Putin says Russia won't expel US diplomats in hacking flap

Russian President Vladimir Putin castigated the United States on Friday for bringing sanctions and expelling Russian diplomats amid allegations of Russian meddling in the American presidential election, but said no U.S. diplomats will be ousted in reprisal for Washington's moves in the wake of hacking attacks.

In a burgeoning controversy surrounding complaints from the Obama administration about a cyber assault against America's political system, the White House on Thursday unleashed a string of sanctions and coupled them with an order that 35 Russians be expelled.

In a statement Friday on the Kremlin's website, Putin referred to the sanctions as a "provocation aimed to further undermine Russian-American relations." But he also said that Moscow would not be ousting American diplomats.

"The Russian diplomats returning home will spend the New Year Holidays with their relatives and dear ones," Putin said. "At home. We will not create problems for U.S. diplomats. We will not expel anybody."

The diplomatic confrontation between Washington and Moscow, which had been festering even before the Nov. 8 presidential election elevated Donald Trump to the presidency, puts pressure on the billionaire businessman not to let Russia off the hook after he takes office on Jan. 20.

Russia's government had threatened retaliation, and it continues to deny U.S. accusations that it hacked and stole emails to try to help Trump win.

Trump said the U.S. should move on, but in a sign he was no longer totally brushing off the allegations, he plans to meet with U.S. intelligence leaders next week to learn more.
Putin's statement came hours after Foreign Minister Sergey Lavrov suggested a tit-for-tat expulsion in televised remarks. He said early Friday that Russia's foreign ministry and other agencies had suggested that Putin order expulsion of 31 employees of the U.S. Embassy in Moscow and four diplomats from the U.S. Consulate in St. Petersburg. Another suggestion is to bar American diplomats from using their summer retreat on the outskirts of Moscow and a warehouse south of Moscow.

But in the website remarks, Putin said Russia would not prevent the families and children of diplomats from using the customary rest and leisure facilities and sites during the New Year holidays. "Moreover, I am inviting all children of US diplomats accredited in Russia to the New Year and Christmas parties in the Kremlin," he said.

US presidential transition

President Barack Obama on Thursday ordered sanctions against the GRU and FSB, leading Russian intelligence agencies the U.S. said were involved. In an elaborately coordinated response by at least five federal agencies, the Obama administration also sought to expose Russia's cyber tactics with a detailed technical report and hinted it might still launch a covert counterattack.

"All Americans should be alarmed by Russia's actions," said Obama, who was vacationing in Hawaii. "Such activities have consequences."

He said the response wasn't over and the U.S. could take further, covert action — a thinly veiled reference to a counterstrike in cyberspace the U.S. has been considering.

Yet the sanctions could easily be pulled back by Trump, who has insisted that Obama and Democrats are merely attempting to delegitimize his election.
Prime Minister Dmitry Medvedev charged earlier Friday that Washington has become immersed in "anti-Russian death throes."

Medvedev, who focused on improving U.S.-Russia ties when he was president from 2008-2012, called the latest diplomatic breach "sad" in a Twitter post.

As part of the punishment leveled against Moscow, the U.S. kicked out 35 Russian diplomats in response to Russia's harassment of U.S. diplomats. They also shut down Russian recreational compounds in New York and Maryland that U.S. officials said were being used for intelligence.

It was the strongest action the Obama administration has taken to date to retaliate for a cyberattack, and more comprehensive than last year's sanctions on North Korea after it hacked Sony Pictures Entertainment. The new penalties add to existing U.S. sanctions over Russia's actions in Ukraine, which have impaired Russia's economy but had limited impact on Putin's behavior.

Russia called the penalties a clumsy yet aggressive attempt to "harm Russian-American ties." Putin spokesman Dmitry Peskov said Russia would take into account the fact that Trump will soon replace Obama as it drafts retaliatory measures.

U.S. relations with Russia have suffered during Obama's years in office as he and Putin tussled over Ukraine, Edward Snowden and Russia's support for Syrian President Bashar Assad. Maria Zakharova, a Russian foreign ministry spokeswoman, took to Facebook to call the Obama administration "a group of foreign policy losers, angry and ignorant."

It was unlikely the new sanctions, while symbolically significant, would have a major impact on Russian spy operations. The sanctions freeze any U.S. assets and block Americans from doing business with them. But Russian law bars the spy agencies from having assets in the U.S., and any activities they undertake would likely be covert and hard to identify.

"On its face, this is more than a slap on the wrists, but hardly an appropriate response to an unprecedented attack on our electoral system," said Stewart Baker, a cybersecurity lawyer and former National Security Agency and Department of Homeland Security official.

Indeed, senior Obama administration officials said that even with the penalties, the U.S. had reason to believe Russia would keep hacking other nations' elections and might well try to hack American elections again in 2018 or 2020. The officials briefed reporters on a conference call on condition of anonymity.

Though the FBI and Department of Homeland Security issued a joint report on "Russian malicious cyber activity" — replete with examples of malware code used by the Russians — it still has not released a broader report Obama has promised detailing Russia's efforts to interfere with U.S. elections.

The report has been eagerly anticipated by those hoping to make it politically untenable for Trump to continue questioning whether Russia was really involved. But U.S. officials said those seeking more detail about who the U.S. has determined did the hacking need look only to the list of sanctions targets, which includes the GRU head, his three deputies and two Russian nationals wanted by the FBI for cybercrimes.

The move puts Trump in the position of having to decide whether to roll back the measures once in office, and U.S. officials acknowledged that Trump could use his executive authorities to do so. Still, they suggested that building the case against Russia now would make it harder for Trump to justify easing up.

U.S. allegations of hacking have ignited a heated debate over Trump's approach to Russia and his refusal to accept the assessment of U.S. intelligence agencies that Russia's government was responsible and wanted to help him win. Though U.S. lawmakers have long called for Obama to be tougher on Russia, some Republicans have found that position less tenable now that Trump is floating the possibility of closer ties to Moscow.

"While today's action by the administration is overdue, it is an appropriate way to end eight years of failed policy with Russia," House Speaker Paul Ryan, R-Wis., said.

U.S. intelligence agencies concluded that Russia was trying to help Trump when hackers targeted Democratic Party computers and stole tens of thousands of emails that were then posted on WikiLeaks, some containing embarrassing information about Democrats. Clinton aide John Podesta's emails were also stolen and released publicly in the final weeks of the campaign.