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The U.S. Federal Bureau of Investigation is challenging suggestions of illegal conduct in an undercover sting operation targeting allegedly corrupt government officials in Kyiv, which the FBI conducted in concert with the National Anti-Corruption Bureau of Ukraine (NABU).

The United States and European Union have provided logistical support and training for NABU investigators tasked with ferreting out government graft in the Eastern European country. The support is part of the financial and diplomatic backing of the leadership that took power in Kyiv after the 2014 Maidan protests, which ousted the Kremlin-backed President Viktor Yanukovych.

But Ukraine’s top prosecutor says NABU investigators overstepped the law in a recent probe of suspected corruption in Ukraine’s migration service.

‘Absolutely illegal’

General Prosecutor Yuriy Lutsenko told parliament he wanted to address issues around “the relationship between various law enforcement agencies that causes public outrage and rather harsh statements by our strategic international partners — the U.S. and the EU.”

“A joint [FBI-NABU] operation … is an absolutely illegal action without the relevant legal procedures,” Lutsenko said in a recent television interview, according to a report by The Wall Street Journal.

In an interview with VOA, NABU Director Artem Sytnyk defended actions of his undercover agents, as well as the agency’s cooperation with FBI.

“This is about the survival of the corrupt elite,” he said. “It further proves that it is impossible to investigate corruption at the highest level and not run into resistance.”

In a statement to VOA, FBI spokeswoman Samantha T. Shero said the law enforcement agency entered into a June 2016 Memorandum of Understanding (MOU) with NABU to provide investigative assistance, training and capacity building for NABU and Ukraine’s Special Anti-Corruption Prosecutor’s Office (SAPO).

“The FBI abides by host nation laws and never operates outside the MOU,” she said, explaining that FBI personnel are temporarily assigned on a rotational basis at the NABU in support of this relationship.

“These special agents and analysts are not operational, and any statements to the contrary are not true,” she said. “Rooting out corruption is a priority for the FBI and we routinely work with our foreign law enforcement partners across the globe to investigate corruption and provide assistance when requested. We value our relationship with the NABU and SAPO, and have found their staff to be professional and trustworthy. NABU and SAPO are young organizations that face enormous challenges in the work that they are doing in Ukraine.”

The FBI, Shero added, will continue to provide NABU and SAPO with support and assistance in their “important work for the Ukrainian people.”

Committee chair dismissed

On Thursday, an opposition legislator who chairs the Ukrainian parliamentary anti-corruption committee was dismissed by fellow lawmakers, in what critics of President Petro Poroshenko’s ruling party are calling an open assault on NABU, the country’s only independent corruption watchdog.

The office of Ukraine’s general prosecutor’s and Poroshenko’s government have come under increasing pressure in recent weeks amid perceived backsliding on reform commitments, which has delayed billions of dollars in loans from the International Monetary Fund and tested the patience of Western countries, even as Kyiv pushes for closer EU integration and possible membership.

Ukraine’s general prosecutor on Wednesday denied that his office was impeding the NABU’s work as he sought to deflect charges by Kyiv’s Western backers that Ukraine was coming up short on promises to fight graft.

This story originated in VOA’s Ukrainian service. Some information came from Reuters.
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The Kremlin says President Vladimir Putin will visit Egypt next week to discuss expanding political, economic, energy and trade ties.

During Monday’s trip the Russian leader will hold talks with Egyptian President Abdel-Fattah el-Sissi on issues related to stability and security in the Middle East and North Africa.

Putin’s visit follows the Russian government’s announcement last week that Moscow and Cairo have drafted an agreement for Russian warplanes to use Egyptian military bases.

The deal comes as part of Moscow’s efforts to further expand its military foothold in the region following its military campaign in Syria.

Under Sissi, Egypt has expanded military ties with Russia and signed a slew of deals to buy Russian weapons.
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At the summit of one of Iceland’s most dangerous volcanoes, a 72-foot (22-meter) depression in the snow is the only visible sign of an alarming development.

The Oraefajokull volcano, dormant since its last eruption in 1727-1728, has seen a recent increase in seismic activity and geothermal water leakage that has worried scientists. With the snow hole on Iceland’s highest peak deepening 18 inches (45 centimeters) each day, authorities have raised the volcano’s alert safety code to yellow.

Experts at Iceland’s Meteorological Office have detected 160 earthquakes in the region in the past week alone as they step up their monitoring of the volcano. The earthquakes are mostly small but their sheer number is exceptionally high.

“Oraefajokull is one of the most dangerous volcanos in Iceland. It’s a volcano for which we need to be very careful,” said Sara Barsotti, Coordinator for Volcanic Hazards at the Icelandic Meteorological Office.

What worries scientists the most is the devastating potential impact of an eruption at Oraefajokull.

Located in southeast Iceland about 320 kilometers (200 miles) from the capital, Reykjavik, the volcano lies under the Vatnajokull glacier, the largest glacier in Europe. Its 1362 eruption was the most explosive since the island was populated, even more explosive that the eruption of Italy’s Mount Vesuvius in 79 A.D. that destroyed the city of Pompei.

Adding to the danger is the lack of historical data that could help scientists predict the volcano’s behavior.

“It’s not one of the best-known volcanos,” Barsotti said. “One of the most dangerous things is to have volcanos for which we know that there is potential for big eruptions but with not that much historical data.”

Iceland is home to 32 active volcanic sites, and its history is punctuated with eruptions, some of them catastrophic. The 1783 eruption of Laki spewed a toxic cloud over Europe, killing tens of thousands of people and sparking famine when crops failed. Some historians cite it as a contributing factor to the French Revolution.

The Eyjafjallajokull volcano erupted in April 2010, prompting aviation authorities to close much of Europe’s airspace for five days out of fear that its volcanic ash could damage jet engines. Millions of travelers were stranded by the move.

To remedy the lack of data for Oraefajokull, scientists are rushing to install new equipment on and around the volcano. Those include ultra-sensitive GPS sensors that can detect even the slightest tremors, webcams for real-time imagery of the volcano and sensors in the rivers that drain the volcano’s glaciers to measure the chemical composition of the water.

Associated Press journalists last week visited scientists working near the mouth of the Kvia River, where the stench of sulfur was strong and the water was murky, clear signs that geothermal water was draining from the caldera.

“The most plausible explanation is that new magma is on the move deep below the surface,” said Magnus Gudmundsson, professor of geophysics at the Institute of Earth Sciences in Reykjavik.

But what happens next is anyone’s guess. In the most benign scenario, the phenomenon could simply cease. More concerning would be the development of a subglacial lake that could lead to massive flooding. At the far end of the spectrum of consequences would be a full eruption.

With such high-risk developments at stake, authorities are taking precautions. Police inspector Adolf Arnason now is patrolling the road around the volcano, which will be used for any evacuation, and residents have received evacuation briefings.

“Some farmers have only 20 minutes (to leave),” he said, pulling up to a small farm on the flank of the mountain.

If an evacuation is ordered, everyone in the area will receive a text message and the radio will broadcast updates. Police are confident that Oraefi’s 200 residents will know how to react, but their biggest concern is contacting tourists.

Iceland has seen a huge boom in tourism since the 2010 eruption — a record 2.4 million people are expected to visit this year and about 2,000 tourists travel through Oraefi every day. While some stay in hotels that could alert their guests, others spend the night in camper vans spread across the remote area.

“The locals know what to do. They know every plan and how to react. But the tourists, they don’t,” said Police Chief superintendent Sveinn Runarsson. “That’s our worst nightmare.”
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The United Arab Emirates says it is “surprised and disappointed” about being blacklisted by the European Union along with 16 other countries the EU deems guilty of unfairly offering tax avoidance schemes.

The UAE said in a statement on Thursday that it’s “committed to a reform process which will be finalized by October 2018” and that it’s “absolutely confident this will ensure the UAE is swiftly removed from the list.”

The EU announced the list on Wednesday, though penalties still need to be confirmed.

The UAE is a federation of seven sheikhdoms that includes Dubai and the oil-rich capital of Abu Dhabi. Dubai’s massive real estate market has attracted both scrupulous and unscrupulous investors.

The UAE is largely tax-free, though value-added taxes will begin in the country on Jan. 1.
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Opinion polls show Vladimir Putin is already a shoo-in to win a fourth presidential term. But a ban on Russia taking part in the Winter Olympics is likely to make support for him even stronger, by uniting voters around his message: The world is against us.

Putin announced on Wednesday that he would run for re-election in March’s presidential vote, setting the stage for him to extend his dominance of Russia’s political landscape into a third decade.

With ties between the Kremlin and the West at their lowest point for years, the International Olympic Committee’s decision to bar Russia from the 2018 Pyeongchang Games over doping is seen in Moscow as a humiliating and politically tinged act.

Putin, echoing his familiar refrain that his country is facing a treacherous Western campaign to hold it back, said he had “no doubt” that the IOC’s decision was “absolutely orchestrated and politically-motivated.”

“Russia will continue moving forwards, and nobody will ever be able to stop this forward movement,” Putin said.

Konstantin Kosachyov, head of the upper house of parliament’s foreign affairs committee, had been among the first to cast the move as part of a Western plot against Russia, which sees sport as a barometer of geopolitical influence.

“They are targeting our national honor … our reputation … and our interests. They (the West) bought out the traitors … and orchestrated media hysteria,” Kosachyov wrote on social media.

The IOC ruling is also seen by many in Russia as a personal affront to Putin, who was re-elected president in 2012 after spending four years as prime minister because the constitution barred him from a third consecutive term as head of state.

The sport-loving leader cast his hosting of the 2014 Sochi Winter Olympics, at which the IOC says there was “unprecedented systematic manipulation” of the anti-doping system, as a symbol of Russia’s success under his rule.

But Putin has often extracted political benefit from crises, and turned international setbacks into domestic triumphs, by accusing the West of gunning for Russia and using this to inspire Russians to unite.

“Outside pressure on Russia, understood as politically motivated and orchestrated from the U.S., leads to more national cohesion,” Dmitri Trenin, director of the Carnegie Moscow Center, said on Wednesday.

“Various sanctions are being turned into instruments of nation-building.”

Putin’s popularity, supported by state television, is already high. Opinion polls regularly give him an approval rating of around 80 percent.

But casting the IOC ban as a Western plot to hurt Russia, something he did when Russian athletes were banned from last year’s Summer Olympics in Rio over doping, could help him mobilize the electorate.

Public anger over the IOC move could help Putin overcome signs of voter apathy and ensure a high turnout which, in the tightly controlled limits of the Russian political system, is seen as conferring legitimacy.

There were early signs that fury over the IOC’s decision was duly stirring patriotic fervor.

“Russia is a superpower,” Alexander Kudrashov, a member of the Russian Military Historical Society, told Reuters on Moscow’s Red Square after the IOC ruling.

Without Russia, he said, the Olympics would not be valid. He linked the decision to a Western anti-Russian campaign which many Russians believe took hold after Russia annexed the Crimea peninsula from Ukraine in 2014.

“Choosing between the people in Crimea, who wept when the Russian flag was run up and who were doomed to genocide, and sportspeople taking first place on the podium, I choose the people who couldn’t defend themselves,” Kudrashov said.

‘We soak it up and survive’

Blaming the West is an approach the Kremlin has often used before when faced with international allegations of wrongdoing — over Crimea’s annexation, the shooting down of a Malaysian passenger plane over Ukraine in July 2014 and charges of meddling in eastern Ukraine, where pro-Russian separatists rebelled against rule from Kiev after Crimea was annexed.

The tactic taps into Russians’ patriotism and makes Putin almost bullet-proof when it comes to scandal. The 65-year-old former KGB agent is regarded by many voters as a tsar-like father-of-the-nation figure who has brought their country back from the brink of collapse.

When at the start of the year it seemed there was a window to repair relations with the West after the election of U.S. President Donald Trump, who said he wanted better ties, the narrative of Russia versus the world was muted.

But when it became clear that U.S. allegations of Russian meddling in Trump’s election precluded any rapprochement, Putin doubled down on the narrative. In October, he launched a stinging critique of U.S. policy, listing what he called the biggest betrayals in U.S.-Russia relations.

Sources close to the Russian government say the IOC ban, along with continued Western sanctions over Ukraine and the prospect of new sanctions, will help the authorities rally voters around the banner of national unity which Putin embodies.

“Outside pressure just makes us stronger,” said one such source who declined to be named because he is not authorised to speak to the media.

Maria Zakharova, a spokeswoman for the Foreign Ministry, set the tone on social media in comments that found ready support from many Russians.

“What haven’t we been forced to suffer from our ‘partners’ in the course of our history,” she wrote. “But they just can’t bring us down. Not via a world war, the collapse of the Soviet Union or sanctions … We soak it up and survive.”
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Ukraine’s general prosecutor denied on Wednesday that his office was impeding the work of a new anti-corruption body as he sought to deflect charges by Kyiv’s Western backers that Ukraine was backsliding on promises to fight graft.

The United States, the European Union and Canada have thrown financial and diplomatic support behind the leadership that took power in Kyiv after the 2014 Maidan protests ousted the Kremlin-backed President Viktor Yanukovich.

But perceived backsliding on reform commitments has delayed billions of dollars in loans from the International Monetary Fund and tested the patience of Western countries even as Kyiv pushes for closer EU integration and possible membership.

The United States and EU have homed in on concerns that vested interests are trying to undermine the independence of the anti-corruption bureau known as NABU, which was set up after the Maidan protests and has been at loggerheads with other law enforcement bodies.

One recent episode had the General Prosecutor’s office unmasking an alleged sting operation being carried out by NABU against suspected corruption in the migration service. It said NABU had overstepped the law.

General Prosecutor Yuriy Lutsenko told parliament he wanted to address issues around “the relationship between various law enforcement agencies that causes public outrage and rather harsh statements by our strategic international partners — the U.S. and the EU.”

He denied his office was at war with NABU, saying NABU officers must face the legal consequences if they commit offenses.

“Our normal cooperation does not mean that the General Prosecutor’s office can ignore signs that laws have been broken,” Lutsenko said.

Earlier Wednesday, NABU tweeted thanks to international backers for their support, posting statements released this week by the U.S. Department of State and the EU.

Questionable actions

The U.S. State Department said on Monday that recent events in Ukraine, including the disruption of a high-level corruption investigation and the arrest of NABU officials, raised concerns about its commitment to fighting corruption.

“These actions … undermine public trust and risk eroding international support for Ukraine,” a spokeswoman said.

The EU on Tuesday night urged that the work of anti-corruption institutions “must not be undermined but reinforced.”

Britain’s Ambassador to Kyiv, Judith Gough, on Wednesday cited a survey showing corruption within state bodies was the top issue for Ukrainian voters.

“Surely tackling corruption is a vote winner, rather than undermining institutions active in the fight against corruption?” she tweeted.
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Supporters of the far right in Finland and anti-facists staged rival marches in the capital Wednesday as the country celebrated 100 years of independence.

Police in riot gear reinforced by security personnel from around the country made 10 arrests because of scattered fights and misbehavior. About 2,000 people joined the anti-facist march while demonstrations by two far-right groups also gathered up to 2,000 people, the police said.

Anti-immigrant sentiment has been on the rise in the Nordic European Union member country of 5.5 million. About 32,500 migrants and refugees arrived during Europe’s migrant crisis in 2015. The number came down to 5,600 last year.

“No Nazis in Helsinki!” shouted anti-fascist demonstrators.

Far-right marchers promoted the slogan “Toward freedom,” and many carried torches. Last week, a court banned a neo-Nazi group called Nordic Resistance Movement, but it took part in a march as the decision has yet to be implemented.

Finland was part of the Russian empire and won independence during the 1917 Russian Revolution, then nearly lost it fighting the Soviet Union in World War II.
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Two men were charged Tuesday in London with terror offenses over an alleged plot to kill British Prime Minister Theresa May, according to British government officials.

Both will appear before a court Wednesday in the British capital in connection with what officials say was a conspiracy to launch a suicide-knife attack on Downing Street, the official home of the prime minister.

News of the foiled assassination plot broke shortly after the head of Britain’s domestic intelligence service MI5, Andrew Parker, had briefed the cabinet on the terrorist threat and informed ministers that his service had thwarted nine terrorist attacks this year.

He informed ministers of the plot during the briefing, although the information was held back from the media for several hours.

Both of the conspirators were arrested last week in raids by counterterrorism officers in London and Birmingham, according to police officials. One of the men, named as Naa’imur Zakariyah Rahman, 20, is accused of preparing acts of terrorism.

He was allegedly carrying two improvised explosive devices, which were inert, when he was arrested November 28 in London. His suspected co-conspirator was named as 21-year-old Mohammed Aqib Imran. He was seized 90 minutes later in a raid on a house in Birmingham in the English Midlands.

Imran also is accused of previously trying to secure a fake passport in a bid to reach Libya to join the Islamic State affiliate in the North African country.

According to officials, both men were plotting a bomb assault on the security gates protecting the entrance of Downing Street. Rahman then allegedly planned to storm Number Ten, wearing a suicide vest and using pepper spray and a knife, in an effort to kill Theresa May.

A Downing Street spokesman said earlier that Parker had told cabinet ministers that while Islamic State had suffered serious defeats in Iraq and Syria, “this did not mean the threat is over, rather it has spread into new areas, including trying to encourage attacks in the U.K. and elsewhere via propaganda on social media.”

Missed opportunities

The disclosures about the Downing Street plot came hours after an official report was released on last year’s Manchester bombing and other terror attacks on the British capital. According to the report undertaken by David Anderson, British security forces had missed opportunities to thwart the Manchester attack. The report confirmed that the ringleader of the London Bridge knifing spree had been under investigation by MI5.

The Anderson report revealed that the Manchester suicide bomber, British-Libyan Salman Abedi, had been flagged for closer scrutiny by the security services and that his bombing of the audience at an Ariana Grande concert in which 22 people died could have been averted “had the cards fallen differently.”

He said MI5 investigators had misinterpreted intelligence on Abedi. His case was due to be considered at a meeting scheduled for nine days after his May 2016 attack at the Manchester Arena.

But Anderson, a former terrorism law reviewer asked by the government to review the recent spate of terror attacks, concluded there is “no cause for despair.” Most terror plots continued to be foiled before they are launched, he said.

Downing Street security

Downing Street is heavily protected by fortified gates and armed police officers. Analysts say the chances of the men gaining entrance to the prime minister’s residence would have been remote.

Stringent protective measures were first put in place in the 1970s, and were tightened during the 1980s when Irish republicans launched attacks on the British mainland.

In 1991, the IRA managed to breach security, launching a homemade mortar bomb attack on Number 10. The mortars fell in the garden, but the explosions prompted officials and ministers to dive for cover.

The nearest the IRA got to killing a British prime minister was in 1984 when they targeted the hotel Margaret Thatcher and top officials were staying in for that year’s annual Conservative party conference in Brighton on Britain’s south coast. Thatcher was uninjured, but several ministers were seriously wounded in the bombing.
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A war on food waste in France, where supermarkets are banned from throwing away unsold food and restaurants must provide doggy bags when asked, has helped it secure the top spot in a ranking of countries by their food sustainability.

Japan, Germany, Spain and Sweden rounded out the top five in an index published the Economist Intelligence Unit (EIU), which graded 34 nations based on food waste, environment-friendly agriculture and quality nutrition.

It is “unethical and immoral” to waste resources when hundreds of millions go hungry across the world, Vytenis Andriukaitis, EU Commissioner for Health and Food Safety, said at the launch of the Food Sustainability Index 2017 on Tuesday.

“We are all responsible, every person and every country,” he said in the Italian city of Milan, according to a statement.

One third of all food produced worldwide, 1.3 billion tons per year, is wasted, according to the U.N.’s Food and Agriculture Organization.

Food releases planet-warming gases as it decomposes in landfills. The food the world wastes accounts for more greenhouse gas emissions than any country except for China and the United States.

“What is really important is the vision and importance of [food sustainability] in these governments’ agendas and policies,” Irene Mia, global editorial director at the EIU, told Reuters. “It’s something that is moving up in governments’ agendas across the world.”

Global hunger levels rose last year for the first time in more than a decade, with 815 million people, more than one in 10 on the planet, going hungry.

France was the first country to introduce specific food waste legislation and loses only 1.8 percent of its total food production each year. It plans to cut this in half by 2025.

“France has taken some important and welcome steps forward including forcing supermarkets to stop throwing away perfectly edible food,” said Meadhbh Bolger, a campaigner at Friends of the Earth Europe. “This needs to be matched at the European level with a EU-wide binding food waste reduction target.”

High-income countries performed better in the index, but the United States lagged in 21st place, dragged down by poor management of soil and fertilizer in agriculture, and excess consumption of meat, sugar and saturated fats, the study said.

The United Arab Emirates, despite having the highest income per head of the 34 countries, was ranked last, reflecting high food waste of almost 1,000 kilos per person per year, rising obesity and an agriculture sector dependent on depleting water resources, it said.
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Turkey’s president says the New York trial of a Turkish banker is a U.S. conspiracy being staged to “blackmail” and “blemish” his country.

President Recep Tayyip Erdogan spoke Tuesday in Ankara, Turkey. His comments came as the trial of Halkbank executive Mehmet Hakan Atilla continued in its second week.

Turkish-Iranian gold trader Reza Zarrab described criminal activities he was forced to divulge after he pleaded guilty to seven charges in October and became a government cooperator. His testimony likely will win him leniency at sentencing.

The defense says Atilla is “not corrupt.”

Erdogan says the trial is a ploy to distract Turkey while Washington hatches plans to strengthen Syrian Kurdish groups Turkey considers to be terrorists.

U.S. prosecutors say claims the trial resulted from political maneuvering are “ridiculous.”
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Ukrainian security forces stormed Mikheil Saakashvili’s Kyiv apartment and arrested the former Odesa governor, now an adamant opponent of President Petro Poroshenko, accusing him of criminal ties with ousted ex-leader Viktor Yanukovych.

Police used tear gas or pepper spray on protesters and Saakashvili appeared on the roof of the building during the drama, shaking his fist and accusing Poroshenko of being a traitor and a thief before being dragged away by security forces.

As the events unfolded in the street, Prosecutor-General Yuriy Lutsenko alleged at a briefing that an “organized crime” group led by Yanukovych, who is in exile in Russia, have financed protests organized by Saakashvili.

Saakashvili’s detainment prompted clashes between law enforcement officers in riot gear and supporters of the former Georgian president, who urged “all Ukrainians to take to the streets and drive out the thieves.”

“Do not let lawlessness happen. Do not let chaos happen. Do not let Poroshenko and his gang continue the robbery,” he said. “Ukraine is under a real threat. These people have completely usurped power.”

Shouting and shoving matches ensued, and after police hauled Saakashvili into a blue van, supporters attempted to lie in the street to keep him from being taken away.

Hours later, more than 1,000 supporters were on the scene, along with dozens of police, and cars were wedged close together in an effort to keep the van from moving away. The street was blocked with a makeshift barricade.

The commotion began shortly after 7 a.m. and was first made public by Saakashvili associate David Sakvarelidze.

“They’re breaking down the door at Mikheil Saakashvili’s home!” he wrote on Facebook, giving the address and apartment number.

The Ukrainian Security Service (SBU) said that Saakashvili’s residence was being searched as part of a criminal inquiry conducted by the Prosecutor General’s Office.

“Investigative procedures are indeed taking place. SBU officers are providing investigative support to a criminal inquiry of the Ukrainian Prosecutor-General’s Office,” SBU spokeswoman Olena Hitlyanska told RFE/RL’s Ukrainian service.

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Hitlyanska did not specify the nature of the criminal inquiry, but the SBU later said Saakashvili was accused of “complicity with members of criminal organizations and concealing their activity by providing premises and by other means.”

At a news briefing, Lutsenko alleged that Saakashvili has held protests financed by allies of Yanukovych, who was pushed from power by pro-European protests in February 2014 and fled to Russia.

The prosecutor-general said the alleged Yanukovych allies included Serhiy Kurchenko, a businessman who also fled to Russia, and claimed that Saakashvili had received $500,000 in a bank transfer from Russia.

As the search unfolded, live videos shared on social media showed a chaotic and sometimes violent scene outside Saakashvili’s building, steps away from Kyiv’s Maidan Nezalezhnosti, or Independence Square — the focal point of the Euromaidan protests.

A shoving match between law enforcement agents and supporters of Saakashvili ensued as the latter tried to push their way into the apartment.

Saakashvili appeared on the roof, and officers quickly seized him and moved him away from the ledge before bringing him out of the building.

Video on Facebook showed dozens of riot police around the apartment building preventing people from entering.

Live at the Saakashvili showdown in Kyiv. Turning violent. Police using tear gas on provocative protesters. https://t.co/tg0eNGaZCU

— Christopher Miller (@ChristopherJM) December 5, 2017

The search of Saakashvili’s home was conducted two days after his Movement of New Forces party organized a rally in Kyiv calling for Poroshenko’s impeachment and for legislation that would allow it to take place. Poroshenko has accused the protest organizers of seeking to destabilize Ukraine, which is struggling with economic troubles and a deadly conflict with Russia-backed separatists in two eastern provinces.

Saakashvili was swept to power in Georgia’s peaceful Rose Revolution in 2003 and served as president of Georgia from 2004-13. He conducted major reforms and fought corruption in the former Soviet republic but was accused of abusing his power and is wanted in his home country on suspicion of trying to organize a coup there after leaving office, an allegation he denies.

In the wake of the Euromaidan protests that brought a pro-Western government to power in Ukraine, Poroshenko appointed Saakashvili — an acquaintance from university days — as governor of the Odesa region in 2015. Saakashvili surrendered his Georgian citizenship to take the post.

But Saakashvili resigned in November 2016, saying his reform efforts had been blocked by Poroshenko’s allies, and went into the opposition. Saakashvili was then stripped of Ukrainian citizenship by Poroshenko while he was in the United States in June 2017, a move he is challenging in court.

Weeks later, Saakashvili forced his way back into Ukraine and was found guilty of violating the state border. He paid a fine and has since been touring the country, speaking out against Poroshenko and trying to garner support for his fledgling political party, Movement of New Forces.

Saakashvili has indicated he wants to be Ukraine’s next prime minister, a post that he could theoretically hold as it is a position appointed by the president upon ratification by parliament. With his citizenship status in flux, under current law he is forbidden from officially running for president.

While well-known across Ukraine, Saakashvili and his party enjoy little public support, with nearly all polls showing putting them at around 1-2 percent.

Saakashvili recently claimed that Poroshenko was planning to force him to flee to another country to avoid extradition to Georgia.

During the rally on December 3, Saakashvili alleged in comments to Georgia’s Rustavi-2 television that Poroshenko and former Georgian Prime Minister Bidzina Ivanishvili have “agreed that a sentence on trumped-up charges will be quickly issued next week.”

Poroshenko’s office has not commented on the allegations or Saakashvili’s detention on December 5.
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A high-ranking United Nations official has arrived in North Korea to help lower tensions over the secretive regime’s nuclear and ballistic missile testing programs.

Jeffrey Feltman, the world body’s undersecretary-general for political affairs, left for Pyongyang Tuesday after a stopover in Beijing the day before. Feltman is the first U.N. official holding that rank to visit the isolated regime since his predecessor, Lynn Pascoe, in 2010.  

U.N. spokesman Stephane Dujarric said Monday that Feltman will discuss “issues of mutual interest and concern” with Foreign Minister Ri Yong Ho and Vice Minister Pak Myong Guk during his visit, which ends on Friday.  

Feltman’s visit comes less than a week after Pyongyang announced it had successfully test fired a new intercontinental ballistic missile that can reach the U.S. mainland. The launch heightened tensions between the North and the United States, highlighted by months of insults between the regime and President Donald Trump.  

The visit also coincides with a joint U.S.-South Korea air force exercise that began Monday.

Dujarric said Pyongyang issued an invitation for Feltman to visit back in September, during the annual gathering of world leaders at the U.N. General Assembly.  

Feltman will also meet with the heads of various U.N. humanitarian programs operating in North Korea, including UNICEF, the World Health Organization, and the U.N. Population Fund.  But Dujarric would not say if Feltman would meet with North Korean leader Kim Jong Un during his trip. 
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Russia’s justice ministry on Tuesday designated nine U.S. media outlets, including the Voice Of America, as “foreign agents.”

The ministry further listed Radio Free Europe/Radio Liberty and several of its affiliates, after warning last month they could be affected.

Russian President Vladimir Putin signed a law in November empowering the government to designate media outlets receiving funding from abroad as “foreign agents” and impose sanctions against them.

Russian officials have called the new legislation a “symmetrical response” to what they describe as U.S. pressure on Russian media. On November 13, Russian state-funded television channel RT registered in the United States under a decades-old law called the Foreign Agents Registration Act (FARA).

U.S. Ambassador to Russia Jon Huntsman said FARA is aimed at promoting transparency but does not restrict the television network’s operation in the United States.

The U.S. State Department has condemned Russia’s law, saying it obstructs press freedom.

“New Russian legislation that allows the Ministry of Justice to label media outlets as ‘foreign agents’ and to monitor or block certain internet activity presents yet another threat to free media in Russia,” State Department spokesperson Heather Nauert said in a statement last month.
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Indian tycoon Vijay Mallya insisted Monday that he was innocent of money-laundering accusations after an evacuation of the court building during a London hearing put him the in the center of a media scrum.

The Westminster Magistrates Court session was interrupted briefly by a fire alarm, forcing Mallya outside amid the waiting media. Television crews from India pursued Mallya, while he tried to avoid them.

“The allegations are baseless, unfounded, deliberate and you will see our submissions in court,” he said.

But the media kept pursuing 61-year-old businessman and former politician, circling him on the sidewalk.

“The answer will be given to the judge – you think you are going to conduct a trial by media?” he asked.

India is seeking Mallya’s extradition to answer the allegations related to the collapse of several of his businesses.

Mallya launched Kingfisher Airlines in 2005 and the carrier set new standards for quality and service, forcing competing airlines to improve. But it ran into trouble as it expanded. The Indian government suspended the airline’s license in 2012 after it failed to pay pilots and engineers for months.

The case is expected to take roughly eight days and lead to a verdict on whether he will be sent back to India or allowed to remain in Britain.
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Ten suspects were arrested Monday over the October 16 car bomb murder of investigative journalist Daphne Caruana Galizia, Malta’s prime minister announced.

Joseph Muscat said eight Maltese citizens were arrested on Monday morning, given a “reasonable suspicion” of their involvement in Caruana Galizia’s slaying. Shortly afterward, he tweeted that two others had been arrested, but didn’t cite their nationality.

Police sources, speaking on condition of anonymity because they were not authorized to speak publicly about the case, said the other two are also Maltese.

Overall, Muscat gave almost no details, citing concerns any information could compromise prospects to prosecute the case.

The investigation appeared to be continuing, as police and armed forces had cordoned off an area in Marsa, a small town close to Valletta, the capital.  

The arrests, made in an operation coordinated among the Police Corps, the Armed Forces of Malta and the Security Services, were the first known break in the murder that has drawn widespread outrage and condemnation.

Investigators have 48 hours to question the suspects to decide whether to seek charges, in accordance with Maltese law.

Caruana Galizia, whose reporting focused heavily on corruption on the EU island nation, was killed when a bomb destroyed her car as she was driving near her home.

Europol, the European Union’s police agency, sent a team of organized crime experts to help Maltese police investigate the assassination, joining the FBI and Dutch forensic experts.

‘Crooks everywhere’

Just before her death, Caruana Galizia, 53, had posted on her closely followed blog, Running Commentary, that there were “crooks everywhere” in Malta.

The island nation has a reputation as a tax haven in the European Union and has attracted companies and money from outside Europe as well.

Just last week, a visiting delegation of European Parliament lawmakers left the island expressing concerns over the rule of law in the tiny EU member country and issued a warning that the “perception of impunity in Malta cannot continue.”

Low tax rates and a popular government program that allows wealthy foreigners to buy Maltese citizenship has made the country an attractive place for investment, financial and other companies. Authorities, including anti-Mafia investigators in nearby Italy worry that Malta is in the eye of criminals on the lookout for money-laundering schemes.

The journalist focused her reporting for years on investigating political corruption and scandals, and reported on Maltese mobsters and drug trafficking. She also wrote about Maltese links to the so-called Panama Papers leaks about offshore financial havens.

 
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The finance ministers from the 19 countries that use the euro are deciding who should lead their regular meetings, with Portugal’s Mario Centeno widely tipped to take the helm of a group that has led the currency bloc’s crisis-fighting efforts.

The decision of who will succeed Dutchman Jeroen Dijsselbloem as president of the so-called eurogroup is expected later Monday. Dijsselbloem, who has held the post for nearly five years, has been one of the most high-profile European politicians during a period that saw a number of countries, notably Greece, teeter on the edge of bankruptcy and the euro currency itself come under threat.

Three other candidates are in the frame, too: Luxembourg’s Pierre Gramegna, Slovakia’s Peter Kazimir and Latvia’s Dana Reizniece-Ozola.

Whoever gets the presidency will inherit a eurozone in far better shape than the one that existed during Dijsselbloem’s tenure. The economy is growing strongly while worries over Greece’s future in the bloc have subsided and the country is poised to exit its bailout era next summer.

A victory for Centeno, who in Portugal has favored easing off budget austerity policies, has the potential to mark a new era for the eurozone.

While eurozone governments still insist that countries must keep their public finances in shape, there’s a greater acknowledgement that many people, particularly in southern Europe, have grown weary of austerity. Following the departure of long-time German Finance Minister Wolfgang Schaeuble, a Centeno victory would encapsulate that shift.

Portugal was one of four eurozone countries that had to be bailed out during the region’s debt crisis. In 2011, the country required a 78 billion-euro rescue after its budget deficit grew too large and bond market investors asked for hefty premiums to lend to the government. In return for the financial lifeline, Portuguese governments had to enact a series of spending cuts and economic reforms.

Though the strategy may have worked in bringing Portugal’s public finances into better shape, austerity accentuated a recession and raised unemployment. Since Centeno took office in the Socialist government that came to power in December 2015, Portugal’s deficit has fallen to 2 percent, the lowest in more than 40 years while the unemployment rate is down to an almost 10-year low of 8.5 percent, after peaking at a record 16.2 percent in 2013.

Ahead of the meeting where the vote will take place, Centeno said his aim, should he come out on top, would be to “generate consensus” in the “challenging” period ahead.

“We have showed everyone that we can reach consensus, we can work with other parties, we can work with institutions,” he said. “Portugal is an example of that.”

Dijsselbloem said keeping the eurogroup “together and united” should be the primary purpose of the eurogroup president.

“It’s the only way we take decisions in the eurogroup,” he said.

 
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Nationalist dominated the first round of local elections on the French Mediterranean island of Corsica, winning more than 45 percent of the vote in preliminary results. The vote has been closely watched elsewhere, following Catalonia’s independence moves in Spain.

The results mark a clear victory for the current ruling nationalist coalition in Corsica. Their Pe a Corsica list earned significantly more votes during this first round than two years ago, when they swept to an unprecedented victory in regional elections. A smaller nationalist ticket received far fewer votes. But should the two unite, they would capture the majority of seats in Corsica’s assembly.

Speaking to French TV, nationalist leader Gilles Simeoni, who heads the winning ticket, said his group would represent all Corsicans, whether they supported their movement or not.

The nationalists took power in 2015, refueling, for some, long-held independence dreams on the island. Catalonia’s independence struggle has added further juice.

University of Bordeaux Corsica expert Thierry Dominici said the results were a huge victory – and suggest nationalist sentiments touch everyone in Corsica. He credited the high abstention rate to a mix of factors – including that many are waiting for next Sunday’s runoff.

Strikingly, France’s main parties scored extremely low – including the far-right National Front party which faired strongly in Corsica during the presidential elections.

That meant, Dominici said, Corsican support for the far right reflects a protest vote, rather than real support.

The Corsican results mark yet another European region tilting to more autonomy. Unlike Spain’s Catalonia region, however, Corsica’s ruling coalition is not demanding independence – rather more local control of matters like taxation and education. More die-hard nationalists continue to hope for more.

 
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German authorities say a suspicious package containing nails that led to a bomb scare on a Christmas market in Potsdam was part of a blackmailing plot against a delivery company.

Brandenburg state Interior Minister Karl-Heinz Schroeter told reporters Sunday the package was part of a scheme to extort millions of euros from delivery company DHL. It was delivered Friday to a pharmacy on the same street as the market in Potsdam and later destroyed in a controlled explosion.

Schroeter said it most likely didn’t target the market.

Officials said the package’s sender was still at large and that an online company in Frankfurt an der Oder had received a similar package “a while ago.”

Police initially said the device wasn’t viable, but now think the package could have exploded.
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Germany wants to support rejected asylum-seekers who voluntarily move back to their home countries with a one-time payment of 3,000 euros ($3,570).

The Interior Ministry says those who qualify can apply by a Feb. 28 deadline and they would get the money once they return home.

Migrants who agree to go back even before their asylum request is rejected have already been offered 1,200 euros per adult and 600 euros per child under a different program for almost a year. They are now eligible to apply for both programs.

But the Bild am Sonntag newspaper reported Sunday that 8,639 migrants participated in the returnee program between February and October, even though there are about 115,000 rejected asylum-seekers in Germany -many of whom can’t be deported for humanitarian reasons.
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Russia has approved a draft agreement with Egypt for Russian warplanes to use Egyptian military bases, in a move allowing Moscow to increase its military presence in the Middle East.

The draft deal was published on November 30 after being signed by Russian Prime Minister Dmitry Medvedev on November 28. It requires the Russian Defense Ministry to negotiate details of the agreement with Egyptian officials.

As outlined in the draft plan, the deal would allow each country’s military to use the other’s air bases for a period of five years, which could be extended if agreed.

Russia raised its profile in the Middle East in 2015 by launching a campaign providing air support for Syrian President Bashar al-Assad’s troops in their civil war against Sunni rebels. Russia has an air base and a naval supply facility in Syria, which it plans to expand.

INFOGRAPHIC: U.S., Russian Military Bases Abroad

Egypt was Moscow’s closest Arab ally in the 1950s and 1960s, when nationalist leader Gamal Abdel-Nasser turned away from the United States and secured Soviet backing. Nasser’s successor, Anwar Sadat, broke ties with Moscow and evicted Soviet military advisers.

Sadat’s landmark peace deals with Israel in the 1970s increased Egypt’s standing with the West and made it an anchor of stability in the volatile region. Under the deal, the United States agreed to give billions of dollars in military aid to Egypt each year.

But ties with the United States have weakened in recent years and Egypt’s current president, Abdel-Fattah el-Sisi, has developed friendly ties with Russian President Vladimir Putin.

Sisi has expanded trade with Russia and shown a renewed interest in Russian arms purchases, with Cairo recently signing deals to buy Russian fighter jets, helicopters, and other weapons.

Russian Defense Minister Sergei Shoigu visited Cairo on November 29 for talks and praised what he called the “positive dynamics in the military-technical sphere.”

Offering condolences for the massacre at a mosque in Egypt’s Sinai Peninsula last week that killed over 300 people, Shoigu emphasized the need to strengthen cooperation in fighting terrorism.

“We believe that it’s necessary to fight this evil together using all accessible means,” he said.

The local affiliate of the extremist group Islamic State has not formally claimed responsibility for the mosque attack, but the gunmen that mowed down the worshippers carried the black banner of the militant group.

The IS affiliate has previously claimed responsibility for the October 2015 downing over the Sinai of a Russian passenger jet that killed all 224 people on board, most of them Russian tourists.

IS said it blew up the plane with a bomb smuggled on board, a claim confirmed by Russian investigators. The bombing prompted Russia to cut commercial flights with Egypt, dealing a heavy blow to the country’s tourism industry.

Moscow and Cairo have held talks on boosting airport security and resuming commercial flights, but no agreement has been reached.

With reporting by AP, dpa and Reuters
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A Spanish Supreme Court judge in Madrid has begun questioning jailed leaders of Catalonia’s independence drive who are seeking to be released from custody ahead of a regional election later this month.

Supreme Court magistrate Pablo Llarena on Friday began reviewing the jailing of eight members of the dissolved regional government and two prominent activists. Catalan Vice President Oriol Junqueras is among those imprisoned.

The eight politicians are facing charges of sedition, rebellion and misappropriation of funds after the Catalan government declared independence from Spain.

The two activists are facing sedition charges for their roles in the demonstrations in Barcelona.

Both groups requested the court appearance because most of them are running for office in the December 21 regional election that Madrid called after its crackdown on Catalonia.

 
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As Islamic State stands on the brink of defeat in its previous heartlands in Syria and Iraq, analysts say the group’s effort to win the information war is also failing.

As its propagandists can no longer maintain a pretense of military victory, they are switching attention to trying to inspire attacks overseas.

A recent video produced by the media arm of Islamic State demonstrates the dramatic change in the group’s multimedia efforts.

Gone are the scenes of hundreds of victorious ISIS fighters, the huge arsenals of weapons and the boasts about the swaths of territory the militants control. There is no illusion either of the populations living in purported blissful harmony in the Islamic State’s dreamed-of caliphate.

WATCH: Huge Decline in ISIS Propaganda Mirrors Losses on Battlefield

Big change recently

Instead, the video shows a handful of fighters on an armored truck.

“It looks like this is in Raqqa. They’re trying to portray the Islamic State’s army as still this professional, capable, well-oiled machine. But, I mean, this is three guys in one truck in an abandoned city. It’s miles apart from what they used to do,” said Charlie Winter, an expert in terrorist propaganda at the International Center for the Study of Radicalization at Kings College London.

Winter says the most significant change occurred during the past few weeks.

“The Islamic State is far less productive than it’s ever been,” he said. “I mean, it’s almost as if someone has pressed mute on its propagandists. But in October, that was when it really suddenly went silent, and I think that’s because a media center or a few media centers had been destroyed around Raqqa and Mayadin (in Syria) in particular.”

Shrinking territory, same ideology

The territory held by Islamic State has shrunk to a fraction of the area it controlled just a year ago and it has far less source material from which it can create its media.

U.S.-backed coalition forces battling ISIS have also learned the importance of its propaganda. On the ground and online, its media operations have been targeted. Winter says the militants are recalibrating their followers’ expectations of victory — from dreams of an Islamic caliphate to mere survival.

“Even if it doesn’t have the territory, it still has the ideology, it still has the adherents, it still has the true believers killing themselves in its name,” Winter said.

New message

In previous years, ISIS propaganda was aimed at luring foreign believers to live in its purported Islamic utopia.

“No longer is it calling for people to travel to Iraq and Syria,” Winter said. “Instead, it’s really trying to double down on getting people to carry out operations back in their home countries.”

That is where Islamic State propaganda is trying to claim success. Despite little evidence of direct links, the group trumpets that it has the ability to inspire terror attacks anywhere in the world, such as the series of vehicle attacks in London and other European cities, and in New York in October.

That puts a big responsibility on global media that Winter says is effectively sustaining Islamic State, even as the group is defeated on the battlefield.

“So, how the global media responds to these operations. Because increasingly they are going to be the Islamic State’s lifeblood. They are going to be the thing that keeps it afloat as an ideology, as a movement, as an organization,” he said.

The latest video release from ISIS claims that Egypt’s Sinai peninsula will become part of its territory. Islamic State fighters attacked a mosque in the region last week, killing more than 300 people.
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French President Emmanuel Macron fears Islamist militants have scored military and symbolic victories in West Africa while a regional military force has struggled to get off the ground, a French presidential source said on Thursday.

To help get the new G5 Sahel force operating effectively, he said, France has invited the United States to a summit with the five participating countries as well as the African Union and European Union in Paris next month.

Thousands of U.N. peacekeepers, French troops and U.S. military trainers and drone operators have failed so far to stem a growing wave of jihadist violence, leading world powers to pin their hopes on the new G5 Sahel force.

The G5 Sahel initiative – grouping Burkina Faso, Chad, Mali, Mauritania and Niger – faces an immense security challenge in a largely desert and weakly governed region and already faces questions over its financing and provision of equipment.

“Emmanuel Macron believes that it’s not going quickly enough and that the terrorists have registered military and symbolic victories, especially in Niger, and (that) it’s urgent to reverse this trend,” the French official said in Ghana where Macron was winding up a three-day Africa trip.

“The (objective) will be to accelerate the calendar for the support of the force, and the operational calendar.”

The jihadist threat hit home again last month with an attack in Niger in which eight U.S. and Nigerien troops were killed, prompting American officials to forecast that U.S. involvement in the Sahel region would deepen.

As well as the leaders of the G5 nations – all former French colonies – and the EU and African Union, the French presidential official said the United States had also been invited to the Dec. 13 summit.

The G5 force is to eventually comprise 5,000 men from seven battalions and police the region in collaboration with 4,000 French troops deployed there since Paris intervened in 2013 to beat back an insurgency in northern Mali.

It will also have to coordinate with MINUSMA, Mali’s U.N. peacekeeping mission. MINUSMA has been frequently attacked in the north where Islamists have regained ground since 2013.

A donor conference will be held in Brussels on Dec. 14 to raise funds for the Sahel force. Paris has also asked Saudi Arabia to help finance the force and representatives of the kingdom could also be in Paris on Dec. 13, the official said.
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Denmark has detained a 43-year-old Russian national at Moscow’s request pending an international extradition, Danish prosecutors said Thursday.

Henriette V. Norring from the office of the Director of Public Prosecutions said Russia now has to make a formal extradition request.

She says Denmark will consider the request “thoroughly,” adding any extradition “will only be possible if all conditions of Danish extradition legislation are met.”

She declined to name the man but his lawyer said it was Alexander Panesh, a resident of France. Panesh was detained Nov. 21 and can be held in custody until Dec. 19.

The lawyer, Kim Bagge, told The Associated Press that her client was wanted for bribery and making false statements, among other allegations.

Bagge said Panesh claims he fled Russia because of ties to the political opposition – a claim that could not be independently verified.

In July 2016, Moscow request an Interpol Red Notice be issued for her client, Bagge said, adding that he was arrested at Copenhagen airport during a transit for Lithuania where he had gotten permission from Lithuanian police to pick up papers to be used in his French asylum request.

“It is my client’s understanding that this is clearly politically motivated,” Bagge told the AP. Denmark “cannot extradite a person fleeing from personal persecution. All Denmark does is delay an asylum process in France.”

“It is beyond understanding why a man who has lived openly in France for a year and where his asylum application is being processed is now arrested in Denmark,” he said. “His name must have popped up as sought-after on computers at the airport.”

In 2002, Denmark refused to extradite London-based Akhmed Zakayev, a top aide to Chechen rebel leader Aslan Maskhadov, who was arrested in Copenhagen at Russia’s request. Danish officials released him after rejecting Moscow’s request to extradite him because of insufficient evidence.
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The Kremlin voiced dismay Thursday over the withdrawal of a Russian state-funded TV station’s credentials in the U.S. and warned of a quick retaliation.

A committee that governs Capitol Hill access for broadcast journalists on Wednesday withdrew credentials for Kremlin-funded RT after the company complied earlier this month with a U.S. demand that it register under the Foreign Agents Registration Act.

President Vladimir Putin’s spokesman, Dmitry Peskov, denounced the move as a violation of media freedom and “extremely hostile act,” adding that “we are deeply disappointed.”

 “Such hostile and undemocratic decisions can’t be left without an answer,” he said in a conference call with reporters. “You don’t have to be a soothsayer to forecast an emotional response from our lawmakers regarding the U.S. media.”

Senior Russian lawmakers warned that representatives of the U.S. media can lose access to parliament and government agencies as a quid pro quo. Foreign correspondents in Russia can currently access the Russian parliament and some government agencies with their press credentials issued by the Russian Foreign Ministry.

Vyacheslav Volodin, the speaker of the Russian parliament’s lower house, the State Duma, said the U.S. move was a “challenge to the universal values of freedom of speech.”

“This is an attack on the foundation of democracy, and we aren’t going to tolerate it,” he said. “We are considering options for a symmetrical, quid pro quo response to the hostile U.S. actions. They will come soon.”   

The U.S. move and the Russian threats of retaliation follow the endorsement of a new Russian bill that allowed the government to designate international media outlets as foreign agents in response to the U.S. demand made to the RT TV channel.

The bill, quickly passed by the Russian parliament and signed into law by Putin over the weekend, says that any government- or private-funded foreign news outlets could be declared foreign agents, leaving it to the Justice Ministry to single them out.

The ministry already has notified the U.S. government-funded Voice of America and Radio Free Europe/Radio Liberty, along with its regional outlets, that they could be designated as foreign agents under the new law.

U.S. intelligence agencies have alleged that RT served as a tool for the Kremlin to meddle in the 2016 U.S. presidential election. Russia has denied any interference.

Russia’s hopes for better relations with the U.S. under President Donald Trump have been shattered amid the Congressional and FBI investigations into alleged ties between Trump campaign in Russia.

Speaking in a TV interview broadcast Thursday, Russian Prime Minister Dmitry Medvedev said the Russia-U.S. relations are in a “horrible” shape, the lowest point since the Cold War times.

 “Some American politicians are trying to solve their problems and put a pressure on their president by playing the `Russian card,'” Medvedev said.

He drew a parallel with a hunt for purported communist infiltrators in the 1950s led by Sen. Joseph McCarthy that often involved unfounded accusations and sowed fear, adding that “even then it wasn’t about settling scores with their own president.”
…

Broadcast reporters for Russian state-funded TV channel RT will no longer be able to report daily from the U.S. Capitol.

A committee that governs Capitol Hill access for broadcast journalists has withdrawn credentials for RT after the company complied earlier this month with a U.S. demand that it register under the Foreign Agents Registration Act. The law applies to people or companies disseminating information in the U.S. on behalf of foreign governments, political parties and other “foreign principals.”

The action also comes just days after Russian President Vladimir Putin has signed legislation allowing Russia to register international media outlets as foreign agents, an act seen as the Kremlin’s retaliation for the Trump administration decision on RT. The new rules require disclosures to the Russian government and are seen as stigmatizing the news outlets as promoters of American propaganda.

In Washington, C-SPAN’s Craig Caplan informed RT that its credentials were being withdrawn after a unanimous vote of the executive committee of the Congressional Radio and Television Correspondents’ Galleries.

Caplan, the chairman of that committee, wrote that gallery rules “state clearly that news credentials may not be issued to any applicant employed by ‘any foreign government or representative thereof.’ ” He said the FARA registration made the network ineligible to hold news credentials, and their withdrawal is effective immediately.

Many news outlets with ties to foreign governments are required to similarly register. English-language newspaper China Daily is registered due to its affiliation with the Chinese government, for example. But the pressure on RT has angered Russian officials, who have said they will retaliate with restrictions on U.S. news outlets.

The letter was sent to Mikhail Solodovnikov of RT’s U.S.-based production company, T & R Productions. RT did not immediately respond to a request for comment.

U.S. intelligence agencies have alleged RT served as a propaganda outlet for the Kremlin as part of a multi-pronged effort to interfere in the 2016 U.S. presidential election. Russia denies interfering.

 
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The anti-nuclear group which won the 2017 Nobel Peace Prize accused the United States, Britain and France on Wednesday of snubbing its disarmament work by

planning to send only second-rank diplomats to the award ceremony next month.

“It’s some kind of protest against the Nobel Peace Prize,” Beatrice Fihn, director of the International Campaign to Abolish Nuclear Weapons (ICAN), told Reuters of a plan by the three nations to send only deputy chiefs of mission.

“They like their nuclear weapons very much and don’t like it when we try to ban them,” she said, accusing the three of wrongly opposing ICAN’s work “when North Korea and the United States are exchanging threats to use nuclear weapons”.

The annual December 10 Nobel prize ceremony in Oslo, attended by King Harald and Queen Sonja, is the highlight of the diplomatic calendar in Norway. The prize comprises a diploma, a gold medal and a check for $1.1 million.

Olav Njoelstad, director of the Norwegian Nobel Institute, confirmed the three nations would send only deputies. He said the awards committee always preferred to see chiefs of mission.

“That being said, we are neither surprised nor offended by the fact that sometime foreign governments prefer to stay away from the ceremony in protest or, as in this case, because they prefer to be represented by their deputy chiefs of mission,” he told Reuters.

“The Nobel Peace Prize is, after all, a political prize. The Norwegian Nobel Committee takes notice of the joint decision of the British, French and U.S. embassies,” he said.

The British embassy confirmed it was sending a deputy ambassador and said in a statement “the U.K. is committed to the long-term goal of a world without nuclear weapons. We share this goal with our partners across the international community including U.S. and France.”

The U.S. and French embassies were not immediately available for comment. Last month, U.S. President Donald Trump nominated Kenneth Braithwaite to the post of ambassador in Oslo, currently held by an acting ambassador.

ICAN, a coalition of grassroots non-government organizations in more than 100 nations, campaigned successfully for a U.N. Treaty on the Prohibition of Nuclear Weapons, which was adopted by 122 nations in July this year.

But the agreement is not signed by – and would not apply to – any of the states that already have nuclear arms, which include the United States, Russia, China, Britain and France, as well as India, Pakistan and North Korea.

Israel neither confirms nor denies the widespread assumption that it controls the Middle East’s only nuclear arsenal.

It was not clear whether other nuclear powers would send Oslo ambassadors to the Nobel ceremony.

The absence of ambassadors from the United States, Britain and France “is disappointing but at the same time we are focused on getting a majority of states in the world to join this treaty,” Fihn said.

She said the three nuclear states were exerting pressure on other nations “not to engage in this treaty.”

 
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Turkey’s deteriorating finances are hurting the country’s banks whose reliance on dollar funding makes them vulnerable to the worst-case scenario: a sudden halt or reversal of foreign investment flows.

International investors are growing nervous about Turkey for a variety of reasons. But U.S. legal action against a number of Turkish individuals over alleged Iran sanctions busting – and the risk that some of the country’s banks might be sucked into the case – lies at the heart of the latest concerns.

Since Turkey’s financial crisis in 2000, its banks have earned a reputation as being among the best-run in emerging markets, holding capital reserves far above those required by global rules.

They are still borrowing funds on international markets for lending on to domestic clients, and executives say they do not expect any significant future difficulties.

Nevertheless, borrowing costs are rising for the banks, which have accumulated dollar debt piles equal to a third of Turkey’s total foreign debt. Bank shares are down 20 percent since mid-August, outstripping a 5 percent fall on the broader Istanbul index in this period.

The lira has fallen more than 10 percent against the dollar and euro in the past three months alone, clocking losses of over 50 percent since the end of 2012 .

Several factors are at work, including fears that Turkey’s credit rating might be downgraded, government resistance to higher interest rates despite double-digit inflation, and tensions between Ankara and NATO ally Washington.

Now a Turkish-Iranian gold trader on trial in New York has pleaded guilty to conspiring to evade U.S. sanctions against Iran and will testify against a Turkish bank official charged with arranging illegal transactions involving American lenders.

Any possibility that Turkish banks themselves might become involved, landing the kind of huge fines slapped on others for sanctions-busting, would have severe consequences for the lenders and the wider economy.

“If [fines] do materialize, I would assume that all lending would stop until it becomes clear if institutions around the world can lend to Turkish banks or not,” said Alaa Bushehri, an emerging debt portfolio manager at BNP Paribas Asset Management.

Turkey’s bank regulator and government officials have denied reports in Haberturk newspaper that six unnamed Turkish banks could face fines worth billions of dollars.

But Turkish banks’ dollar bonds generally reflect investors’ nervousness, Bushehri said. On average, yields are 100 basis points above sovereign debt, whereas most big Turkish non-bank firms have lower funding costs than the government, she noted.

Turkish banks also trade with higher yields than similarly-or worse-rated banks in Russia, an emerging market peer which is directly subject to Western sanctions.

Adverse implications

U.S. prosecutors have charged nine people in the case, including the deputy general manager of Turkey’s Halkbank, who is also on trial in New York. He denies all charges.

A former Turkish economy minister is among the defendants, although he is not currently on trial and likewise denies all charges. Ankara says the case is politically motivated, while Halkbank has said all of its transactions have fully complied with national and international regulations.

“If the trial were to end with fines on Turkish lenders, economic implications for Turkey could be highly adverse,” TD Securities said in a note to clients.

Inflation hit a 9-year high of 11.9 percent in October, while Turkish bond yields have reached record levels above 13 percent. Ratings agency Standard & Poor’s said on Wednesday an insufficient response by the central bank would be an immediate concern for Turkey’s sovereign debt rating.

Deputy Prime Minister Mehmet Simsek has promised the government will do whatever is necessary if its banks are hit by the U.S. trial but Mehmet Emin Ozcan, CEO of state-owned Vakifbank, expects no negative impact.

“We didn’t face any problem with borrowing from international markets and I don’t think we’ll have a problem in the future,” he said this week.

Still, investors’ fears persist. While international sanctions on Iran were eased last year, U.S. measures remain and penalties for any infringements can be devastating – as a $9 billion fine on French bank BNP Paribas last year attests.

The potential damage of any fines on Turkish bank reserves has exaggerated the lira’s weakness, compounding the problems of the banks which have about $172 billion in external debt, according to Fitch ratings agency. Of this, $96 billion is due within the next year, the data showed at the end of September.

Health and growth

The issue is central to Turkey’s economic health and growth.

As in other countries with low domestic savings, it relies on foreign borrowing, with banks acting as the conduit for a major part of the flows. Any stop in the financing could wreak havoc.

Turkish banks have average capital ratios that are double the 8 percent minimum stipulated by Basel 3 global banking rules. Also, the lira’s depreciation should not compromise their ability to repay dollar debt as the regulator does not permit lenders to hold open, or unhedged, hard currency liabilities.

Fitch reckons banks can, if needed, access up to $90 billion over 12 months by tapping reserves they hold at the central bank and by unwinding currency derivatives positions. But a prolonged funding crunch will be a different story.

That would risk “pressures on foreign currency reserves, the exchange rate, interest rates and economic growth”, Fitch warns.

That’s because the lenders’ capital buffers held with the central bank – totaling just over $60 billion – are a major part of authorities’ $117 billion reserve war chest, and any depletion of this would leave the lira dangerously exposed.

“Usable” reserves – excluding gold and bank reserves – are around $35 billion, analysts estimate. That means the central bank will have no option but to raise interest rates sharply to counter any lira selloff, with damaging consequences for economic growth.

So far, the banks have avoided refinancing stress; Turkish lending is lucrative for European banks which may be unwilling to risk those long-standing ties.

Indeed, external debt rose around $9 billion in the first half of 2017, Fitch data showed, while Garanti Bank last week announced a $1.35 billion syndicated loan, with 38 banks participating.

But costs are rising – Garanti paid 1.25 percent above LIBOR on a one-year loan, while in 2016 and 2015 it paid 1.10 percent and 0.75 percent above LIBOR respectively.

Huseyin Aydin, chairman of the Banks Association of Turkey, told Reuters he had not observed any low appetite for taking Turkish risk. However, he added: “Foreign borrowing interest rates increased around 50-60 basis points in a tough year like 2017. It is possible that a limited increase will continue in

rates in 2018.”

Paul McNamara, investment director at GAM, has been among those who have warned for some time of trouble. He said he has sold all his Turkish debt because of the banks’ vulnerability.

“Local banks have borrowed an immense amount – north of $100 billion – abroad and lent that money on locally,” he said. “Any stress on Turkish bank syndications and this goes bad very fast.”

 
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