MEDICAL DIAGNOSTICS COMPANY TO PAY $14.35 MILLION TO RESOLVE FOREIGN CORRUPT PRACTICES ALLEGATIONS

FROM:  U.S. JUSTICE DEPARTMENT 
Monday, November 3, 2014
Bio-Rad Laboratories Resolves Foreign Corrupt Practices Act Investigation and Agrees to Pay $14.35 Million Penalty

A California-based medical diagnostics and life sciences manufacturing and sales company, Bio-Rad Laboratories Inc. (Bio-Rad), has agreed to pay a $14.35 million penalty to resolve allegations that it violated the Foreign Corrupt Practices Act (FCPA) by falsifying its books and records and failing to implement adequate internal controls in connection with sales it made in Russia.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Special Agent in Charge David J. Johnson of the FBI’s San Francisco Field Office made the announcement.

“Public companies that cook their books and hide improper payments foster corruption,” said Assistant Attorney General Caldwell.  “The department pursues corruption from all angles, including the falsification of records and failure to implement adequate internal controls.   The department also gives credit to companies, like Bio-Rad, who self-disclose, cooperate and remediate their violations of the FCPA.”

“The FBI remains committed to identifying and investigating violations of the Foreign Corrupt Practices Act,” said Special Agent in Charge Johnson.  “This action demonstrates the benefits of self-disclosure, cooperation, and subsequent remediation by companies.”

According to the company’s admissions in the agreement, Bio-Rad SNC, a Bio-Rad subsidiary located in France, retained and paid intermediary companies commissions of 15-30 percent purportedly in exchange for various services in connection with certain governmental sales in Russia.  The intermediary companies, however, did not perform these services.  Several high-level managers at Bio-Rad, responsible for overseeing Bio-Rad’s business in Russia, reviewed and approved the commission payments to the intermediary companies despite knowing that the intermediary companies were not performing such services.  These managers knowingly caused the payments to be falsely recorded on Bio-Rad SNC’s and, ultimately, Bio-Rad’s books.  Bio-Rad, through several of its managers, also failed to implement adequate controls, as well as adequate compliance systems, with regard to its Russian operations while knowing that the failure to implement such controls allowed the intermediary companies to be paid significantly above-market commissions for little or no services.

The department entered into a non-prosecution agreement with the company due, in large part, to Bio-Rad’s self-disclosure of the misconduct and full cooperation with the department’s investigation.  That cooperation included voluntarily making U.S. and foreign employees available for interviews, voluntarily producing documents from overseas, and summarizing the findings of its internal investigation.  In addition, Bio-Rad has engaged in significant remedial actions, including enhancing its anti-corruption policies globally, improving its internal controls and compliance functions, developing and implementing additional due diligence and contracting procedures for intermediaries, and conducting extensive anti-corruption training throughout the organization.

In addition to the monetary penalty, Bio-Rad agreed to continue to cooperate with the department, to report periodically to the department for a two-year period concerning Bio-Rad’s compliance efforts, and to continue to implement an enhanced compliance program and internal controls designed to prevent and detect FCPA violations.

In a related matter, the U.S. Securities and Exchange Commission (SEC) today announced that it had entered into a cease and desist order against Bio-Rad in which the company agreed to pay $40.7 million in disgorgement and prejudgment interest in connection with the company’s sales in Russia, as well as in Thailand and Vietnam.

The department acknowledges and expresses its appreciation for the assistance provided by the SEC’s Division of Enforcement.

The case is being investigated by the FBI’s San Francisco Field Office.  The case is being prosecuted by Trial Attorney Andrew Gentin of the Criminal Division’s Fraud Section.

NSC SPOKESPERSON'S STATEMENT ON SEPARATIST ELECTIONS IN EASTERN UKRAINE

FROM:  THE WHITE HOUSE 
November 03, 2014
Statement by NSC Spokesperson Bernadette Meehan on the Illegal Separatist Elections in Eastern Ukraine

The United States condemns the illegitimate, so-called “elections” held on Sunday by Russia-backed separatists in parts of Donetsk and Luhansk.  These sham elections contravened Ukraine’s constitution, the law on “special status,” and the most basic electoral norms.  Both Russia and its separatist proxies had agreed to honor Ukraine’s special status electoral law when they signed the Minsk Protocol of September 5.  They therefore violated the terms of that protocol with these so-called “elections” on November 2.   As we have said previously, the United States will not recognize the authority of any individuals claiming to represent parts of Donetsk and Luhansk on the basis of this illegal vote.

We are concerned by a Russian Foreign Ministry statement today that seeks to legitimizes these sham “elections.”  We also continue to be concerned by reports that Russia is once more moving its troops and military equipment to portions of the international border.  The Russia-Ukraine border remains unmonitored and outside of Ukrainian government control despite Russia’s commitment to facilitate the establishment of an effective international monitoring mission.  We are also concerned by OSCE reports that OSCE Special Monitoring Mission UAVs operating east of the control line have come under attack in recent days.  More broadly, Moscow’s continued failure to fulfill its obligations under the Minsk agreements calls into question its commitment to supporting a peaceful resolution to the conflict in parts of eastern Ukraine.

We call on Russia’s leaders to adhere to the commitments they made in Minsk to include the full withdrawal of foreign forces, the restoration of Ukrainian control of its sovereignty over the border with OSCE monitoring, and local elections in accordance with the special status law, which set these for December 7.  As we have said repeatedly, Russia has a choice.  If it supports the peace process and adheres to its Minsk commitments, the costs for Russia’s destabilizing actions against Ukraine will lessen.  Should Moscow continue to ignore the commitments that it made in Minsk and continue its destabilizing and dangerous actions, the costs to Russia will rise.

NSC STATEMENT ON SEPARATIST ELECTIONS IN EASTERN UKRAINE

FROM:  THE WHITE HOUSE 

October 31, 2014

Statement by NSC Spokesperson Bernadette Meehan on Anticipated Separatist “Elections” in Eastern Ukraine

We deplore the intent of separatists in parts of eastern Ukraine to hold illegitimate so-called local “elections” on Sunday, November 2. If held, these “elections” would contravene Ukraine’s constitution and laws and the September 5 Minsk Protocol. As President Obama said on October 27, “the United States will not recognize any election held in separatist-held areas that does not comport with Ukrainian law and is not held with the express consent and under the authority of the Ukrainian government.” The only legitimate local election in eastern Ukraine will be held on December 7, as prescribed by the Special Status Law signed by President Poroshenko for parts of Donetsk and Luhansk, and in keeping with the Protocol that the separatists signed with Ukraine and Russia in Minsk, Belarus, on September 5.

As a signatory of the Minsk Protocol, we call on Russia to join the Secretary General of the United Nations, the European Union, the Council of Europe, and the international community in condemning the illegitimate vote planned for this weekend. The United States will not recognize any results announced from this so-called election, and we call on all members of the international community to do the same. We also caution Russia against using any such illegitimate vote as a pretext to insert additional troops and military equipment into Ukraine, particularly in light of recent indications that the Russian military is moving forces back to the border along separatist controlled areas of eastern Ukraine. We once more urge Russia and its separatist proxies to fulfill all of their commitments under the Minsk Protocol of September 5, and the Minsk Memorandum of September 19.

SECRETARY KERRY'S REMARKS WITH GERMAN CHANCELLOR MERKEL

FROM:  THE STATE DEPARTMENT 

Remarks With German Chancellor Angela Merkel Before Their Meeting

Remarks

John Kerry

Secretary of State

Chancellery

Berlin, Germany

October 22, 2014

CHANCELLOR MERKEL: (In German.)

Well, ladies and gentlemen, allow me to say that I am delighted to have the Secretary of State John Kerry here for the third time ever since he assumed office. And yesterday I understand the Secretary of State had the opportunity to have a lengthy discussion over dinner with the German Foreign Minister Frank-Walter Steinmeier, and today too we have our work cut out for us. There are a number of international issues that will be on the agenda of our talks today – indeed, international issues that are on the agenda for all of us in this year 2014. There are many of those tasks, many of those issues, many very demanding issues, and all of these can only be mastered by us if we act together, if we act in close partnership and coordination with our partners and friends in the United States of America.

Let me mention the issues as we see them today. First of all, we want to discuss our fight against Islamic State, countermeasures that are to be taken against this terrorist threat that IS presents to all of us. Secondly, the Iranian nuclear program will be on the agenda; and third, the catastrophe that is Ebola; and fourth, we will also discuss the future of Afghanistan. We have a very short time, that is true, available to us, and as you can see, we have more than enough on our plate to fill this very short time.

So once again, let me say that I’m delighted to have the Secretary of State here, and let me use this opportunity to thank him for the excellent cooperation that we have always enjoyed with our American partners and friends on all of these areas. And let me also mention that I forgot one very important issue, obviously – namely, Ukraine-Russia. There too there is quite a lot on our plate, and so quite a lot of things to discuss. Again, all of these crises we can only tackle, we can only master if we act in concert, if we act together. Only then will be able to bring them, hopefully, towards a solution.

SECRETARY KERRY: Well, thank you, Madam Chancellor. Thank you very, very much for making the time today to be able to meet. I know you’re very busy and I greatly appreciate the chance to sit down with you. President Obama, our administration, the American people have great respect for your leadership, and we appreciate enormously what Germany is doing on every single issue of critical importance today. I’m also mindful that I’m coming here today where I visited the old wall and met with some of your young kids who were asking questions about the future, none of whom had been born during that period of time. They were all post-Cold War.

And so even as we celebrate the fall of the wall and all that it symbolizes, it was very clear to me today, as it is to America, that the story of Germany is not the past – it’s the future, and what you are doing to define that future, leading Germany on so many issues to be a global leader. And I want to thank you, because on Ebola, you are contributing people, expertise, medivac capacity now, money, and Germany is one of the leaders in the effort to deal with this challenge.

On Ukraine, you and your foreign minister have been on the forefront of diplomacy. And your efforts with President Poroshenko, your personal interventions with President Putin, have been critical to helping to define the Minsk Agreement and to put us on a ramp to de-escalate and hopefully move away from conflict.

On ISIL, likewise, you made a very significant decision. Germany has stepped up, changed its own policy, and is helping to cooperate globally in law enforcement, as we’ve seen in the last days, but also to help to be at the forefront of fighting with the foreign fighters issue and ISIL itself.

On Iran, Germany is a critical partner in the P5+1 talks. And Foreign Minister Steinmeier and I talked at length yesterday about how we can hopefully seize this historic moment to be able to reduce that conflict and prove to the world that we can move towards a world without nuclear weapons, ultimately.

On Afghanistan, as you mentioned a few minutes ago, likewise, Germany is a key partner in the ongoing efforts to empower the people of Afghanistan to define their own future and to respect the sovereignty of the country. So all of these things, on every major challenge today, we are partnering. And we now need to obviously deal with economy, with growth. We hope that the Transatlantic Trade Investment Partnership can move forward, because all of our countries can benefit from the economic stimulation and growth that will come from that.

So we have a lot to talk about, as you said, a very little amount of time. But the time I spent last night was well spent, and I appreciate your making time today to have a personal exchange. I bring you President Obama’s great greeting, and again, our respect and gratitude for the strength of our relationship. Thank you.

U.S. UNITED NATIONS REPRESENTATIVE'S REMARKS TO SECURITY COUNCIL ON UKRAINE

FROM:  U.S. STATE DEPARTMENT 

U.S. Mission to the United Nations: Remarks at a Security Council Briefing on Ukraine

Samantha Power

U.S. Permanent Representative to the United Nations 

New York, NY

September 19, 2014

AS DELIVERED

Thank you, Under-Secretary-General Feltman, for your informative briefing. Thank you, Ministers Timmermans, Bishop, and Asselborn for being here and signaling the importance of this issue with your presence.

First, on behalf of the United States, let me once again convey our condolences to the loved ones of the victims of Malaysia Airlines Flight 17. We do not presume to grasp the depth of your grief. But we mourn the lives of those you lost.

We convene today for an update on the investigation into a crime that abruptly ended too many lives. The purpose of the investigation is to determine the truth about what brought down that plane.

Now, for any investigation to be credible, we all agree that it must be thorough, impartial, and professional. Ukraine and the whole international community turned to the Dutch Safety Board because we believed it was more than capable of meeting these standards.

The Board’s preliminary findings reflect its independence and its expertise. Those findings, submitted to the Security Council on September 9th, include the following:

- First, the aircraft was brought down by, “a large number of high-energy objects that penetrated the aircraft from the outside.”

- Second, there were no engine warnings, aircraft system warnings, or distress messages detected.

- Third, the damage to the aircraft is, “not consistent with any known failure mode of the aircraft, its engines, or systems.”

- And fourth, the only planes identified in the report that were in the vicinity of Flight MH 17 were commercial aircraft.

Based on those preliminary findings, one can rule out that Flight MH 17 was brought down by a bomb on board. It was not. Russian claims that the flight was brought down by a Ukrainian fighter jet are also not supported by evidence in the report. Moreover, ground photography is consistent with the expected damage from a surface-to-air missile, but does not correspond with the damage that short-range, air-to-air missile from a smaller warhead would produce. These facts are important because they contradict the fiction that has been propagated by Russia.

The Dutch Safety Board’s findings are consistent, however, with evidence gathered by a group of countries, including the United States, pointing to the fact that Flight MH 17 was shot down by a surface-to-air missile fired from territory controlled by Russian-backed separatists.

Russia called for today’s meetings under the pretense of being briefed on the status of the investigation. The representative of the Russian Federation today has appealed for what he calls a “objective and transparent investigation.”

But in its intervention today, Russia made clear its real intention is not to learn about the investigation, but to discredit it. Russia is seeking to play the role of forensic aviation investigator but cannot do so in an impartial and objective manner.

Russian-backed separatists denied access to the crash site for days after Flight 17 was downed. Russian-backed separatists then restricted access after initially letting outside officials in.

This is not consistent with an objective and transparent investigation.

The representative of the Russian Federation today complained about the timeliness of the voice recordings being processed. Yet telephone conversations intercepted by the Ukrainian government indicate that the commander of a pro-Russian separatist unit told local state emergency service employees that Moscow wanted to find the black boxes; and he enlisted the support of these local officials to help recover the boxes.

This is not consistent with the desire to ensure the sanctity of the recordings that, today, the Russian representative professes a desire to protect.

The Russian representative says that the report does not contain “convincing information.” In order to be convinced of facts, one must acknowledge them. In order to be convinced of truth, one must allow it to be surfaced. One can be convinced if one confronts the facts as they are established and proven, not as one may wish they were.

It’s time to allow facts, however inconvenient, to be uncovered. And it is time to stop all attempts to undermine the credibility of a thorough, impartial, and independent investigation that the international community has no reason to doubt.

Russia does not have the track record to play the credible investigator here. Russia has repeatedly misled this Council, its own people, and the world about its support for illegal armed groups and its own military incursions into Ukraine. Just read the transcripts of the previous 24 Security Council sessions on Russia’s actions in Ukraine. Read Russia’s denials that it was arming and training separatists in Crimea, and later its denials that it had deployed troops to Crimea. Read Russia’s denials that it was arming and training separatists in eastern Ukraine, and later its denials that it had deployed troops to eastern Ukraine.

The Dutch Safety Board that has been delegated the authority by Ukraine, in line with ICAO standards, to investigate this crash. If Russia has evidence that it believes can help identify who shot down Flight MH 17, it has a responsibility to share that information with the independent investigators.

Too many lives have been lost and this conflict has gone on for too long. It is time for Russia to bring its intervention to an end. That is why we fully support the ceasefire and agreement signed in Minsk, which aims to de-escalate the conflict that has taken approximately 3,000 lives. We fully support a negotiated political solution to this crisis, as we have asserted since Russia’s incitements created the conflict. We welcome reports that Russia is decreasing its troop levels in eastern Ukraine – even if Russia continues to deny that its troops were there in the first place. And we welcome Russia’s recent statements expressing support for the ceasefire.

However, we cannot lose sight of the fact that the crisis in eastern Ukraine, just like the occupation and annexation of Crimea before it, was manufactured by Moscow. And no country should support carving off pieces of sovereign Ukraine and handing them to the aggressors. The territorial integrity of Ukraine is non-negotiable.

Ukraine has demonstrated remarkably good faith in meeting its commitments. This week – notwithstanding the aggression against the state by the separatists and by Russian forces – Ukraine’s parliament passed legislation granting certain districts in eastern Ukraine special status that includes greater self-governance, economic control, and Russian language rights.

Now it is Russia’s turn. Russia must immediately withdraw all of its forces and equipment from Ukraine, including Crimea, and cease all forms of support and training for separatist groups. Russia and the separatists it backs must release all of their hostages and prisoners. Russia must finally close its borders to the flow of soldiers, separatists, tanks, artillery, and other machinery of war, and it must grant Ukraine control over its own border. Russia and the groups it backs must create an environment that allows the OSCE to fulfill its monitoring and verification mandate.

There is one very important imperative we must remember, which brings us back to why we convened today: truth. Two hundred and ninety-eight innocent people were killed on July 17th. The international community has identified an independent investigative body to uncover the truth about what happened to Flight MH 17. Today, we join the chorus of member states in reiterating our full support for the Dutch Safety Board’s investigation and we reject Russia’s efforts to disparage it or hinder its progress. The next step is the pursuit of justice. And when those responsible for this horrific crime are eventually identified, they will be punished.

Thank you.

PRESIDENT OBAMA'S STATEMENT ON INTENSIFYING COORDINATED SANCTIONS ON RUSSIA

FROM:  THE WHITE HOUSE 

September 11, 2014

Statement by the President on New Sanctions Related to Russia

Today, we join the European Union in announcing that we will intensify our coordinated sanctions on Russia in response to its illegal actions in Ukraine.  I have said from the very beginning of this crisis that we want to see a negotiated political solution that respects Ukraine’s sovereignty and territorial integrity.  Together with G-7 and European partners and our other Allies, we have made clear that we are prepared to impose mounting costs on Russia.  We are implementing these new measures in light of Russia’s actions to further destabilize Ukraine over the last month, including through the presence of heavily armed Russian forces in eastern Ukraine. We are watching closely developments since the announcement of the ceasefire and agreement in Minsk, but we have yet to see conclusive evidence that Russia has ceased its efforts to destabilize Ukraine.

We will deepen and broaden sanctions in Russia’s financial, energy, and defense sectors. These measures will increase Russia’s political isolation as well as the economic costs to Russia, especially in areas of importance to President Putin and those close to him.  My Administration will outline the specifics of these new sanctions tomorrow.

The international community continues to seek a genuine negotiated solution to the crisis in Ukraine.  I encourage President Putin to work with Ukraine and other international partners, within the context of the Minsk agreement and without setting unreasonable conditions, to reach a lasting resolution to the conflict.  As I said last week, if Russia fully implements its commitments, these sanctions can be rolled back.  If, instead, Russia continues its aggressive actions and violations of international law, the costs will continue to rise.

RUSSIA CONTINUES BUILDUP

FROM:  U.S. DEPARTMENT OF DEFENSE 

Pentagon: Russia Intensifies Efforts Inside Ukraine

By Jim Garamone

DoD News, Defense Media Activity

WASHINGTON, Aug. 29, 2014 – Russia continues to build up along its border with Ukraine and has moved sophisticated weapons systems into the country, the Pentagon press secretary said here today.

Navy Rear Adm. John Kirby told reporters that Russian military forces are part of those movements. Russian forces are, “facilitating the movement and then helping the separatists use the systems, if not using it themselves in support of separatists,” he said.

NATO has released surveillance photos showing these assets inside Ukraine. Kirby tied the Russian movements to the success that Ukraine has had against Russian-backed separatists in the country. “We believe that that has helped foster Moscow’s intention to intensify these efforts,” he said.

Kirby called Russian actions an “intensification” of the behaviors the Kremlin has exhibited for months.

“Our position hasn't changed,” he said. “We continue to look for ways to support the Ukrainian armed forces and the border guards. We continue to look for ways to reassure our NATO allies and partners, and we continue to call for Russia to pull its forces back and to stop escalating the tension there.”

President Barack Obama addressed the issue yesterday during a White House news conference. Russia has deliberately and repeatedly violated the sovereignty and territorial integrity of Ukraine, the president said. He called on nations of the world to impose new sanctions against Russia.

“As a result of the actions Russia has already taken and the major sanctions we’ve imposed with our European and international partners, Russia is already more isolated than at any time since the end of the Cold War,” the president said.

Obama said he would reaffirm U.S. commitment to the defense of NATO allies and said he would speak with fellow NATO leaders at the summit in the United Kingdom next week.

“We’ll focus on the additional steps we can take to ensure the alliance remains prepared for any challenge,” he said.

Ukraine is not a NATO member, but the United States does “stand shoulder-to-shoulder with them,” the president said.

WHITE HOUSE READOUTS: PRESIDENT OBAMA'S CALLS WITH PRESIDENT HOLLANDE OF FRANCE AND CHANCELLOR MERKEL OF GERMANY

FROM:  THE WHITE HOUSE 

Readout of the President's Call with President Hollande of France

The President spoke this morning with President Hollande of France about the latest developments in Iraq. The two leaders agreed on the need for an urgent, coordinated international response to the humanitarian disaster unfolding on Mount Sinjar. They underscored the serious threat that the Islamic State of Iraq and the Levant poses to all Iraqi communities throughout the country, and discussed the need to support the Iraqis by increasing their ability to counter these extremists. The two Presidents also discussed the targeted strikes that the Unites States is undertaking to protect U.S. personnel and prevent ISIL's advance on Erbil, and agreed to work together on a longer term strategy to counter ISIL.

Readout of the President’s Call with Chancellor Merkel of Germany

The President spoke today with Chancellor Merkel of Germany regarding the ongoing crisis in Ukraine. The two leaders agreed that any Russian intervention in Ukraine, even under purported "humanitarian" auspices, without the formal, express consent and authorization of the Government of Ukraine is unacceptable, violates international law, and will provoke additional consequences. They reiterated that we continue to urge Russia to engage with the international community and the Ukrainian government to find a political solution to the crisis.

SECRETARY KERRY'S REMARKS WITH INDIAN MINISTER FOR EXTERNAL AFFAIRS SWARAJ

FROM:  U.S. STATE DEPARTMENT 

Remarks With Indian Minister for External Affairs Sushma Swaraj After Their Meeting

Remarks

John Kerry

Secretary of State

Jawaharlal Nehru Bhawan

New Delhi, India

July 31, 2014

MODERATOR: Good evening, ladies and gentlemen. I welcome you to this media interaction. As is usual, we will first have opening statements by the two dignitaries, following which they have agreed to respond to a couple of questions each. We now begin the program. May I request that External Affairs Minister of India Shrimati Sushma Swaraj to make her opening remarks.

EXTERNAL AFFAIRS MINISTER SWARAJ: Thanks. We have just completed an excellent discussion on the main areas of our partnership: security; energy; trade and investment; science and technology; regional and border issues. The extent to which our cooperation is an impact on the wellbeing of our people, our economies, and our respective regional and global interests, makes us a truly defining partnership. And the extent to which revitalized India-U.S. ties contribute to peace, security, and prosperity of our neighborhood, the Asian region and beyond, makes our relationship truly strategic.

We recognized that today, both sides stand at an important turning point. Today, we can once again realize the latent potential of our partnership, which is based on common fundamental values and converging long-term strategic interests.

Secretary Kerry and Secretary Pritzker were generous in their assessment of what our new government will be able to do to realize the expectations of our people. They recognize that there’s much hard work ahead to realize the people’s mandate in an election of hope. My colleagues and I underlined that, for our part, we see great potential for the United States as a global partner. We underlined our interest in seeing a much more robust American presence in the Indian economy – as investors, as trade partners, in skill development, in defense, and in science and technology.

We also recognized that the regional and global aspect of our strategic partnership has great value for both sides, especially in the current situation of global and regional flux. We are delighted that there is a growing global dimension in our partnership. We agreed that the visit of Defense Secretary Hagel next Friday is an important opportunity to energize our defense partnership and begin the process of giving it a new strategic content.

We also recognized that the majority of our strategic relationship has given both sides the capacity to treat issues where we diverge as an opportunity for further conversation and dialogue. Towards this end, we discussed scheduling our long-pending commercial dialogue, our ministerial trade policy forum, and other bilateral dialogue mechanisms to address outstanding trade and economic issues that arise as a natural result of different perceptions.

Today, at the conclusion of this Fifth Strategic Dialogue, we can take satisfaction in the fact that within the few years since we raised our relationship to a strategic plane, our bilateral dialogue, as in all of the (inaudible), a new energy that our meeting today has imparted to partner departments and ministries should lead to determined efforts to ensure that the summit meeting in September between Prime Minister Narendra Modi and President Obama raises our partnership to a new level.

I want to thank our distinguished guests for their presence here in India. We appreciate the commitment to this partnership and the substantive contributions made on both sides today. While I’m pleased at the current effort to build on the momentum of our elections, we can be truly satisfied if we sustain this effort to ensure the best possible outcomes from the summit this September and through the rest of the year.

I now request Secretary Kerry to address you, after which we’ll take a few questions. Thank you.

SECRETARY KERRY: Well, thank you very much, Minister Swaraj. I want to thank you, first of all, for your leadership and I particularly want to thank you for the important perspective you brought to the discussions here today, as well as your very, very generous welcome. Thank you very much.

And in fact, the minister was extremely generous in permitting me to make a number of must-do phone calls during our session, and I’m very grateful to her for her indulgence.

I also want to acknowledge and thank the many members of the United States delegation joining me here today. Secretary Penny Pritzker is as good a Commerce Secretary as you could ever find, and I’m blessed to have her not only as a friend but as a colleague in this endeavor. And I saw firsthand today how important her leadership is in all that we are trying to undertake – science and technology, trade, all of our commercial activity and our economic issues.

Before I begin to discuss what we’ve accomplished in the past few days – and it has been a few days, because a number of members of our delegation arrived here several days ago and began meetings in Mumbai and here in Delhi. So there have been a lot of conversations taking place leading up to today. But I particularly wanted to share on behalf of President Obama and the United States our condolences with the families and the loved ones of the dozens of men and women who lost their lives in the Pune mudslide. There are many who remain missing. I know the Indian Government is investing enormous resources and effort in order to engage in the recovery effort, and the United States certainly is prepared to do anything that we might be able to if indeed help is needed.

I have been coming to India for many years. I’ve come here many times. In fact, I remember traveling here at the end of the Cold War, and it was a moment when nerves were still raw and suspicions still lingered. But as a Senator, I began to see how the relationship could quickly change, and in fact did. When I began to travel to Delhi, Mumbai and Bangalore, with the executives from companies and high-tech industries or in aerospace, it was very clear to me the breadth of the potential of the relationship between India and the United States, the potential of a real partnership. And I feel today, particularly after these two days of in-depth discussions, that the moment has never been more ripe to deliver on the incredible possibilities of the relationship between our nations.

Now that India’s new government has won an historic mandate to deliver change and reform, together we have a singular opportunity: to help India to meet its challenge; to boost two-way trade; to support South Asia’s connectivity; to develop cleaner energy; to deepen our security partnership in the Asia Pacific and beyond.

The United States and India can and should be indispensable partners in the 21st century. Of course, delivering on the potential of this moment is the key. The words are easy; it’s the actions we need to take that will really define the relationship in the days ahead. And I think it’s safe to say that I said to the foreign minister that we all have a lot of homework to do coming out of this meeting, many bilateral initiatives that will continue, but clearly, an importance to put specifics on the table for the trip of Prime Minister Modi to Washington in September to meet with President Obama.

I think we share a clear understanding of where we can begin. The new – in the new government’s plan for (in Hindi) – “together with all, development for all,” is a concept and a vision that is not unlike that expressed by President Obama and is one that we support wholeheartedly. Our private sector is very eager to be a catalyst for India’s development, and our government will enthusiastically support those kinds of development efforts. The opportunities are really clear, and they’re quite dramatic. American companies lead in key sectors that India wants to grow in: high-end manufacturing in infrastructure, in healthcare, and in information technology.

Still, we know we have a lot of work yet to do in breaking down barriers to trade and in encouraging the talent that we both have to be able to go to work. By limiting those obstacles, which we talked about over the course of these two days, whether they’re tariffs or price controls or preferential treatment for certain products in large, influential markets, we can build a more competitive market as well as build the bridges of opportunity that our young people in both of our countries want so much. When 10 million Indians enter the workforce each year, the Indian Government clearly understands this imperative.

Another topic that we spent a great deal of time discussing today was climate change. In past months, we have begun to find more common ground on this important global issue. There is no place where the challenges posed by climate change and the economic opportunities of renewable energy converge like they do in India today. We want to help India to be able to meet this challenge, to make the connections, and to be able to help supply clean electricity to the 400 million Indians who today live without power. I know this is a priority for the prime minister, and it’s a priority that we’re prepared to try to share.

This morning, I had the privilege of visiting IIT, the Indian Institute of Technology. And I met with some of the young doctorate candidates – doctoral candidates and master’s candidates who are doing fascinating research and development. This is one of India’s and the world’s premier institutions where students and researchers are – and their professors obviously are experimenting and working with the use of biomass and algae as sources of green energy, also new means of water treatment and cleaning water. It was really encouraging to see what is happening there, and I hope that we’ll be able to see Indian and American institutions coming together in a more formalized and productive way in order to be able to encourage that kind of joint research and innovation.

We also want to be clear: Climate change and energy shortages are not something that might happen way off in the future; it’s here with us now. Extreme weather, blackouts, scarce resources, all of these things endanger human health, prosperity, and they ultimately endanger security for all of us. Prime Minister Modi has stated clearly that he understands the urgency of this issue. He’s called for a saffron revolution, because the saffron color represents energy. He said that this revolution should focus on renewable energy sources such as solar energy in order to meet India’s growing energy demand. He is absolutely right. The United States could not agree with him more, and together, we believe that we can at last begin a new and constructive chapter in the United States-India climate change relationship.

Lastly, in this century, one that will continue to be defined by competing models of governance, India and the United States have a common responsibility. It is to prove that democracies can deliver the full expectations of their citizens. Our two nations believe that when every citizen, no matter their background, no matter their beliefs, can make their full contribution, that is when a nation is strongest and most secure, and that certainly applies to India and the United States. We are two confident nations. We are connected by core values. And we are optimistic nations should never lose sight of how much we can and must achieve. From women’s rights to minority rights, there is room to go further for both of us. We must also speak with a common voice that violence against women in any shape or form is a violence against our deepest values.

The United States and India are two nations that begin our founding documents with the exact same three words: We The People, We The People. By working together so that all people in our nations can pursue their aspirations, we believe we can come closer to achieving our founding dreams.

For both India and the United States, investing in each other’s success is frankly one of our smartest long-term strategic bets. We have the capacity, we have the resources, we have the open and resilient societies that can help us compete and win in an interconnected world, and we have remarkable and talented citizens in both of our countries waiting to do so. In the weeks to come, we will take a series of concrete steps to pave the way for Prime Minister Modi’s visit to Washington in September, and hopefully – hopefully – to pave the way for a new chapter in the ties between our two great democracies.

And I am also prepared to answer a few questions.

MODERATOR: The first question will be from Mr. Ashish Singh, ABP News.

QUESTION: Greetings, Secretary Kerry and greetings (inaudible). My question is for both ministers. (In Hindi.)

And Secretary, I would also request you respond to the same question about the concerns raised in India or the (inaudible) – on the Indian political parties, specifically parties (in Hindi). Thank you.

EXTERNAL AFFAIRS MINISTER SWARAJ: (Via interpreter) Yes, I raised this issue with Secretary John Kerry when the matter was published in Indian newspapers. I have also conveyed to him that this act on the part of U.S. authorities is completely unacceptable to us, since our two countries are friendly nations and we happen to share dialogue with each other.

SECRETARY KERRY: Well, we have a policy in the United States that with respect to intelligence matters, we do not discuss intelligence matters in public. But let me just say, very clearly, we value our relationship with India, our bilateral relationship in all the ways that I’ve just described. And we also value the sharing of information between each other regarding counterterrorism and other threats to both of our countries. We’ve had conversations, as the minister has stated, with government officials about these reports, and usually we try to have our intelligence communities work to resolve any questions or any differences that may exist.

But let me say this: President Obama has undertaken a unique and unprecedented review that he ordered of all of our intelligence and intelligence gathering and activities, and unlike any prior president, he has put out a memorandum clearly articulating in a speech – excuse me – he gave a speech in which he clearly articulated America’s approach going forward and the standards that we will apply. We will continue to work actively with India wherever we see a threat to our shared interests, and we fully respect and understand the feelings expressed by the minister.

MS. PSAKI: The next question will be from Shaun Tandon of AFP.

QUESTION: Thank you. I wanted to ask for further elaboration. You mentioned a growing role of India and the United States in the Asia- Pacific region. Can you be more specific about what you meant by that? Could you, for example, see Indian activity more in the South China Sea disputes?

And if I could touch on another global issue, Secretary Kerry, Gaza. The United States has authorized further ammunition for the Israeli forces. You’ve also called for an immediate ceasefire. I was wondering if you thought that this was consistent and whether you thought that a ceasefire is still possible at this point, particularly with all the personal attacks that have been leveled against you.

And if I could ask the external affairs minister on this same issue: When the BJP was last in power, India moved a little bit more closely – a little bit closer to Israel. I was wondering if you see that same momentum now between India and Israel, or whether the Gaza conflict affects that. Thanks.

EXTERNAL AFFAIRS MINISTER SWARAJ: Your first question – strategic partnership has definite definition. If you have partnership in the area of trade, defense, and space, then that partnership is called strategic partnership. So is there no ambiguity about that.

As regards Gaza, India’s policy is very specific: We fully support the cause of Palestinians, but we have good relations with Israel.

SECRETARY KERRY: I just reaffirm what the minister just said. We have a very strong strategic partnership. It is evidenced by the fact that the United States supports India’s hopes to be able to be a permanent member of the UN Security Council. That’s something we support, and we wouldn’t support that if we didn’t believe in the breadth of India’s capacity and reach, and in its values. And I talked about those values. We cooperate significantly on many different issues in the region: counterterrorism, Afghanistan, nonproliferation. India has been a significant, responsible steward of nuclear power, and those are things which we respect and, obviously, work with very closely.

So there are a great deal of interests that tie us together, and we all acknowledge that there have been ups and downs in the relationship for some period of years. But much more ups and much more involvement over the past 10 to 15 years. And that’s why I said we see this as such a ripe moment.

Prime Minister Modi has clearly made it a prime objective to deal with the question of jobs, the question of reform, providing efficiency to decisions and other kinds of things. He wants the market to be more accessible. They’re considering different things that they need to share with you, but we’re impressed by the breadth of their thoughts about the economic changes that are possible, and we certainly want to see those implemented. And we’ll wait to see. The proof is always in the pudding, obviously.

With respect to Gaza, we’ve never stopped working towards the notion that a ceasefire at some point is essential. And even today, I’ve been on the telephone on the plane flying over here. We’ve been continuing discussions. And yes, the United States remains hopeful that it is achievable. And sooner is better because of the needs to get to the table and begin the negotiation that could ultimately, hopefully, resolve issues. There’s no promise in that, I want to make that clear. No promise in that. But I think everybody would feel better if there was a bona fide effort to try to see that happen.

MS. PSAKI: The next question is from Lara Jakes of AP.

QUESTION: Thank you very much. Mr. Secretary, a moment ago you spoke about barriers to trade. I’m wondering if you can update us on whether there was an agreement with India for keeping food subsidies as part of the WTO trade deal.

I also wanted to ask you whether the U.S. has asked India to follow the spirit of the sanctions against Russia, given India’s years of purchasing Russian arms.

And Madam Minister, has there been any shift in that long-time Indian policy, especially now with the shoot-down of Malaysian Airlines flight 17? Thank you.

EXTERNAL AFFAIRS MINISTER SWARAJ: You asked three questions in a row. To your first question, consultations are underway in Geneva. Let us wait for the final outcome.

To your second question, there is no change in our policy because we think that the foreign policy is in continuity. Foreign policy does not change with a change in government.

SECRETARY KERRY: Well, we obviously – I think there’s a meeting – I’m not sure when. Have they already met in Geneva?

EXTERNAL AFFAIRS MINISTER SWARAJ: They’ve met. They’ve already --

SECRETARY KERRY: They already did.

EXTERNAL AFFAIRS MINISTER SWARAJ: They’re meeting.

SECRETARY KERRY: They already did. They already met. They’re meeting now. I thought so. Right around now.

EXTERNAL AFFAIRS MINISTER SWARAJ: That’s what (inaudible).

SECRETARY KERRY: Our feeling is obviously that the agreement that was reached in Bali is an agreement that importantly can provide for food security for India. We do not dismiss the concerns India has about large numbers of poor people who require some sort of food assurance and subsistence level, but we believe there’s a way to provide for that that keeps faith with the WTO Bali agreement. And so we are obviously encouraging our friends in India to try to find a path here where there is a compromise that meets both needs. And we think that’s achievable and we hope it’s achievable.

With respect to the issue of the sanctions, the focus of our meetings here today is bilateral fundamentally, and the ways the U.S. and India can grow the relationship with respect to trade, clean energy cooperation, counterterrorism, science, technology and so forth. Now, we would obviously welcome India joining in with us with respect to that, but it’s up to them. It’s India’s choice. India has its relationships. We’d support and welcome them in dealing with the challenge that Russia is presenting, but it’s really up to India. It’s not something that entered into the bilateral relationship in the context of today’s discussion.

MODERATOR: Last question. Rajeev Sharma from the Firstpost.

QUESTION: Thank you. My question is to both Minister Swaraj and Mr. Kerry. (Inaudible), what is India’s view on Senate bill 744, whether this issue was discussed with Mr. Kerry by you? And what is his assurance, if any?

And question to Mr. Kerry is: Don’t you think that this 744 is a rather protectionist measure? And even American companies are seeing it as a protectionist measure. Is there a mood to amend it or dilute it? Thank you.

EXTERNAL AFFAIRS MINISTER SWARAJ: Let me first answer. Yes, I raised the issue with Secretary Kerry about the bill number 744. And our minister of commerce, Shrimati Nirmala Sitharaman, also raised this issue in the plenary session. I told Secretary Kerry that we are not against the bill per se. Immigration is your internal matter. But we are certainly concerned with the provisions which will affect the Indian IT industry if the bill is passed in the present form. And I also told Secretary Kerry that it will give a very negative signal, and that too at a time when India is opening up its economy for the foreign players. Thank you.

SECRETARY KERRY: So I’m going to confess something to you that I probably shouldn’t confess to you, but when I was in the United States Senate for 29 years, I never identified a bill by its number. (Laughter.) It was the immigration bill or it was the something bill. So thank God the minister knew that that was the number to that. (Laughter.)

EXTERNAL AFFAIRS MINISTER SWARAJ: Yes, that was the number.

SECRETARY KERRY: We did talk about the immigration bill, and it’s a critical priority for President Obama. And we are very aware of the need to make sure that there are more people able to travel, more people able to become part of the commerce that we just talked about – all of these areas, including education and so forth.

But the way it left the Senate leaves that in need of some amending. The House has not taken it up yet, and it really appears as if they won’t, certainly, before the election, which is in three months. The Administration – President Obama – would support some changes that will deal with some of the issues that you’ve just raised and other issues, but at the moment, it does not appear as if this bill – not “appear” – it will not move in the next several months. One has to hope that after the election is over, there may be the possibility of rebuilding support for it.

It’s a critical bill for us in many, many ways, way beyond those that you just articulated. And President Obama would really like to see it done as a matter of fairness, as a matter of morality, as a matter of commercial and business interests, as a matter of family interests. There are many compelling reasons for why this needs to pass, and I’m confident that at some point in time, we will get appropriate immigration reform.

MODERATOR: Thank you very much. With that, we come to the end of this event.

G-7 LEADERS EXPRESS "GRAVE CONCERN" REGARDING RUSSIA'S ACTIONS IN UKRAINE

FROM:  THE WHITE HOUSE 

G-7 Leaders Statement on Ukraine

We, the leaders of Canada, France, Germany, Italy, Japan, the United Kingdom, the United States, the President of the European Council, and the President of the European Commission, join in expressing our grave concern about Russia’s continued actions to undermine Ukraine’s sovereignty, territorial integrity, and independence.  We once again condemn Russia’s illegal annexation of Crimea, and actions to de-stabilize eastern Ukraine.  Those actions are unacceptable and violate international law.

We condemn the tragic downing of Malaysia Airlines Flight 17 and the deaths of 298 innocent civilians.  We demand a prompt, full, unimpeded, and transparent international investigation.  We call upon all sides to establish, maintain, and fully respect a cease-fire at and around the crash site, as demanded by UN Security Council resolution 2166, so that the investigators can take up their work and to recover the remains of all victims and their personal possessions.

This terrible event should have marked a watershed in this conflict, causing Russia to suspend its support for illegal armed groups in Ukraine, secure its border with Ukraine, and stop the increasing flow of weapons, equipment, and militants across the border in order to achieve rapid and tangible results in de-escalation.

Regrettably, however, Russia has not changed course.  This week, we have all announced additional coordinated sanctions on Russia, including sanctions on specific companies operating in key sectors of the Russian economy.  We believe it is essential to demonstrate to the Russian leadership that it must stop its support for the separatists in eastern Ukraine and tangibly participate in creating the necessary conditions for the political process.

We remain convinced that there must be a political solution to the current conflict, which is causing rising numbers of civilian casualties.  We call for a peaceful settlement of the crisis in Ukraine and underline the need to implement President Poroshenko’s peace plan without any further delay.  To this end, we urge all parties to establish a swift, genuine, and sustainable general cease-fire on the basis of the Berlin Declaration of 2 July with the aim of maintaining Ukraine’s territorial integrity.  We call upon Russia to use its influence with the separatist groups and ensure effective border control, including through OSCE observers.   We support the OSCE and the Trilateral Contact Group as central players in creating the conditions for a ceasefire.

Russia still has the opportunity to choose the path of de-escalation, which would lead to the removal of these sanctions.  If it does not do so, however, we remain ready to further intensify the costs of its adverse actions.

REMARKS BY SECRETARY KERRY, UKRAINIAN FOREIGN MINISTER KLIMKIN

FROM:  THE STATE DEPARTMENT

Remarks With Ukrainian Foreign Minister Pavlo Klimkin After Their Meeting

Remarks

John Kerry

Secretary of State

Treaty Room

Washington, DC

July 29, 2014

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SECRETARY KERRY: Make sure it’s still morning. Good morning, everybody. Thank you for being here with us. It’s my pleasure to be able to welcome Foreign Minister Pavlo Klimkin to Washington, and this is the second time that he and I have had a chance to be able to meet and thoroughly discuss the issues of Ukraine, the challenges of the region, and I deeply appreciate his making time today at a critical time in the region.

We meet today less than two weeks after Malaysian Airlines Flight 17 was tragically shot out of the sky in the separatist-controlled territory of Ukraine, and the victims of that crash and their families clearly deserve a thorough international investigation that is unimpeded in any respect so that people have access to the site, so that the families can know that their loved ones are being treated with the decency that any family anywhere in the world would expect in these circumstances.

The United States supports a thorough international investigation into this heinous act, and we support the efforts of the Malaysians, Dutch, and Australians to help the Ukrainians in order to secure the site so that those investigations can take place now. They’re overdue, and it is absolutely important for the separatists to stand back and permit this access to take place.
The work of the investigators is absolutely critical. It’s been 10 days since this plane went down. And investigators have still not received full, unfettered access to the crash site. And without this access, they have no way to collect debris, no way to collect other evidence from the scene in order to be able to provide the kind of examination that is necessary. They still can’t even ensure that all of the victims’ remains have been removed, and that is an unsupportable burden for any family to have to bear, and it is an unacceptable standard for behavior, period. The site has to be cordoned off. The evidence has to be preserved. And Russia needs to use its considerable influence among the separatists in order to be able to help ensure this basic approach of common decency.

Well beyond the crash site, the fighting is continuing. And as President Poroshenko has made clear repeatedly and as Foreign Minister Klimkin reiterated to me just a few minutes ago, the Ukrainians are ready to accept a mutual cease-fire now – not in the future, now. And they have proposed a peace plan that includes serious and substantive dialogue with the Russian-backed separatists with international participation because they understand that that is the only way that this crisis is going to come to an end.

This morning, I talked with Foreign Minister Lavrov and raised these concerns and agreed that there is a way to try to put some very specific proposals on the table to try to move forward. But the Russians and their so-called volunteers are continuing to ship arms and funds and personnel across the border. We see this. There is clear evidence of it. We now have clear evidence of artillery and rocket fire from Russia into Ukraine. And while the Russians have said that they want to de-escalate the conflict, their actions have not shown a shred of evidence that they really have a legitimate desire to end the violence and end the bloodshed.
As a result, the Russian-backed separatists refuse to lay down their arms and be part of the political process. They continue to fire on Ukrainian forces, even in the area just around the crash site, and they have displayed an appalling disregard for human decency. And evidently, the separatists will continue to do so unless they can feel some pressure, something real from their Russian backers.

President Putin can make a huge difference here if he chooses to. And we and our European partners will take additional measures and impose wider sanctions on key sections of the Russian economy if that is what we must do. We hope that it will not be necessary. And if Russia continues to go down this path, however, Russia will leave the international community with no choice. What is unfolding in Ukraine has already gone on for far too long. It’s well past time for the violence to stop and for the people of Ukraine to begin the process of rebuilding their country and rebuilding it in a way that can have a relationship with Russia, with the West.
I think Foreign Minister Klimkin will affirm today that we’re not asking them to choose between the two, and I think Ukrainians understand that they have strong ties to Russia. They’re prepared to have a relationship with Russia, and they understand that the future of Ukraine depends on having a strong relationship with Russia.

So it’s well past time for this violence to stop, and that is why yesterday, Vice President Biden announced nearly $7 million in rapid assistance for humanitarian and rebuilding purposes to be deployed immediately. Specifically, these funds will go towards rebuilding eastern Ukraine, including the cities of Slovyansk and Kramatorsk, where people celebrated in the streets recently when they were liberated from separatist control.

We are also asking Congress for approval to provide financial support and mentoring to small businesses throughout Ukraine. Through mechanisms like the public-private partnerships and export promotion initiatives, we are hoping to inject additional resources into Ukraine’s economy so that together, all Ukrainians can rebuild their lives along with their cities.

Over the past few months, the Ukrainian Government has taken a number of steps to try to bring about a better future for its people and to reform the government that had failed them so much in the past, including signing an historic association agreement with the European Union and also finalizing a vital standby arrangement with the International Monetary Fund. We strongly urge Ukrainians to continue the process of reforming their democracy, even if not particularly during this moment of crisis, because this is a troubling time where everyone is looking for those reforms to be implemented, and they can make a huge difference in rebuilding confidence and also in providing a sense in Russia that the concerns expressed by the separatists are, in fact, being listened to and being incorporated into the political process of Ukraine.

The United States stands ready to support our Ukrainian partners in this effort, because we know that ultimately, a strong democratic government and a strong economy are the keys to providing the Ukrainian people with the stability and the prosperity that they want and that they deserve.

So again, I thank Foreign Minister Klimkin for joining me today for this meeting, and I have pledged to him that we will continue to work closely together. We’re talking about the possibility of when we could find time for a visit to continue this discussion more directly with the prime minister and with President Poroshenko. I think we share high hopes for the possibilities of what a resolution of this crisis with the separatists and with Russia could bring – a strong Ukraine, the respect for their sovereignty, and the possibilities of stability for the region.
Mr. Foreign Minister, please.

FOREIGN MINISTER KLIMKIN: Good morning, everyone. Mr. Secretary of State, I would like to thank you for your commitment, for your solidarity, and for – also for your personal leadership, also in Geneva format, and for your commitment to democratic, united, and European Ukraine.
It’s my first visit since I’ve been appointed the foreign minister, and it’s, indeed, a pleasure to be here to discuss all issues of bilateral agenda, but first and foremost, the ongoing developments in Ukraine. And I’m glad we have the same vision of these developments and I am glad that I feel a real commitment, a real solidarity here. We have in Ukraine clear commitment to the settlement of the situation in Donetsk and Luhansk, and the peace plan of the president of Ukraine, Petro Poroshenko, gives peace a chance.

It includes three main dimensions. It’s firstly about de-escalation and reaching a cease-fire. Secondly, it’s about humanitarian dimension and restoring the infrastructure disrupted on the ground. And of course, it’s about political dimension, because what counts and what is critical is reaching the bilateral cease-fire with the aim of restoring the territorial integrity of Ukraine. Of course, we need a critical progress. We need a breakthrough on hostages. We need to release hostages as soon as possible. And it’s also the issue of human dignity.

We need, of course, the OSCE. We need the OSCE observers to be present on the ground from the very first moment of cease-fire. We paid for our commitment on two unilateral cease-fire with 30 lives and more than 100 people wounded. The unilateral cease-fire was broken more than 100 times, and now it’s about bilateral cease-fire, it’s about OSCE again to be present on the ground, but it’s also about closing down the border. It’s also about stopping the inflow of money, armed persons, weapons, and heavy weaponry across the border, because it’s critical precondition for reaching stability in Donetsk and Luhansk.

Of course, it’s also about humanitarian dimension. It’s about restoration of all disrupted infrastructure, because what we’ve been doing now, we’ve been trying to restore disrupted electricity networks, water supply, gas supply. We’ve been trying to bring normal life back to the people of Donbas. And I am particularly grateful to the Secretary of State, to the United States, for urgent help, for urgent assistance to the people of Donbas, which should be aimed at restoring infrastructure. I believe it was – has symbolic, but also extremely important practical dimension.

And of course, it’s about political process. It’s about settlement. And we are ready to (inaudible) decentralization. We are ready to give more powers to the communities, to the districts, to the regions. It’s about giving people more freedom, but also more responsibility – political responsibility and economic responsibility. And it’s about not allowing to play up any sort of issues like using the Russian language, because it would be up to every community to decide what language should be spoken.

It’s about clear idea how we can de-escalate the situation on the ground, because we are ready for local elections. We are ready that the real representative of Donbas, a real representative of Donetsk and Luhansk should take responsibility over the situation on the ground, should take responsibility over de-escalation, over economic and social development on Donbas. And in this sphere, we feel solidarity by the United States and we also have clear and targeted assistance.

And also under difficult conditions on the ground, we’ve been trying – we’ve been working around the clock on securing access to the crash site, and it’s our key priority. We’ve been working on ensuring the possibility for fully transparent and effective investigation of the causes of the tragedy with the plane of Malaysian Airlines. And of course, for us, it’s about human dignity. It’s about the possibility of recovering all bodies and body fragments from the crash site. It’s about giving back the friends and the loved ones any sort of personal belongings. It’s not just the priority; it’s an absolute priority for Ukraine at the moment.

So we have the same vision on these developments and we feel continuous support by the United States. Of course we’ve touched upon also a number of issues on our bilateral agenda and we’ve been – we’ll be working on that extremely closely. And I used the chance to invite the Secretary of State to visit Kyiv and to chair the next meeting of our Strategic Partnership Commission, where we are able to discuss all the issues of bilateral interest and all the issues of bilateral agenda. Many thanks again.

MS. PSAKI: The first question will be from Andrea Mitchell of NBC News.

QUESTION: Thank you both very much. Mr. Secretary, I want to ask you about Ukraine and about the sanctions and Vladimir Putin. But first, let me ask you about the situation in the Middle East. Overnight, two UN officials have been reported killed in Gaza. Israel has apparently hit the electric utility, the only source of electricity for much of the strip. And the Israeli media has unleashed a fierce attack on you personally, from the left and from the right, unprecedented in, frankly, any of our experience. Ari Shavit in Haaretz is quoting a senior official as saying that your diplomacy has been, quote, “a strategic terrorist attack” on Israel. Others say that if there is an escalation, you are responsible for the increasing bloodshed. At this point, there’s also a report today of a new Palestinian initiative from the Palestinian Authority, perhaps with Hamas joining in. I wanted to ask you about that. There’s a report in Al-Hayat that you have launched a new initiative as well.

So if you could clear some of this up: Is it hurting your ability to be a mediator here to have Israel, with these blind quotes from Israeli officials, attacking you so vociferously? And is there a way out here through some new cease-fire that the Palestinians may be promoting today?
Secondly on Ukraine, you said that Vladimir Putin has a choice now. Does he still have a choice? We were told that the United States, with the President’s call with the European leaders yesterday, were going to be imposing sanctions today. Are you giving him yet another chance to prove himself after everything that’s happened? Or are these sanctions actually going to finally be implemented? And can you and perhaps the minister respond to credible reports from the region, we’re told today that government forces have fired back at Russian forces – so have fired across the border. Thank you for taking all of this.

SECRETARY KERRY: Well, let me take the second part first and then I’ll come back to your first question. With respect to Ukraine, we are in the process of preparing additional sanctions with Europe. That is absolutely accurate. And what will happen will happen. But of course, President Putin still has a choice going forward with respect to his ability to be able to have an impact on the separatists. That is a choice that will be there tomorrow, the next day, and in the weeks ahead in order to resolve this. So separate the two.

Europe is working on the sanctions. We are working with them on the sanctions. We anticipate those additional sanctions, but – forthwith – but the point I’m making is that in the long road ahead here to resolve the kinds of issues of the gas deal – the gas has been cut off to Ukraine; to resolve the movement and flow of weapons and people across the border; the issue of firing from Russia into Ukraine; all of these issues – whatever happens with sanctions today or tomorrow, those issues remain and they are remaining to be the choices that President Putin has to make.

So we talked today about a political road ahead, the ways in which Ukraine can contribute to an effort to try to make it clear to President Putin that the agreements originally arrived at in Geneva about a political process are, indeed, being fully implemented. And Russia has raised on a number of occasions significant questions about whether or not that road has been sufficiently explored. And I think the foreign minister and I agree that there is more that we think can be done there, and we’re going to talk about that in the days ahead.

Now on the subject of Israel, I have talked to Prime Minister Netanyahu two, three, four times a day in the last days. We continue to talk. Last night we talked and the prime minister talked to me about an idea and a possibility of a cease-fire. He raised it with me, as he has consistently. He has consistently said that he would embrace a cease-fire that permits Israel to protect itself against the tunnels and obviously not be disadvantaged for the great sacrifice that they have made in order to be able to protect themselves thus far.

So the bottom line is that we are working very carefully and, I think, thoughtfully with our Israeli friends in order to be able to find a way to reduce the civilian loss of life, to prevent this from spiraling downwards into a place from which both sides have difficulty finding a way forward in order to address the underlying kinds of issues.

Now obviously, no one – no one in the United States, no one I know in the world condones the idea that Israel ought to be somehow subject to attack from these tunnels. We have supported from day one Israel’s right to defend itself, Israel’s right to take action, Israel’s right to live free from rockets and from tunnels that threaten it. But all we have suggested, and that President Obama has had several conversations with the prime minister about, is the need to try to find if you can resolve any of those issues through a legitimate negotiation and ultimately with less loss of life everywhere.

Now look, I’ve taken hits before in politics. I’m not worried about that. This is not about me. This isn’t about Israel and Israel’s right to defend itself, and our strong support for Israel’s right to defend itself, but about whether or not there is a way forward that could avoid the loss of soldiers for Israel and the loss of civilians in – everywhere. What we put on the table, in fact, allowed Israel – let me make this clear – allowed Israel to continue to deal with its tunnels even as they were in a short-term cease-fire to try to see if there was a way to reach a sustainable cease-fire. The UN has called for this, the international community has called for this, and Prime Minister Netanyahu himself has said that he is prepared to embrace it, providing it doesn’t prejudice Israel in its way of protecting itself. And we have made certain that we guarantee that it doesn’t.

Now let me just finish quickly. The fact is that because of our efforts, we were able to get a short-term 12-hour cease-fire which then was expanded to 24, but then because of confusion over the 12 hours and four hours didn’t hold. That doesn’t mean that the right approach here isn’t to try to have an appropriate way to come to the table in order to see if a negotiation can take place. Now, let me emphasize Israel itself accepted a cease-fire under the Egyptian formula of no preconditions, cease of – cessation of hostilities, negotiations to take place in Cairo. That is exactly what we have been talking about. No variation, no deviation. We’ve been in touch with the Egyptians; we have honored the Egyptian concept. If there is a negotiation, it would be in Cairo. It would be entirely without preconditions, and it would not prejudice Israel’s ability to defend itself.

So I think there’s a little bit of energy being expended here unnecessarily, and I do think we will continue to work with our very close friend and ally. And I’m not going to worry about personal attacks. I think that President Obama has it right and the international community has it right when we say that it is more appropriate to try to resolve the underlying issues at a negotiating table than to continue a tit for tat of violence that will invite more violence and perhaps a greater downward spiral, which would be much more difficult to recover from.

QUESTION: Do you think it’s still possible --

SECRETARY KERRY: Let me --

QUESTION: Do you think it’s still possible to get a cease-fire after the past two days?

SECRETARY KERRY: Well, that depends entirely on the parties at this point, Andrea. I mean, we – we’re trying to very carefully – without, as I said, diminishing Israel’s legitimate right to defend itself against tunnels and rockets – but to find a way to see if we can spare the people of Israel as well as Palestinians the possibilities of, at any moment, something going terribly wrong. When one of those rockets hits a major school in Israel or a major population center, lots of people die. The effort here is to find whether or not – I can’t vouch for it and President Obama can’t vouch for it, but we know that we owe it to everybody to try to see if you can find that way. If, after you get to a table, it proves that there is absolute reluctance to honor basic defensive needs of Israel; to deal with the rockets, to deal with the tunnels, to deal with other things, then at least you know you’ve made that effort to try to spare lives and to find a legitimate way forward. That’s our job, to try to do that. And we think we’re doing it in a way that completely reinforces Israel’s rights.

I’ve spent 29 years in the United States Senate and had a 100 percent voting record pro-Israel, and I will not take a second seat to anybody in my friendship or my devotion to the protection of the state of Israel. But I also believe, as somebody who’s been to war, that it is better to try to find a way, if you can, to solve these problems before you get dragged into something that you can’t stop. And it seems to me that this is a reasonable effort, fully protecting Israel’s rights, fully protecting Israel’s interests, and Prime Minister Netanyahu himself said to me: Can you try to get a humanitarian cease-fire for this period of time? And if it weren’t for his commitment to it, obviously, the President of the United States and I would not be trying to make this effort. Now, either I take his commitment at face value, or someone is playing a different game here, and I hope that’s not the fact.

FOREIGN MINISTER KLIMKIN: On this report, I have such a record of cases of Russian – of shelling, not just artillery fire, but also rocket-propelled grenade fire from the Russian territory; of cases of Russian helicopters intruding the Ukrainian airspace. But we never, never fired back, of course, in order not to provoke the situation, but first and foremost because we are fully committed to international law. We have our legal and political commitments, and in the sense of United Nations statute, shelling from the territory of another state constitutes an act of aggression. So we are fully committed to international law. We never fired back.

And there were also many cases when the terrorists tried to position themself exactly near the border and fire on Ukrainian forces. We also exercised an extreme restraint, trying not to fire back, not to provoke the situation, and not to break our obligation under international law. So all reports on us firing back onto Russian territory are not true.

MS. PSAKI: The final question will be from Alex Yanevskyy from VOA.

QUESTION: Thank you, Mr. Secretary. Thank you, Mr. Foreign Minister. I have a question. Putin not showing signs that he slows down. Mr. Secretary, what exactly the United States is going to do if Russia invades Ukraine, and should Ukraine expect to become an ally of the United States? Thank you.

SECRETARY KERRY: What was the first part of that?

QUESTION: What exactly the United States is going to do if Russia invades Ukraine?

SECRETARY KERRY: Well, the President has made it clear that there are many different options, but that would be taken, needless to say, as not just a violation of all notions of international law, but an exceedingly dangerous action, which would wind up with the most severe possible kinds of isolation and sanctions possible. And Germany, France, other countries in Europe would clearly join into that in ways that would have a profound, profound impact on the Russian economy. I would believe, for the very reasons that hasn’t happened yet, that President Putin understands that, that the risks are enormous.

It doesn’t – I think that alliances are a more – I mean, it depends whether you’re talking in legal terms or in other terms. We are a partner. We are a strategic ally now. And we are working very, very closely already providing advice and materials to Ukraine, as well as other countries who are doing the same thing. And we are working very, very hard to see if we can’t find the political key to be able to provide redress for the grievances that President Putin keeps talking about through the political process in a way that will recognize that Russia has a legitimate interest, which even Ukraine has acknowledged – interests about ethnic connection, historic connection, about the religious and historical foundations of Russia, all of which can be traced back to Kyiv and to many battlefields that are now in Ukraine and so forth. All of that is understood. And what Ukraine is looking for is simply respect for its sovereignty, and hopefully the political process that is unfolding now can address the concerns in a way that will strengthen that sovereignty and address the concerns that President Putin has expressed.

But we are and Europeans who have signed now an association agreement are firmly committed to the sovereignty and independence and stability of Ukraine, and we will continue to do the things that we are doing in furtherance of that policy.

MS. PSAKI: Thank you, everyone.



SECRETARY KERRY: Thank you all.

PRESIDENT OBAMA MAKES STATEMENT ON DOWNING OF MALAYSIAN AIRLINES FLIGHT MH17

FROM:  THE WHITE HOUSE 

Statement by the President on Ukraine

James S. Brady Press Briefing Room

11:52 A.M. EDT

THE PRESIDENT:  Good morning, everybody. 

Yesterday, Malaysian Airlines Flight MH17 took off from Amsterdam and was shot down over Ukraine near the Russian border.  Nearly 300 innocent lives were taken -- men, women, children, infants -- who had nothing to do with the crisis in Ukraine.  Their deaths are an outrage of unspeakable proportions.

We know at least one American citizen, Quinn Lucas Schansman, was killed.  Our thoughts and prayers are with his family for this terrible loss.

Yesterday, I spoke with the leaders of Ukraine, Malaysia, and the Netherlands.  I told them that our thoughts and prayers are with all the families and that the American people stand with them during this difficult time.  Later today, I’ll be speaking to Prime Minister Abbott of Australia, which also suffered a terrible loss.

By far, the country that lost the most people on board the plane was the Netherlands.  From the days of our founding, the Dutch have been close friends and stalwart allies of the United States of America.  And today, I want the Dutch people to know that we stand with you, shoulder to shoulder, in our grief and in our absolute determination to get to the bottom of what happened.

Here’s what we know so far.  Evidence indicates that the plane was shot down by a surface-to-air missile that was launched from an area that is controlled by Russian-backed separatists inside of Ukraine.  We also know that this is not the first time a plane has been shot down in eastern Ukraine.  Over the last several weeks, Russian-backed separatists have shot down a Ukrainian transport plane and a Ukrainian helicopter, and they claimed responsibility for shooting down a Ukrainian fighter jet. Moreover, we know that these separatists have received a steady flow of support from Russia.  This includes arms and training.  It includes heavy weapons, and it includes anti-aircraft weapons. 

Here’s what must happen now.  This was a global tragedy.  An Asian airliner was destroyed in European skies, filled with citizens from many countries.  So there has to be a credible international investigation into what happened.  The U.N. Security Council has endorsed this investigation, and we will hold all its members -- including Russia -- to their word.  In order to facilitate that investigation, Russia, pro-Russian separatists, and Ukraine must adhere to an immediate cease-fire.  Evidence must not be tampered with.  Investigators need to access the crash site.  And the solemn task of returning those who were lost on board the plane to their loved ones needs to go forward immediately.

The United States stands ready to provide any assistance that is necessary.  We’ve already offered the support of the FBI and the National Transportation Safety Board, which has experience in working with international partners on these types of investigations.  They are on their way, personnel from the FBI and the National Transportation Safety Board. 

In the coming hours and days, I’ll continue to be in close contact with leaders from around the world as we respond to this catastrophe.  Our immediate focus will be on recovering those who were lost, investigating exactly what happened, and putting forward the facts. 

I want to point out there will likely be misinformation as well.  I think it's very important for folks to sift through what is factually based and what is simply speculation.  No one can deny the truth that is revealed in the awful images that we all have seen.  And the eyes of the world are on eastern Ukraine, and we are going to make sure that the truth is out.

More broadly, I think it's important for us to recognize that this outrageous event underscores that it is time for peace and security to be restored in Ukraine.  For months, we’ve supported a pathway to peace, and the Ukrainian government has reached out to all Ukrainians, put forward a peace plan, and lived up to a cease-fire, despite repeated violations by the separatists -- violations that took the lives of Ukrainian soldiers and personnel.

Moreover, time and again, Russia has refused to take the concrete steps necessary to deescalate the situation.  I spoke to President Putin yesterday in the wake of additional sanctions that we had imposed.  He said he wasn’t happy with them, and I told him that we have been very clear from the outset that we want Russia to take the path that would result in peace in Ukraine, but so far at least, Russia has failed to take that path.  Instead, it has continued to violate Ukrainian sovereignty and to support violent separatists.  It has also failed to use its influence to press the separatists to abide by a cease-fire.  That’s why, together with our allies, we’ve imposed growing costs on Russia.

So now is, I think, a somber and appropriate time for all of us to step back and take a hard look at what has happened.  Violence and conflict inevitably lead to unforeseen consequences.  Russia, these separatists, and Ukraine all have the capacity to put an end to the fighting.  Meanwhile, the United States is going to continue to lead efforts within the world community to de-escalate the situation; to stand up for the sovereignty and territorial integrity of Ukraine; and to support the people of Ukraine as they courageously work to strengthen their democracy and make their own decisions about how they should move forward.

Before I take just a couple of questions let me remark on one other issue.  This morning, I spoke with Prime Minister Netanyahu of Israel about the situation in Gaza.  We discussed Israel’s military operation in Gaza, including its efforts to stop the threat of terrorist infiltration through tunnels into Israel.  I reaffirmed my strong support for Israel’s right to defend itself.  No nation should accept rockets being fired into its borders, or terrorists tunneling into its territory.  In fact, while I was having the conversation with Prime Minister Netanyahu, sirens went off in Tel Aviv.

I also made clear that the United States, and our friends and allies, are deeply concerned about the risks of further escalation and the loss of more innocent life.  And that’s why we’ve indicated, although we support military efforts by the Israelis to make sure that rockets are not being fired into their territory, we also have said that our understanding is the current military ground operations are designed to deal with the tunnels, and we are hopeful that Israel will continue to approach this process in a way that minimizes civilian casualties and that all of us are working hard to return to the cease-fire that was reached in November of 2012. 

Secretary Kerry is working to support Egypt’s initiative to pursue that outcome.  I told Prime Minister Netanyahu that John is prepared to travel to the region following additional consultations.

Let me close by making one additional comment.  On board Malaysian Airlines Flight MH17, there were apparently nearly 100 researchers and advocates traveling to an international conference in Australia dedicated to combating AIDS/HIV.  These were men and women who had dedicated their own lives to saving the lives of others and they were taken from us in a senseless act of violence.

In this world today, we shouldn’t forget that in the midst of conflict and killing, there are people like these -- people who are focused on what can be built rather than what can be destroyed; people who are focused on how they can help people that they’ve never met; people who define themselves not by what makes them different from other people but by the humanity that we hold in common.  It’s important for us to lift them up and to affirm their lives.  And it’s time for us to heed their example. 

The United States of America is going to continue to stand for the basic principle that people have the right to live as they choose; that nations have the right to determine their own destiny; and that when terrible events like this occur, the international community stands on the side of justice and on the side of truth. 

So with that, let me take just a couple questions.  I’ll start with you, Julie.

Q    Thank you, Mr. President.  Just on a technical matter, does the U.S. believe that this passenger jet was targeted, or that those people who shot it down may have been going after a military -- thought they were going after a military aircraft?  And more broadly, this incident does seem to escalate the crisis in Ukraine to a level we haven’t seen before.  Does that change your calculus in terms of what the U.S. and perhaps Europe should be doing in terms of a response?

THE PRESIDENT:  Well, I think it’s too early for us to be able to guess what the intentions of those who might have launched this surface-to-air missile might have had.  The investigation is going to be ongoing, and I think what we’ll see is additional information surfacing over the next 24 hours, 72 hours, the next week, the next month.

What we know right now, what we have confidence in saying right now is that a surface-to-air missile was fired and that's what brought the jet down.  We know -- or we have confidence in saying that that shot was taken within a territory that is controlled by the Russian separatists. 

But I think it’s very important for us to make sure that we don't get out ahead of the facts.  And at this point, in terms of identifying specifically what individual or group of individuals or personnel ordered the strike, how it came about, those are things that I think are still going to be subject to additional information that we’re going to be gathering.  And we’re working with the entire international community to make sure that the focus is on getting to the bottom of this thing and being truthful.

And my concern is obviously that there’s been a lot of misinformation generated in eastern Ukraine generally.  This should snap everybody’s heads to attention and make sure that we don't have time for propaganda, we don't have time for games.  We need to know exactly what happened.  And everybody needs to make sure that we’re holding accountable those who committed this outrage.

With respect to the second question, as you’re aware, before this terrible incident happened we had already ratcheted up sanctions against Russia.  And I think the concern not just of Russian officials but of the markets about the impact that this could have on the Russian economy is there for all to see.

I made clear to President Putin that our preferred path is to resolve this diplomatically.  But that means that he and the Russian government have to make a strategic decision:  Are they going to continue to support violent separatists whose intent is to undermine the government of Ukraine?  Or are they prepared to work with the government of Ukraine to arrive at a cease-fire and a peace that takes into account the interests of all Ukrainians?

There has been some improved language at times over the last month coming from the Kremlin and coming from President Putin, but what we have not seen is an actual transition and different actions that would give us confidence that that's the direction that they want to take.

And we will continue to make clear that as Russia engages in efforts that are supporting the separatists, that we have the capacity to increase the costs that we impose on them.  And we will do so.  Not because we’re interested in hurting Russia for the sake of hurting Russia, but because we believe in standing up for the basic principle that a country’s sovereignty and territorial integrity has to be respected, and it is not the United States or Russia or Germany or any other country that should be deciding what happens in that country.

Q    At this point do you see any U.S. military role that could be effective?

THE PRESIDENT:  We don't see a U.S. military role beyond what we’ve already been doing in working with our NATO partners and some of the Baltic States, giving them reassurances that we are prepared to do whatever is required to meet our alliance obligations.

Steve Holland.

Q    Sir, thank you.  How much blame for this do you put on President Putin?  And will you use this incident now to push the Europeans for stronger action?

THE PRESIDENT:  We don't exactly know what happened yet, and I don't want to, as I said before, get out ahead of the facts.  But what I do know is, is that we have seen a ticking up of violence in eastern Ukraine that, despite the efforts of the Ukrainian government to abide by a cease-fire and to reach out and agree to negotiations, including with the separatists, that has been rebuffed by these separatists.  We know that they are heavily armed and that they are trained.  And we know that that’s not an accident.  That is happening because of Russian support.

So it is not possible for these separatists to function the way they’re functioning, to have the equipment that they have -- set aside what’s happened with respect to the Malaysian Airlines -- a group of separatists can’t shoot down military transport planes or, they claim, shoot down fighter jets without sophisticated equipment and sophisticated training.  And that is coming from Russia.

So we don’t yet know exactly what happened with respect to the Malaysian Airlines, although obviously we’re beginning to draw some conclusions given the nature of the shot that was fired.  There are only certain types of anti-aircraft missiles that can reach up 30,000 feet and shoot down a passenger jet.  We have increasing confidence that it came from areas controlled by the separatists.  But without having a definitive judgment on those issues yet, what we do know is, is that the violence that’s taking place there is facilitated in part -- in large part -- because of Russian support.  And they have the ability to move those separatists in a different direction.

If Mr. Putin makes a decision that we are not going to allow heavy armaments and the flow of fighters into Ukraine across the Ukrainian-Russian border, then it will stop.  And if it stops, then the separatists will still have the capacity to enter into negotiations and try to arrive at the sort of political accommodations that Mr. Putin himself says he wants to see.  He has the most control over that situation, and so far, at least, he has not exercised it.

Q    Tougher sanctions in Europe -- will you push for them?

THE PRESIDENT:  Well, I think that this certainly will be a wake-up call for Europe and the world that there are consequences to an escalating conflict in eastern Ukraine; that it is not going to be localized, it is not going to be contained.  What we’ve seen here is -- just in one country alone, our great allies, the Dutch, 150 or more of their citizens being killed.  And that, I think, sadly brings home the degree to which the stakes are high for Europe, not simply for the Ukrainian people, and that we have to be firm in our resolve in making sure that we are supporting Ukraine in its efforts to bring about a just cease-fire and that we can move towards a political solution to this.

I’m going to make this the last question.  Lisa Lerer, Bloomberg.

Q    Do we know yet if there were other Americans on board beyond the person you mentioned?  And how do you prevent stricter restrictions, economic sanctions from shocking the global economy and -- 

THE PRESIDENT:  We have been pretty methodical over the last 24 hours in working through the flight manifest and identifying which passengers might have had a U.S. passport.  At this point, the individual that I mentioned is the sole person that we can definitively say was a U.S. or dual citizen. 

Because events are moving so quickly, I don’t want to say with absolute certainty that there might not be additional Americans, but at this stage, having worked through the list, been in contact with the Malaysian government, which processed the passports as folks were boarding, this is our best assessment of the number of Americans that were killed.  Obviously that does nothing to lessen our outrage about all those families.  Regardless of nationality, it is a heartbreaking event.

With respect to the effect of sanctions on the economy, we have consistently tried to tailor these sanctions in ways that would have an impact on Russia, on their economy, on their institutions or individuals that are aiding and abetting in the activities that are taking place in eastern Ukraine, while minimizing the impacts on not only the U.S. economy but the global economy. 

It is a relevant consideration that we have to keep in mind.  The world economy is integrated; Russia is a large economy; there’s a lot of financial flows between Russia and the rest of the world.  But we feel confident that at this point the sanctions that we’ve put in place are imposing a cost on Russia, that their overall impact on the global economy is minimal.  It is something that we have to obviously pay close attention to, but I think Treasury, in consultation with our European partners, have done a good job so far on that issue.

Thank you very much, everybody.

END
12:15 P.M. EDT