ІНСАЙДЕР УКРАЇНА

President Vladimir Putin says Russia will maintain a high tempo of modernizing its military arsenals this year.

Speaking Thursday at a meeting with the top military brass in the southern Russian city of Sochi, Putin said the Russian air forces would receive 160 new aircraft this year and the army is to get 500 new armored vehicles and artillery systems.

He added the navy would commission 10 warships.

Putin warned military industry leaders that they bear personal responsibility for meeting the new weapons procurement targets. Thursday’s meeting was the latest in a series of conferences on military issues Putin chaired this week at his Black Sea retreat.

The Kremlin has conducted a sweeping military modernization program amid tensions with the West over the fighting in Ukraine, Syria and other disputes.
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U.S. President Donald Trump and NATO Secretary-General Jens Stoltenberg are meeting in Washington on Thursday amid conflicts between the United States and its European allies in the West’s key defense organization.

Trump last week rebuffed opposition from European leaders and withdrew the U.S. from the 2015 international accord curbing Iran’s nuclear weapons program. Three European signatories to the pact — Britain, France and Germany — are continuing their support for the restraints on Tehran, even as Trump has contended the agreement does nothing to thwart Iran’s ballistic missile tests or its military advances in the Middle East.

“We are working on finding a practical solution” about the Iran deal, Federica Mogherini, the European Union’s top diplomat, said earlier this week. “We are talking about solutions to keep the deal alive.”

In addition, Trump has imposed tariffs on foreign steel and aluminum imports, including Europe, although he later exempted the 28-nation European Union until June 1.

Early in his presidency, Trump was a vocal critic of NATO. He contended that other countries in the West’s defense alliance against Russia aggression formed at the end of World War II had not been meeting NATO’s goal of spending 2 percent of their individual countries’ national economic output on defense.

Defense spending has increased in some NATO countries, but alliance says currently only Greece, Estonia, Britain, Poland, Romania and the U.S. among NATO’s 28 members meet the 2 percent threshold, although several other countries are close.

 
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European Union leaders say they are united in sticking to the Iran nuclear deal as long as Tehran abides by it. They say they will launch new measures to protect European firms doing business with Iran from U.S. sanctions. But the 28-member bloc was less unified on membership status for six Balkan nations during a special summit Thursday in Bulgaria.

The EU will launch on Friday the so-called blocking status to protect, in particular, small and mid-size companies with Iranian business interests.It will also tap the European Investment Bank to help shield them from threatened U.S. sanctions, following President Donald Trump’s decision to pull out of the Iran nuclear deal.

European Commission head Jean-Claude Juncker also said the bloc is willing to discuss strengthening energy ties with the United States and changes to the World Trade Organization rules, but only after Washington makes the temporary exemptions to steel and aluminum tariffs set to expire June 1 permanent.

“We will not negotiate with the sword of Damocles hanging over our heads,” said Juncker. “It is a matter of dignity and a matter of efficiency.”

European frustration over the Trump administration has been growing, especially following its pullout from the Iran deal last week.It was reflected in EU chief Donald Tusk’s remarks following the Sofia summit.

“I think the real geopolitical problem is not when you have an unpredictable opponent, or enemy or partner,” said Tusk.

“The problem,” he added, “is when your closest friend is unpredictable. It is not a joke now. This is the essence our problem today with our friends on the other side of the Atlantic.”

Split over the Balkans

Even as the European Union is united over sticking to the Iran deal, the summit also highlighted the difficulties of expanding the block to include western Balkans candidates. There are a series of challenges, from the refusal by half a dozen EU nations to recognize Kosovo, to bilateral disputes and concerns over Balkans stability. EU members also need to decide in June whether to open membership talks with Macedonia and Albania.

But the Europeans are also aware of competition for influence in the Balkans, including from Russia. Some argue membership expansion will inject new vitality into the European Union, which is losing Britain with Brexit.

“I do not see another future for the western Balkans other than the EU,” said Tusk. “There is no alternative, there is no plan B. The Western Balkans are an integral part of Europe and they belong to our community.”

But Tusk acknowledged Balkans nations are also grappling with sizable problems. And some member states like France argue the European Union must first get its own house in order before taking on new members.
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When EU leaders pose for a “family picture” with counterparts from six western Balkan nations hoping to join the bloc, Spanish Prime Minister Mariano Rajoy will stay away in protest – highlighting how long and hard their road to membership is likely to be.

Thursday’s summit, the first such meeting in 15 years, is meant to demonstrate the European Union’s renewed commitment to a region that remains fragile two decades after the ethnic wars that followed the break-up of Yugoslavia.

Spain does not even recognize the independence of Kosovo, which will attend the Sofia summit along with Albania, Bosnia, Serbia, Montenegro and Macedonia, and EU governments also worry about a string of other problems afflicting the region.

But after years of neglecting the six, the EU has been spurred into action by the growing influence of other powers in the region, which in 2015-16 also became a main route for a wave of migrants from the Middle East and Africa heading to wealthier European nations to the north.

‘European perspective’

EU chairman Donald Tusk made this point before the summit.

“It will be an opportunity for both sides to reaffirm that the European perspective remains the Western Balkans’ geostrategic choice,” he said. “I hope to bring our Western Balkan friends closer to the EU.”

As Britain is on the way out, the bloc’s executive European Commission has proposed that EU leaders decide in June to open formal membership negotiations with Albania and Macedonia.

“The risks to Europe are zero,” said Prime Minister Boyko Borissov of Bulgaria, which itself joined the EU in 2007 with neighboring Romania.

“If we do not embrace… the Western Balkans and do not help them – yes, many of them are not ready and they have yet to catch up – then there is no reason to be angry that the influence of the United States, Russia, Saudi Arabia will be greater than that of Europe,” Borissov added.

But many in the EU feel differently.

As the bloc is still recovering from economic and migration crises that have fuelled euro-skepticism among its own voters, doubters point to problems ranging from organized crime in Albania to Macedonia’s dispute with EU member Greece over its name, which is blocking Skopje’s aspirations.

Rajoy has decided to leave Sofia before the western Balkans meeting and EU officials say no one from the Spanish delegation will pose for the symbolic joint photograph on Thursday – a reminder that Madrid is just one of five member states that do not regard Kosovo as a sovereign nation.

Madrid, locked in a dispute with Catalan separatists at home, refuses to recognize Kosovo’s split from Serbia in 2008.

Timing in doubt

Two ex-Yugoslav republics, Slovenia and Croatia, have already joined the EU. But lawlessness and crime flourished in the Balkans during the wars of the 1990s, leaving the region awash with weapons and a transit route for drug and human traffickers.

“The direction of travel is very clear – the European perspective,” a senior EU official said. “What really matters is the determination of applicants in implementing reforms. And patience because also on the EU side you need to have the right window of opportunity to take the decision.”

The EU and Balkan six will sign a declaration on improving infrastructure including electricity and gas connections, as well as countering radicalism, improving security and controlling migration.

Brussels also sees building good neighborly relations as vital to a region where wartime hostilities still burden relations and threaten the fragile peace.

To join the EU, Serbia – the biggest market among the six – must settle its borders with Kosovo and with Bosnia, where tensions between rival communities often paralyze decision-making.

Macedonian Prime Minister Zoran Zaev warned that a clear perspective was needed to prevent the region from sliding back into conflict.

“We saw that the status quo brings an erosion of democracy, a lack of economic opportunity,” he told a meeting in Sofia.

“Negative influence from third parties is increasing.”

 
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President Tayyip Erdogan is driving Turkey “to the cliff” through ideological politics and a determination to control the central bank, the main opposition party’s presidential candidate said on Wednesday as the lira hit new record lows.

Muharrem Ince, who seeks to end Erdogan’s 15-year hold on power in next month’s elections, said the central bank and other economic institutions must be able to operate independently.

Erdogan said this week he plans to take greater control of the economy after the June 24 presidential and parliamentary polls, comments which drove the lira to fresh record lows. It is down 15 percent against the dollar this year.

“He’s taking the country to the cliff. The central bank needs to be independent, and the other economic bodies need to be autonomous. The rules need to operate,” Ince told Reuters in an interview.

The victor in next month’s election, held under a state of emergency imposed after a failed coup in 2016, will exercise sweeping new executive powers after Turks narrowly approved a constitutional overhaul in a referendum last year. The changes come into effect after the June vote.

Polls favor Erdogan

Polls show Erdogan is comfortably the strongest candidate, though he could face a challenge if the presidential vote goes to a second round in July and his opponents rally around the other remaining candidate.

Ince, 54, a combative parliamentarian and former physics teacher, has energised his secularist opposition Republican People’s Party (CHP) since he started campaigning and may emerge as the leading opposition candidate — although he faces competition from former interior minister Meral Aksener.

Aksener’s nationalist Iyi (Good) Party and the CHP have joined with two other smaller parties in an opposition alliance for the parliamentary election. She and Ince are competing separately in the presidential vote.

 ‘Wind of change’

Ince said the president was driven by “ideological obsessions” and pushing Turkey in the wrong direction.

Erdogan, a self-described “enemy of interest rates,” wants lower borrowing costs to boost credit and new construction, and has said the central bank will not be able to ignore the president’s wishes. That has fuelled concerns about the bank’s ability to fight double-digit inflation.

Since his Islamist-rooted AK Party swept to power in 2002, Erdogan has dominated Turkish politics. His power is reinforced by a near-monopoly of broadcast media coverage. Most TV channels show nearly all his campaign rallies, but rarely offer a platform to his opponents.

“The state of the media is heartbreaking. They have surrendered, they have kneeled,” Ince said, adding he had told broadcasters that unless they started to cover his speeches, he would hold a rally directly outside their offices to shame them.

If elected, Ince pledged to reverse some of the powers granted to the new presidency, saying it handed total control of the budget, judiciary and executive to one person.

EU countries concerned

Several European Union countries have expressed alarm that those changes are pushing Turkey deeper into authoritarian rule.

Turkey is still a candidate for EU membership, though negotiations have stalled over rights concerns and other issues.

Erdogan says the increased powers are necessary to tackle security threats following the failed coup and conflict on Turkey’s southern borders with Syria and Iraq.

“No mortal should be given such authority,” Ince said. “It shouldn’t be given to me either.”

‘Everyone’s president’

Against Erdogan, a skilled campaigner, the CHP has struggled to win support beyond its core base of secular-minded voters. In the last parliamentary election in November 2015 it took 25.3 percent of the vote.

Ince has pledged to be a non-partisan leader if elected, styling himself as “everyone’s president” and promising not to live in the 1,000-room palace built by Erdogan in Ankara.

“I see that a wind of change is blowing,” he said, pointing to what he described as a new atmosphere at his political rallies compared to last year’s referendum campaign.

“The momentum I have garnered is very different — there is a strong wind and people feel excitement,” he said.
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Moscow is protesting the arrest of a journalist in Ukraine, and the Council of Europe and other human rights groups have expressed concern.

Ukraine’s domestic security agency, the SBU, detained Kirill Vyshinskiy, the head of the Ukraine office of Russia’s RIA Novosti news agency, on treason charges. His arrest followed SBU raids of the Kyiv offices of RIA Novosti and RT television Tuesday.

The agency alleges the Russian state-funded media outlets were being “used as tools in a hybrid war against Ukraine.”

The Kremlin denounced Ukraine’s action as an attack on media freedom, and the Russian Foreign Ministry lodged a formal protest.

The Council of Europe said Wednesday it was “concerned about the implications that repeated detentions of journalists may have for the situation with media freedom in Ukraine.”

 
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Ukraine’s state security agency raided offices of two Russian state-owned media outlets in the Ukrainian capital Tuesday and leveled treason accusations against a journalist, a move that drew sharp criticism from the top trans-Atlantic security and rights group.

Ukraine’s domestic security agency, the SBU, said the raids of the Kyiv offices of the RIA Novosti news agency and RT television were part of its investigation into Russian media outlets being “used as tools in a hybrid war against Ukraine.”

The agency said the head of RIA Novosti’s Ukrainian office, Kirill Vyshinskiy, was detained for alleged treason, a crime that carries a prison term of up to 15 years upon conviction.

Relations between Moscow and Kyiv soured in 2014 when Russia annexed Ukraine’s Crimea and threw its weight behind separatists in eastern Ukraine. The Ukrainian government has long blamed Russian state media for fanning the flames of the war in the east, which so far has killed more than 10,000 people.

Moscow angrily protested Tuesday’s raids. Russian Foreign Minister Sergey Lavrov denounced the Ukrainian action as an “unacceptable” attack on freedom of speech and urged the West to condemn it “without any double standards.”

Harlem Desir, a media freedom representative at the Organization for Security and Cooperation in Europe, a top security and rights group, expressed “serious concern” about the raids.

“The fight against propaganda must not fall short of international standards and should not represent disproportionate interference in media activities,” Desir said in a statement. “OSCE participating states have committed to facilitating the conditions under which journalists from one participating state exercise their profession in another participating state.”

In Washington, U.S. State Department spokeswoman Heather Nauert said the United States shared concern about Russian propaganda, but noted that Ukraine must take care to ensure it abides by the law, including international human rights law.

The raids came several hours before Russian President Vladimir Putin traveled to southern Russia to attend the opening ceremony of a bridge linking Russia and the Crimean peninsula.
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European and Iranian foreign ministers are working to salvage the nuclear deal, after President Donald Trump pulled the U.S. out of the pact.

European Union foreign policy chief Federica Mogherini said European and Iranian officials held talks to address various challenges — from maintaining and deepening economic, transport and financial relations, to protecting European companies doing business with Iran in light of promised U.S. economic sanctions against the Islamic Republic.

Despite reported calls for a new or broader deal, Mogherini said the goal was to retain the 2015 agreement.

“If we want to save this deal — which is not an easy exercise — but if we want to save this deal, we know that the sooner we manage to do it, the better,” Mogherini said. “Again, it will not be easy. … But if I can use the metaphor, we all have a relative in intensive care, and we want to get him out of intensive care as soon as possible.”

Mogherini spoke after talks Tuesday between the foreign ministers from Britain, France and Germany and their Iranian counterpart, Mohammed Javad Zarif.

Zarif said Tehran wants to make sure that the interests of the deal’s “remaining participants, particularly Iran, will be preserved and guaranteed.”

Trump said the agreement was insufficient in curbing Iran’s nuclear program and its role in Middle East conflicts, and in addressing what happens after the deal expires.

Mogherini, however, said the EU believes the nuclear deal should be considered separately from other areas of disagreement with Iran.

“We are, and we have always been, clear on this: There are more chances and more possibilities to open avenues of discussions on other issues, if the Iranian deal stays in place rather than not,” she said.

European leaders will be discussing the nuclear deal at a summit in Bulgaria that starts Wednesday.
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Russia’s new weapons, including an array of new nuclear systems, will ensure the country’s security for decades to come, President Vladimir Putin said Tuesday at a meeting with top military brass.

Speaking in Sochi, Putin said the new systems unveiled this year would significantly increase Russia’s military capabilities and “ensure a strategic balance for decades.”

The Russian leader presented an array of new nuclear weapons in March that he said couldn’t be intercepted. They included a new heavy intercontinental ballistic missile; a nuclear-powered global range cruise missile; and an underwater drone designed to strike coastal facilities with a heavy nuclear weapon.

Putin said at Tuesday’s meeting that the development of the weapons would remain a high priority.

He also mentioned other weapons systems, including the prospective S-500 air defense system that is meant to be precise and powerful enough to hit targets in space.

Putin said the strategic nuclear forces should receive new batches of Yars intercontinental ballistic missiles to replace the older Topol ICBMs. Also in the pipeline are modernized Tu-160 and Tu-95 strategic bombers equipped with long-range cruise missiles and the new Borei-class nuclear submarines armed with ICBMs.

The navy, Putin said, will commission more warships armed with Kalibr cruise missiles that the military tested during the war in Syria.

The Russian president said the army would receive a range of new armored vehicles, including the new Armata main battle tanks.

The Kremlin has made military modernization a top priority as Russia-West ties plummeted to post-Cold War lows over the Ukrainian crisis, the war in Syria and other disputes.
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Britain’s Prince Harry, who is fifth in line to the throne, and American Meghan Markle, who is best known for her former role in the TV drama Suits, are due to marry this Saturday in Windsor, England. 

For many fans, it is a fairy-tale romance and Meghan breaks the mold of the demure princess, says British royal expert Richard Fitzwilliams.

“Meghan is an American biracial divorcee who is an activist, a feminist and former actress. Those were credentials that might well have barred her from marrying a senior member of the royal family only a relatively short time ago. Now they are being positively welcomed,” he said.

In Britain, the day has added significance for many who watched a 12-year-old Harry grieve at the funeral of his mother, Princess Diana. The prince, now 33, cites her as his inspiration for the charitable work that he and Meghan will continue as a couple.

“She’s been an activist for much of her life,” Fitzwilliams said of Meghan. “This is taking the role to a new level and she can lobby at the very top.”

However, that lobbying has a limit. Some fear Meghan’s outspoken nature may not go over well in the gilded corridors of a royal dynasty where politics is taboo.

“The royal family does things quietly, with dignity,” said Thomas Mace-Archer-Mills, a self-styled royal obsessive and founder of the British Monarchist Society, “and that’s what we count on them for. So it’s going to be very difficult for her to really curtail her activism. And we’ve seen a few stumbles here and there as she’s been acclimating to royal life.”

Meghan and Harry met in 2016, reportedly in Canada, although the full details surrounding their early romance remain hazy. The couple announced their engagement last November in the gardens of London’s Kensington Palace, where Harry was raised by Diana and Prince Charles, alongside his older brother, William.

For Britons, the wedding will mark a particularly happy milestone for Harry, said Fitzwilliams.

“This will be the royal wild child who has developed beyond levels that perhaps we thought he would.”

The death of Princess Diana in a Paris car crash scarred a nation and deprived two young boys of their devoted mother. In recent years, Harry has described the mental trauma of the funeral.

“It was an extraordinary experience,” Fitzwilliams said. “There is no doubt that he’s had some deeply troubling times. The army has made him, and also it’s very important to remember his commitment to charity.”

Those twin passions have seen Harry serve in Afghanistan and champion charitable causes around the world, including the Sentebale charity for young people affected by AIDS and the Invictus Games for wounded servicemen and women. Both he and Meghan have spoken of their desire to build on that work.

While it may take some time for Meghan to adjust to life in the royal family, she’s already laying down a few domestic ground rules, according to Mace-Archer-Mills.

“She’s brought a California lifestyle to Britain,” he said. “She’s slimming him down, she’s putting him on [diet of] shakes, eating less meat. What Brit do you know that doesn’t like meat?”

It is the tale of the royal wild child tamed by the American star. While millions will tune in for the wedding, many more will watch with fascination in the coming years as the new couple make their way in the world.
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Britain’s Prince Harry, fifth in line to the throne, and American Meghan Markle, best known for her former role in the TV drama “Suits,” are due to marry Saturday (May 19) in Windsor, England. For many fans, it is a fairy-tale romance as a former American actress becomes a princess; and the marriage also breaks many of the unspoken conventions of the British royal family. As Henry Ridgwell reports from London.
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The foundation of U.S.-Hungarian billionaire George Soros said Tuesday it is closing its office in Budapest and shifting those operations to Berlin in response to what it called “an increasingly repressive political and legal environment in Hungary.”

The Open Society Foundations released a statement in which it highlighted restrictions on nongovernmental organizations that are expected to be among the first legislative priorities for Hungary’s new parliament.

Prime Minister Viktor Orban’s government is backing a so-called “Stop Soros” bill that would include taxes and bans on NGOs involved in immigration. The government has cited national security concerns, and Orban has accused Soros of working to undermine Europe’s cultural identity by working to bring large numbers of migrants to the continent.

“The government of Hungary has denigrated and misrepresented our work and repressed civil society for the sake of political gain, using tactics unprecedented in the history of the European Union,” said OSF President Patrick Gaspard.

The OSF pledged to continue supporting civil society groups in Hungary, including work on arts, media freedom, transparency, education and health care.
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The European Union on Monday warned Britain time was running out to seal a Brexit deal this fall and ensure London does not crash out of the bloc next March, adding to pressure on Prime Minister Theresa May.

May’s spokesman, however, said the “focus is on getting this right” rather than meeting a deadline.

The EU’s Brexit negotiator Michel Barnier told 27 ministers of the bloc meeting in Brussels on Monday that “no significant progress” had been made in negotiations with London since March, the Bulgarian chairwoman of the talks said.

Diplomats and officials in Brussels have raised doubts about whether the bloc and London will be able to mark a milestone in the negotiations at the summit of EU leaders on June 28-29.

The current schedule puts progress in June as an important step towards a final Brexit deal in October, which would leave enough time for an elaborate EU ratification process before the Brexit day.

“October is only five months from now and still some key issues related to the withdrawal agreement need to be settled.

In June we need to see substantive progress on Ireland, on governance and all remaining separation issues,” said Deputy Prime Minister Ekaterina Zakharieva of Bulgaria, which holds the EU’s rotating presidency.

‘No clear stance’

German, Austrian and Dutch ministers all echoed the same concern, saying Britain has not made its position clear in detail on parts of the negotiations.

“We are concerned that there is no clear stance, no clear position from the British. The clock is ticking,” German EU Minister Michael Roth told his EU peers.

“We need now to be making substantial progress, but that is not happening. What is worrying us in particular is the Northern Ireland question where we expect a substantial accommodation from the British side.”

At home, May is stuck between a rock and a hard place with staunch Brexit supporters pushing to sever ties with the EU and others advocating keeping close customs cooperation with the bloc to reduce frictions in future trade.

May’s spokesman said London was working on two options for post-Brexit customs cooperation.

Under a customs partnership, Britain could collect tariffs on goods entering the country on the EU’s behalf. Under a second idea, for a streamlined customs arrangement, traders on an approved list would be able to cross borders freely with the aid of automated technology.

Pressure

But the EU has said London must come up with a solution for the Irish border conundrum and highlights that has not happened.

Both sides worry that reinstating a physical border between EU-member Ireland and Britain’s province of Northern Ireland – including to manage customs – could revive violence there.

Other outstanding issues include guarantees for expatriate rights, agreeing on security cooperation and trade rules after Brexit.

With May’s cabinet, her ruling Conservative party and the British split on Brexit, the prime minister has come under increasing pressure at home in recent weeks to make a decision on customs.

The Brexit schedule is tightening, sources said, which helps the EU negotiating strategy to pile pressure on London before the June summit but mostly is due to lack of substantial headway in the talks.

Dutch Foreign Minister Stef Blok said it was too early to discuss an extension of the timeline, but added: “The aim is now to conclude a deal in the time schedule that has been agreed on  … I very much hope we will agree but there are no guarantees, unfortunately.”

 
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Investors looking to buy Venezuela’s new cryptocurrency may want to head to a little-known Moscow bank whose biggest shareholders are President Nicolas Maduro’s socialist government and two state-controlled Russian companies under U.S. sanctions.

Evrofinance Mosnarbank has emerged as the only international financial institution so far willing to defy a U.S. campaign to derail the world’s first state-backed digital currency, called the petro, even before it begins to function.

Early would-be investors who registered with Venezuela’s government and downloaded the petro’s wallet software — available in Spanish, English and Russian — were then invited to buy the cryptocurrency by wiring a minimum of 1,000 euros to a Venezuelan government account at Evrofinance.

The bank’s place in the rollout of the petro is further evidence of Russia’s role in the creation of a cryptocurrency that much of the digital world has shunned but that Maduro hopes will allow Venezuela to circumvent U.S. financial sanctions imposed last year.

At the petro’s launch on Feb. 21, Maduro heaped praise on two Russians in the audience who worked with wealthy, Kremlin-connected businessmen, thanking their previously unknown startups — Zeus Exchange and Aerotrading — for their role developing what he joked would be a kind of “kryptonite” against U.S. economic dominance.

A day later, he dispatched his economy minister to Moscow to brief his Russian finance counterpart.

And in March, the Russian Association of Cryptocurrency and Blockchain awarded the Venezuelan government an award for its role “challenging the de-facto powers of the international financial system.”

‘Fighting a common bully’

Russia’s interest in the petro stems from its own increasingly pariah status in the west, said Claiborne W. Porter, the former head of the U.S. Justice Department’s bank integrity unit. As relations with the U.S. and European Union become more tense, both countries are looking for ways to demonstrate political strength while moving money outside the American financial system.

“Like kids on the playground, Venezuela and Russia think they are fighting a common bully in U.S. sanctions, so they’re going to try and form a united front,” said Porter, who is now the Washington-based head of investigations at consulting firm Navigant.

Russia has provided Venezuela with billions in debt relief over the years and is a major investor in the country’s oil industry. That financial lifeline has become more important since the Trump administration last year banned Americans from lending money to the nearly bankrupt government and now threatens to slap sanctions on the OPEC nation’s oil industry if Maduro goes ahead with presidential elections this month that are widely seen as a sham. In March, Trump signed an executive order banning Americans from any dealings with the petro.

Evrofinance and its executives didn’t return repeated email requests for comment. But after The Associated Press’ inquiries, all references to the bank were removed from the petro’s wallet, leaving prospective buyers with no guidance on how to actually buy it, though it’s still listed for sale in rubles and euros as well as three other widely circulated cryptocurrencies.

Venezuela’s government purchased a 49 percent stake in Evrofinance in 2011, making the bank, which traces its history back a century as a western financial outpost for the Soviet Union, a vehicle for binational trade and investment projects, with almost $800 million in assets.

The rest of the shares are held by two major banks, state-controlled VTB and Gazprombank, which were sanctioned by the U.S. and European nations in 2014 over President Vladimir Putin’s annexation of Crimea.

It’s unclear how many petros the government has sold. Maduro boasted this month that the government had raised $3.3 billion in the pre-sale phase. But so far only a small fraction of the petros appears to have been distributed to buyers, according to the blockchain where the digital currency’s movements can be publicly tracked.

‘Scam’

Experts say that the petro is of little interest to foreigners other than drug traffickers and others active in Venezuela’s burgeoning criminal underworld. Even offshore trading platforms like Bitfinex are refusing to deal in the petro for fear of violating sanctions. Rating website ICOindex.com, which tracks initial coin offerings of cryptocurrencies, called it a “scam.”

“An overwhelming majority of ICOs don’t deliver on what they promise because their promoters are outright scammers or fall short on technical expertise,” said Alejandro Machado, a Venezuelan-born computer scientist who consults for crypto startups.  “In the case of the Venezuelan government, both reasons apply.”

One of the two Russians who signed agreements with Maduro to position the petro globally, Denis Druzhkov, had been fined $31,000 and barred for three years by the Chicago Mercantile Exchange for fraudulent trading in futures’ contracts. Zeus Exchange, which Druzhkov created alongside a Kremlin-connected industrialist, said in a statement that it has never had any business ties with the Venezuelan government and that Druzhkov resigned after abusing his authority.

The other, Fedor Bogorodskiy, used to help run the credit card division at a bank controlled by a Russian oligarch.  He has lived in Uruguay since 2009, combining telecommunications business with part-time promotion of Russian culture. He told The AP that his company, Aerotrading, whose website consists of a single home page with no company information, immediately ceased all work on the petro after Trump announced his ban.

Despite the pressure, Maduro is showing no signs of slowing down. He’s given government institutions — from ministries to airports — 120 days to start accepting the petro as legal tender in all transactions. He’s also paved the way for the creation of 16 local exchanges where Venezuelans will be able to purchase petros with their fast-depreciating bolivars. Also in the works is a second state-backed cryptocurrency tied to the country’s gold reserves.

But gaining international acceptance remains an uphill battle.

Yuri Pripachkin, president of the Russian blockchain group that honored Venezuela, said that while the Kremlin is keeping a close eye on the petro it hasn’t been involved in its development. Still, he said as long as sanctions are used as a foreign policy tool to punish governments that challenge U.S. policies, the incentives to seek out alternative means of financing will remain. He also dismissed the idea that the petro could be used to fund criminal activity.

“That’s a fairy tale,” said Pripachkin. “The most popular currency for terrorists and criminals the world over is the U.S. dollar, not crypto, and nobody is suggesting we ban dollars. This is just an attempt to stop crypto from expanding.”

 
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Lawmakers in Catalonia elected a fervent separatist as the new chief of the restive region Monday, ending a leadership vacuum of more than six months and setting the scene for more confrontations with the Spanish government.

Quim Torra, a former corporate lawyer who went on to lead a prominent pro-secession group, vowed to build an independent Catalan republic by working under the leadership of his fugitive predecessor, Carles Puigdemont.

Puigdemont is in Germany fighting extradition to Spain, where he is wanted for allegedly using public funds and orchestrating an “insurrection” to get the wealthy northeastern region around Barcelona to break away from Spain.

Torra was elected 66-65 in a second round vote after he failed to secure an absolute majority in the 135-strong Catalan Parliament over the weekend. Four lawmakers with the far-left anti-establishment CUP party abstained.

Immediately after his election, Torra, 55, said one of the goals of his new government would be to reinstate Puigdemont as “the legitimate president” of Catalonia. The Spanish government removed Puigdemont and his Cabinet from office after the regional parliament passed an illegal declaration of independence in October.

“Our president is Carles Puigdemont, and we will be faithful to the mandate of October … to build an independent state in the form of a republic,” Torra told the chamber based in Barcelona.

Torra also has promised to create a “state council in exile” and vowed to establish a constituent assembly to write the constitution for a new Catalan republic.

“Everybody will win rights with the republic,” Torra told fellow lawmakers in a speech before the vote. “Nobody will lose rights. The republic is for everybody, no matter what they vote.”

The Catalan separatist movement has caused the worst political and institutional crisis in Spain in decades.

Central authorities have been ruling Catalonia directly from Madrid since the regional government led by Puigdemont relied on the results of an outlawed Oct. 1 referendum to declare unilateral independence from Spain.

The national government has fired dozens of civil servants and closed a network of overseas offices that sought investments in Catalonia but also functioned as “diplomatic delegations” to bolster support for independence.

The unprecedented Spanish takeover is set to end when Torra is sworn in along with a new Catalan Cabinet. But Spanish authorities have warned that the national government could reassert its authority if the new regional government breaks the law again.

Spanish Prime Minister Mariano Rajoy said he didn’t like what he had heard during Monday’s investiture debate in the Catalan assembly. He said his judgment on Torra’s appointment will depend on Torra’s actions.

“We will bet on understanding and agreement in looking at the future,” Rajoy told reporters in Segovia. “But I say this, and I mean it: I will make sure that the law, the Spanish Constitution and the rest of the legal system, are obeyed.”

The prime minister’s office announced meetings with the two leaders of the main opposition parties at the national level, Socialist Party Secretary General Pedro Sanchez and the pro-business Ciudadanos (Citizens) party’s Albert Rivera.

Both leaders’ supported authorizing Rajoy’s conservative cabinet to take direct control of Catalonia’s affairs last year.

Rivera, who is experiencing a wave of popularity in recent opinion polls that are placing his party ahead of the ruling Popular Party, has urged Rajoy to extend the takeover.

Polls show that Catalonia’s 7.5 million residents are evenly divided on whether the region should secede from Spain. A great majority wants to settle the issue in a referendum, which under current law only the central government can set.
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Paris is a city on edge once again as France’s capital mourned another victim of fanaticism.

The Chechen-born French citizen who lashed at people with a knife, killing one and wounding four, had been on a terror watch list, but his ability to be able to launch an attack Saturday underlines the scale of the challenge France faces from Islamic militants, French officials say.

More than 2,600 suspected militants are on a watch list but tabs can’t be kept on all of them. “While the security services are excellent at identifying potential jihadists, the terrible lack of human resources means that they can monitor only a tiny tiny fraction of the suspects,” said counterterror analyst Olivier Guitta, who runs GlobalStrat, a London-based risk consultancy.

“The Islamic State attack in Paris’ Opera area is the 12th successful terrorist attack since 2013. It is the second successful one this year. France remains a priority target of the jihadists in Europe,” he added.

The last serious terror attack in France was in March, when a self-proclaimed militant killed a French policeman who’d exchanged himself for a female hostage during a siege in southwest France. The string of attacks since 2013 has left 245 people dead. Saturday’s mayhem was similar in method to a knife attack carried out last year in Marseille, said Loic Travers, a police union official.

Lacking manpower

French intelligence officials say they don’t have the manpower to keep even the 2,600 top-tier militant risks under around-the-clock surveillance. Aside from that watch list, they are also trying to monitor a further 5,000 suspects who have prompted anxiety but are considered less of an immediate danger – they are radicalized but have not as yet shown signs of thinking about violence.

The French aren’t alone in trying to match resources and manpower with threats. Other European intelligence agencies, especially in neighboring Belgium, are also overstretched. After each attack, security chiefs ask themselves what more they can do to prevent terrorism, especially the rudimentary kind of knife-wielding attack that was mounted in the French capital Saturday.

French lawmakers are sympathetic about the complaints from the country’s security services about the lack of resources and how difficult it is to track all of even the most dangerous militants.

Nathalie Goulet, a member of the French Senate foreign and defense committee, has said in the past, “You cannot put a policeman behind each of them. Especially since being reported to be in the process of radicalization does not make you a criminal.”

But Goulet and other lawmakers have expressed worries about the temporary nature of the surveillance and how quickly suspected militants can be dropped off the high-risk list.

She argues the French security services should maintain “a permanent file of people who had a link with terrorist organizations” much as the police do when it comes to sex offenders who are stuck permanently on file.

Information on assailant

Saturday’s suspect, who was shot by French police, wasn’t carrying any identification papers and hasn’t yet been publicly named by authorities, but French media are giving his name as Khamzat Asimov.

French officials say the man had no criminal record, was Chechen born and was naturalized as a French citizen in 2010. They say a friend of the suspect had been detained for questioning in the eastern city of Strasbourg recently.

Islamic State has claimed responsibility for the assault, but it remains unclear whether the assailant was inspired by the terror group or had actual operational links with IS. French intelligence services are now scrambling to establish what ties the man may have had with the group, if any.

It would be the first time an assailant of Chechen origin has carried out a terrorist attack in France, which hosts about 30,000 Chechens. Analysts have highlighted recently Chechen militants as a subgroup that bears watching.

Last year Belgian analyst Pieter Van Ostaeyen said that in his database of Belgian militants who’d gone to fight in Syria, 12 were of Chechen origin, with another 10 of Russia descent.

“It may be small, this ‘Eastern contingent,’ but it is likely underestimated, too,” Van Ostaeyen warned.

IS has actively recruited fighters in Chechnya, sending hundreds to conflicts in Syria and elsewhere. Some of the top IS commanders in Syria and and Iraq were veterans of conflict in Chechnya.

“Most of the ‘Eastern contingent’s’ networks seem to operate in a very covert manner,” Van Ostaeyen noted in a study for the Bellingcat news site. “They do not expose themselves with propaganda … and even its individual members rarely show themselves off on social media.”

 
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An Islamic State video shows what it says is the young Chechen-born man accused of Saturday’s deadly terrorist knife attack in downtown Paris.

French police have identified the suspect as Khamzat Azimov, who was a French citizen. He killed one person and wounded four before a police officer shot him dead.

An Islamic State outlet released the video showing a man it says is Azimov, wearing a hood with only his eyes exposed. He is speaking French and pledging allegiance to Islamic State.

IS had already claimed responsibility for the knifings, saying one of its “soldiers” carried them out to avenge France’s participation in the international coalition in Iraq and Syria.

French authorities have taken Azimov’s parents and a close friend into custody for questioning. Azimov was on the government’s watch list of suspected terrorists, but had no criminal record.

Azimov was said to have been born in Chechnya, a Muslim-majority Russian republic, in 1997. He emigrated to France as a teenager, and grew up in Strasbourg.

Chechnya President Ramzan Kadyrov said the Russian republic bears no responsibility for Azimov becoming a killer.

“He was only born in Chechnya and his growing up, the formation of his personality, his views and persuasions occurred in French society,” Kadyrov said.

Azimov carried out Saturday’s attack in a district of Paris known for its fine restaurants and the famed Opera Garnier.

Witnesses say he yelled out “Allahu Akbar,” meaning “God is great” in Arabic, and began stabbing people. Bystanders scrambled into restaurants and under tables for safety.

When Azimov rushed at police, an officer opened fire, killing him — but not before one person was stabbed to death and four others — including a Chinese tourist — were wounded. Doctors say the four survivors are out of danger.

French police are treating this as a terrorist investigation. President Emmanuel Macron tweeted that France “will not yield an inch to the enemies of freedom.”

On Sunday, the White House condemned the attacks, offering thoughts and prayers to the victims and their families, in a statement. “We stand in solidarity with the French people and their government against this vicious act of terrorism, and pledge any assistance needed,” the statement said.

France is no stranger to deadly terrorist attacks claimed by Islamic State. They include the 2015 Charlie Hebdo killings, the murder spree later that year that started in a Paris concert hall, and the 2016 Nice truck attack. 
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