Metro-North railroad puts speed ahead of safety: regulator

http://www.globalnewsnetwork.tk/2014/03/metro-north-railroad-puts-speed-ahead.html
Twisted railroad tracks are seen at the site of a Metro-North train derailment in New York, in this still image from video taken by the National Transportation Safety Board (NTSB) December 2, 2013.
Metro-North Railroad, the second-largest U.S. commuter rail line serving an estimated 83 million riders annually in the New York metro area, has an "overemphasis of on-time performance" ahead of safety, according to a federal review released on Friday.

The far-reaching probe by the Federal Railroad Administration was prompted by a derailment on Metro-North's Hudson line that killed four people and wounded 70 in December 2013. The incident prompted the railroad's then-president Howard Permut to step down in January.

The rail report, "Operation Deep Dive," detailed three other accidents in 2013, that killed one and injured 50, some seriously.

"The findings of Operation Deep Dive demonstrate that Metro-North has emphasized on-time performance to the detriment of safe operations and adequate maintenance of its infrastructure," the report said. "This is a severe assessment and it is intended as an urgent call to action to Metro-North's leadership."

Metro-North's new president, Joseph Giulietti, acknowledged at a press conference in New York City's Grand Central Station on Friday that the railroad is ready to embrace the report's findings.

"Safety was not the top priority," he said. "It must be. And it will be."

"I will not allow any Metro-North trains to run unless I'm confident they will run safely," said Giulietti, according to a statement released after the press conference.

The Metro-North president also acknowledged systemic problems plaguing the railroad and said he would address each of the issues raised in the wide-ranging and highly critical federal report.

"Again, there is a problem with the culture. As I've learned in the last month, it's not just a problem with one or two departments. Culture develops over years. And it will take time to change culture as well," Giulietti said.

The report requires Metro-North, a subsidiary of New York state's Metropolitan Transportation Authority, to submit plans within 60 days to improve employee training and safety on the rail line.

Metro-North carries commuters between Manhattan's Grand Central Terminal and the northern suburbs of the city as well as serving communities along Long Island Sound as far as New Haven, Connecticut. (GNN INT) (Reuters)

(Reporting by Chris Francescani; editing by Scott Malone, G Crosse and Gunna Dickson)

U.S. top court case highlights unsettled science in contraception

As The U.S. Supreme Court prepares to hear a religious dispute over the Obamacare contraception mandate, advocates on both sides are trying to set the court straight on the science.
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The exterior of the U.S. Supreme Court is seen in Washington March 5, 2014.
The case, to be heard on March 25, is one of the most closely watched of the year, partly because it taps into the enduring debate over abortion and reproductive rights.

The dispute turns on the legal question of whether corporate employers with religious objections must include contraceptive coverage in their employee health plans. But it also raises a scientific dilemma that could influence the court's nine justices.

That scientific question is deceptively simple: whether certain forms of birth control prevent conception or destroy a fertilized egg. After decades of research the answer is not absolutely clear.

Two family-owned companies, Oklahoma-based arts-and-crafts retailer Hobby Lobby, controlled by evangelical Christians, and Pennsylvania-based cabinet-manufacturer Conestoga Wood Specialties Corp, owned by Mennonites, object on religious grounds to a requirement of President Barack Obama's healthcare law: that employer-sponsored insurance cover contraception.

The companies say they have no objection to covering forms of birth control that prevent conception, the fertilization of an egg by a sperm.

What concerns them are after-intercourse products, so-called emergency contraception such as the "morning-after" pill, which prevent pregnancy.

Anti-abortion groups contend the products act after fertilization, destroying embryos.

"For us, the issue is the life-ending mechanisms that some emergency contraceptives can have," said Anna Franzonello, an attorney at Americans United for Life, an anti-abortion legal group that has filed a brief for seven Catholic and other anti-abortion groups siding with the companies.

Mainstream scientific and medical organizations, as well as abortion-rights supporters, counter by citing research showing that the vast majority of emergency contraceptives prevent fertilization.

While the Supreme Court will not be ruling on the science, and has never defined pregnancy, many groups have filed friend-of-the-court briefs offering their view of how emergency contraceptives work.

POLITICIZED SCIENCE
The basics of pregnancy are clear, although the language of ending pregnancy is fraught with politics.

After an egg is released, it has about a day to find a sperm to fertilize it. Sperm survive several days before losing their ability to join with an egg. But the union of egg and sperm is merely the first step: if a fertilized egg does not burrow into the lining of the uterus, there is no pregnancy. In fact, in an estimated 50 percent to as many as 80 percent of conceptions the fertilized egg fails to implant.

The Obama healthcare law, known as the Affordable Care Act, requires coverage of "contraceptive methods," but not drugs which cause an abortion - that is, end pregnancy.

Medical groups including the American College of Obstetricians and Gynecologists as well as federal health agencies say pregnancy begins with implantation. That's what allows James Trussell of Princeton University, an expert on reproductive health, to say that emergency contraception "won't cause an abortion in the legal and medical sense of the word."

That infuriates people who believe life and pregnancy begin with fertilization. "There is a segment of the medical field that says there isn't a human life until the baby has implanted," said Dr Kathleen Raviele, an ob-gyn in Tucker, Georgia, and spokeswoman for the Catholic Medical Association. The group supports Hobby Lobby and Conestoga. "You have two groups talking past each other."

COPPER IUDs

The Hobby Lobby and Conestoga families want to protect an egg from the moment of fertilization, since they believe preventing implantation ends a life, and they object to the three approved forms of emergency contraception:

* Copper intrauterine devices (IUDs), a form of contraception that has only been used as an after-sex emergency contraceptive about 7,000 times since 1976.

* All forms of Teva Pharmaceutical Industries Ltd's Plan B, a morning-after pill now sold as Plan B One-Step and available over-the-counter to those 15 and older. It has the vast majority of the emergency contraception market in the United States.

* Prescription-only ella, from the Watson Pharma unit of Actavis PLC, which has a tiny share of the U.S. market.

Supporters of Hobby Lobby and Conestoga cite studies that, they believe, support their position that emergency contraceptives prevent implantation. Supporters of Obamacare's contraception mandate point to the larger and growing number of more recent and more rigorous studies showing that emergency contraception almost always acts by preventing fertilization.

Complicating the dispute, the positions of drug regulators and manufacturers have changed over the years.

The evidence is strongest that copper IUDs can prevent implantation of a fertilized egg. The T-shaped devices are most likely to work if inserted well before ovulation, suggesting that their main mechanism of action is disabling sperm or eggs, preventing fertilization. But if fertilization already has occurred, an IUD can prevent implantation, said Kristina Gemzell-Danielsson of the Karolinska Institute in Sweden, who has reviewed more than 100 studies of emergency contraception.

PLAN B PILLS

The U.S. Food and Drug Administration for years implicitly has buttressed the idea that Plan B interferes with implantation. In 1999, it approved a label saying the drug can prevent implantation of a fertilized egg. In a 2009 document on its website, the FDA still said, "If fertilization does occur, Plan B may prevent a fertilized egg from attaching to the womb (implantation)".

Since then, however, the International Federation of Gynecology & Obstetrics, which includes the ob-gyn groups of 125 countries, reached different conclusions. In a 2012 analysis of 29 rigorous studies, the organization concluded that the active compound in Plan B, levonorgestrel, primarily acts by preventing or delaying ovulation. The drug does that by inhibiting a hormone surge that allows ovarian follicles to develop and release an egg.

Plan B is most likely to prevent pregnancy in women who take it before ovulation, said Gemzell-Danielsson.

All told, "there is very, very clear and compelling evidence that Plan B does not work after fertilization," said Princeton's Trussell.

Late last year, European drug regulators recognized that scientific understanding had changed since levonorgestrel came on the market: they approved changing the label of the version of Plan B One-Step sold in Europe to say that it "cannot stop a fertilized egg from attaching to the womb."

It is unclear if the FDA will follow. Spokeswoman Erica Jefferson said, "The agency is aware of emerging data that suggests that (Plan B's compound) does not inhibit or prevent implantation of the fertilized egg and acts only by blocking or delaying ovulation, but has not had the opportunity to formally evaluate this recent data."

A spokeswoman for the drug's manufacturer, Teva, declined to comment.

ELLA AND IMPLANTATION

There have been fewer studies of ella. When the FDA approved it, in 2010, the agency said that although ella is thought to work "primarily by stopping or delaying the release of an egg," it "may also work by preventing attachment (implantation) to the uterus."

A document from manufacturer Watson says "it is possible that ella may also work by preventing attachment (implantation) to the uterus." Watson spokesman David Belian said that language described the company's current understanding.

Researchers who study contraception say that does not reflect current science. Studies show that, like Plan B, ella has no effect on the uterine lining, and mainly works by preventing or postponing ovulation, said Gemzell-Danielsson. But "mainly" is not good enough for those who believe life begins at conception. The tiny chance that ella will prevent implantation of a fertilized egg is, they say, enough to make it morally objectionable.

IS SCIENCE ENOUGH?

Ultimately the two sides may expect different things from science.

"If you can't be absolutely sure the drugs don't block implantation, what probability of killing a human being would you accept?" said Dr Jane Orient, an internist in Tucson, Arizona, and spokeswoman for the libertarian, anti-abortion Association of American Physicians and Surgeons, which joined the anti-emergency contraceptive brief.

"In science, you can't prove a 'never happened' or a 'never could happen,'" responded Dr Timothy Johnson, professor of obstetrics and gynecology at the University of Michigan.(GNN INT) (Reuters)

(Additional reporting by Joan Biskupic; Editing by Howard Goller and Peter Henderson)

Libya says halts tanker outside rebel port, plans military offensive

GNN - Libya on Monday stopped a North Korean-flagged tanker that had loaded oil from a rebel-held port, after naval forces briefly exchanged fire with the rebels, officials said.
http://www.globalnewsnetwork.tk/2014/03/libya-says-halts-tanker-outside-rebel.html
The entrance of the Es Sider export terminal where a North Korean-flagged tanker has docked is seen in Ras Lanuf March 8, 2014.
They also said the government will assemble forces to "liberate" all occupied ports, raising the stakes over a blockage that has cut off vital oil revenue.

The conflict over oil wealth is increasing fears that the OPEC producer may slide deeper into chaos or even splinter as the fragile government fails to rein in dozens of militias that helped oust Muammar Gaddafi in 2011 but now defy state authority.

The rebels, who have seized three ports and partly control a fourth in the North African country, said they had dispatched forces to central Libya to deal with any government attack.

Prime Minister Ali Zeidan told Reuters naval forces had seized the North Korean-flagged tanker outside the eastern Es Sider port controlled by rebels and were taking it to a government port in western Libya.

"The ship is around 20 miles from Es Sider," Zeidan said. "It stopped due to darkness and won't move tonight but is under complete control and secured. Tomorrow it will move."

Naval forces had halted the ship after a brief firefight with the rebels, Culture Minister and government spokesman Habib al-Amin later told reporters. Nobody had been wounded, but he warned opening fire again might damage nearby oil facilities.

A spokesman for the rebels denied several times throughout the evening that they had lost control of the ship.

Even without any major military action, the escalation kills any hope of restoring oil exports soon. A wave of protests at oilfields and ports has reduced Libyan output to a trickle, undermining state authority because oil is the main revenue source supporting the budget and basic food imports.

The head of parliament, who has quasi-presidential powers, ordered the formation of a force made up of regular soldiers and allied militias to take back the occupied ports, which previously handled more than 700,000 barrels of oil per day.

The operation will start within one week, parliament head Nuri Ali Abu Sahmain said in a decree published by spokesman Omar Hmeidan. "The force will be set up to liberate the ports and end the blockage," Hmeidan told Reuters.

Zeidan, who said on Saturday the tanker would be bombed if it tried to export oil, said military action was only one of several options.

"What is confirmed it that all ports will be liberated from the occupiers with all means possible," he said. "We prefer talks but if talks fail then the state will act."

Zeidan said authorities would unload the crude from the tanker once it reached a western port and then launch legal measures against the potential buyers.

DEFIANT REBELS

Libya has been trying to rebuild its army since Gaddafi's ousting, but analysts say it is not yet a match for battle-hardened militias that fought in the eight-month uprising that toppled the dictator.

Still, the force will be drawn from cities such as Misrata that are home to fighters who saw battle in the civil war, according to the decree. Misrata forces were sent earlier this year to fight in clashes deep in Libya's south.

Abb-Rabbo al-Barassi, the self-declared rebel prime minister, called on "all honorable men" in the east to join his forces, a rebel television station reported.

The rebels, made up of former oil security guards, said they had sent forces by land and sea to central Libya to confront any government attackers.

FULL CONFRONTATION UNLIKELY

While the navy did open fire on a Maltese-flagged tanker trying to approach Es Sider in January, analysts say a full military confrontation with the rebels would be unlikely.

The protesters are led by a former anti-Gaddafi commander, Ibrahim Jathran, who was in charge of protecting oilfields and ports until he turned against the government in the summer.

Jathran's campaign to seek more rights for Libya's underdeveloped east has won him some sympathy, but many people dismiss him as a tribal warlord with no political vision.

Libya's top Islamic clerics urged militias who had helped topple Gaddafi to help the government in trying to stop the tanker, according to a statement read on television.

The United Nations' special envoy to Libya, Tarek Mitri, told the U.N. Security Council on Monday that the loading of oil onto the North Korean-flagged vessel "constitutes an illegal act and violates Libya's sovereignty over its ports and natural resources".

On Sunday, Tripoli said the navy and pro-government militias had sent boats to stop the 37,000-tonne tanker from leaving. The vessel had arrived at Es Sider on Saturday.

It is unusual for a tanker flagged to secretive North Korea to sail in the Mediterranean. Shipping sources said it was a flag of convenience to keep the ship's ownership secret.

In a rare bright spot, state National Oil Corp managed to restart the southern El Sharara oilfield after a protest ended there, a spokesman said. It is now pumping 150,000 barrels per day and might reach full capacity at 340,000 bpd by Tuesday afternoon.(GNN INT)(Reuters)

(Additional reporting by Ayman al-Warfalli, Ghaith Shennib, and Michelle Nichols at the United Nations; Editing by Dale Hudson and Mohammad Zargham)

BOJ keeps stimulus in place, downgrades exports in warning sign

GNN - The Bank of Japan maintained its massive monetary stimulus on Tuesday on the view that growth in the economy and consumer prices remains on track, but it downgraded its view of exports in a warning that external demand will continue to disappoint.
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A security guard salutes at the entrance of the Bank of Japan building in Tokyo January 22, 2014.
The BOJ did upgrade its view of capital expenditure and turn more optimistic about industrial production, showing more confidence in domestic demand before a sales tax increase scheduled for April 1.

However, this optimism is unlikely to ease concerns that domestic demand will weaken after the tax hike and that exports will not be strong enough to support growth, which could increase calls for more monetary stimulus.

"It is not an atmosphere where the BOJ will ease immediately even if it downgrades growth forecasts as core consumer prices have been hovering in a range higher than previously expected," said Junko Nishioka, chief economist at RBS Securities.

"If the yen appreciates sharply and share prices plunge due to geopolitical risks, including the Ukraine, the BOJ will have to move."

As expected, the central bank on Tuesday maintained its pledge of increasing base money, its key monetary policy gauge, at an annual pace of 60-70 trillion yen ($590-$690 billion).

The BOJ launched the stimulus last April, saying it would lift inflation to 2 percent within around two years via aggressive asset purchases as it sought to end 15 years of deflation.

BOJ Governor Haruhiko Kuroda will hold an embargoed news conference from 3:30 p.m. (0630 GMT) with his comments expected to come out any time after 4:15 p.m. (0715 GMT).

The yen and Japanese government bonds were little changed after the policy decision.

EXPORTS, CAPEX

The BOJ said that exports have leveled off recently, which was a downgrade from last month, when the central bank said exports were on a recovery path.

Japan posted a record current account deficit in January due to consistently weak exports, undermining the BOJ's argument until now that exports would eventually pick up pace as the U.S. economy recovers.

The central bank said capital expenditure is showing clear signs of recovery, which is more positive than its assessment last month that business investment is recovering.

The BOJ also said industrial production is rising at a slightly faster pace.

Recent strength in industrial output, and signs companies are more willing to invest in factories and equipment as consumers buy more goods before the tax hike, likely encouraged optimists within the BOJ to take a more positive view of domestic demand.

The labor market is tightening, which also backs its view the economy will continue a gradual recovery and its 2 percent inflation target is achievable over the next 12 months or so.

Kuroda and other officials have been confident the economy can survive the short-term shock when the sales tax rate rises to 8 percent from 5 percent on April 1, but some economists worry growth could falter.

Core consumer inflation reached a five-year high of 1.3 percent in January, supporting the BOJ's view that it will stay above 1 percent and accelerate again later this year. Some BOJ officials think prices are rising a tad faster than expected.

A Reuters poll last month showed economists expect the BOJ to ease policy further around the middle of the year, as they say it will otherwise be difficult to meet the inflation target.(GNN INT) (Reuters)

(Editing by Chris Gallagher)

U.S.-Russian space trio lands safely despite bad weather

An American astronaut and two Russians who carried a Sochi Olympic torch into open space landed safely and on time on Tuesday in Kazakhstan, defying bad weather and ending their 166-day mission aboard the International Space Station (ISS).
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Russian astronaut Oleg Kotov holds an Olympic torch as he takes it on a spacewalk as Russian astronaut Sergei Ryazansky gives instructions outside the International Space Station in this still image taken from video courtesy of NASA TV, November 9, 2013.
"We have a landing!" read a huge TV screen at Russia's Mission Control outside Moscow as the descent capsule hit the frozen ground at 0924 (0324 GMT) southeast of the town of Zhezkazgan in central Kazakhstan.

"Safe arrival back on Earth," said a NASA TV announcer while all-terrain rescue and recovery vehicles were shown trundling across a snowy steppe to the Soyuz TMA-10M capsule. "The crew are reported to be in good health," NASA said.

Inside the capsule were former ISS commander Oleg Kotov and flight engineers Sergei Ryazansky and Michael Hopkins from NASA. The trio launched together into space on September 25.

Shortly afterwards, the space travelers were seated in semi-reclined chairs in the deep snow and covered with blue blankets to protect them from strong gusts of wind.

Kotov, the most experienced astronaut in his crew, was shown waving his left hand with a palm black from the soot of the descent capsule, which was charred on re-entry.

Rookie Hopkins smiled as a doctor checked his pulse.

In addition to working on 35 science experiments, Kotov and Ryazansky carried the unlit Olympic torch for the 2014 Winter Olympic Games outside the station during a spacewalk on November 9.

They left behind a small crew headed by Japan's Koichi Wakata, the first Japanese national to command the station. Three more crew members are due to arrive later this month.

Severe weather in Kazakhstan had threatened to delay the Soyuz's landing.

Before their undocking from the ISS, fog and low visibility had prevented airborne rescue and recovery teams from getting to Zhezkazgan, a town about 90 miles from the remote landing site on the windswept flatlands, a Russian space industry source said.

But Russian officials decided to go ahead with the landing after reviewing weather forecasts and the status of recovery crews.

"There's a lot of snow on the ground and temperatures are hovering in the single-digits (Fahrenheit)," said NASA mission commentator Dan Huot.

Due to severe weather conditions, it was decided not to set up an inflatable tent for routine medical tests at the landing site. Instead, the crew underwent just quick tests before being flown by helicopters straight to the local Kazakh town of Karaganda, where a formal welcome ceremony would be held.

The U.S.-Russian space partnership so far has not been affected by tensions over Ukraine. The countries lead the 15-nation space station programme.

The $100 billion research complex, which flies about 260 miles above Earth, has been permanently staffed by rotating crews of astronauts and cosmonauts since November 2000.

(Reporting by Steve Gutterman in Moscow, Irene Klotz in Cape Canaveral, and Dmitry Solovyov in Almaty; Editing by Steve Gutterman, Eric Walsh and Ken Wills)

Credit Suisse's Verde sticks with bet against Brazilian real

Money managers at Credit Suisse Group's (CSGN.VX) CSHG Verde FIC FIM, the largest Brazilian hedge fund, said on Monday they were sticking with their bet on a decline in Brazil's currency, as concerns grow over the sustainability of public finances in Latin America's largest economy.
http://www.globalnewsnetwork.tk/2014/03/credit-suisses-verde-sticks-with-bet.html
The shadow of Brady W. Dougan, CEO of Credit Suisse, is pictured before the full year results conference in Zurich February 6, 2014.
Fundo Verde shed 1.25 percent in February, on top of a 0.06 percent in January, which were its first back-to-back monthly declines since mid-2011, according to a letter to investors. The year-to-date 1.31 percent loss at Verde compares with a return of 1.63 percent in Brazil's benchmark CDI interbank interest rate, the letter said.

February's loss stemmed from the fund's exposure to the Brazilian currency, the real, and to fixed-income investments, the letter said. Verde, led by renowned Brazilian money manager Luis Stuhlberger, oversees more than 20 billion reais ($8.5 billion) in assets.

In the letter, Stuhlberger and his team said the real's 2.9 percent gain in February followed a central bank strategy to ease demand for foreign currency and raise borrowing costs to head off inflation, making returns in the country more attractive than in other emerging market economies.

The situation, however, may not prevail for long as investment and portfolio inflows into Brazil lose steam, the letter suggested.

So far this month, the real is down 0.1 percent.

"This juggling act between fundamentals and market timing is a classical dilemma in asset management, and I already went through this thing many times in my long career," Stuhlberger said. "We continue to believe in the thesis of a devaluation of the real."

The biggest argument behind Verde's bet against the real lies in its questioning of the sustainability of Brazil's public finances, the letter said. In the short run, however, concern about the issue eased following a pledge by President Dilma Rousseff's administration to slash 44 billion reais in spending and deliver a primary budget surplus equivalent to 1.9 percent of gross domestic product.

Rousseff's budget spending practices are undergoing close scrutiny from investors after she promised to rein in public spending to avoid a downgrade by credit ratings agency Standard & Poor's. The primary surplus is a measure of the government's ability to generate cash that will be used to pay down debt.

Shrinking primary surpluses have widened Brazil's overall budget shortfall, which includes all expenses including debt-servicing, to a three-year high of 3.28 percent of GDP. In 2012, the deficit was 2.48 percent of GDP.

Stuhlberger is the chief investment officer of Credit Suisse Hedging Griffo, the Swiss bank's asset management division in Brazil.

($1 = 2.35 Brazilian reais)

(Reporting by Guillermo Parra-Bernal; Editing by Paul Simao)

Safety concerns ground Sierra Leone international flights

(GNN) - International airlines have cancelled flights to and from Sierra Leone after a U.N. aviation regulator discovered that the only functioning fire engine at its main airport had broken down, an airport official and airline staff said on Sunday.

The International Civil Aviation Organisation (ICAO) downgraded Freetown airport after it made the discovery during a spot check, they said.

The top two international carriers to the West African country - British Airways and Kenya Airways - cancelled flights indefinitely from Saturday as a result, leaving more than 100 passengers stranded.

"We are working very hard to fix the faulty gearbox system of the fire engine and to add to the fleet," general manager of the Sierra Leone Airports Authority, John Sesay, told Reuters.

The ICAO could not immediately be reached for comment.

U.N. Secretary General Ban Ki-moon visited the West African country this week to oversee the closure of its peacekeeping mission there following an 11-year civil war that ended in 2002.

Its tourism industry is only slowly recovering, but thousands of foreign workers are employed in Sierra Leone in the gold and diamond mining sectors.(GNN INT) (Reuters)

(Reporting by Umaru Fofana; Writing by Emma Farge; Editing by Mike Collett-White)

Putin defends Crimea's decision to hold referendum

(GNN) - Russian President Vladimir Putin defended breakaway moves by the pro-Russian leaders of Crimea on Sunday in a phone call with German Chancellor Angela Merkel and British Prime Minister David Cameron, according to the Kremlin.

The three leaders spoke amid tensions on the Black Sea peninsula since the Moscow-backed regional parliament declared the Ukrainian region part of Russia and announced a March 16 referendum to confirm this.

"Vladimir Vladimirovich Putin underlined in particular that the steps taken by Crimea's legitimate authorities are based on international law and aimed at guaranteeing the legitimate interests of the peninsula's population," the Kremlin said.

"The Russian president also drew the attention of his interlocutors to the lack of any action by the present authorities in Kiev to limit the rampant behavior of ultra-nationalists and radical forces in the capital and in many regions," it added in a written statement.

Merkel, however, told Putin the referendum violated Ukraine's constitution and was against international law, a statement from the German government said.

German Vice-Chancellor Sigmar Gabriel told German public broadcaster ARD that as the referendum was "against international law", it would be difficult to prevent boycott measures or economic sanctions.

"It's no secret we Germans and the government don't want this, because we know there will ultimately be no winners, but Europe cannot just stand by and watch," he said.

"COMMON INTEREST" IN EASING TENSIONS

Putin has said that Ukraine's new leaders seized power in an armed coup and that Russia has the right to invade Ukraine to protect Russians living in the former Soviet republic.

Russian officials have been increasingly portraying Kiev's leadership as radical nationalists backed by the West, but the European Union and the United States have condemned Moscow's move as interfering with Ukrainian territorial integrity.

"Despite the differences in the assessments of what is happening, they (Putin, Merkel, Cameron) expressed a common interest in de-escalation of the tensions and normalization of the situation as soon as possible," the Kremlin said.

Merkel regretted that there had not been any progress on forming an "international contact group" which could find a political solution to the crisis in Ukraine, the German statement said.

"She pointed out the urgency of finally coming to a substantial result on this," it said.

On Thursday, Merkel said if no international contact group was formed in the coming days and no progress was made in negotiations with Russia, it was possible the European Union would impose on Russia further sanctions like travel restrictions and freezing financial accounts.

Gabriel told ARD that during his meeting with Putin in Moscow last week, the Russian president had not said no to forming an "international contact group", which Germany is calling for, but he did not agree to it either.

"My impression is that the Russians are not yet aware that they hold the responsibility in their hands for the whole of Europe falling back into the time of the Cold War," he said.

In a separate interview published on Sunday, Gabriel told Spiegel magazine: "We need a de-escalation and that can only happen via talks. It's not a question now of whether we react in a 'hard' or 'soft' manner; rather we have to act in a clever manner."

Asked how he found Putin, Gabriel said: "Friendly in his tone but firm on the issue".(GNN INT) (Reuters)

(Reporting by Lidia Kelly in Moscow and by Michelle Martin in Berlin; Editing by Timothy Heritage and Mike Collett-White)

Putin foe Khodorkovsky says Russia is lying about Ukraine

(GNN) - Former oligarch Mikhail Khodorkovsky, addressing thousands of people at the cradle of the uprising against Ukraine's Moscow-backed leader, accused Russia on Sunday of being complicit in police violence against protesters.

To chants of "Russia, rise up", Khodorkovsky, who was jailed for a decade under President Vladimir Putin, told the crowd the Kremlin was lying to its own people by portraying the protesters as "neo-fascists" bent on violence.

Wearing a simple dark anorak and jeans, he addressed the crowd from a stage in Kiev's Independence Square, occupied by protesters since November despite police trying to oust them with force which resulted in about 100 deaths.

"I have been shown what the authorities did here. They did this in agreement with the Russian authorities - more than 100 dead, more than 5,000 wounded," Khodorkovsky told the crowd, who waved back with Ukrainian flags.

"I've seen the plywood planks they used to stand up to the bullets. It made me want to cry, it's so awful," he said, his voice shaking with emotion.

The 50-year-old former executive, who fell out with Putin more than a decade ago, said it was clear that the Kremlin leader's portrayal of the protesters as dangerous extremists, drummed home by Russia's state-controlled media, was false.

"Russian propaganda lies, as always. There are no fascists or Nazis here, no more than on the streets on Moscow or St Petersburg," he said. "These are wonderful people who stood up for their freedom."

His remarks are likely to rile Putin because they undermine the Kremlin leader's position in a standoff with the United States and the European Union over Crimea, the Ukrainian Black Sea peninsula seized by Russian forces.

Putin's justification for saying Russia has the right to invade Ukraine if necessary is based on the premise that Russians and Russian-speakers in the former Soviet republic are threatened by "neo-fascists".

Putin denies his country is a participant in the conflict in Ukraine and denies Russia's armed forces are involved in Crimea, an assertion ridiculed in the West.

OFFER TO MEDIATE

Khodorkovsky arrived in Ukraine after offering to mediate in the Crimea crisis, saying he was worried the country was on the brink of civil war. He will deliver a lecture on Monday in Kiev, the capital, but there is no indication that anyone has taken up

his offer to mediate.

Although he was arrested at a time when corruption was particularly rife in Russia, Khodorkovsky was widely regarded abroad as a political prisoner after being arrested at gunpoint in 2003 and convicted of theft and tax evasion in 2005.

His oil company, Yukos, was broken up and sold off, mainly into state hands. Eventually pardoned and freed by Putin in December, he left the country immediately, saying he would not get involved in politics.

His speech on Sunday, however, was highly political and fiercely critical of Putin, with whom he fell out after defying an order to wealthy businessmen to stay out of politics.

"I want you to know there is another Russia," Khodorkovsky told the crowd, which responded at the end of his speech by chanting "Well done."

"There are people who despite the arrests, despite the long years they have spent in prison, go to anti-war demonstrations in Moscow, people for whom friendship between the Russian and Ukrainian people is stronger than their own freedom," he said.(GNN INT) (Reuters)

(Reporting By Nalia Zinets, Editing by Timothy Heritage and Alistair Lyon)

U.S. won't recognize Crimea annexation: security official

(GNN) - The United States will not recognize the annexation of Crimea by Russia if residents of the region vote to leave Ukraine in a referendum next week, U.S. national security official Tony Blinken said on Sunday.

Crimean officials have called a vote for next Sunday to confirm that the region, which has an ethnic Russian majority, is a part of Russia in the wake of the ouster of Ukraine's Moscow-allied president last month.

Blinken, U.S. President Barack Obama's deputy national security adviser, said on CNN's "State of the Union" program that Russia would come under increased international pressure as a result of the referendum in Crimea.

"First, if there is an annexation of Crimea, a referendum that moves Crimea from Ukraine to Russia, we won't recognize it, nor will most of the world," Blinken said.

"Second, the pressure that we've already exerted in coordination with our partners and allies will go up. The president made it very clear in announcing our sanctions, as did the Europeans the other day, that this is the first step and we've put in place a very flexible and very tough mechanism to increase the pressure, to increase the sanctions."

Obama will meet with Ukrainian Prime Minister Arseny Yatseniuk at the White House on Wednesday to discuss a resolution to the Crimea situation.

Obama has said a referendum on Crimea would violate international law and the Ukrainian constitution. Last week he announced sanctions including travel bans and freezing of assets of individuals responsible for Russia's military intervention in Crimea. Russian President Vladimir Putin was not among the individuals.

Russian forces have seized the Crimean peninsula, crucial to Moscow as warm-water port and home to its Black Sea naval fleet, with a bloodless occupation that has elevated tensions with the West to their highest level since the Cold War.

Representative Mike Rogers, the Republican chairman of the House Intelligence Committee, questioned the effectiveness of sanctions against Russia.

Rogers said on ABC's "This Week" program that Germany's economic and energy ties to Moscow could make its own economy vulnerable if sanctions bite deeply on Russia.

"You've got some problems with sanctions and how that works out and how they (Germany) can go forward without screwing up their own economy," he said.

Rogers said Putin had shown an "expansionist attitude" and that the United States should not underestimate "the kinds of things that he will do that he thinks is in Russia's best interests."

Representative Paul Ryan, appearing on CBS's "Face the Nation," suggested targeting the oligarchs who back Putin and boosting U.S. natural gas exports as a way of cutting into a crucial Russian business in Europe.(GNN)(Reuters)

(Reporting and writing by Bill Trott; Editing by Jim Loney and Meredith Mazzilli)

West must stop far-right's rise in Ukraine: Russian official

(GNN) - A senior Russian official appealed to the West on Sunday to help prevent "neo-fascists" coming to power in Ukraine after a far-right leader said he planned to run for president.

Dmytro Yarosh, leader of the Right Sector paramilitary movement which played a big role in three months of protests that toppled Ukraine's Moscow-backed president, announced his candidacy for the May 25 election on Saturday.

"The de-facto authorities in Kiev and their Western backers should close the road to power of the neo-fascist Yarosh and his supporters," Konstantin Dolgov, the Russian Foreign Ministry's human rights commissioner, said on Twitter.

Moscow has charged Yarosh with incitement to terrorism for allegedly suggesting a Chechen warlord should attack Russia after Russian forces took control of Ukraine's Crimea region.

Political analysts in Ukraine say Yarosh is a rank outsider in the election because of his ultra-nationalist views.

President Vladimir Putin has said that Ukraine's new leaders seized power in an unconstitutional armed coup and that Russia has the right to invade Ukraine to protect Russians living in the former Soviet republic.

Russian officials tar other protest leaders with the same brush as Yarosh, and portray the Ukrainian leadership as radical nationalists backed by the West. Russian state media have widely repeated the accusations.

Moscow also blames the protesters for clashes in which Ukraine's Health Ministry says about 100 people were killed.

The dead included police but witnesses said the vast majority were protesters killed when riot police charged or attacked them, and that some were killed by sniper bullets.

"The violence of the ultra-nationalists who have been enjoying impunity has completely discredited Maidan (the protest movement)," Dolgov said. "Militants guilty of murder should be brought to justice."

Yarosh on Saturday described Moscow as the aggressor following Russian forces' intervention in Crimea and said Ukraine was "in a state of war with Russia".(GNN INT) (Reuters)

(Editing by Timothy heritage)