Russia threatens pre-emptive strike over US missile defence deal

The Independent

Russia's top military officer has threatened to launch a pre-emptive strike if Nato goes ahead with controversial plans for a missile defence system in Eastern Europe.

President Dmitry Medvedev said last year that Russia will retaliate militarily if it does not reach an agreement with the United States and Nato on the plans.

Chief of General Staff Nikolai Makarov went even further today.

"A decision to use destructive force pre-emptively will be taken if the situation worsens," he said.
Russian Defence Minister Anatoly Serdyukov also warned that talks between Moscow and Washington on the topic are "close to a dead end".

US missile defence plans in Europe have been one of the touchiest subjects in US-Russian relations for years.
Moscow rejects Washington's claim that the missile defence plan is solely to deal with any Iranian missile threat and has voiced fears it will eventually become powerful enough to undermine Russia's nuclear deterrent.

Moscow has proposed running the missile shield jointly with Nato, but the alliance has rejected that proposal.

Makarov's statement does not seem to imply an immediate threat, but aims to put extra pressure on Washington to agree to Russia's demands.

Obama Cites Election as Reason to Postpone Missile Talks

Business Insider

Whoops.

President Obama was caught on a hot mic (live mic) telling Russian President Medvedv the truth: He'll have more flexibility on security issues AFTER he wins re-relection.
Jake Tapper at ABC has the exchange

President Obama: On all these issues, but particularly missile defense, this, this can be solved but it’s important for him to give me space.

President Medvedev: Yeah, I understand. I understand your message about space. Space for you…

President Obama: This is my last election. After my election I have more flexibility.

President Medvedev: I understand. I will transmit this information to Vladimir.

Of course, nobody should be surprised by this: This is just reality. But normally politicians aren't heard spelling out reality so clearly.

Check out a video of the exchange below:

Medvedev warns of Cold War over missile defence

By Maria Antonova (AFP)

Russian President Dmitry Medvedev
reaffirmed an earlier threat to
pull out of the new START disarmament agreement

SKOLKOVO, Russia — President Dmitry Medvedev Wednesday warned of a new Cold War era if Russia and the West failed to agree on missile defence, in the first major news conference of his presidency.

Despite the startling warning to the United States and Europe, Medvedev confounded expectations he would use the event to finally announce if he intends to seek a new Kremlin mandate in 2012 elections.

Russia is increasingly worried about US plans to build missile defence facilities in ex-Communist eastern Europe and is also offended that NATO appears to have shunned its proposals for a joint missile defence shield.

Medvedev told reporters that the US decision to push ahead with construction of the missile defence system despite Russia's objections will force Moscow "to take retaliatory measures -- something that we would very much rather not do."

"We would then be talking about developing the offensive potential of our nuclear capabilities," Medvedev warned.

The Russian leader also reiterated an earlier threat to pull out of the new START disarmament agreement that entered into force this year if the missile shield is deployed and operated without the Kremlin's input.

"This would be a very bad scenario. It would be a scenario that throws us back into the Cold War era."

The United States insisted it viewed Russia as a partner on security issues rather than a threat.

"We have been consistent and clear for many years now that our missile defence cooperation in no way is directed at Russia," State Department spokesman Mark Toner told reporters.

"And in fact we want to cooperate on missile defense with Russia and we have been quite clear on that," Toner added.

Moscow has been fighting NATO plans to deploy a system the West sees as a means of protection from nations such as Iran but Russia believes could potentially be deployed against its own defences.

Medvedev on Wednesday demanded a legally-binding assurance from the United States that this will never happen -- a safeguard that Moscow says Washington is refusing to give.

NATO has thus far invited Russia to voice its concerns in formal meetings but refused to provide Moscow with a formal role in the shield's operation that it seeks.

"We would like to see missile defence develop under clear rules," Medvedev said in the first broad-ranging press conference of his three-year presidency.

The news conference, at a technology hub on the outskirts of Moscow, was broadcast live on Russian state television. Medvedev stood, US presidential style, alone at a lectern against the backdrop of the Russian flag.

Hundreds of reporters attended the news conference, in a major event for Medvedev who so far has only spoken to the press alongside foreign leaders or in small scale briefings.

Seeking to show his confidence, Medvedev chose each question apparently at random from journalists in the audience, many of whom concentrated on local issues.

But despite intense speculation that he wants to stand for a new presidential term instead of Prime Minister Putin, Medvedev refused to say if he intended to seek a new mandate in 2012.

"This kind of decision has to be made when all the conditions are right, when it has the final political effect," Medvedev said.

"This does not mean that this can last for ever... As I said in the interview to your Chinese colleagues, this decision will come fairly soon," he said, referring to a recent interview with Chinese television.

Medvedev said it was wrong for rulers to stay in power for too long, although he made these comments in reference to Russia's powerful regional governors whom he has reshuffled drastically in the last years.

"No-one stays in power for ever. And if anyone has that kind of illusion then they will end badly," said.

BRICS Rails at Financial Status Quo

Dmitry Medvedev

Moscow Times

President Dmitry Medvedev and other BRICS leaders called for sweeping reforms of international financial mechanisms, hinted at displacing the U.S. dollar as the world's major trade currency and condemned the NATO bombing of Libya at a summit of leading emerging economies in China on Thursday, but there were few actions to match the words.

Speaking at the summit of Brazil, Russia, India, China and South Africa in Sanya, China, Medvedev said he and his Chinese counterpart Hu Jintao had "agreed to intensify work on the eastern and western gas supply routes before the end of the year" during a bilateral meeting earlier in the day.

"We are talking about this year, I mean the basic conditions for approval. Naturally, the deliveries will begin later," he told reporters, adding that, although each side would push its own business interests in price negotiations, positions had generally moved closer.

China is a growing foreign policy priority for Russia. It is the world's biggest energy consumer and became Russia's main trading partner last year.

Medvedev promised during a visit to Beijing in September to supply China with all the gas it needs for economic development.

In 2009, China extended a $25 billion preferential-rate loan to Rosneft and Transneft in exchange for a 20-year oil supply contract.

Medvedev will go on an extended visit to China, following the BRICS meeting, with an appearance at China's Boao Forum and a visit to Hong Kong on Saturday.

Although the BRICS forum had criticized the world's reliance on the U.S. dollar, Medvedev played down speculation that the five countries might adopt the Chinese yuan as a trade currency.

"Of course, the Chinese economy is huge, and in this sense the role of the yuan is growing, but we haven't made any special decisions regarding the yuan, nor are they being discussed," he told reporters.
Earlier Thursday, the five countries signed a memorandum on cooperation among their national financial development institutions that paves the way for the countries to grant one another loans in their national currencies.

Vladimir Dmitriyev, head of Vneshekonombank, told Interfax that the document marked "the first practical step toward using national currencies in economic cooperation between these countries."
China Development Bank was the first institution to take advantage of the new measures, saying it was ready to extend 10 billion yuan in loans to Brazil, Russia, India and South Africa.

The loans are expected to focus on large oil and natural gas projects. China Development Bank chief Chen Yuan cited deepening cooperation with Brazil's Petro Bas when asked for specifics, Reuters reported.

No specific deals relating to Russian companies have emerged so far.

Medvedev also held bilateral meetings with Hu, Brazilian President Dilma Rousseff, Indian Prime Minister Manmohan Singh and South African President Jacob Zuma during the meeting.

Thursday's was the first summit since South Africa joined the club of emerging economies, prompting Medvedev to make a flat joke.

"I don't know who came up with the BRIC abbreviation … but we've come up with a different acronym, and it has already become quite popular."

"After the accession of South Africa, the Russian abbreviation BRYuKI emerged," Medvedev told reporters in Sanya, China. Bryuki means "pants" in Russian.

It may have been a weak joke, but he was right to say the group has changed.

BRIC — Brazil, Russia, India and China — was born as an acronym thought up by Goldman Sachs economist Jim O'Neill as shorthand for the world's leading emerging markets.

But it has become a club for countries — including now South Africa — with a common interest in turning their growing economic strength into political clout on the world stage.

All five are currently members of the UN Security Council.

In this spirit, the five issued a joint statement calling for an overhaul of the international financial system and reform of the International Monetary Fund, criticizing dependence on traditional reserve currencies like the U.S. dollar and condemning NATO-led air strikes against Libya.

"This is not a format where countries decide things; it is much more about showing the emergence of new structures as opposed to old organizations," said Fyodor Lukyanov, editor-in-chief of Russia in Global Affairs.

Nonetheless, there are differences in the group.

In the March 17 Security Council vote authorizing military action in Libya, Brazil, Russia, India and China abstained. South Africa voted in favor, along with other African Union countries.