Cameron considers ban on UK jihadists returning home

The prime minister is expected to consider strengthening terrorism prevention and investigation measures

British-born jihadists in Iraq and Syria could be temporarily banned from returning to the UK under plans being considered by the government.

The BBC understands UK nationals suspected of being involved in terror acts would be allowed to keep their British citizenship.

But they would be prevented from re-entering the UK for a period of time.

David Cameron will set out plans to counter the threat posed by Islamic State militants to MPs on Monday.

At least 500 people from the UK are thought to have gone to fight in Syria, although ministers say they do not know the exact number.

The number of people arrested in the UK for Syria-related activity stands at 69, according to a recent briefing by senior police officers.

In his statement the prime minister is also expected to announce plans to make it easier to seize the passports of would-be terrorists travelling abroad.

'Illegal'

A government source told BBC News: "The government is considering a range of measures to keep the country safe in the face of an increased threat level from Islamist extremism.

"The areas include making it harder for potential foreign fighters to travel abroad by making it easier to remove their passports through additional temporary seizure powers at the border.

"We are also looking at stopping British citizens from re-entering the country if they are suspected of terrorist activity abroad.

"Previously, our range of powers to prevent return to the UK applied only to foreign nationals, dual nationals or naturalised citizens."

The government source confirmed "details of the package are being finalised" and would be announced by the prime minister in a Commons statement on Monday.

But former Lib Dem leader Sir Menzies Campbell said a temporary ban on British citizens re-entering the country may be illegal.

The various measures covering Tpims include suspects wearing an electronic tag

Sir Menzies told BBC Radio 4's The World This Weekend: "I think it's rather difficult and it might well constitute illegality. To render citizens stateless is regarded as illegal in international law.

"To render them stateless temporarily, which seems to me the purpose of what's being proposed, can also I think be described as illegal.

"At the very least it's the kind of question that will be tested here in our own courts and perhaps also in the European Court of Human Rights."

Mr Cameron is also likely to consider strengthening terrorism prevention and investigation measures - or Tpims - which were the coalition's replacement for control orders.

However, the Liberal Democrats have said they would only agree to policies that were made calmly, on the basis of evidence and that maintained the liberty of British citizens.

Threat level

The home secretary already has the power - under the Royal Prerogative - to withhold a passport if it is in the public interest to stop somebody travelling.

The UK's terror threat level was raised to "severe" from "substantial" on Friday in response to the deepening conflict in Iraq and Syria.

The new alert level rates the risk of an attack on the UK as "highly likely", although Downing Street said there was no evidence to suggest one is "imminent".

The rating is the second highest of five possible UK threat levels and is the highest since 2011.

Labour leader Ed Miliband has suggested the introduction of a "mandatory programme" of deradicalisation for people "drawn into the fringes of extremism".

Writing in the Independent, he also urged the government to revisit the decision to scrap the control orders regime for terror suspects.

'Better prepared'

Former Liberal Democrat leader Lord Ashdown has accused Conservative ministers of a "kneejerk" reaction to the terrorism threat from extremists.

He told The Observer the biggest threat was not returning jihadists but "a widening religious war which threatens, not just to engulf the Middle East and change its borders, but to spread across the entire global Islamic community".

Defence Secretary Michael Fallon said new measures to tackle the raised threat of terrorism in the UK were "not a knee jerk reaction", but were needed to deal with "some gaps" in "our current armoury".

Speaking on Sky News, Mr Fallon said the government was looking at "what more we can do to tighten up their movement in and out of Syria," adding: "We have to be better prepared."

He said a "number of young men [were] going to Syria and slipping back again" but he acknowledged the government did not know exactly how many Britons had gone to Syria and Iraq to fight.

"Nobody has an exact number, we know it is several hundred".

The defence secretary also confirmed two RAF Hercules aircraft took part in a humanitarian aid drop at Amerli in northern Iraq on Saturday night.

But he repeatedly said the UK had not been asked to take part in air strikes in Iraq.

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China rules out open Hong Kong chief executive poll

Police were preparing for protests outside government offices on Sunday

Chinese authorities have ruled out open nominations for elections to choose Hong Kong's leader.

Authorities said two to three candidates will be nominated by a "broadly representative" committee.

The decision is expected to limit the selection of candidates to pro-Beijing figures.

The pro-democracy Occupy Central movement says it will launch a sit-in in the city's central business district in protest.

The election for Hong Kong's chief executive is due in 2017 and will be the first time the holder of the post is directly chosen by voters.

The Standing Committee of China's National People's Congress said inits decision that while the election would represent "historic progress", "the sovereignty, security and development interests of the country are at stake," and therefore "there is a need to proceed in a prudent and steady manner".

The pro-democracy Occupy Central movement condemned the decision, saying it had "dashed people's hopes for change and will intensify conflicts in the society".

"We are very sorry to say that today all chances of dialogue have been exhausted and the occupation of Central will definitely happen," the group said.

Activists have promised a campaign of "disobedience" - the slogan written on this wall

Recent weeks have seen several protests from pro-democracy activists

Beijing's supporters have also staged protests against Occupy Central

On Saturday China warned foreign countries against "meddling" in Hong Kong's politics, with an article in a state-run newspaper accusing some in Hong Kong of "colluding" with unnamed "outside forces".

A foreign ministry spokesman was quoted as saying this would "absolutely not be permitted".

Fierce debate

The decision from Beijing comes in amid a huge debate in Hong Kong over its relationship with the mainland.

In June, almost 800,000 people cast ballots in an informal referendum organised by Occupy Central on how the chief executive should be chosen.

This was followed by large-scale rallies held by both sides.

Hong Kong is a former British colony now governed by China under the principle of "one country, two systems". It has retained wide legal and economic powers since being handed back to China in 1997.

But some activists are worried that China's central government is seeking to exert greater political control over the territory.

Also on Sunday, the pro-Beijing leader of the neighbouring territory of Macau was re-elected unopposed by an election committee composed mostly of Beijing loyalists.

A small group of pro-democracy activists protested outside the venue, saying the election would be meaningful only if all citizens could have a say.

More than 90% of voters who responded to a week-long unofficial referendum on the city's political future said they wanted to directly elect their leader.

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Putin 'urges talks on statehood for east Ukraine'

Rebels have made advances in recent days, entering the port of Novoazovsk

Russian President Vladimir Putin has called for talks to discuss "statehood" for eastern Ukraine.

He said the issue needed to be discussed to ensure the interests of local people "are definitely upheld".

His comments came after the EU gave Russia a one-week ultimatum to reverse course in Ukraine or face sanctions.

Russia denies Western accusations that its forces illegally crossed into eastern Ukraine to support separatists there.

"Russia cannot stand aside when people are being shot at almost at point blank," he added, describing the rebels' actions as "the natural reaction of people who are defending their rights".

He dismissed the EU's threat of further sanctions, accusing the EU of "backing a coup d'etat" in Ukraine.

Ukrainian troops have lost ground to rebels in recent days

The West, Mr Putin said, should have foreseen Russia's reaction to the situation, adding it was impossible to predict how the crisis would end.

Mr Putin's spokesman, Dmitry Peskov, later said the president's remarks on "statehood" should not be taken to mean an actual separate entity, and that the Ukrainian crisis was a "domestic" one.

The BBC's Steve Rosenberg, in Moscow, says raising the concept of statehood in the east may be one way of Mr Putin increasing pressure on Kiev to halt its military operations.

Pro-Russian rebels have made gains against Ukrainian troops in recent days in the eastern Donetsk and Luhansk regions.

Also on Sunday, Russian media reported that 10 Russian paratroopers returned home in exchange for 63 captured Ukrainian soldiers held by Russia.

Some 2,600 people have died in fighting since April.

Analysis: Steve Rosenberg, BBC News, Moscow

In his interview with Russian TV, Vladimir Putin called for "substantive talks" with Kiev on "statehood for south-east Ukraine".

So, does Russia now want south-eastern Ukraine to split from Kiev and become independent? Is Moscow now wedded to the idea of breaking up of Ukraine? Recent reports of Russian military activity across the border would seem to back up this idea.

But it may not be the case. Not yet, anyway.

There is no doubt that Russia is determined to retain a degree of influence in Ukraine and to ensure, at the very least, that Ukraine never joins Nato. Moscow is equally determined to make sure the pro-Russian separatists avoid a military defeat.

Promoting "statehood" in the east is one way of increasing the pressure on Kiev to stop its military operation and start talks with the pro-Moscow militants - and with Russia itself.

If Kiev fails to do this, the Kremlin may well press for south-eastern Ukraine (or "Novorossiya" as Moscow increasingly refers to the region) to break away from Kiev.

Thousands have fled the fighting in eastern Ukraine - these refugees have headed to Russia

Pro-Ukrainian residents near the city of Mariupol held a protest on Saturday

The conflict in the east erupted in April following Russia's annexation of Ukraine's southern Crimea peninsula a month before.

Speaking after a summit in Brussels, European Council President Herman Van Rompuy said the EU "stands ready to take further significant steps in light of the evolution of the situation on the ground", adding that the EU was working urgently on further restrictive measures.

The EU and US have already imposed asset freezes and travel bans on many senior Russian officials and separatist leaders in eastern Ukraine.

Western sanctions also restrict loans for Russian state banks, block defence-related technology exports and certain oil industry exports to Russia.

Russia denies that its forces are backing the rebels, instead accusing Ukrainian forces of aggression and deliberately firing at civilians.

Several European leaders at the summit condemned Russia's actions and expressed support for further sanctions if necessary.

But Finnish Prime Minister Alexander Stubb said the "jury is still out" on whether sanctions had worked, adding: "We need to find a ceasefire, a peace plan."

Federica Mogherini, named on Saturday as the EU's future foreign policy chief, said there could be no military solution to the crisis and that while sanctions were being worked on, the diplomatic process would need to continue.

Government forces have lost ground in recent fighting to pro-Russian rebels.

Western and Ukrainian officials say this offensive has been substantially helped by Russian regular troops, opening a new front. Russia denies the accusation.

War in eastern Ukraine: The human cost

• At least 2,593 people killed since mid-April (not including 298 passengers and crew of Malaysian Airlines MH17, shot down in the area) - UN report on 29 August
• 951 civilians killed in Donetsk region alone, official regional authorities said - 20 August
• In some particularly dangerous places, such as Luhansk region, victims are said to have been buried informally, making accurate counts difficult
• Rebels (and some military sources) accuse the government of concealing true numbers
• 155,800 people have fled elsewhere in Ukraine while at least 188,000 have gone to Russia

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China warns against 'foreign meddling' in Hong Kong

China's central government is seeking a stronger role in Hong Kong

China has warned foreign countries against "meddling" in Hong Kong's politics ahead of a crucial announcement on the territory's election process.

Chinese state media said using Hong Kong as a "bridgehead to subvert the mainland" would not be tolerated.

China is expected to limit elections to a selection of pro-Beijing candidates.

Pro-democracy activists in Hong Kong have threatened mass disobedience if elections are not opened up.

They say they will stage a mass sit-in in the city's financial district if an acceptable agreement is not reached.

Outside forces

An article in the Chinese state-run People's Daily on Saturday said that some in Hong Kong were "colluding" with outside forces.

"Not only are they undermining Hong Kong's stability and development, but they're also attempting to turn Hong Kong into a bridgehead for subverting and infiltrating the Chinese mainland", the article said (in Chinese).

"This can absolutely not be permitted" it said, quoting an unnamed foreign ministry official.

The article did not identify which outside forces were being accused of involvement, although many countries in the west have called for more open government in the former British territory.

The Standing Committee of China's National People's Congress has been meeting to determine election regulations in Hong Kong, and will announce their decision on Sunday.

On 1 July tens of thousands marched against candidate restrictions in the territory

Pro-democracy activists held an unofficial referendum on the election proposals in June

Tens of thousands also joined a pro-Beijing rally on 17 August in Hong Kong

Correspondents say it is highly likely that China will require candidates for the position of chief executive to obtain support from a nominating committee.

Most expect that committee to be made up of pro-Beijing businessmen and individuals, thereby giving mainland authorities an effective veto over candidates.

The issue is the subject of huge debate in Hong Kong, a former British colony now governed by China under the principle of "one country, two systems".

In June, almost 800,000 people cast ballots in an informal referendum organised by Occupy Central on how the chief executive should be chosen.

This was followed by large-scale rallies held by both sides.

Hong Kong has retained wide legal and economic powers since being handed back to China in 1997.

But some activists are worried that China's central government is seeking to exert greater political control over the territory.

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Iraq forces begin Amerli moves against Islamic State

Iraqi forces and Turkmen Shia fighters last held positions near Amerli on 4 August, which is still under siege

The Iraqi army, Shia militias and Kurdish Peshmerga have joined forces to try to free the town of Amerli in northern Iraq, local sources say.

Some 15,000 minority Shia Turkmen in Amerli have been under siege by Islamic State (IS) militants for two months.

The UN called for urgent action last week to stop a massacre in the town, which lies in Kurdish-controlled Iraq.

Islamic State jihadists have been accused of atrocities in areas of Iraq and Syria under their control.

The Shia Turkmen are seen as apostates by the IS militants.

The BBC's Jim Muir, in the city of Irbil, says the combined forces are mounting an assault on two fronts in the Salahuddin Kurdish area in northern Iraq.

Kurdish Peshmerga fighters are said to be west of Tuz Khurmatu, which lies just north of Amerli, while Iraqi army units and Shia militia are approaching Amerli from the south.

The operation is backed by the Iraqi Air Force which is providing some cover on the southern approach, but there has been no back-up by US forces, local sources told our correspondent.

The operation is reported to have two objectives: to break the siege of Amerli and to reopen the main highway leading north from Baghdad.

The road is currently blocked by Islamic State forces.

Iraqi forces managed to evacuate some Amerli residents on 29 August, and are fighting to break its siege

Around 80 Yazidi men were massacred in northern Iraq earlier in August by Islamic State militants

Yazidis who managed to flee from the besieged Iraqi town of Sinjar are now displaced and reliant upon aid

Meanwhile reports from Syria say that hundreds of Yazidi women, another Iraqi minority, have been sold and distributed as wives among militant fighters in Syria.

The women who were abducted during recent attacks by IS in Iraq are said to have been transported to Syria after being forced to convert to Islam.

At least 27 of them were sold to IS members for marriage, according to the UK-based monitoring group the Syrian Observatory for Human Rights.

The US had supported Iraqi and Kurdish forces with air strikes against IS militants to retake the strategically important Mosul Dam earlier in August, but has since scaled back its military operation after President Obama admitted there was no defined US strategy yet in Iraq.

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Iran President Rouhani hits out at US sanctions

Speaking in Tehran, Rouhani accused the US of imposing 'illegal sanctions' which harmed current negotiations

Iranian President Hassan Rouhani has criticised the US for new sanctions, saying they are "not compatible" with the spirit of current negotiations.

Speaking on Iranian TV, he said Iran was still committed to continuing nuclear talks with the US and five other international powers.

New sanctions on 25 firms and individuals were announced in Washington on Friday.

World powers suspect Iran seeks atomic weapons, a claim it strongly denies.

The country insists that it is enriching uranium for use in nuclear power stations and for medical purposes.

The new sanctions target those suspected of evading previous sanctions, aiding the nuclear programme or supporting terrorism, US officials said.

Speaking at a news conference broadcast on state TV, Mr Rouhani said the introduction of new sanctions was "a very ugly move" that would deepen distrust between the two sides.

Iran insists that its nuclear programme is peaceful and denies that it is developing nuclear weapons

"They are in conflict with the spirit of talks. They are unconstructive in my opinion," he said

However Mr Rouhani confirmed that Iran would continue nuclear talks with the P5+1 countries for a final agreement on its nuclear programme.

"If there are no excessive demands in the issue and if the opposite side shows loyalty...we can achieve a final deal," he said.

And he added: "Of course we bypass sanctions. We are proud that we bypass sanctions because the sanctions are illegal."

Talks aimed at curbing Iran's nuclear programme in exchange for ending sanctions began in February, but Iran and the six countries involved failed to reach a deal by the July 20 deadline.

Britain, China, France, Germany, Russia and the United States make up the P5+1.

Iran and the P5+1 have agreed to extend negotiations until 24 November.

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Ukraine crisis: EU 'must act on Russia aggression'

European Commission President Jose Manuel Barroso: "We may see a situation where we reach the point of no return"

EU leaders are meeting in Brussels to discuss the crisis in Ukraine, threatening to impose fresh sanctions against Russia.

EU foreign policy chief Catherine Ashton accused Russia of "direct aggression" in eastern Ukraine.

Lithuanian President Dalia Grybauskaite said Russia was "practically in a war against Europe".

Russia denies that its forces are backing rebels, who have been gaining ground on Ukrainian forces.

Baroness Ashton said there was "deep concern" over "direct aggression by Russian forces". She called on Russia to stop the flow of arms, equipment and personnel into Ukraine.

As she arrived at the talks in Brussels, Ms Grybauskaite said: "We need to support Ukraine, and send military materials to help Ukraine defend itself. Today Ukraine is fighting a war on behalf of all Europe."

UK Prime Minister David Cameron said the EU faced "a completely unacceptable situation of having Russian troops on Ukrainian soil. Consequences must follow if that situation continues".

French President Francois Hollande said the Ukraine crisis was the biggest since the end of the Cold War.

He said: "What's happening in Ukraine is so serious that the European Council will be obliged to react by increasing the level of sanctions if things remain as they are."

The Ukrainian army has been fighting pro-Russian separatists for months

Pro-Russian rebels have mounted a counter-offensive in recent days

The EU and the US have already imposed sanctions against dozens of senior Russian officials, separatist commanders and Russian firms accused of undermining Ukrainian sovereignty.

However, the BBC's Chris Morris in Brussels says there are still divisions within the EU on how to deal with the Ukraine situation.

Finnish Prime Minister Alexander Stubb said the "jury is still out" on whether sanctions had worked, adding: "We need to find a ceasefire, a peace plan."

European Commission President Jose Manuel Barroso warned Russia that the EU was ready to "stand by its principles" and called for a political solution before the crisis reached a "point of no return".

Petro Poroshenko meets David Cameron in Brussels ahead of the summit

He was speaking after talks with Ukrainian President Petro Poroshenko, who is also due to attend the EU leaders' summit.

Mr Poroshenko said Ukraine was a victim of "military aggression and terror" involving "thousands of foreign troops and hundreds of foreign tanks".

'Ordered to retreat'

Government forces have lost ground in recent fighting.

A Ukrainian military spokesman said on Saturday that Russian tanks had attacked the town of Novosvitlivka near Luhansk and "destroyed virtually every house".

Spokesman Andriy Lysenko said troops had been ordered to retreat from Novosvitlivka.

Troops are also reportedly trying to evacuate Ilovaisk in the Donetsk region. It has been surrounded by rebels.

Rebel leader Alexander Zakharchenko told the Russian News Service radio station a new offensive was being planned to create a corridor between Donetsk and Luhansk.

In south-eastern Ukraine, people have been leaving the port city of Mariupol, after advancing rebels captured Novoazovsk to the east.

Western and Ukrainian officials say this offensive has been substantially helped by Russian regular troops, opening a new front. Russia denies the accusation.

Some 2,600 people have died in fighting in the Donetsk and Luhansk regions since April.

The conflict erupted following Russia's annexation of Ukraine's southern Crimea peninsula a month before.

War in eastern Ukraine: The human cost

• At least 2,593 people killed since mid-April (not including 298 passengers and crew of Malaysian Airlines MH17, shot down in the area) - UN report on 29 August
• 951 civilians killed in Donetsk region alone, official regional authorities said - 20 August
• In some particularly dangerous places, such as Luhansk region, victims are said to have been buried informally, making accurate counts difficult
• Rebels (and some military sources) accuse the government of concealing true numbers
• 155,800 people have fled elsewhere in Ukraine while at least 188,000 have gone to Russia

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Man charged over George Galloway assault

This picture, released by Respect via Twitter, was taken before George Galloway went to hospital

A man has been charged with religiously-aggravated assault after MP George Galloway was attacked in a west London street.

The Respect MP for Bradford West was posing for pictures in Golborne Road, Notting Hill, when he was assaulted on Friday evening.

He suffered bruising to his head and is believed to have had some ribs broken.

Neil Masterson, 39, of Camden Hill, will appear at Hammersmith Magistrates Court on Monday.

He has also been charged with common assault against a man in his 40s who came to the victim's aid, police said.

Mr Galloway was posing for pictures with people in the west London street when a man "leapt on him and started punching him", a spokesman for the MP said.

The assailant also made reference to the Holocaust, the spokesman said.

Mr Galloway was interviewed under caution by police earlier this month over remarks he made about Israel.

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Swiss baby dies after being forgotten by parent in car

A 16-month-old baby has died in a car in Switzerland, after one of the parents forgot to drop it off at the nursery on the way to work.

The baby was left in a company car park for several hours in La Chaux-de-Fonds near the French border, officials say.

"It was not until the end of the day... that they realised what had happened," AFP news agency quotes local prosecutor Marc Remy as saying.

A criminal investigation into the accident has been launched.

Prosecutors told Swiss media that no further details would be released.

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MSN Messenger to end after 15 years

Windows Live Messenger was switched off in most of the world in 2013

Microsoft's Windows Live Messenger will be switched off in China in October, marking a final end to the 15-year-old service.

Originally known as MSN Messenger, it was launched in 1999 but was switched off for most users in 2013, after Microsoft bought rival Skype.

Users in China continued to use the old service but will now be transferred to Skype by 31 October.

Windows Live still had as many as 330 million users as recently as 2009.

But those numbers later declined, while users of Skype rose to nearly 300 million by 2012.

The service came to China in 2005, but later faced stiff competition from domestic rivals such as QQ messenger, built by Chinese firm Tencent.

A number of Chinese Windows Live users received emails from Microsoft on Thursday, Chinese newspapers reported, informing them of the planned closure.

The emails told users they would get free Skype credit when they migrated over to the new service, the newspaper said.

MSN Messenger began as a simple text chat service in 1999, a rival to AOL's AIM service and ICQ.

It later added features such as photo delivery, video calls and games as the technology developed.

But Microsoft's purchase of Skype for $8.5bn (£5.1bn) in 2012 spelled the beginning of the end for the service.

Obituary

MSN Messenger was a hard-working internet visionary which taught a generation to touch-type and lol, writes BBC technology reporter Dave Lee.

It touched the lives of millions of teenagers who, in an age before real social networking, were just getting accustomed to what it was like to live on the internet.

MSN Messenger heralded a new era: a time when chatting up a classmate no longer meant the terrifying prospect of actually having tosay something to them.

It meant no longer would young teens have to endure the torture of ringing the landline number of their newest crush - knowing there was a high probability that dad would pick up.

But after all the "ASL?"s and "u there?"s, Messenger's loyal subjects became less dependent. "I'll brb", people said... but they never did.

Other sites, smarter and better looking, would see Messenger cast aside. In an age of exciting digital discovery, Messenger became the web's wooden toy.

After a long career, it spent its final year enjoying a comfortable retirement in China. Its less well-regarded relative, Windows Messenger, still battles on on work computers the world over.

"It's like MSN," office workers say, "…just not as fun."

MSN Messenger is survived by Facebook, MySpace, Twitter, Snapchat, Skype, Google+ and Instagram.

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Russian rouble falls to new low on sanctions threat

The Russian rouble fell to a record low against the dollar as investors fear further sanctions against the nation.

The rouble fell to 37.03 per dollar on Friday, its worst valuation since the currency was restructured in 1998.

The tumble comes weeks after Russia's central bank pledged to intervene less in the currency's valuation.

It also follows peace talks in Minsk between Ukrainian President Petro Poroshenko and Russian President Vladimir Putin in Minsk.

The market may have found the talks "disappointing" and renewed its concern over sanctions, said Manik Narain, emerging market strategist at UBS.

A recent weak economic performance and the conflict with Ukraine have combined with Moscow's commitment to intervene less with the value of the rouble, said Mr Narain.

Foreign reserves

Russia's central bank said earlier this month it would abolish from next year a so-called trading corridor, which limits its swing in value against currencies such as the dollar and euro.

Russia has more than $400bn of foreign currency reserves. When its currency is weak, it can spend dollars to purchase roubles in the market to shore up the value, he said.

In addition, Russia's weakened economic performance and its reliance on commodities such as oil and gas mean it may be less willing and able to do so, in addition to its commitment to a freer market for the rouble.

Preliminary gross domestic product data released earlier this month showed the economy growing by 0.8% in annual terms in the second quarter of 2014, compared with 0.9% in January-March.

Ilan Solot, emerging markets currency strategist at Brown Brothers Harriman in London said the reduced currency restrictions from Moscow were "bold but shows their commitment" to a freer market and may be a signal they want to be "seen as relaxed".

Ukraine's currency, the hryvnia, which itself hit a record low of 13.65 per dollar earlier in the week, strengthened to 13.61. Because the currency is less-broadly traded than the rouble it is more difficult to say why it moves, said Mr Solot.

Stocks fall

Russian stocks also fell. The dollar-denominated RTS index declined 1.9% to 1,196, falling below 1,200 for the first time since 8 Aug. The rouble-based MICEX index was 1.3% down to 1,405.

American bank Morgan Stanley said in a research report "escalation puts the 'investibility' of Russia into question. "In our worst case scenario involving full sanctions, a material portion of the listed stock market in Russia could become uninvestible for many investors".

The turmoil in the financial markets is happening as the war of words between Russia and the West intensifies. Nato has accused Russia of a "blatant violation" of Ukraine's sovereignty and engaging in direct military operations to support pro-Russian rebels.

Secretary-General Anders Fogh Rasmussen said that "despite hollow denials", it was now clear that Russia had illegally crossed Ukraine's border.

Russia denies sending troops and arms.

The rouble's value is the lowest against the dollar since 1998, when the currency was restructured, turning 1,000 old roubles into 1 new one.

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