Kaveladze’s LinkedIn profile identifies him as vice president of Crocus Group, a company run by Moscow-based developers Aras Agalarov and his son, Emin, an Azerbaijani-Russian pop star. The two have ties to the Trump family and helped set up last year’s meeting between Trump Jr. and Russian lawyer Natalia Veselnitskaya.

Kaveladze was asked to go to the meeting with the understanding he would be a translator for Veselnitskaya, only to find she had brought her own translator with her, Balber told CNN. Balber said he also represented the Agalarovs. Balber said Mueller’s investigators had not interviewed his client or made contact about the Agalarovs.

In addition to Trump Jr., lawyer Veselnitskaya, her translator, and Kaveladze, the meeting was attended by Trump son-in-law Jared Kushner, Manafort, publicist Rob Goldstone and Russian-American lobbyist Rinat Akhmetshin.

Separately, the White House said on Tuesday that Trump had nominated Jon Huntsman, a former Utah governor and envoy to China under former Democratic President Barack Obama, as U.S. ambassador to Russia.

(Additional reporting by John Walcott, David Alexander, Julia Ainsley, Jonathan Landay, Doina Chiacu, Roberta Rampton, Eric Beech and Jeff Mason; Writing by Yara Bayoumy and Jeff Mason; Editing by Peter Cooney)

Kremlin hopes Putin-Trump meeting to establish working dialogue

FILE PHOTO: A combination of file photos showing Russian President Vladimir Putin at the Novo-Ogaryovo state residence outside Moscow, Russia, January 15, 2016 and U.S. President Donald Trump posing for a photo in New York City, U.S., May 17, 2016. REUTERS/Ivan Sekretarev/Pool/Lucas Jackson/File Photos

MOSCOW (Reuters) – Moscow hopes the first face-to-face meeting between Russian President Vladimir Putin and his U.S. counterpart Donald Trump later this week will establish an effective working dialogue between the two men, the Kremlin said on Wednesday.

The meeting, due to be held on the sidelines of the G20 summit in Hamburg on Friday, will be closely watched at a time when ties between the two countries remain strained by U.S. allegations of Russian election hacking, Syria, Ukraine and a U.S. row over Trump associates’ links to Moscow.

“This is the first meeting, the first time the two presidents will get acquainted – this is the main thing about it,” Kremlin spokesman Dmitry Peskov told a conference call with reporters.

“The expectation is that a working dialogue will be established, which is vitally important for the entire world when it comes to increasing the efficiency of resolving a critical mass of conflicts.”

The meeting would explore whether there was a chance and a readiness for the two countries to fight international terrorism together in Syria, Peskov said, saying Putin would explain Moscow’s stance on the conflicts in both Syria and Ukraine.

But Peskov said the meeting’s brief format meant the Russian leader might not have enough time to give a full analysis of what Moscow regarded as the causes of the Ukraine crisis.

Three years after Russia annexed Crimea from Ukraine and a pro-Russian separatist uprising broke out in eastern Ukraine, there is little sign of a peaceful solution in the east despite a ceasefire agreement signed in February 2015 in Minsk, Belarus.

Those accords were signed by France, Germany, Russia and Ukraine. Kiev accuses Moscow of actively supporting the pro-Russian separatists. Russia denies the charge.

The meeting with Trump would “be a good chance to reiterate Russia’s stance that the Minsk accords have no alternative, that the Minsk accords must be implemented, and that measures must be taken to stop provocations which unfortunately Ukraine’s armed forces are still carrying out,” Peskov said.

(Reporting by Dmitry Solovyov; Editing by Andrew Osborn)

Senate revises Russia sanctions bill, sends it to House

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

By Patricia Zengerle

WASHINGTON (Reuters) – The U.S. Senate resolved a technical issue on Thursday that had stalled a new package of sanctions on Russia but the measure faces opposition in the House that could mean more delays, lawmakers said.

The Countering Iran’s Destabilizing Activities Act, which also includes the Russia sanctions, passed the Senate in a 98-2 vote on June 15.

Many lawmakers hoped the bill would become law in time to send a strong message to Russian President Vladimir Putin before President Donald Trump’s meeting with him in Germany next week.

But the Senate bill stalled when House Republican leaders said it violated a constitutional requirement that legislation affecting revenues originate in the House, known as a “blue slip” violation.

Lawmakers from the two chambers have bickered about it since. Democrats accused House Republicans of trying to kill the bill to please Trump after administration officials said they had concerns about it. House Republican leaders insisted their objection was solely a procedural one.

“The speaker has made clear that we will take up sanctions once the House receives it,” said AshLee Strong, a spokeswoman for Speaker Paul Ryan.

The Senate resolved the procedural issue on Thursday. But the delay means the House will not vote until after the G20, because of Congress’ recess next week.

“This is now going to be a referendum on the Republican leadership, if they are going to go along with the president’s coddling of Putin and the Russians, then that will have to be their legacy,” said Representative Eliot Engel, the top House Foreign Affairs Committee Democrat.

Engel and Republican committee chairman Ed Royce have said they want the sanctions passed quickly.

Some House Republicans have reservations. Representative Pete Sessions, whose home state of Texas is central to U.S. energy, said he wanted assurances about how the bill would affect businesses.

Representative Mark Meadows said he would look at the bill closely after hearing from the Italian, German and British ambassadors, who had energy-related concerns.

“It could potentially run into trouble. But it’s too early to tell,” Meadows said.

The legislation would put into law sanctions previously established via ex-President Barack Obama’s executive orders. It includes sanctions on mining and other industries, and targets Russians responsible for cyber attacks or supplying weapons to Syria’s government.

It also sets up a review process that would require Trump to get Congress’ approval before easing sanctions on Russia.

(Reporting by Patricia Zengerle; Additional reporting by Amanda Becker; Editing by Frances Kerry and Bill Trott)

U.S. worries Russia could step up North Korea support to fill China void

U.S. Ambassador to the United Nations Nikki Haley testifies to the House Appropriations State, Foreign Operations and Related Programs Subcommittee on the budget for the U.N. in Washington, D.C., U.S., June 27, 2017. REUTERS/Joshua Roberts

By Michelle Nichols

UNITED NATIONS (Reuters) – As the United States pressures China to enforce United Nations sanctions on its ally North Korea, Washington is concerned that Russia could provide support to Pyongyang and fill any vacuum left by Beijing, U.S. Ambassador to the United Nations Nikki Haley said on Tuesday.

“I’m concerned that Russia may backfill North Korea,” Haley told U.S. lawmakers in Washington. “We don’t have proof of that, but we are watching that carefully.”

While Washington has urged countries to downgrade ties with Pyongyang over its nuclear and ballistic missile programs, a cross-border ferry service was launched in May between North Korea and neighboring Russia. Russian President Vladimir Putin has said the world should talk to, rather than threaten, North Korea.

“We just need to keep the pressure on China, we need to keep our eyes on Russia, and we need to continue to let the North Korea regime know we are not looking for regime change … we just want them to stop the nuclear activity,” Haley said.

The U.N. Security Council first imposed sanctions on North Korea in 2006 over its ballistic missile and nuclear programs and has ratcheted up the measures in response to five nuclear tests and two long-range missile launches. The government in Pyongyang is threatening a sixth nuclear test.

The Trump administration has been pressing China aggressively to rein in its reclusive neighbor, warning that all options are on the table if Pyongyang persists with its nuclear and missile development programs.

Beijing has repeatedly said its influence on North Korea is limited and that it is doing all it can, but U.S. President Donald Trump last week said China’s efforts had failed.

The United States has struggled to slow North Korea’s programs, which have become a security priority given Pyongyang’s vow to develop a nuclear-tipped missile capable of hitting the U.S. mainland.

“The pressure on China can’t stop,” Haley said. “We have to have China doing what they’re supposed to. At the same time all other countries need to make sure they’re enforcing the sanctions that the Security Council has already put in place.”

Trump, increasingly frustrated with China over its inaction on North Korea and bilateral trade issues, is now considering possible trade actions against Beijing, senior administration officials told Reuters.

The United States also plans to place China on its global list of worst offenders in human trafficking and forced labor, sources said, a step that could aggravate tensions with Beijing.

(Additional reporting by Patricia Zengerle, editing by G Crosse)

Putin: more U.S. sanctions would be harmful, talk of retaliation premature

Russian President Vladimir Putin attends a meeting with journalists following a live nationwide broadcast call-in in Moscow, Russia June 15, 2017. REUTERS/Sergei Karpukhin

MOSCOW (Reuters) – Russian President Vladimir Putin said new sanctions under consideration by the United States would damage relations between the two countries, but it was too early to talk about retaliation, state news agency RIA reported on Saturday.

The U.S. Senate voted nearly unanimously earlier this week for legislation to impose new sanctions on Moscow and force President Donald Trump to get Congress’ approval before easing any existing sanctions.

“This will, indeed, complicate Russia-American relations. I think this is harmful,” Putin said, according to RIA.

In an interview with Rossiya1 state TV channel, excerpts of which were shown during the day on Saturday, Putin said he needed to see how the situation with sanctions evolved.

“That is why it is premature to speak publicly about our retaliatory actions,” RIA quoted him as saying.

Russia and the West have traded economic blows since 2014, when Moscow annexed Ukraine’s Black Sea peninsula of Crimea and lent support to separatist rebels in eastern Ukraine.

The West imposed economic and financial sanctions that battered the rouble and the export-dependent economy. Moscow retaliated by banning imports of Western food, which also hit ordinary Russians by spurring inflation, and barred some individuals from entering Russia.

The threat of a new wave of sanctions emerged this month as U.S. policymakers backed the idea of punishing Russia for alleged meddling in the 2016 U.S. presidential election and for supporting Syria’s government in the six-year-long civil war.

Putin had previously dismissed the proposed sanctions, saying they reflected an internal political struggle in the United States, and that Washington had always used such methods as a means of trying to contain Russia.

(Reporting by Andrey Ostroukh; Editing by Mark Trevelyan)

Anti-Kremlin protests fill Russian streets, Putin critic Navalny detained

Demonstrators take part in an anti-corruption protest in central St. Petersburg.

By Svetlana Reiter and Andrew Osborn

MOSCOW (Reuters) – Baton-wielding riot police broke up anti-corruption protests and detained hundreds of demonstrators in Moscow and other Russian cities on Monday soon after arresting opposition leader Alexei Navalny.

The protests, called by Navalny, a strong critic of Russian President Vladmir Putin, drew thousands of people and were some of the biggest in Russia since 2012.

“Russia without Putin” and “Russia will be free” chanted the demonstrators, including many young people, who crowded into central Moscow on a public holiday.

Navalny, who is mounting a long-shot bid to unseat Putin in an election next year, had called for mass protests in Moscow and other cities against official corruption.

The Kremlin has dismissed Navalny’s graft allegations, accusing him of irresponsibly trying to whip up unrest.

The scale of Monday’s protests in Moscow and smaller ones in St. Petersburg and scores of other cities suggests Navalny has maintained his campaign’s momentum despite more than 1,000 people being arrested after the last such protest in March.

That is likely to embolden him to call for more protests and keep Putin, who is expected to run for and win re-election next year, under rare domestic pressure.

“Neither mass detentions nor criminal cases after March 26 (the last protest) worked,” wrote Lyubov Sobol, a Navalny ally, on social media. “People are not afraid.”

The OVD-Info monitoring group, a non-profit organization said preliminary figures showed 730 people had been detained in Moscow. The Interior Ministry said 500 people were detained in St Petersburg.

Navalny’s wife, Yulia, said her husband had been detained as he tried to leave their home. Reuters witnesses saw a police car leaving his apartment compound at high speed, followed a few minutes later by a minibus carrying about 10 policemen.

Electricity in his office was cut at around the same time as he was detained, briefly bringing down a live feed of the protests, Navalny’s spokeswoman said.

Navalny was accused of violating the law on organizing public meetings and of disobeying a police officer, police said.

Authorities in Moscow said Monday’s protest was illegal and drafted in riot police who fired pepper spray and used batons to break it up, detaining people and bundling them onto buses.

Roman, a 19-year-old student, said Navalny’s campaign against official corruption had struck a chord.

“I’m sick of the Putin system,” he said. “It’s been unchanged for the last 17 years. There is so much evidence that our officials are stealing with impunity.”

Dima, an 18-year-old florist, said he wanted Prime Minister Medvedev to return what he said were the politician’s ill-gotten gains. Medvedev, a close Putin ally, flatly denies wrongdoing.

“I’m not afraid if I get detained,” Dima said.

The Interior Ministry said the turnout at the Moscow protest was about 4,500 — significantly fewer than the numbers estimated by Reuters reporters, who put the turnout in the low tens of thousands.

Demonstrators shout slogans during an anti-corruption protest in central St. Petersburg, Russia, June 12, 2017

Demonstrators shout slogans during an anti-corruption protest in central St. Petersburg, Russia, June 12, 2017. REUTERS/Anton Vaganov

CHANGES

State media ignored the demonstrations, broadcasting Soviet-style coverage of Putin handing out state awards instead.

Navalny brought thousands onto the streets across Russia in March, the largest such protests since a wave of anti-Kremlin demonstrations in 2012. Navalny was fined and jailed for 15 days for his role in those protests.

Moscow authorities had initially authorized a venue for Monday’s protest away from the city center. But Navalny switched it to Tverskaya Street, Moscow’s main avenue near the Kremlin. The General Prosecutor’s Office had warned that a protest there would be illegal.

The area of Tsverskaya Street near where Navalny’s supporters congregated was hosting an officially-organized festival, with actors re-enacting periods of Russian history.

Video footage showed a protester clambering onto a mock-up of a wartime sandbag fortification holding a poster calling Putin a liar, before being pulled to the ground by a cast member dressed as a World War Two Soviet soldier.

Riot police detain a demonstrator during an anti-corruption protest organised by opposition leader Alexei Navalny, on Tverskaya Street in central Moscow.

Riot police detain a demonstrator during an anti-corruption protest organised by opposition leader Alexei Navalny, on Tverskaya Street in central Moscow. REUTERS/Maxim Shemetov

For now, polls suggest Navalny has scant chance of unseating Putin, who enjoys high ratings. It is unclear too if the Kremlin will even let Navalny run for the presidency.

But the 41-year-old lawyer turned political street campaigner hopes anger over corruption may boost his support.

A video he made accusing Medvedev of living far beyond his means has garnered over 22 million online views to date.

Navalny, who had a green liquid thrown in his face in April, robbing him of some of his sight, said hundreds of people had also attended demonstrations in Russia’s Far East on Monday morning.

“I want changes,” wrote Navalny in a blog post last week. “I want to live in a modern democratic state and I want our taxes to be converted into roads, schools and hospitals, not into yachts, palaces and vineyards.”

(Additional reporting by Christian Lowe, Jack Stubbs, Maria Tsvetkova, Dmitry Solovyov, Gleb Stolyarov, and Anton Zverev in Moscow and Natasha Shurmina in Ekaterinburg; Writing by Andrew Osborn; Editing by Richard Balmforth and Angus MacSwan)

Putin says U.S. missile systems in Alaska, South Korea challenge Russia

Russian President Vladimir Putin speaks during a meeting with representatives of international news agencies in St. Petersburg, Russia, June 1, 2017.

By Denis Pinchuk and Andrew Osborn

ST PETERSBURG/MOSCOW (Reuters) – Russian President Vladimir Putin said on Thursday that elements of a U.S. anti-missile system in Alaska and South Korea were a challenge to Russia and that Moscow had no choice but to build up its own forces in response.

Putin, speaking at an economic forum in St Petersburg, said Russia could not stand idly by and watch while others increased their military capabilities along its borders in the Far East in the same way as he said had been done in Europe.

Participants attend a session of the St. Petersburg International Economic Forum (SPIEF), Russia, June 1, 2017. REUTERS/Sergei

Participants attend a session of the St. Petersburg International Economic Forum (SPIEF), Russia, June 1, 2017. REUTERS/Sergei Karpukhin

He said Moscow was particularly alarmed by the deployment of the U.S. THAAD anti-missile system to South Korea to counter a North Korean missile threat and to reported U.S. plans to beef up Fort Greely in Alaska, a launch site for anti-ballistic missiles.

“This destroys the strategic balance in the world,” Putin told a meeting with international media, the start of which was broadcast on state TV.

“What is happening is a very serious and alarming process. In Alaska, and now in South Korea, elements of the anti-missile defence system are emerging. Should we just stand idly by and watch this? Of course not. We are thinking about how to respond to these challenges. This is a challenge for us.”

Washington was using North Korea as a pretext to expand its military infrastructure in Asia in the same way it had used Iran as a pretext to develop a missile shield in Europe, charged Putin.

RUSSIAN RESPONSE

Putin said the Kurile Islands, a chain of islands in the Far East where Moscow and Tokyo have rival territorial claims, were “quite a convenient place” to deploy Russian military hardware to respond to such threats.

Defence Minister Sergei Shoigu said last year Russia planned to deploy some of its newest missile defence systems and drones to the islands, part of a drive to rearm military units already stationed there. He has also spoken of Russia building a military base there.

“I don’t agree that we are unilaterally starting to militarize these islands,” said Putin. “It is simply a forced response to what is happening in the region.” Any talk of demilitarizing the islands could only occur once tensions in the entire region had been reduced, he said.

Tokyo and Moscow have long been locked in talks over the contested islands, known as the Northern Territories in Japan. Putin said Russia was alive to the danger that Japan might allow U.S. troops to deploy there if it struck a deal to hand over some of the islands to Tokyo’s jurisdiction.

“Such a possibility exists,” said Putin.

Russia did not want to worsen already poor relations with Washington by fueling what he described as an arms race, but Putin said the United States was still consumed by what he called an anti-Russian campaign.

“How will the situation develop? We don’t know,” said Putin.

(Additional reporting by Dmitry Solovyov and Maria Kiselyova; Writing by Andrew Osborn; Editing by Alexander Winning)

Patriotic Russians may have staged cyber attacks on own initiative: Putin

A hooded man holds a laptop computer as cyber code is projected on him in this illustration picture

ST PETERSBURG, Russia (Reuters) – President Vladimir Putin said on Thursday that patriotic Russian hackers may have staged cyber attacks against countries that had strained relations with Moscow on their own initiative, but said the Russian state had never been involved in such hacking.

Putin, speaking to international media at an economic forum in St Petersburg, was answering a question about allegations Moscow might try to interfere in this year’s German elections.

Moscow’s attitude toward cyber crime is under intense scrutiny after U.S. intelligence officials alleged that Russian hackers had tried to help Republican Donald Trump win the White House, something Russia has flatly denied.

“If they (hackers) are patriotically-minded, they start to make their own contribution to what they believe is the good fight against those who speak badly about Russia. Is that possible? Theoretically it is possible,” said Putin.

Likening hackers to free-spirited artists acting according to their moods, he said cyber attacks could be made to look like they had come from Russia when they had not.

Putin also said he was personally convinced that hackers could not materially alter election campaigns in Europe, America or elsewhere.

“On a state level we haven’t been involved in this (hacking), we aren’t planning to be involved in it. Quite the opposite, we are trying to combat it inside our country,” said Putin.

(Reporting by Denis Pinchuk; Writing by Alexander Winning; Editing by Andrew Osborn)

Macron meets Russia’s Putin near Paris, promising tough talks

French President Emmanuel Macron (R) and Russian President Vladimir Putin (L) give a joint press conference at the Chateau de Versailles before the opening of an exhibition marking 300 years of diplomatic ties between the two countries in Versailles, France, May 29, 2017.

By Michel Rose and Denis Dyomkin

VERSAILLES, France (Reuters) – French President Emmanuel Macron met Russia’s Vladimir Putin near Paris on Monday, promising some frank talking with the Kremlin leader after an election campaign in which his team accused Russian media of trying to interfere.

Macron, who took office two weeks ago, has said dialogue with Russia is vital in tackling a number of international disputes. Nevertheless, relations have been beset by mistrust, with Paris and Moscow backing opposing sides in the Syrian civil war and at odds over the Ukraine conflict.

Fresh from talks with his Western counterparts at a NATO meeting in Brussels and a G7 summit in Sicily, Macron was hosting the Russian president at the sumptuous 17th Century palace of Versailles outside Paris.

Amid the baroque splendor, Macron will use an exhibition on Russian Tsar Peter the Great at the former royal palace to try to get Franco-Russian relations off to a new start.

The 39-year-old French leader and Putin exchanged a cordial,  businesslike handshake and smiles when the latter stepped from his limousine for a red carpet welcome, with Macron appearing to say “welcome” to him in French.

The two men then entered the palace to start their talks.

“It’s indispensable to talk to Russia because there are a number of international subjects that will not be resolved without a tough dialogue with them,” Macron told reporters at the end of the G7 summit on Saturday, where the Western leaders agreed to consider new measures against Moscow if the situation in Ukraine did not improve.

“I will be demanding in my exchanges with Russia,” he added.

Relations between Paris and Moscow were increasingly strained under former President Francois Hollande.

Putin, 64, cancelled his last planned visit in October after Hollande accused Russia of war crimes in Syria and refused to roll out the red carpet for him.

Then during the French election campaign the Macron camp alleged Russian hacking and disinformation efforts, at one point refusing accreditation to the Russian state-funded Sputnik and RT news outlets which it said were spreading Russian propaganda and fake news.

Two days before the May 7 election runoff, Macron’s team said thousands of hacked campaign emails had been put online in a leak that one New York-based analyst said could have come from a group tied to Russian military intelligence.

Moscow and RT itself rejected allegations of meddling in the election.

Putin also offered Macron’s far-right opponent Marine Le Pen a publicity coup when he granted her an audience a month before the election’s first round.

French President Emmanuel Macron (R) speaks to Russian President Vladimir Putin (L) in the Galerie des Batailles (Gallery of Battles) as they arrive for a joint press conference at the Chateau de Versailles before the opening of an exhibition marking 300 years of diplomatic ties between the two countries in Versailles, France, May 29, 2017.

French President Emmanuel Macron (R) speaks to Russian President Vladimir Putin (L) in the Galerie des Batailles (Gallery of Battles) as they arrive for a joint press conference at the Chateau de Versailles before the opening of an exhibition marking 300 years of diplomatic ties between the two countries in Versailles, France, May 29, 2017. REUTERS/Stephane De Sakutin/Pool

Nonetheless, Russia’s ambassador to Paris, Alexander Orlov said on Monday that he expected this first meeting between the two men to be full of “smiles” and marking the beginning of “a very good and long relationship”.

Orlov, speaking on Europe 1 radio, said he believed that Macron was “much more flexible” on the Syrian question, though he did not say why he thought this. Putin would certainly invite Macron to pay a visit to Moscow, he said.

Putin’s schedule included a trip to a newly opened Russian Orthodox cathedral in Paris – a call he had been due to make for its inauguration in October, but which was cancelled along with that trip.

“CLEVER MOVE”

Macron decisively beat Le Pen, an open Putin admirer in a fraught presidential election campaign, and afterwards the Russian president said in a congratulatory message that he wanted to put mistrust aside and work with him.

Hollande’s former diplomatic adviser, Jacques Audibert, noted how Putin had been excluded from what used to be the Group of Eight nations as relations with the West soured. Meeting in a palace so soon after the G7 summit was a clever move by Macron.

“Putin likes these big symbolic things. I think it’s an excellent political opportunity, the choice of place is perfect,” he told CNews TV. “It adds a bit of grandeur to welcome Putin to Versailles.”

The Versailles exhibition commemorates a visit to France 300 years ago by Peter the Great, known for his European tastes.

A Russian official told reporters in Moscow on Friday that the meeting was an opportunity “to get a better feel for each other” and that the Kremlin expected “a frank conversation” on Syria.

While Moscow backs President Bashar al-Assad, France supports rebel groups trying to overthrow him. France has also taken a tough line on European Union sanctions on Russia, first imposed when it annexed Crimea from Ukraine in 2014, and cancelled a $1.3 billion warship supply contract in 2015.

During the campaign, Macron backed expanded sanctions if there were no progress with Moscow implementing a peace accord for eastern Ukraine, where Kiev’s forces have been battling pro-Russian separatists.

Since being elected, Macron appears to have toned down the rhetoric, although he noted the two leaders still had “diverging positions” in their first phone call.

(Additional reporting by Cyril Camu; Editing by Richard Balmforth and Alison Williams)