Russian minister says France ready to deliver controversial warships 

MOSCOW/PARIS Wed Oct 29, 2014 2:53pm EDT 

(Reuters) - Russia says it has received an invitation to take delivery of the first of two French warships, an arms deal that was cast into doubt by tensions between the West and Russia over Ukraine that led the United States and Europe to impose sanctions on Moscow.

The invitation was sent for Russia to take delivery of the first of two Mistral helicopter carriers from France on Nov. 14, RIA news agency quoted Deputy Prime Minister Dmitry Rogozin as saying on Wednesday. RIA also quoted Rogozin as saying the second vessel would be put afloat the same day.

However, French Defense Minister Jean-Yves Le Drian said on Tuesday Paris would wait until next month to decide whether to deliver the first of the two vessels.

"Everything is going as planned in terms of the technical fulfillment of the contract, and we stick to that," Rogozin was quoted as saying. "As for political decisions, we assume thatFrance should protect its reputation as a reliable partner, including in the military and technical area."

French President Francois Hollande for months resisted pressure from Washington and other allies concerned about Russia's role in Ukraine to scrap the 1.2 billion euro ($1.58 billion) contract.

With as many as 1,000 defense jobs at stake in France, there is immediate concern at home. But more worrying for Paris is what impact the cancellation of the contract would have on future defense export deals and on a defense industry that employs 40,000 people.

Even so, Hollande chose in September to push back the original end-October delivery date. He also said that he would only hand over the first carrier if there was a lasting ceasefire and a political settlement in Ukraine.

Nonetheless, Rogozin used his official Twitter account on Wednesday to tweet a letter dated Oct. 8 from the Mistral's manufacturer, DCNS, inviting Russian officials to a delivery ceremony on Nov. 14 at the Saint Nazaire shipyard where the first carrier, the Vladivostok, is awaiting transfer.

DCNS said it could neither confirm or deny the information. The French state owns a 65 percent stake in DCNS, making it unlikely any letter would have been sent against the wishes of the French government.

Officials at the French presidency, defense and foreign ministries contacted by Reuters said that at this stage no decision had been made on the delivery dates.

"No decision has been taken with regard the Mistral delivery. The decision will be taken during November by the president," a Defense Ministry official said.

Moscow, which expects delivery of a second carrier by the end of 2015, has said it will seek damages if the deliveries are canceled or suspended.

Russia's Mistral purchases would give it access to advanced technology, alarming some of France's NATO allies who consider Paris could be strengthening Moscow militarily.

Western officials on Monday hailed Sunday's Ukraine election. Pro-Western parties are set to dominate parliament, handing President Petro Poroshenko a mandate to end a separatist conflict and to steer the country further away from Russia's orbit towards mainstream Europe.

But after months of conflict he still faces huge problems. Russia opposes his plans to join the European Union, a ceasefire is barely holding between government forces and pro-Russian separatists in the east, and the economy is in dire straits.

Russia may limit Belarus, Ukraine food shipments: RIA 

MOSCOW/ASTANA Thu Oct 30, 2014 11:58am EDT 

(Reuters) - Moscow may limit food shipments from Belarus and Ukraine to Kazakhstan across Russian territory because of attempts to sell banned imports in Russia, the head of Russia's veterinary and phytosanitary service (VPSS) was quoted as saying on Thursday.

In early August, Russia banned about $9 billion worth of imports of fruit, vegetables, meat, poultry, fish and dairy from the European Union and some other countries in retaliation for Western sanctions over the crisis in Ukraine.

"We will be talking about stopping the transit to Kazakhstan through the borders of Belarus and Ukraine and allowing it only via our checkpoints," RIA news agency quoted Sergei Dankvert as saying.

Russia, Belarus and Kazakhstan have a free-trade zone as part of their customs union, and Minsk has promised to prevent banned foods from being shipped onward to Russia.

Kazakhstan is ready to cooperate with Russia if it plans to discuss the toughening of checkpoint controls on the Russia-EU border, Kazakh deputy national economy minister Madina Abylkasymova told reporters in Astana.

"But an introduction of some kind of restriction on the transit of products that Kazakhstan imports from the European Union is out of the question," she added.

Moscow's VPSS recently reported that 8,000 tonnes of meat, falsely labeled as coming from Brazil and destined for Kazakhstan, had been delivered to Russia via Belarus, Dankvert said.

The service managed to find about 300 tonnes of the meat, while 7,500 tonnes "got lost in Russia", he added.

Russia's veterinary service may also ban pork imports from Belarus due to suspected outbreaks of African swine fever, the service said. It planned to discuss the issue at a meeting with the Belarussian agriculture ministry on Thursday.

Belarus has suspended shipments of pork to Russia until Nov. 11, when officials plan to discuss the issue again, the service was quoted as saying by Interfax news agency later on Thursday.

Britain ends combat role in Afghanistan; last US Marines hand over base  

US and British departure leaves new Afghan president to deal with emboldened Taliban insurgency

October 26, 2014 1:01PM ET

British troops ended their combat operations in Afghanistan on Sunday as they and U.S. Marines handed over two large adjacent bases to the Afghan military, 13 years after a U.S.-led invasion launched the long and costly war against the Taliban.

Their coming departure leaves Afghanistan and its newly installed president, Ashraf Ghani, to deal almost unaided with an emboldened Taliban insurgency after the last foreign combat troops withdraw by the end of the year. The timing of their withdrawal has not been announced for security reasons.

At the U.S. Camp Leatherneck and the U.K.’s Camp Bastion, which are next to each other in the southwestern province of Helmand, troops lowered the American and British flags for the final time on Sunday and folded them away.

Camp Leatherneck, the largest U.S. base to be handed over to Afghan control, and Camp Bastion together formed the international coalition's regional headquarters for the southwest of Afghanistan, housing up to 40,000 military personnel and civilian contractors.

But on Sunday, the base resembled a dust-swept ghost town of concrete blast walls, empty barracks and razor wire. Offices and bulletin boards, which once showed photo tributes to dead American and British soldiers, had been stripped.

"It's eerily empty," said Lt. Will Davis, of the Queen's Dragoon Guards, in the British Army. Camp Bastion was also where Prince Harry was based in 2012 as an Apache helicopter gunner.

In all, 2,210 American and 453 British troops have been killed in Afghanistan since 2001, when the U.S.-led coalition toppled the Taliban government for harboring Al-Qaeda after the armed group carried out the Sept. 11 attacks on the United States in 2001.

The coalition has been led by NATO since 2003, and includes forces from Germany, Italy, Jordan and Turkey.

After Sunday's ceremony, the Afghan National Army's 215th Corps will be headquartered at the 11-square-mile base, leaving almost no foreign military presence in Helmand.

The U.S. military is leaving behind about $230 million worth of property and equipment  — including a major airstrip at the base, plus roads and buildings — for the Afghan military.

"We gave them the maps to the place. We gave them the keys," said Col. Doug Patterson, a Marine brigade commander in charge of logistics.

Speaking on BBC television, British Defense Minister Michael Fallon said British armed forces had helped strengthen the Afghan security forces, who were now taking on "full responsibilities."

"It is with pride that we announce the end of U.K. combat operations in Helmand, having given Afghanistan the best possible chance of a stable future," he said.

"Cautiously optimistic"

Helmand province, which produces 80-90 percent of the opium that helps finance the Taliban's insurgency, has seen fierce fighting this year, with Taliban and allied forces seeking to seize the district of Sangin from the Afghan army and police.

The battles have raised concerns about whether Afghan forces are truly able to hold off the Taliban without intelligence and air support from the United States and its allies.

Officials with the U.S.-led coalition say the Afghan forces — which have been losing hundreds of troops and policemen each month in battles, assassinations and suicide attacks by armed fighters — did not lose any significant ground in the recent summer fighting season.

"I'm cautiously optimistic they will be able to sustain themselves," said Brig. Gen. Daniel Yoo, the commander of Regional Command (Southwest).

He said the success of the Afghan security forces depended on leadership, continued development of logistics, and confidence.

"They've got to want it more than we do," he said.

International forces in Afghanistan boosted their numbers to about 140,000 in 2010 with the aim of wresting control of Helmand back from the Taliban. By Jan. 1, that number will be about 12,500, comprising mostly trainers and advisers.

Of those, 9,800 will be American, with the rest from other NATO members. The British will keep a small contingent at an officer training school in Kabul.

Gen. John Campbell, head of coalition forces in Afghanistan, acknowledged that Helmand "has been a very, very tough area" over the past several months.

"But we feel very confident with the Afghan security forces as they continue to grow in their capacity," he said.

He said that the smaller international force that will remain next year will still provide some intelligence and air support, two areas where Afghan forces are weak.

Gen. Sher Mohammad Karimi, chief of staff of the Afghan National Army, also said the insurgency "will keep us busy for a while."

"We have to do more until we are fully successful and satisfied with the situations," he said.

Civilian casualties in Afghanistan may reach an all-time high this year, with the United Nations reporting nearly 5,000 killed or wounded in the first half of 2014, most of them by the insurgency.

Several Afghans at Sunday's ceremony expressed pride at taking over the base, mixed with sadness that the international forces they have worked for years are leaving for good.

"We are going to miss our friends," said Afghan Brig. Gen. Nasim Sangin. "But we will still be in touch by email."

Reuters

REFILE-Russia moves closer to adopting compensation for sanctions law 

(Removes reference to Gennady Timchenko)

* Pro-Kremlin deputy says law will protect Russians

* Critics say will shield Russian billionaires

* Law would allow foreign assets to be seized

* Economy Minister warns of capital outflow

MOSCOW, Oct 8 (Reuters) - The Russian parliament moved a step closer on Wednesday to adopting a law that would allow for foreign assets inside the country to be seized and for the state to pay compensation for the loss of property due to Western sanctions.

The pro-Kremlin deputy who submitted the draft law says the bill would protect the interests of ordinary people. Critics say it would shield Russian billionaires and officials from the impact of sanctions imposed over Russia's annexation of Ukraine's Crimea region and its support for rebels in eastern Ukraine.

The draft law passed its first reading in the Duma, Russia's lower house of parliament.

Three readings are required before the Duma could propose it as law. It then goes for approval to the Federation Council, the upper house of parliament, and needs President Vladimir Putin's signature to come into effect.

The law, dubbed the "Rotenberg law" after Putin's sanctions-hit judo partner Arkady Rotenberg whose four villas were seized in September by Italian authorities, would allow compensation for Russians who suffer because of an "unlawful act" in foreign jurisdiction.

The bill also clears the way for foreign state assets in Russia to be seized as a response to Western sanctions, even if they are subject to international immunity.

Sanctions imposed by the European Union and the United States have hit a number of Putin's colleagues and friends, including Rotenberg and Yuri Kovalchuk, one of the largest shareholders in Bank Rossiya.

But for now the bill has received only limited support from the government and EconomyMinister Alexei Ulyukayev warned it could cause further capital outflow. The sanctions and the rapid weakening of the rouble have spurred more than $75 billion in capital flight this year.

"Basically, we encourage the outflow of capital from the country in different forms, that is not the objective of our economic policy," Ulyukayev, who spoke in the Duma before the bill's reading, said. "From my point of view (the law) would be counterproductive."

Kremlin critic Alexei Navalny, who is under house-arrest, wrote on his blog: "Now we will pay for the (billionaires') villas twice. Once when they steal everything to build them, and the second time when we compensate them when their assets are seized." (Reporting by Maria Tsvetkova; Writing by Lidia Kelly; Editing by Janet Lawrence)

UK carries out first airstrikes on IS group targets in Iraq 

Latest update : 2014-10-01

British fighter jets on Tuesday bombed an artillery post and an armed truck used by the Islamic State (IS) group in Iraq in the Royal Air Force's first strikes in the US-led air campaign.

The defence ministry said two Tornado jets hit the post with a Brimstone missile used against tanks and the vehicle with a 500-pound (230 kilogramme) Paveway IV laser-guided bomb.

"Both assessed successful," read one of the tweets.

Another said: "Tornado jets have carried out first air strikes in support of democratic Iraqi government."

It did not say when or where the strikes were carried out but explained they had aided Kurdish troops in the area.

"I can confirm that the RAF were in action today in support of the Iraqi government in northwest Iraq," Defence Secretary Michael Fallon said.

Fallon said the strikes were carried out by two jets from an RAF base in Cyprus.

"They identified and attacked a heavy weapon position that was endangering Kurdish forces and they subsequently attacked an ISIL armed pickup truck in the same area," he said, using an alternative name for the Islamic State group.

The British parliament last week approved a motion to join in a US-led military campaign against IS jihadists who have seized huge swathes of Iraq and Syria in recent months.

The strikes signal the start of Britain's latest military engagement in Iraq after it pulled out all its troops in 2011 following an eight-year conflict.

The government has said it will not send combat troops on the ground or join air strikes in Syria without further parliamentary approval.

British foreign minister Philip Hammond earlier on Tuesday said UK forces would not be "panicked" into dropping bombs in Iraq.

"When we do release our weapons we have to be absolutely sure that they are against ISIL targets, that they are not going to kill innocent Sunni Muslim civilians in areas that are occupied by ISIL," he told the BBC.

"Otherwise we are having the opposite of the effect we are intending to have," he said.

Asked about France joining the US-led coalition before Britain did, he said: "There is nobody who knows anything about air power who is suggesting that the French air force is a more formidable force than the RAF."

France has already carried out two rounds of air strikes.

(AFP)

Sweden to recognize state of Palestine 

Latest update : 2014-10-03

Sweden’s new prime minister said Friday that his government will recognize a Palestinian state, a move that drew praise from Palestinian officials.

In a declaration listing his government’s priorities, Social Democratic leader Stefan Lofven told lawmakers that the Israeli-Palestinian conflict can only be resolved through a two-state solutionrequiring “mutual recognition” and a will from both sides to co-exist peacefully.

“Therefore Sweden will recognize the state of Palestine,” Lofven said.

He didn’t say when or how that would happen.

Palestinian Foreign Minister Riad Malki welcomed Lofven’s announcement and called on other European Union countries to follow suit.

“In the name of the Palestinian people and the Palestinian leadership, we thank and salute the Swedish position,” Malki said in a statement.

He said the only other Western European countries that have recognized a Palestinian state are Malta and Cyprus. Some Eastern European countries did so during the Cold War.

U.S. State Department spokeswoman Jen Psakia said the U.S. looks forward to working with the new government of Sweden - a close partner - but called international recognition of a Palestinian state “premature.”

“We believe that the process is one that has to be worked out through the parties to agree on the terms of how they’ll live in the future of two states living side-by-side,” she said.

Lofven has built a left-leaning minority government of Social Democrats and Greens after winning Parliamentary elections last month.

He tapped former European Commissioner Margot Wallstrom to be foreign minister, while Magdalena Andersson becomes finance minister and Peter Hultqvist will head the Defense Ministry. All are Social Democrats.

Asa Romson, leader of the Greens, the junior coalition partner, became vice-prime minister and minister for climate and environment.

The coalition is expected to struggle to push its agenda through Parliament.

(AP)

Date created : 2014-10-03

EU formally adopts new sanctions against Russia 

Latest update : 2014-09-09

The European Union formally agreed to a series of new sanctions against Russia on Monday but said their implementation over the coming days would depend on Russian efforts to maintain a ceasefire in Ukraine.

Herman Van Rompuy, President of the European Council, said the EU was prepared to "review" the sanctions, offering Russia a chance to scale back its military actions in Ukraine in an effort to avoid the implementation of the measures.

"Depending on the situation on the ground, the EU stands ready to review the agreed sanctions in whole or in part," Van Rompuy said after a last-minute meeting of EU envoys in Brussels.

The new round of sanctions will tighten existing measures imposed in July, targeting more individuals with travel bans and asset freezes as well as tightening access to capital markets for Russian oil and defence companies.

Russian Prime Minister Dmitry Medvedev had earlier warned of an "asymmetrical" response should new sanctions be adopted, saying that EU airlines could be banned from flying over Russian airspace on their lucrative Asian routes.

Van Rompuy said in a statement that the measures would come into force over the next few days. "This will leave time for an assessment of the implementation of the ceasefire agreement and the peace plan,” he said.

"We have noted that Russia only consented with difficulty to serious negotiations. The ceasefire is an important step, but it is only a step," Van Rompuy told Belgian television on Sunday.

'Special status' for rebel regions

The 12-point ceasefire agreement signed Friday in the Belarussian capital Minsk is seen as the most significant to date because it won the formal backing of Russian President Vladimir Putin – a decisive player in the conflict despite Russia's denials of direct involvement.

But the truce delays difficult decisions about the status of the separatist Donetsk and Lugansk regions, which account for one-sixth of Ukraine's population and a quarter of its exports. Separatist rebels there insist they will not give up their demands for independence.

The peace deal temporarily affords the two districts "special status" within Ukraine that would allow them to introduce self-government and conduct early local elections.

But Ukrainian Prime Minister Arseny Yatseniuk warned Sunday that Kiev would have to impose martial law should the ceasefire collapse.

"If we have a peace plan that the EU and the US support, and which Russia implements, then of course we do not need martial law," Yatseniuk told Ukrainian television. "But if this truce ends the same way as all the other truces, and not just in Ukraine, then we will have no other choice."

(FRANCE 24 with AFP)

Date created : 2014-09-08

World Bank warns Russia's economy to stagnate over next two years 

Wed Sep 24, 2014 7:02am EDT 

* World Bank sees GDP at no more than 0.5 pct in 2014-2015

* Says unclear economic policy, lack of reforms hinder growth

* Sees 2014 inflation at 8 pct against Central Bank forecast of 7.5 pct (Adds background, comment)

By Lidia Kelly

MOSCOW, Sept 24 (Reuters) - Russia's economy is set to stagnate in the next two years as the country pays the price for the Ukraine crisis, lack of structural reforms and uncertain economic policy, the World Bank said on Wednesday.

In a much more pessimistic outlook than the Russian government's, the Washington-based lender forecast theeconomy would grow by just 0.3 percent next year and could contract if the Ukraine crisis escalates.

In 2016 Russian gross domestic product will increase by 0.4 percent, it said. The government estimates growth of 1.2 percent in 2015 and 2 percent in 2016.

"We don't believe that investment growth is picking up as much as the government believes," Birgit Hansl, the World Bank's economist for Russia, told journalists.

"Their assumption is that monopolies will be investing ... We expect less strong investment impulse," she said.

Sanctions imposed by the United States and Europe over Russia's involvement in Ukraine will dampen investment, while consumption growth in coming years - a major driver behind Russia's economy - will be subdued.

"More restricted access for Russian companies and banks to external financing (due to sanctions) is likely to have already affected investment decisions, leading to a delay or a scaling back of investment programmes," the World Bank said in its bi-annual report onRussia.

"We expect that this trend will worsen during the second half 2014 and throughout 2015, when the impact of the additional sanctions will be felt and may lead to a period of near stagnation."

Consumption growth will likely slow to 0.5 percent in 2015 from about 2 percent this year, the bank forecasts.

It expects the economy to grow 0.5 percent this year, in line with the government's forecast, after predicting in March after Russia's annexation of Ukraine's Crimea region, that Russia was at risk of sliding into recession.

"The good news is that Russia did escape recession," Hansl said.

RISKY FISCAL STANCE

The Bank's forecasts assume no new sanctions either on or by Russia over the Ukraine crisis. The Bank warned that if the conflict around Ukraine escalates, the economy may contract by 0.9 percent in 2015.

Policy uncertainty and a continuing lack of structural reforms remain the "deciding" factors for the outlook, it said.

"Structural reforms would need to focus on improving economic institutions to ensure that public finances are stable and economic volatility well-managed," the Bank said.

"Stabilisation, education, and competition should be the reform priorities for the next decade."

The bank commended the central bank for its perseverance in shifting policy to focus on inflation targeting as of next year and away from controlling the rouble, but it said the central bank is in a tough position.

"It might become challenging to operate in an environment that has now both high inflation and low growth risks," the bank said in the report.

It forecasts inflation of 8 percent this year, above the central bank's forecast of 7.5 percent.

The Bank also warned that Russia's recent decision, pencilled in the budget, to allow taking funds from the two oil windfall funds - the National Wealth Fund and the Reserve Fund - next year if the government needs to support the economy is risky.

"Russia's fiscal position is becoming even more tightly linked to oil revenues and global oil prices," the Bank said.

Russia's non-oil deficit is likely to remain persistently high at above 10 percent of GDP, it warned.

"Use of these (the Reserve Fund and the National Wealth Fund) should be prudent," Hansl said. (Editing by Jason Bush and Susan Fenton)

Germany tries its first suspected Islamic State jihadist 

Latest update : 2014-09-16

An alleged German jihadist went on trial Monday accused of fighting in Syria for the Islamic State group (IS), amid calls for tougher action to prevent attacks in Europe by militants.

In the first German criminal proceedings involving IS, Kreshnik Berisha, a 20-year-old born near the business capital Frankfurt to a family from Kosovo, has been charged with membership of a foreign terrorist organisation.

He could face 10 years in prison if convicted by the city's superior regional court.

However the court proposed a deal as the trial opened in which Berisha would get a lighter sentence in exchange for a full confession. Defence lawyers said they would respond to the offer this week.

The heavyset Berisha, wearing a full beard, a black T-shirt, hoodie and grey sweatpants, sat impassively as proceedings began.

The trial is taking place under tight security amid a Western crackdown on IS over the threat posed by citizens returning home from Syria and Iraq, after gaining weapons training and combat experience. 

Berisha, who reportedly belonged to a local Jewish football club in his youth, is believed to have become radicalised when he fell in with a group of Muslim fundamentalists while on a job training programme.

Federal prosecutors say Berisha travelled to Syria via Turkey in July 2013 with other Islamists planning to join the fighting to create an Islamist "caliphate" straddling Syria and Iraq.

"He wanted to take part in building a theocracy under Sharia law," prosecutor Horst Salzmann told the court.

"He gave an oath. He was ready to die for their goals."

Soon after his arrival, Berisha allegedly underwent firearms training and was put to work as a medic and a guard.

In the six months he spent in Syria, he is believed to have fought in at least three battles on the side of the jihadists against President Bashar al-Assad's troops.

He returned home for reasons that are unclear to German authorities in December 2013 and was arrested at Frankfurt airport.

Prosecutors say there is no evidence he was plotting an attack in Germany. A verdict is not expected before mid-November.

'Not a dangerous person'

The three judges hearing the case said they had held talks before the trial with the defence and the prosecution about a shorter jail sentence of between three years and three months and four years and three months.

In exchange, Berisha would confess to the charges against him and provide detailed responses to questions about IS's inner workings.

"We don't want to do everything in our power to obstruct his future," presiding judge Thomas Sagebiel said.

Defence attorney Mutlu Gunal, who said his client would reply to the offer at the next hearing on Friday, insisted that Berisha was "grateful" to be back in Germany.

"The fact that he returned of his own accord shows he turned his back (on IS)," he said, adding that he believed Berisha suffered from post-traumatic stress disorder from his experiences in Syria.

"I can assure you, this is not a dangerous person."

The court heard phone conversations Berisha had with his family while still in Syria.

A woman, apparently his sister, is heard telling him to come home: "Your 'brothers' there won't love you like your family does," she said. "You are young, dumb and naive."

Authorities estimate around 400 German nationals have travelled to Iraq and Syria to battle for the militants.

Interior Minister Thomas de Maiziere announced Friday that Germany had outlawed active support of Islamic State including the recruitment of fighters and social media propaganda.

"We must prevent radical Islamists bringing their jihad to our cities," he said.

Germany has launched 140 criminal probes against alleged IS fighters or supporters, news weekly Der Spiegel reported.

France on Monday hosted an international conference to shore up a coalition against IS militants.

(AFP)

Date created : 2014-09-16