Month: April 2017

Turkish gold imports rose 17-fold to 28.2 tons in March, as Turks looking to hedge currency risk ahead of a referendum in two weeks time followed President Tayyip Erdogan’s calls to buy gold instead of dollars.

After the sharpest falls in the Turkish lira since the 2008 financial crisis last November, Erdogan called on Turks to sell dollars and buy lira or gold to prop up the local currency. Gold imports have been rising year-on-year ever since.

“People have started opting for gold rather than foreign currencies,” said Mehmet Ali Yildirimturk, a gold specialist in Istanbul’s Grand Bazaar, adding that a moderate recovery in the lira had also made gold more affordable again.

Gold imports to Turkey rose almost eightfold to 36.7 tons in December after Erdogan’s calls, their highest monthly level in just over two years, according to data from the Precious Mines and Metals Markets of the Istanbul bourse.

Prices in Turkey surged from 132 lira ($36) for 24-carat gold in January to 153 lira in February. On Tuesday, gold prices were around 148 liras.

Gold is seen as a safe place to park assets during times of uncertainty. Turkey holds a referendum on April 16 on constitutional changes which would significantly boost Erdogan’s powers, with polls suggesting a tight race.

($1 = 3.6664 liras)
…

Bulgaria’s largest party, the center-right GERB, expects to form a government with three nationalist parties by late April and return Boiko Boriskov to power as prime minister, a senior party official said on Monday.

Borisov’s GERB won 95 seats in the general election on March 26, beating its leftist Socialist rivals, but it failed to gain an outright 121-seat majority in parliament.

His resignation late last year triggered the early election.

GERB has told the third-placed United Patriots (UP), a nationalist alliance of three parties, that the prime minister’s post will not be subject of their coalition negotiations.

“The prime minister of the next government that will be formed I suppose by the end of this month … will be Boiko Borisov”, said Vladislav Goranov, an MP and member of GERB’s political negotiating team. “There’s no doubt about that.”

Goranov’s comments to reporters came after one of the nationalist leaders had suggested that Borisov, 57, should not lead the next government.

Borisov quit as premier after a GERB-backed candidate lost a presidential election in November to Rumen Radev, a Russia-friendly ally of the Socialists. Bulgaria is currently being run by a caretaker administration.

The UP alliance campaigned to boost low living standards and double the minimum monthly state pensions, now at 160 levs ($87.25) – the lowest in the European Union.

Analysts say such demands, coupled with GERB’s plans to double teachers’ wages within four years, may boost public spending and pose risks to Bulgaria’s currency peg to the euro.

But Goranov, a former finance minister likely to get the same post in the next government, told reporters he was not worried for state coffers.

A coalition with the nationalists would have just one seat above the majority threshold of 121 seats and Goranov said GERB would also seek support of smaller, populist grouping of businessman Veselin Mareshki.

Bulgaria’s polls suggested the country would continue with its fiscal and economic policies but was unlikely to break a pattern of unstable governments that have hindered structural reforms, Fitch rating agency said last week.

The timing for inter-party negotiations has yet to be set.

GERB has not ruled out leading a minority government, but Goranov called such an option “extreme.”

(1$= 1.8338 leva)
…

Several U.S. legislators have criticized the Russian government for plans to effectively ban the Jehovah’s Witnesses, a nontraditional Christian movement, as an “extremist” organization.

On March 15, Russia’s Justice Ministry filed a claim with the country’s Supreme Court, calling on it to designate the Administrative Center of Jehovah’s Witnesses in Russia an “extremist” organization and liquidate the group’s national headquarters and 395 local chapters in Russia.

Jehovah’s Witnesses is a millenarian Christian group founded in the United States in the 1870s. It is known, among other things, for door-to-door preaching and refusing to perform military service, salute national flags or accept blood transfusions. Its adherents have frequently been persecuted by authoritarian governments, including that of the former Soviet Union.

“At stake in the upcoming court case is the legality and, perhaps, the survival of the Jehovah’s Witnesses — and, in fact, basic religious freedom — throughout the Russian Federation,” said Congressman Chris Smith, a New Jersey Republican who co-chairs the U.S. Helsinki Commission. “If the Supreme Court of Russia declares this faith group an extremist organization, it is an ominous sign for all believers and it marks a dark, sad day for all Russians.”

Russia’s Justice Ministry reported on its website last week that since 2009, it has identified 95 materials of “an extremist nature” that were brought into Russia and circulated in the country, according to the Tass news agency. Tass quoted the website saying, “As many as eight local cells of the organization were recognized to be extremist ones, banned and disbanded since 2009.”

However, Anatoly Pchelintsev, chief editor of the magazine Religion and Law, said the accusations are incompatible with the principle of freedom of religion.

“Formally, the semblance of legitimacy is observed [by the Justice Ministry],” he told VOA’s Russian Service. “However, there is actually no extremist activity and, in fact, it is baseless and bogus. There are multiple videotapes showing how banned literature is planted [on Jehovah’s Witnesses].”

If the Supreme Court rules against Jehovah’s Witnesses in Russia, its 175,000 followers face the threat of criminal prosecution.

That, according to Pchelintsev, would be “total madness.”

“Of course, there will absolutely be prison sentences, just like it was in Taganrog [in southern Russia’s Rostov region], where 15 innocent people were sentenced,” he said. “But a majority [of the Jehovah’s Witnesses] will go underground. They will also be congregating, praying and so on. Stalin couldn’t do anything about them even though he deported them to the North. Hitler also couldn’t do anything about them, even though he sent them to concentration camps and physically destroyed them.”

Pchelintsev recalled that the Jehovah’s Witnesses were recognized in the early 1990s as having been victims of political repression during the Soviet period, and received official documents to that effect.

“If they’re being banned now, should their documents be revoked?” he asked. “And then, after a while, when a new president is elected, should they receive their documents back? It’s a bizarre logic. We cannot live according to the constitution; we’re constantly looking for an enemy, either external or internal.”

Pchelintsev added: “You may not share their beliefs and there can be different attitudes toward them,” he said. “However, from the standpoint of law and the constitution, they have every right to exist. Otherwise, we will become the first country in the modern world to ban the Jehovah’s Witnesses.”

Valery Borshchev, a veteran human rights activist and member of the Russian branch of the International Association of Religious Freedom, agrees that harassment of the Jehovah’s Witnesses violates the principles of religious freedom.

“The Jehovah’s Witnesses are not involved in any extremist activity,” he told VOA. “Yes, they have some controversial views that confuse others — for example, the ban on blood transfusions. But it’s a debatable issue.”

In any case, said Borshchev, this has nothing to do with extremist activity.

“All the accusations against them are unfair and anti-constitutional,” he said. “It violates the principles of the freedom of belief and conscience enshrined in the constitution.”

According to Borshchev, those calling for the Jehovah’s Witnesses to be banned do not understand the nature of religious organizations.

“They would do well to learn the history of religious movement in the Soviet Union, where nobody could do anything about the alternative churches,” he said. “The same thing will happen now. More than that, this adversarial position will escalate the conflict. The members of the organization will feel like they have a mission and it will strengthen their rigor.”

According to the Helsinki Final Act, which was signed by the 57 participating countries of the Organization for Security and Cooperation Europe (OSCE), including Russia, “the participating States will recognize and respect the freedom of the individual to profess and practice, alone or in community with others, religion or belief acting in accordance with the dictates of his own conscience.”

VOA’s Svetlana Cunningham contributed to this report, which was produced in collaboration with VOA’s Russian Service.
…

Amenia’s ruling party won slightly less than 50 percent of the vote in a parliamentary election, officials said on Monday.

Sunday’s vote, which was the nation’s first since the former Soviet republic changed its constitution to expand power of parliament and the prime minister’s office, allowed President Serzh Sargsyan’s Republican Party of Armenia (HHK) to claim a majority of seats.

HHK claimed 49 percent of the vote, with businessman Gagik Tsarukian’s opposition coalition trailing with 27 percent, and two other parties getting 5 percent — just enough to get seats in parliament — according to data released by the Central Election Commission. Official results are expected to be released later this week.

Critics have said the recent constitutional amendments are part of Sargsyan’s efforts to retain control of the country after he steps down in 2018 due to term limits. If his party controls parliament, he could be appointed prime minister after that.

Sargsyan and his supporters have vigorously disputed that claim.

The observer mission of the Organization for Security and Cooperation in Europe (OSCE) called Sunday’s vote “well administered and fundamental freedoms were generally respected.” OSCE officials, however, did acknowledge allegations of vote-buying and intimidation around the country.

Sona Ayvazyan, executive director of Transparency International Armenian, told VOA’s Armenian Service, “Our observers recorded many violations related to the failures of technical equipment” such as electronic fingerprint scanners.

“These failures were not intentional, I assume,” she added. “However, in terms of frequency, these failures were most frequent. … We [also] saw the increase of pressure on and bribery of the voters.”

Armenian Helsinki Committee Director Avet Ishkhanyan told VOA about widespread bribery.

“Prior to the voting, everything was already predetermined,” he said. “People were already registered as ‘units,’ and each of them was supposed to be bribed or threatened to vote for ruling candidates.

“What distinguishes this voting from previous elections is that, prior to this … many people’s votes had been already bought by bribes, so there was no need for widespread violations during the ballot-counting process,” Ishkhanyan added. “But is that a step forward? I would rather say these are the saddest elections, which illustrate final failure of civil and political institutes in Armenia.”

An RFE/RL reporter who was investigating allegations of vote-buying was attacked a few hours after polls opened.

The incident occurred after Sisak Gabrielian, a reporter with RFE/RL’s Armenian Service, saw citizens leaving an HHK office in Yerevan’s Kond neighborhood with money in their hands.

People inside the campaign office, who refused to identify themselves, said it was salary money and that citizens were not receiving “election bribes.”

Gabrielian said he was then roughed up by ruling party loyalists, receiving minor injuries.

This report was produced in collaboration with VOA’s Armenian Service Some information is from AP.
…

Thousands of people took to the streets of Hungary’s capital Budapest Sunday to protest legislation that a university founded by U.S. billionaire George Soros says is aimed at shutting it down.

There is growing opposition in Hungary and abroad to a bill proposed by Prime Minister Viktor Orban’s government that would tighten regulations on foreign universities.

Central European University, founded by Soros in 1991, says the bill is aimed at driving it out of the country, a charge the government has denied.

The proposed new rules affect universities from non-European Union countries and would ban their awarding of Hungarian diplomas without an agreement between national governments.

Such institutions also would be required to have operations in their home countries.

The future of the CEU, which does not have a U.S. campus, now “depends on talks between the governments of Hungary and the United States,” Orban said on Friday. He also said the “Soros university” was “cheating” because it can award both a Hungarian diploma and an American one, which gives it an “unfair advantage” over local institutions.

Hungarian scholars and teaching organizations, as well as more than 500 leading international academics, including 17 Nobel laureates, have come out in support of CEU, saying it is one of the preeminent centers of thought in the country.

CEU enrolls more than 1,400 students from 108 countries.
…

Nikki Haley, the United States ambassador to the United Nations, said Sunday that President Donald Trump has not blocked her from attacking Russia, even as he continues to assail U.S. news media for its reporting on congressional and legal investigations into whether his aides colluded with Russian officials to help him win the election.

“The president has not once called me and said, ‘Don’t beat up on Russia’ — has not once called me and told me what to say,” Haley told ABC News. “I am beating up on Russia.”

Haley said Russia’s 2014 seizure of Ukraine’s Crimean peninsula was wrong, as well Moscow’s continuing involvement supporting pro-Russian fighters in eastern Ukraine battling Kyiv’s forces.

“When they do something wrong,” she said, “I have no trouble calling them out. The president has not disagreed with me” holding Russia “accountable.”

Asked whether Trump needs to be “beating up on Russia” as well, Haley responded, “Well, of course. He’s got a lot of things he’s doing, but he is not stopping me from beating up on Russia.”

“The United States continues to condemn and call for an immediate end to the Russian occupation of Crimea,” Haley said. She added that “Crimea-related sanctions” levied against Russia will continue to “remain in place until Russia returns control over the peninsula to Ukraine.”

The U.S. intelligence community has concluded that Moscow, on orders from Russian President Vladimir Putin, meddled in last year’s presidential election in an effort to help Trump defeat Democrat Hillary Clinton, a former U.S. secretary of state.

Haley told ABC that “certainly, I think Russia was involved in the election. There’s no question about that.” She added, “We don’t want any country involved in our elections, ever. We need to be very strong on that.”

The top U.S. investigative agency, the Federal Bureau of Investigation, is probing whether Trump aides criminally colluded with Russian officials to boost Trump’s election chances. In addition, intelligence committees in both the Senate and House of Representatives are conducting their own investigations of Russian interference in the election.

Trump only reluctantly accepted the intelligence community’s finding about Russian meddling in the election, but he frequently has disparaged news accounts about the ongoing probes.

On Saturday, on his Twitter account, Trump said, “It is the same Fake News Media that said there is ‘no path to victory for Trump’ that is now pushing the phony Russia story. A total scam!”
…

France’s polling commission has issued a warning over a Russian news report suggesting conservative candidate Francois Fillon leads the race for the presidency — something which contradicts the findings of mainstream opinion pollsters.

The cautionary note from the watchdog on pre-election polling followed allegations in February by aides of centrist candidate Emmanuel Macron that he was a target of “fake news” put out by Russian media including the Sputnik news agency.

Macron takes a hard line on European Union sanctions imposed on Moscow over the Ukraine crisis, whereas Fillon has said they are totally ineffective, creating a “cold war” climate that needs to be reversed.

Almost all media in France are drawing on polls that have shown since mid-February that Fillon, a former prime minister, is trailing in third place behind Macron and far right leader Marine Le Pen for the April 23 first round. Third place would mean Fillon’s elimination from the May 7 runoff.

State-run Sputnik carried different findings in a report on March 29 under the headline: “2017 presidential elections: the return of Fillon at the head of the polls.”

It quoted Moscow-based Brand Analytics, an online audience research firm, as saying that its study based on an analysis of French social media put Fillon out in front.

In a statement, France’s polling commission said the study could not be described as representative of public opinion and Sputnik had improperly called it a “poll”, as defined by law in France.

“It is imperative that publication of this type of survey be treated with caution so that public opinion is aware of its non-representative nature,” it said.

Brand Analytics’ track record either for political polling or for commercial internet audience measurement outside of Russia and former Soviet territory is unknown.

Sputnik published an earlier online survey by the firm from mid-February which also showed Fillon with a strong lead over Macron and Le Pen at a time when other polls showed Macron’s candidacy beginning to surge with Fillon in third place.

Neither Sputnik in Moscow, nor the company, responded immediately to emailed requests for comment on Sunday.

US intelligence warns

Richard Burr, head of the U.S. Senate Intelligence Committee which is investigating the Russian hacking during the 2016 U.S. presidential campaign, said last week that the Kremlin was trying to interfere in the French vote.

The Kremlin denied in February that it was behind media and internet attacks on Macron’s campaign. Russia has a strong interest in the outcome of the French election since Macron has suggested imposing further sanctions on Moscow if it does not implement its side of a deal to resolve the crisis in Ukraine.

Fillon, once the frontrunner for the Elysee before he was hit by a scandal surrounding payments of public funds to his wife and children, dismissed as “fantasy” concerns of Russian interference in the election. Speaking last Friday, Fillon said he would seek a better balance in relations with a country that was nevertheless “dangerous.”

Richard Ferrand, the head of Macron’s En Marche! (Onwards!) party, said in February that Sputnik and another Russian state-run outlet Russia Today were spreading ‘fake news’ with the aim of swinging public opinion against Macron.

In February, Sputnik announced it would publish weekly French election polls using representative sampling from three mainstream polling firms — IFOP, Ipsos and OpinionWay — alongside an analysis of social media posts in France from Brand Analytics for which it did not disclose its survey methodology.

Separately, Sputnik carried a news report last Friday about Macron supporters being awarded state decorations when he had been a high-level functionary at the Elysee and economy minister in the Socialist government, suggesting this could amount to influence peddling.

It offered no proof that Macron had organized the decorations, which were sometimes awarded by other ministers. In several instances, it cited awards made by the economy ministry, without mentioning that Arnaud Montebourg, Macron’s predecessor, was minister at the time.

The Sputnik report contrasted Macron’s alleged action with a judicial inquiry into an award made when Fillon was prime minister to a billionaire friend who owned a cultural magazine where Fillon’s wife drew a salary.

 
…

Serbians voted for a new president on Sunday with conservative Prime Minister Aleksandar Vucic the runaway favourite despite opposition warnings about the extent of his domination over the Balkan country.

Most polls see Vucic, 47, winning in the first round with more than 50 percent of the vote, trailed in the low teens by a former rights advocate and a white-suited student whose satirical portrayal of a sleazy political fraudster has struck a chord with some disillusioned voters.

The role of president is largely ceremonial, but Vucic is expected to retain real power through his control of Serbia’s ruling Progressive Party.

As such, the election is unlikely to alter the country’s delicate balancing act between the European Union, which Vucic wants Serbia to join, and Russia, with which Serbs share their Orthodox Christian faith and Slavic heritage.

During the campaign, the studio backdrop of one popular television talkshow on which Vucic was a guest featured a photograph of him flanked by pictures of German Chancellor Angela Merkel and Russian President Vladimir Putin.

To his supporters, Vucic is a cool head and a firm hand in a troubled region.

“I voted for stability, we’ve had enough wars,” said Bozica Ivanovic, a 65-year-old pensioner who voted for Vucic. “We need more jobs for younger people and if we can get higher pensions and salaries, even better.”

Vucic’s opponents, however, say he has an authoritarian streak that has led him to take control over the media in Serbia since his party rose to power in 2012 and he became prime minister three years ago.

He denies the charge but has struggled to shake it given his record when last in government in the dying days of Yugoslavia.

Then in his late 20s, Vucic was Serbia’s feared information minister behind draconian legislation designed to muzzle criticism of the government during the 1998-99 Kosovo war.

“We want above all to give back dignity to Serbian citizens and meaning to state institutions,” Sasa Jankovic, Serbia’s former human rights ombudsman who was polling a distant second or third before Sunday’s vote, said after casting his ballot.

Turnout until 10 a.m was 10.56 percent compared to 11.04 percent in 2012, state election commission said.

‘Proxy’ prime minister

Jankovic and a host of opposition candidates risk being embarrassed by 25-year-old communications student Luka Maksimovic, whose alter ego Ljubisa ‘Beli’ Preletacevic has come from almost nowhere to challenge them for second place.

Dressed in a white suit and loafers, the pony-tailed Maksimovic plays on a widely-held perception of Balkan politicians as greedy cheats. Despite economic growth and greater fiscal stability, Serbia remains mired in poverty and corruption.

“I voted for Beli,” said 30-year-old Dejan Markovic, an unemployed metal worker. “The so-called opposition candidates have betrayed us in the past and Vucic is lying to us all now, so Beli is the only way to mock all this hypocrisy.”

Pollsters said a high turnout among Serbia’s 6.7 million eligible voters may force a run-off on April 16, Easter weekend, if no single candidate wins a majority in the first round.

“I am hoping these elections will facilitate stability and the continuation of economic reforms,” Vucic said after voting.

As president, Vucic would have few formal powers, among them the right to send legislation back to parliament for reconsideration.

But he is widely expected to appoint a loyal ally as prime minister and try to keep a tight rein on policy, as former President Boris Tadic, then of the Democratic Party, did between 2004 and 2012.

Some analysts said that could yet prove difficult.

“Vucic will now be distanced from everyday policy-making and executive affairs and will have to rely on a proxy,” Eurasia Group wrote in on March 30. “This will likely generate some tensions in the chain of command.”
…

Armenians voted for a new parliament on Sunday in a closely fought race between the ruling party and a former coalition partner that heralds the start of a parliamentary system of government.

Under constitutional changes critics say were designed to prolong the political life of President Serzh Sarksyan, parliament, not voters, will elect the president for the first time. That role will become largely ceremonial while the office of prime minister will become more powerful.

Voting got under way at 0400 GMT and would last until 1600 GMT in the country with about 2.6 million eligible voters.

Sarksyan, the 62-year-old leader of the ruling Republican Party of Armenia (RPA), has repeatedly denied that the changes, which were approved by the electorate in a December 2015 referendum, were made for his benefit.

He has been president since 2008 but his second term expires next year. Under the new system, critics say, he could keep wielding executive power by becoming prime minister, stay active by remaining leader of the RPA or quit politics but keep exercising influence via a handpicked successor.

The outcome of Sunday’s vote was difficult to predict, with polls showing the RPA neck-and-neck with an opposition alliance led by wealthy businessman Gagik Tsarukyan.

His alliance has ruled in coalition with the RPA before, but it is not clear whether it would agree to do so again if, as expected, it fails to win enough support to rule alone.

The ruling party still wields considerable support and its main campaigner, Prime Minister Karen Karapetyan, who was appointed in September, is a popular figure and the RPA candidate for the post of the prime minister after this vote.

“I’m very optimistic, but time will show [who will win],” he said after voting.

Many Armenians, however, accuse the government of corruption and of mishandling the troubled economy.

Armenia depends heavily for aid and investment on Russia, which has been hard hit in the past three years by an economic downturn. Armenia has felt the impact, with growth falling to 0.2 percent last year from 3.0 percent in 2015.

“Voters should vote for [our] party, which will change laws and will change life,” Tsarukyan said after voting at a polling station in his native town of Abovyan, about 20 km north-east from the capital Yerevan.

“Economic growth is impossible in the current situation.” Political analysts say unrest could erupt after the vote, partly due to a growing malaise over the economic slowdown.

“The situation is especially tense, due to the deepening level of discontent and dissent,” said Richard Giragosian, director of the Regional Studies Center in Yerevan.
…

Hundreds of men in the Russian republic of Chechnya have been rounded up and detained recently on suspicion of being homosexual, and at least three have died while in custody, according to a prominent Russian newspaper.

Novaya Gazeta, which reported the crackdown Saturday, said it was aware of other sources who say the death toll may be far higher. The gay men who have disappeared from the streets of Grozny, the Chechen capital, and other towns and cities are said to have ranged in age from 16 to 50.

Novaya Gazeta, a Moscow-based publication known for independent investigative reporting and its willingness to confront Russian officialdom, said it learned of the action against gay men in Chechnya from the Interior Ministry in the Caucasus republic, local activists and law enforcement sources.

The men were detained “in connection with their nontraditional sexual orientation, on suspicion of such,” Novaya Gazeta reported. It said none of the detainees had openly disclosed their sexual orientation — a move the paper equated with asking for a death sentence in the largely Muslim North Caucasus region.

The account also quoted locals as saying Chechens who used gay contact groups on social messaging networks have been abandoning them and closing their accounts. It further quoted sources in Chechnya’s special services as describing the police sweep as “a preventative clear-out” aimed at discouraging public gay rights rallies.

Chechen leader: no gay men here

There was no immediate comment on the report from authorities in Moscow, which has granted its Muslim-majority Caucasus republics freedom to enforce traditional Muslim values.

However, a spokesman for Chechnya’s authoritarian leader, Ramzan Kadyrov, denied the Novaya Gazeta report in a statement to the Russian news agency Interfax that claimed no one in the republic is homosexual.

“You cannot arrest or repress people who just don’t exist in the republic,” Alvi Karimov said.

“If such people existed in Chechnya, law enforcement would not have to worry about them,” Karimov added, “since their own relatives would have sent them to where they could never return.”

Novaya Gazeta has a history of confrontation with the Chechen government and the republic’s Kremlin handlers.

Reporter’​s death

In 2006, Gazeta reporter and human rights activist Anna Politkovskaya wrote a series of reports critical of Russia, Kadyrov and Moscow’s role in the second Chechen war.

In her last interview, Politkovskaya described Chechen leader Kadyrov to Radio Free Europe/Radio Liberty as a “coward armed to the teeth and surrounded by security guards.”

She said she hoped to see Kadyrov “someday sitting in the dock, in a trial that meets the strictest legal standards,” facing justice for atrocities allegedly committed by his forces during the Moscow-backed war against separatists in Chechnya.

Politkovskaya’s interview with RFE/RL took place October 5, 2006. Two days later, she was shot dead at point-blank range as she entered an elevator in her Moscow apartment building. Her colleagues blamed the assassination on Kadyrov.

The fateful interview that week coincided with then-Prime Minister Kadyrov’s 30th birthday, a milestone that meant he could seek the republic’s presidency, which he did a few months later.

Five men were eventually convicted of killing Politkovskaya.
…

U.S. President Donald Trump’s executive orders on trade deficits and import duty evasion are a sign that Washington plans to move away from free trade and international agreements, German Economy Minister Brigitte Zypries said on Saturday.

Trump instructed his administration on Friday to study the causes of U.S. trade deficits and clamp down on countries that abuse trade rules in two executive orders he said would open a new chapter for U.S. workers and businesses.

Zypries said that while the executive orders were initially only reviews, “they show, however, that the U.S. obviously wants to move away from free trade and trade agreements.”

“We must seek constructive dialogue and explain that the reasons for the U.S. trade deficit are not just abroad,” the minister said, adding that she would raise the issue in talks with U.S. counterparts during a trip to Washington in May.

For years, the United States has been importing more goods from Germany than it exports to Europe’s biggest economy, due to the relatively strong competitiveness of German firms and the high demand among U.S. customers for ‘Made in Germany’ goods.

The resulting U.S. trade deficit with Germany has nearly doubled in the past 10 years from some 28.8 billion euros in 2006 to 49 billion euros in 2016, according to data from Germany’s Federal Statistics Office.

Trump’s trade adviser Peter Navarro has accused Germany of exploiting other countries through a “grossly undervalued” euro.

This sparked a sharp response from German Chancellor Angela Merkel who said the European Central Bank is in charge of the euro and the central bank is a politically independent body.

In a further sign of increased tensions between Germany and the United States, German Foreign Minister Sigmar Gabriel urged the European Union on Friday to consider filing a complaint with the World Trade Organization (WTO) against the United States over its plan to impose duties on imports of steel plate from five EU member states.
…

The Trump administration escalated its criticism of Moscow Friday, with two of its most senior officials denouncing Russia’s treatment of Ukraine and reiterating a vow to maintain U.S. sanctions.

In his first visit to a NATO ministerial meeting in Brussels, U.S. Secretary of State Rex Tillerson accused Russia of “aggression” in Ukraine and told his counterparts that their alliance is “fundamental to countering both nonviolent, but at times violent, Russian agitation” in the region. 

He also said U.S. sanctions against Moscow will remain in effect until it “reverses the actions” that triggered them. Washington imposed the sanctions in response to Russia’s 2014 annexation of Ukraine’s Crimean peninsula and expanded them after Moscow began providing military aid to pro-Russian separatists in eastern Ukraine.

Tillerson’s previous language on Russia had been more conciliatory. After his first meeting with Russian Foreign Minister Sergei Lavrov on the sidelines of a Group of 20 major economies meeting in Bonn in February, Tillerson said the U.S. wants to find “new common ground” with Russia and “expects” it to honor commitments to de-escalate violence in Ukraine as part of the 2015 Minsk agreement.

U.S. ambassador to the U.N. Nikki Haley, whose role is subordinate to Tillerson, similarly criticized Russian “aggression” and vowed to keep U.S. sanctions in place in remarks to the U.N. Security Council February 2.

U.S. Secretary of Defense Jim Mattis also fired a verbal attack at Russia Friday. Echoing language he used in February, Mattis told reporters in London that Russian “violations” of international law are now a “matter of record — from what happened with Crimea to other aspects of their behavior in mucking around inside other people’s elections” — a likely reference to U.S. allegations of Russian meddling in the 2016 U.S. presidential election campaign.

Senior Russian lawmaker Alexey Pushkov was not amused by the U.S. verbal assaults. In a Friday tweet, he said the new U.S. administration “sounds like the old one — Mattis is indistinguishable from (former Defense Secretary Ash) Carter, Tillerson is talking about ‘Russian aggression.’ (Barack) Obama and (Hillary) Clinton must be happy.”

Bloomberg reported that Tillerson’s tough language on Russia was well-received by NATO officials. 

But NATO’s previous secretary general, Anders Fogh Rasmussen, told VOA Persian that he believes the Trump administration should go further. After speaking at a Hudson Institute forum in Washington Thursday, Rasmussen said the U.S. should “strengthen” its sanctions in response to what he called Russia’s continued destabilization of eastern Ukraine.

Watch: Former NATO Secretary General Anders Fogh Rasmussen on US Sanctions

Tillerson and Mattis made no reference in their new remarks to Russia’s plans for more weapons sales to Iran, a nation the Trump administration has warned against threatening the U.S. or its Middle East allies.

A Russian lawmaker who heads the upper house of parliament’s defense and security committee, Viktor Ozerov, visited Iran last November and told reporters that Tehran was in talks to buy $10 billion worth of Russian military hardware. Ozerov said any Russian deliveries of conventional weapons to Iran likely will have to wait until 2020 when U.N. restrictions on arms sales to Tehran expire.

Moscow had taken a major step to boost military cooperation with Tehran before Ozerov’s announcement, delivering an S-300 advanced air defense system to Iran last year.

U.S. officials responded to the Russian-Iranian weapons talks with alarm, according to The Washington Free Beacon news site. It quoted State Department officials as saying they had long been working behind the scenes to persuade Moscow not to sell weapons to Iran.

Former NATO deputy secretary general Alexander Vershbow, who also spoke at Thursday’s Washington forum, told VOA Persian he does not think U.S. sanctions alone can stop Russia from arming Iran.

Watch: Former NATO Deputy Secretary General Alexander Vershbow on US Sanctions and Russia

“To be effective, the U.S. would have to adopt a unified sanctions approach with Europe,” Vershbow said. “While some sanctions imposed on Russia because of Ukraine may cover the Russian defense as well as financial sectors, targeting additional sanctions against Moscow specifically because of Iran may not be an easy issue for agreement with Europe, given its desire not to harm the Iran nuclear deal.”

Iran agreed to curb activities that could produce nuclear weapons as part of a 2015 deal with world powers, who agreed to ease sanctions against Tehran in return.

This report was produced in collaboration with VOA’s Persian Service.
…

Austria’s top diplomat on Friday called on both sides of the conflict in Azerbaijan’s autonomous breakaway region of Nagorno-Karabakh to renew the political settlement process.

Marking the first anniversary of deadly clashes in the Azeri region, which is populated mostly by ethnic Armenians, Austrian Foreign Minister Sebastian Kurz, current chairman of the Organization for Security and Cooperation in Europe (OSCE), emphasized his hope for a fresh start in the largely stalled peace negotiations.

“Clashes and serious violations of the cease-fire on the Line of Contact, resulting in casualties, were of particular concern to us throughout the past year,” Kurz said in a public statement. “It is now high time for a focus on pragmatic and practical steps for confidence-building as well as a resumption of substantive negotiations.”

The United States, Russia and France, which co-chair OSCE’s Minsk Group for conflict mediation, used diplomacy to halt the violence between Armenian-backed separatists and Azeri forces, which was the deadliest incident since a 1994 cease-fire established the current territorial division. Although they have been unable to secure a binding peace resolution, former U.S. Ambassador Carey Cavanaugh said, the renewed push by the OSCE presents a rare opportunity for U.S. and Russian coordination.

“President [Donald] Trump had made clear during his campaign, and since then, that he would like to find a way to have more positive relations with Russia. This might be one of those areas where that is more easily tackled,” said Cavanaugh, who once co-chaired the Minsk Group as a special negotiator alongside Russian and French diplomats.

Opportunity to surprise

“For two decades we’ve been working together as co-chairs on this, and I can tell you as a former co-chair — and I have talked with my successors — that the cooperation would surprise people,” he said.

Unlike the Syrian and Ukrainian conflicts, Nagorno-Karabakh is place where U.S. and Russian interests converge. Considering the constant cease-fire violations since the 2016 clashes left more than 100 people dead, Nagorno-Karabakh, he said, cannot be considered a frozen conflict, but rather “a simmering one, which needs a lot of attention and has a lot of danger.”

The only solution that can prevent further violence is close coordination between U.S. and Russian diplomats, whose nations would both benefit from a sustained peace in the region.

But that can only happen, Cavanaugh said, if both Azeri and Armenian-aligned factions show Washington and Moscow that they are ready to re-engage the peace process.

“The sides need to send clear signals to Moscow, to Washington, to Paris, that they are prepared now really to work on peace again.”

This report was produced in collaboration with VOA’s Armenian service.
…

Pressure is growing on the Hungarian government to withdraw a draft bill on higher education that could lead to the closure of the Central European University in Budapest, which was founded by billionaire philanthropist George Soros.

The U.S. State Department as well as dozens of academics in Hungary and abroad Friday called on Prime Minister Viktor Orban’s government to ensure CEU’s independence and operations.

Orban said Friday on state radio that the CEU was “cheating” because it did not have a campus in its country of origin and because it issued diplomas recognized both in Hungary and the United States, giving it an undue advantage over local institutions. The CEU is accredited in New York state but does not have a U.S. campus.

“This is not fair to Hungarian universities,” Orban said. “There is competition among universities and it is inexplicable why we should put our own universities at a disadvantage … while securing an unfair advantage for the foreign university.”

Nobel Prize winners

Fourteen winners of the Nobel Prize in economics were among about 150 academics from U.S. and European universities who advocated for the CEU in an open letter addressed to education officials and Reka Szemerkenyi, Hungary’s ambassador in Washington.

“It would be a sad outcome for the training of students from the region, for academic research in Hungary, and for our own cooperation with Hungarian academics, if the proposed legislation came into force,” the academics said.

Orban, however, conditioned CEU’s survival to a bilateral Hungary-U.S. agreement on the university. He did not hide his disdain for the Hungarian-born Soros’ policies supporting the university and numerous non-governmental organizations that Orban considers “foreign agents” working against Hungarian interests.

University vows to stay open

CEU rector Michael Ignatieff has vowed to keep the university open despite the draft bill, scheduled to be debated by lawmakers next week. The bill sets new conditions on foreign universities operating in Hungary and was seen as directly targeting the CEU.

Among the 28 foreign universities in Hungary, only CEU would fail to meet a requirement to also have a campus in its home country.

“Contrary to the prime minister’s statement, there is no current Hungarian law that requires universities to have operations in their home countries in order to award degrees in Hungary,” the CEU said. “We have been lawful partners in Hungarian higher education for 25 years and any statement to the contrary is false.”

The CEU also said it was notified Friday by Hungary’s education authority that its accreditation in New York state met the conditions for operating in Hungary.

US speaks out

The U.S. State Department also took exception to the proposed legislation, saying it would impose “new, targeted, and onerous regulatory requirements on foreign universities.”

“If adopted, these changes would negatively affect or even lead to the closure” of the CEU, State Department spokesman Mark Toner said. “We urge the government of Hungary to avoid taking any legislative action that would compromise CEU’s operations or independence.”

Hungarian university organizations also expressed their support for the CEU.

“CEU is a very significant scholarly center,” said Laszlo Lovasz, president of the Hungarian Academy of Sciences. “It is good that it operates in Budapest.”
…

Poland’s defense minster said Friday that he expected to sign a multibillion-dollar deal with U.S. firm Raytheon to buy eight Patriot missile defense systems this year.

Antoni Macierewicz told reporters in Warsaw that the $7.6 billion deal was necessary in light of what he called “a growing threat from the East.” Poland has increased efforts to modernize its military since Russia annexed Crimea from Ukraine three years ago.

“Those systems allow us to guarantee the security of the Polish state,” Macierewicz said.

Deputy Defense Minister Bartosz Kownacki said the missile system would help protect against Russian missiles based in Kaliningrad, an enclave of Russian territory between Poland’s northeastern border and Lithuania.

Raytheon also expressed satisfaction that the deal was moving forward. Congress must approve any contract for the sale of advanced U.S. military technology.

Macierewicz said the Polish government and Raytheon “concluded a very important stage of our discussions on the acquisition of medium-range missile systems to ensure Poland’s security.” He said that some issues were still outstanding, but that the deal could be signed by the end of 2017 if all conditions were agreed upon.

The defense minister acknowledged the talks were sometimes difficult and said Raytheon’s earlier price estimate for the missile systems, $12.7 billion, was “unacceptable.”
…