Europe Agrees On Fresh Russian Sanctions

European leaders have agreed to hit Russia with a fresh round of sanctions despite Moscow signing up to a ceasefire in Ukraine.

The sanctions include credit restrictions on Russia companies, export bans, and travel bans and asset freezes on a new set of officials, according to a European Union diplomat who spoke on the condition on anonymity.

Two branches of the world's biggest oil producer - Gazprom Bank and Gazprom Neft - are targeted by the measures, said the diplomat.

Speaking at the end of a Nato summit in Wales on Friday, David Cameron said sanctions would continue despite both sides agreeing to a 12-point peace plan.

However, the Prime Minister said they could be lifted if a lasting peace was found.

The new restrictions, which will be imposed early next week, come as Britain agreed to supply 1,000 troops to a Nato rapid response force aimed at countering Russian aggression in Ukraine and eastern Europe.

Nato Secretary General Anders Fogh Rasmussen revealed the plan for a Spearhead force after discussions with members in Newport.

Ukraine was a dominant topic on the final day of the Nato summit

"This decision sends a clear message: Nato protects all allies at all times," he said.

"And it sends a clear message to any potential aggressor: should you even think of attacking one ally, you will be facing the whole alliance."

Western leaders accuse Russia of sending thousands of troops into the east of Ukraine - prompting fears of future incursions into other eastern European countries.

Mr Rasmussen said the Spearhead force would establish a "command-and-control" presence in the east of allied territories ready to deploy air, sea and special forces in the event of aggression.

He told Sky News Tonight: "We have decided to improve our ability to act swiftly. The force could be deployed within very few days if needed.

"The intention is to strengthen the defence of our allies."

Mr Rasmussen said alliance countries would contribute troops on a rotational basis to the high-readiness force.

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Ukraine Ceasefire Holds With Pro-Russian Rebels

Fighting is reported to have subsided in eastern Ukraine after the government agreed a ceasefire with pro-Russian rebels.

Ukraine's President Petro Poroshenko confirmed on his Twitter account that a peace plan had been signed, while pro-Russian rebels also announced the news on the social media site.

There were initial reports of shelling in the rebel stronghold of Donetsk moments after the deal came into force at 4pm UK time, but the area later fell quiet.

The deal was reached after talks between Ukraine and pro-Russian rebels in the Belarussian capital, Minsk. Officials from Russia and the OSCE security watchdog also participated.

The deal saw an agreement on the release of prisoners on both sides, the delivery of humanitarian aid and the withdrawal of heavy weapons. 

Nato leaders say they hope the truce will foster a lasting peace deal

Speaking at a Nato summit in Wales, Mr Poroshenko said Kiev was also ready to grant a significant decentralisation of power and economic freedom to the turbulent east.

It is hoped the deal will go some way towards ending the five-month conflict that, according to the UN, has killed more than 2,600 people.

"Human life is the highest value and we must do everything possible and impossible to end the bloodshed and the suffering," Mr Poroshenko said.

A spokesman for Russian President Vladimir Putin, meanwhile, said Russia was hopeful the ceasefire would be "thoroughly implemented" and that all sides would continue talks to reach a "full settlement of the Ukraine crisis."

The West has accused Russia of sending troops and tanks to participate in the conflict, something Moscow has consistently denied. 

A man repairs the damage to a building caused by shelling in Donetsk

Despite the deal European leaders agreed to hit Russia with a fresh round of sanctions, including credit restrictions on Russian companies and export bans.

Further Russian officials were issued travel bans and asset freezes.

Speaking after the summit Prime Minister David Cameron indicated the sanctions may be lifted if the ceasefire leads to a more durable peace deal.

However US President Barack Obama admitted there was a degree of pessimism about the chances of lasting peace.

He said he was "hopeful but based on past experience also sceptical that the separatists will follow through and the Russians will stop violating Ukraine's sovereignty and territorial integrity".

David Cameron said sanctions would stand despite the truce

Sky's Katie Stallard, who is on eastern city limits of Mariupol, said soldiers from both sides remained in position and that it was difficult to see the ceasefire holding "long term".

"No one has much faith in the ceasefire here," she said.

"There is scepticism about the timing. President Putin has come up with the peace plan right at the point European leaders were preparing to finalise tougher sanctions on Russia.

"What this also doesn't resolve is that we're hearing from the self-proclaimed prime minister of the Lugansk People's Republic, who is saying that this ceasefire doesn't address the status of their 'republic' and they do not abandon their plans to separate from Ukraine."

Meanwhile, Nato announced plans to create a 'Spearhead' rapid response force to counter Russian aggression in Ukraine.

But Moscow said joint military exercises planned by Kiev and Nato in Ukraine - and announced along with the Spearhead force - could undermine peace moves.

Russia's foreign ministry said in a statement that military exercises - planned for September 16-26 - would cause "increased tensions, threaten the tentative progress in the peace process in Ukraine and contribute to the aggravation of a split in the Ukraine society."

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Ukrainian City Braced As Shelling Intensifies

IS And Ukraine Crisis Make Nato Summit Crucial

Updated: 8:48am UK, Thursday 04 September 2014

By Faisal Islam, Political Editor

The last time a Nato summit was held in the UK, Margaret Thatcher was in the chair in London. It was 1990. The Cold War had been won.

A Europe "whole and free" was mentioned in the communique, alongside how "the Soviet Union has embarked on the long journey toward a free society".

Today, relations between Moscow and the West are at their lowest ebb since the Cold War.

And another Conservative prime minister, David Cameron, will chair a Nato summit, talking of a new threat that will require a generational ideological struggle "not unlike the Cold War" - against the self-declared Islamic State.

All of this speaks to a new world disorder. There's political chaos in Pakistan, Afghanistan is hardly stable, and the world has taken its eyes away from an extraordinary war in Libya.

At Celtic Manor in Wales, the talk will be about a new era of co-operation between Europe, the US and new partners.

Armoured personnel carriers, tanks and interactive defence displays will be parked on the fairways. There will be fly-pasts of Nato air assets. The Government rarely misses an opportunity to try and boost exports.

What both the PM and President Obama have referred to as "Russia's aggression" in Ukraine, and the threat from IS, will dominate the talks, even if the latter is only scheduled to be discussed at dinner on Friday night.

On Russia, the post-Cold War vision of a Europe whole and free is now being challenged by the actions of President Putin.

It seems a drastic step, but Nato may effectively alter the "founding act" of its relationship with Russia, essentially a promise not to build permanent bases in Eastern Europe.

The Baltic states and Poland would like this revisited. Germany, closer to Russia than the rest of Europe, is pushing back.

Officially, the founding act will stay. But expect new forward bases in Eastern Europe to allow rapid reaction to President Putin's "hybrid war" - the rapid use of deniable Russian military assets, known locally as "little green men".

President Poroshenko will meet with the "quint" (the US, UK, France, Germany and Italy) just before the summit. France has already paused the highly controversial sale of Mistral helicopter carriers. The export was due within weeks.

On IS, we are seeing the ramping of rhetoric to levels consistent with a more concerted military effort. President Obama said he wanted to destroy and degrade IS.

The summit will be about slow coalition building on the margins. Alongside 28 Nato leaders, including Turkey, there will be allies and partners such as Jordan.

The bigger agenda on a military coalition against IS requires an invitation from the central government in Baghdad, even to arm Kurdish forces.

The most important Nato summit in decades. It is a measure of the world's new instability that President Putin himself attended the last Nato summit in Chicago in 2012. And the main agenda here in Wales is dealing with chief summit guest from two years ago.

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Nato Leaders Ready Tough New Russia Sanctions

PM: We Should Not Pay Ransoms For Hostages

Updated: 11:27pm UK, Thursday 04 September 2014

David Cameron has urged Nato leaders not to pay ransoms for their countrymen held by terrorists, saying it will only lead to more violence.

He delivered the warning after stating Britain will not pay for the release of the British hostage facing death at the hands of Islamic State extremists (IS).

In a dinner speech at the Nato summit in Wales, Mr Cameron reminded fellow leaders of commitments made at last year's G8 summit in Northern Ireland not to make ransom payments to terror groups.

Speaking ahead of the dinner, Mr Cameron described such payments as "deeply regrettable", adding they were "utterly self-defeating".

He told Sky News the situation of British aid worker David Cawthorne Haines was "desperately difficult", but it would not be right to buy his freedom.

Nonetheless he said he would do everything possible to get him back home safely and was personally overseeing efforts to achieve this.

Two US journalists have already been murdered by IS, who are now threatening to take Mr Haines' life.

Mr Cameron said: "It's a desperately difficult situation, (but) we don't pay ransoms to terrorists when they kidnap our citizens.

"From the intelligence and other information I have seen, there is no doubt this money helps to fuel the crisis that we see in Iraq and Syria."

Mr Cameron told the two-day summit Britain would use "everything we have in our armoury" to defeat IS and put it out of existence.

He did not rule out joining the US in air strikes and even left the door open to attacking IS in Syria without the approval of President Bashar Assad.

However, he appeared to indicate such action was some way off, stressing his immediate priority was to offer support to legitimate regional forces already confronting IS on the ground.

Foremost among these are the Iraqi government in Baghdad and the Kurdish authorities in the north of the country.

"I think sometimes people think that there is no strategy unless it simply consists of air strikes," said Mr Cameron.

"That is not the case. What it needs is a fully-formed strategy to squeeze this from every angle. That is what you are getting from this conference."

The crisis in Iraq and the ongoing conflict in Ukraine have topped the agenda at the summit, which has seen protests by hundreds of anti-war campaigners.

Nato is under pressure to harden its response to Russian incursions into Ukraine, even more so after reports the EU will announce a new package of sanctions against Moscow on Friday.

It comes after Mr Cameron, US president Barack Obama and other senior Nato leaders held talks with Ukrainian president Petro Poroshenko at the summit.

The 28 Nato members are also expected to finalise plans for a new Rapid Reaction Force that will number around 4,000 troops, on notice to deploy within 48 hours.

Logistic and planning teams will be stationed in Poland and the Baltic States along with key equipment to speed up any deployment.

Nato Secretary General Anders Rasmussen said: "We are still witnessing Russian involvement in destabilising the situation in eastern Ukraine."

He urged Moscow to draw back its forces from the Ukrainian border and withdraw support from the separatist rebels.

Ahead of the summit, Mr Obama and Mr Cameron visited a local primary school.

Mr Obama greeted the pupils in Welsh saying "bore da" - which means "good morning" - and then listened to a welcome message, thanking him for being the first serving US president to visit Wales.

The Nato summit is the first to be held in the UK since the collapse of the Soviet Union - the last time the alliance met in Britain was in London in 1990.

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Sky Films Troops 'In Russian Gear' In Ukraine

Confusion Over Ukraine 'Permanent Ceasefire'

Updated: 3:38pm UK, Wednesday 03 September 2014

Vladimir Putin says a ceasefire deal between Ukraine and pro-Russian rebels could be reached by Friday.

The Russian President's announcement comes after conflicting reports that a permanent ceasefire agreement had been reached by the two sides this morning.

Following witness reports of loud artillery explosions near the Ukrainian city of Donetsk, the country's President Petro Poroshenko modified his statement to remove the word "permanent".

It is unclear whether his actions were in response to reports of the explosion.

Reporting from Mariupol, Ukraine, Sky's Moscow Correspondent Katie Stallard said: "It's extremely unclear at this stage what exactly this ceasefire is supposed to be.

"No one we have spoken to on the ground seems to know about it.

"The Ukrainian president issued a statement this morning claiming he agreed with Vladimir Putin to a permanent ceasefire in the region.

"He has since slightly modified that statement and removed the word 'permanent'.

"A spokesman for President Putin said no such agreement has been reached, nor can it, because Russia is not a party to the conflict."

Mr Putin's spokesman Dmitry Peskov was earlier quoted as saying the leaders' views "overlap to a considerable degree".

"The heads of state exchanged opinions about what needs to be done first in order to bring an end to the bloodletting in the southeast of the country as soon as possible," said Mr Peskov.

A statement from Kiev said an understanding had been achieved which would enable the "establishment of peace".

News of the development was greeted with an immediate rally on the financial markets - the main Russian stock exchange, the Micex, rising 4% and stocks in London with the FTSE 100 reached a 14-year high in morning trade.

Russia later announced it was to hold major military exercises in September of the forces responsible for its long-range nuclear capability. The drills will involve more than 4,000 servicemen and 400 technical units. 

Meanwhile, world leaders have begun arriving in the UK ahead of a two-day Nato summit in Wales where the Ukraine crisis will be top of the agenda. 

Speaking in Estonia ahead of the summit, President Obama said that Nato would not accept what he called Russia's illegal annexation of Crimea.

In a thinly-veiled warning to President Putin, the US President added that the Baltic states were bound by the Nato alliance.

"We have a solid duty to each other. Article Five is crystal clear; an attack on one is an attack on all," he said.

Mr Obama added the US was working to bolster the security of Nato allies and increase America's military presence in Europe.

"It would mean more US forces, including American boots on the ground continuously rotating through the Estonia, Latvia and Ukraine militaries."

Russia has repeatedly denied claims its soldiers were recently sent into eastern Ukraine to support Ukrainian pro-Russian rebels.

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Ukraine Troops In Call For Better Arms

By Yulia Bragina, Russia Producer, In Eastern Ukraine

On the highway between Donetsk and Mariupol in eastern Ukraine near the village of Volnovakha, there stood a military transporter with an old, self-propelled artillery gun and tired-looking men perched on it.

Having spent several hours trying to find the Ukrainian military, the Sky News team decided to pull over and speak to them.

They told us they got separated from the column when the engine of their transporter got overheated - again - as they were making their way from a mission near the town of Starobesheve.

Trench dug by Ukrainian soldiers outside Mariupol

The soldiers asked our team to tell the checkpoint on the outskirts of Mariupol that they had broken down because they had no other way of informing their commander.

"We are too close to the rebel-held territory here. If we don't get help quickly, we will not survive the night," said Artyom, 22.

The men told us they had earlier engaged with a Russian military convoy closer to the border.

A member of the Azov battalion stands guard at their base in Mariupol

"The APCs (armoured personnel carriers) that we were fighting against had a parachute painted in the front. That's a symbol of Russian paratroopers," said Artyom.

"They are not even hiding anymore. I have seen with my own eyes the Russian military convoy crossing from Russia into Ukraine on August 18, but no one believes us."

A few kilometres away we met another Ukrainian military vehicle on its way to the front line, and one of the officers agreed to talk to us anonymously.

Soldiers like Roman say there is a lack of basic equipment

Petro (not his real name) said he was 28, had a wife and three children and had been serving in the Ukrainian army for nine years.

He was angry with the policies of the government in Kiev which he regarded as too indecisive, and warned that if it continued the army would turn and march on the capital.

Petro criticised Western politicians for not supporting Ukraine with positive action. What they needed, he said, was modern equipment and arms, not words.

Roman shows off the sneakers supplied by a family member

"We have many patriots who want to defend their country, but people are just scared to fight with tanks and APCs that are 30 to 40 years old," he said.

His call was echoed by members of the volunteer Azov battalion on the outskirts of Mariupol like 27-year-old Roman.

Roman, a veteran of nine firefights, said the sneakers he was wearing had been sent to him by his brother who lives in Florida.

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Nato Plans 'Spearhead' Force To Face Russia

Nato is set to create a "high-readiness" force and stockpile military equipment in Eastern Europe as a bulwark against potential Russian aggression, the alliance's chief has said.

Anders Fogh Rasmussen said the proposed new force could be comprised of several thousand troops contributed to on a rotating basis by the 28 Nato countries.

Backed by air and naval assets, he said the unit would be a "spearhead" that could be deployed at very short notice to help Nato members defend themselves against any threat, including from Russia.

Nato leaders are to consider the plans at a summit this week in Wales that is likely to be dominated by how the US-led alliance should respond to the Russian-backed separatist uprising in eastern Ukraine.

Nato chief Anders Fogh Rasmussen explained plans for a 'spearhead' force

Ukraine is not a member of Nato, but its UK ambassador told Sky News he backed the move and appealed for Ukraine's allies to step up sanctions and provide military help now.

Andrii Kuzmenko said: "What is important for Ukraine is to provide the means for our defence ... including armaments."

The move could provoke Russia, whose foreign minister warned on Monday that Ukrainian forces must pull back from areas where they can harm civilians.

Some of the fiercest fighting is going on near Mariupol and Donetsk

Sergei Lavrov spoke amid reports that Ukrainian forces had been ordered to pull back from Luhansk airport in the face of an onslaught from Russian tanks - the latest claim of direct Russian involvement in the fighting.

Ukraine's Defence Minister Valeriy Geletey said Russian units were moving into other towns in the region, including the largest city of the Donetsk region.

Sergei Lavrov warned Ukraine to pull troops back from areas in the east

"The information that Russian troops are there has been confirmed," he said.

"We are fighting Russia and it is Russia which is deciding what will happen in Donbass," he told Ukraine's Inter channel, referring to the informal name of the Donetsk and Lugansk regions.

Mr Lavrov again denied that Russian troops were in Ukraine and said he hoped talks taking place on Monday in the Belarussian capital Minsk today will focus on agreeing an immediate, unconditional ceasefire.

Speaking in the east Siberian city of Yakutsk on Monday, Russia's President Vladimir Putin accused Europe of ignoring the Ukrainian army "directly targeting its fire on residential areas".

He said he hoped "common sense will prevail" and that Russia and the West would not harm each other with further sanctions.

In western Ukraine, Vladimir Putin's face has been used for target practice

Speaking in the House of Commons, David Cameron said Russia appears to be trying to force Ukraine "to give up its democratic choices at the barrel of a gun".

The PM said the presence of Russian soldiers on Ukrainian soil is "completely unjustified and unacceptable".

A rights group that works to expose Russian army abuses has claimed that up to 15,000 soldiers have been sent to Ukraine by Moscow in the last two months, and several hundred may have died in combat.

Valentina Melnikova, head of the Committee of Soldiers' Mothers, a prominent organisation representing the families of military servicemen, said that some 7,000-8,000 Russian troops are believed to be in Ukraine at present.

John McCain has backed calls for the US to send arms to Ukraine

"Military commanders are conducting a secret special operation," said Melnikova, who is a member of the defence ministry's public council.

Meanwhile, a Ukrainian military spokesman said a rescue operation was continuing for two seamen missing in the Azov Sea after pro-Russian separatists attacked a Ukrainian navy vessel for the first time.

Eight other seamen survived the attack and were being treated for wounds and burns after the vessel was hit by artillery from the shore.

Separatists in the region claimed responsibility for the attack on social media.

Ukraine's President Petro Poroshenko said the events of the past few days have shown that Russia has launched "a direct and open aggression" against Ukraine.

Leading American senators have called for the US to send weapons to help Ukraine defend itself against what they called "a Russian invasion".

Democrat Robert Mendez, who runs the Senate Foreign Relations Committee, told CNN: "We should provide the Ukrainians with the type of defensive weapons that will impose a cost upon Putin for further aggression."

The call was echoed by former Republican presidential candidate John McCain, who told CBS's Face the Nation that Mr Putin was "an old KGB colonel that wants to restore the Russian empire".

Earlier, the European Union gave Russia a week to scale back its intervention in Ukraine, warning of further sanctions.

China said it opposes additional sanctions against Russia and has urged world leaders to find a political solution to the crisis.

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Chinese War On Terror May Breed Extremists

By Mark Stone, Asia Correspondent in Xinjiang Province, China

Sky News has obtained rare access to China's Xinjiang Province to investigate reports Muslims are being targeted and oppressed by the government.

China's leaders say foreign Islamist extremists, perhaps with links to IS and al Qaeda, are infiltrating its population, responsible for growing unrest in the region.

Since December, a series of bloody bomb and knife attacks have killed more than a hundred people across China.

There are reports of authorities targeting and oppressing Muslims

Urumqi, a city on the old Silk Road with a population of three million, is the provincial capital and a place on edge right now.

Soldiers stand guard outside the city's great mosque. Armoured police vehicles are parked in the shadows.

Oil and gas rich, the far-western province of Xinjiang is home to the Uighur people, China's Muslim minority. The province was once almost all theirs.

These days, they share it with the Han Chinese, the country's dominant ethnic group; the people who would be globally recognisable as Chinese.

Xinjiang is home to the Uighur people, China's Muslim minority

In recent years, relations between the Uighurs and the Han have become increasingly difficult.

Ancient Uighur homes have been destroyed. Uighur culture has been diluted and their freedom to practise Islam has been restricted.

In May, two 4x4 vehicles drove up a busy market street in a Han Chinese district of Urumqi. It was early morning and Gongyuan Street was crowded with shoppers.

Explosives were thrown from the vehicles as they passed up the street. Forty-three died and more than 90 were injured.

Today, the same street is almost deserted. We meet a Mr Sun, a retired Han Chinese teacher.

He saw it all happen and we ask him who did it. "Minorities," he says. He leans forward and whispers: "Muslims."

The Uighur heartland lies under 200 miles from Afghanistan and Pakistan

Our taxi driver, also Han Chinese, goes further. Echoing the government line, he says the attack was the work of religious fanatics infiltrating the south.

"From Kashgar," he says. "It's only those who are uncultured who cause problems.

"People who were not educated, who live in the south. They are brainwashed by terrorists."

The Chinese government says it is facing an unprecedented threat from Islamist extremism.

They say foreign extremists are infiltrating the Uighur population and radicalising them.

Ancient Uighur homes have been destroyed... ...and replaced by tower blocks

However, Uighurs in exile, human rights organisations and the US government doubt that Islamist extremism is to blame.

They believe the Communist Party is blaming external forces as a way of dealing with internal unrest.

The tactics used to counter the violence are exacerbating the problem, they say.

Kashgar is further west from Urumqi; closer to Baghdad than it is to Beijing.

It is the Uighur heartland and lies just under 200 miles from the Afghan and Pakistani borders.

10 million Uighurs live in China's far-western Xinjiang Province

At the city's centre, the Id Kah mosque is the country's largest. In July, the Imam was murdered here; stabbed and clubbed to death.

"He deserved to die," a Uighur shopkeeper tells me quietly. He does not want to be identified. All Uighurs fear government reprisals if caught talking to foreigners.

The shopkeeper tells me that the Imam was a stooge of the Chinese government and condoning a series of restrictions for Uighurs in the region.

The restrictions are spelt out on a sign in a neighbouring street. With pictures, it states that beards are banned for young men and veils are banned for women.

Other policies include preventing Muslims from fasting at Ramadan.

"You understand what this sign means?" a young Uighur man says. "There's no freedom for us here."

The message was the same from the other Uighurs we spoke to. If you pressure and restrict people, they will fight back.

There are signs all around that this Chinese "war on terror" is intensifying. As it does, the resentment will only increase.

If religious extremists are among the Uighur population, and we saw no evidence of it, their efforts to recruit and to rally will only be made easier.

For the Chinese government, Islamist extremism could become a self-fulfilling prophecy.

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Ukraine Navy Vessel Attacked, Says Kiev Military

EU To Draft Urgent Sanctions Against Russia

Updated: 1:20pm UK, Sunday 31 August 2014

Russia could be facing a fresh wave of EU sanctions within a week after Russian tanks reportedly attacked a town near the Ukrainian border city of Luhansk.

Ukrainian President Petro Poroshenko said tanks had been used to "destroy virtually every house" in the town of Novosvitlivka.

There were now thousands of foreign troops and hundreds of foreign tanks inside Ukraine, he told a news conference in Brussels, where EU leaders met to discuss the crisis.

"There is a very high risk not only for peace and stability for Ukraine but for the whole peace and stability of Europe," he said.

After meeting his European counterparts, Mr Poroshenko warned that efforts to end violence with pro-Russian rebels were close to a "point of no return" and that failure could lead to "full-scale war".

European leaders have ordered officials to make urgent preparations for a toughening of measures, likely to target senior Kremlin figures as well as the defence, energy and financial sectors.

Prime Minister David Cameron said the EU summit had taken "important steps" and the European Commission would present firm proposals for tougher sanctions within a week.

"It is totally unacceptable that there are Russian soldiers on Ukrainian soil. We have now set out a timetable for further sanctions that could be ... significant steps," Mr Cameron said.

"It's a deeply serious situation and we have to show real resolve, real resilience in demonstrating to Russia that if she carries on in this way the relationship we have between Europe and Russia, Britain and Russia, America and Russia will be radically different in the future."

Outgoing EU Commission head Jose Manuel Barroso insisted it was not too late to find a political solution, but he added: "We are in a very serious, I would say, dramatic situation ... where we can reach the point of no return.

"If the escalation of the conflict continues, this point can come."

He added: "Russia should not underestimate the European Union's will and resolve to stand by its principles and values."

Meanwhile, Lithuanian President Dalia Grybauskaite called for a stepped up arms embargo on Russia.

She said: "It is the fact that Russia is in a war state against Ukraine. That means it is in a state of war against a country which would like to be closely integrated with the EU.

"Practically Russia is in a state of war against Europe."

It comes after a mutual exchange of captured soldiers between Ukraine and Russia on Sunday.

A group of 10 Russian paratroopers and 63 Ukrainian soldiers were returned after "very difficult negotiations", according to the Russian RIA news agency.

Russian President Vladimir Putin, in a TV show recorded on Friday, again denied that Moscow had sent troops to fight in Ukraine.

He said: "We need to immediately begin substantive talks... on questions of the political organisation of society and statehood in southeastern Ukraine with the goal of protecting the lawful interests of the people who live there."

He added that the West "should have known that Russia cannot stand aside when people are being shot at point-blank range".

Nato released images apparently showing Russian forces on the ground in eastern Ukraine.

Government sources said separatists are believed to have heavy weaponry supplied by President Vladimir Putin.

Included in the weaponry are 100 tanks and artillery pieces, anti-tank weapons and shoulder-mounted missile launchers, the sources said.

Russia has repeatedly dismissed accusations it has sent soldiers or equipment across the border.

President Barack Obama has said the satellite pictures made it "plain" that Russia had "deliberately and repeatedly violated the sovereignty and territorial integrity of Ukraine".

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Captured IS Suicide Bomber Reveals Threat

By Stuart Ramsay, Chief Correspondent

A wing of Sulaymaniah's military hospital has been sealed off and 24-hour security has been posted at the door of a ward.

Inside lies an injured young man; a very special patient and prisoner.

He is 23-year-old Horr Jaffer, from Chechnya, and he is an Islamic State (IS) suicide bomber.

His capture has been a secret until now.

Sky News is the first to get access to this man who was caught in the southern Kurdish town of Jalula after his bomb part exploded.

He had been attempting to destroy a Kurd checkpoint by driving a bomb-laden car into their midst.

Four people died and many others were injured, but he was captured attempting to escape.

The 23-year-old militant killed four people in his bomb attack

Under questioning he admits that he joined IS in Syria after his father, mother and six family members were killed there.

He says they had moved from Chechnya to Pakistan before going to Syria.

The Kurds believe his father and brothers were to all intents and purposes professional jihadists; moving to countries where they could ply their trade. That trade is killing people.

"I want to be a martyr. I decided after they killed my family," he says in barely audible Russian.

"They didn't tell me anything about what I was doing or where I was. I just had to press the button."

The killer claims that Syria is filling with foreign fighters; a constant stream from all over the world.

"There are nations from all over the world there. There is British amongst them. They are from Asian countries, Europe and America. From everywhere," he told me.

He says that they used to talk together and mix together but didn't understand a lot of what was said.

Britain is growing increasingly concerned about the threat from IS

Spending an hour with him it was striking how little he knew about what IS is doing across swathes of Syria. He denied any knowledge of the creation of a caliphate by IS for example.

He struck me as a rather stupid boy, upset by the loss of his family and totally open to indoctrination by his IS handlers.

He was just the guy prepared to die and kill others with him and it seems there are lots like him.

When asked if he regretted what had happened he broke down.

Arching his back in pain and misery, saying he just wanted to live a normal life that he did not mean to do what he did.

It is hard not to be moved by his anguish. Hard but not impossible. He is a killer.

Like many western governments and security services, Britain is growing increasingly concerned about both IS and the numbers of young men being radicalised and coming to Syria and Iraq.

Out here the Kurds say they are right to be concerned.

Bafle Talabani says IS represents a super-terrorism and needs to be stopped

"It is almost like super-terrorism and this is the frontline," Bafle Talabani, the British-born founder of the Kurds elite Counter Terrorism Group, told me in the grounds of his father's house, which happens to be the Presidential Palace.

"It is more aggressive, more merciless more brutal. This is the front of the war on terror," he says.

"If we don't stop this here they will come for the West, for England for Europe of the United States. They need to be stopped."

IS, he believes, is the most dangerous single entity in the world today.

He is urging western governments to allow the Kurds to buy their own weapons or supply them.

"The special forces have good equipment. The peshmergas' weapons go back to the Iran-Iraq war. They are fighting against good weapons and a well-organised outfit with lots of money," he says.

With so many willing jihadists available IS is unlikely to miss this single bomber.

When he is treated and well, he will go to prison and rot there for the rest of his life.

He will be denied martyrdom. The Kurds want the foreign fighters to know that.

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Hundreds Hurt In Violent Pakistan Clashes

At least 300 people have been wounded in clashes between police and protesters in Pakistani capital Islamabad.

The violence comes amid an ongoing two-week political stand-off over claims Prime Minister Nawaz Sharif's 2013 election win was the result of vote rigging,

Starting late on Saturday and continuing into early Sunday, the disorder erupted after around 25,000 people marched from parliament to the PM's house.

An AFP reporter at the scene said those on the march, which was led by cricketer-turned-politician Imran Khan and populist cleric Tahir ul Qadri, attempted to remove barricades around the house with cranes.

Smoke from tear gas canisters filled the air

Police responded with tear gas and rubber bullets.

Islamabad police chief Khalid Khattak said officers exercised restraint but that protesters were armed with axes, wire cutters and hammers.

"They had a crane and drove it until the entrance of the presidency," he said.

"We are using only tear gas and firing rubber bullets where needed."               

Railways minister Khawaja Saad Rafique said protesters tried to uproot the entry gate to the prime minister's home.                

Those injured included protesters and police officers

The demonstrators had been camped outside parliament house since August 15 demanding Mr Sharif step down.

The crisis took on a new dimension earlier in the week after the government asked the army to mediate, raising fears the military would use the situation to enact a "soft coup" and increase its dominance over civilian authorities.

Speaking as fighting broke out on Saturday, defence minister Khawaja Asif said: "There are 1,600 to 2,000 trained terrorists. They have 200 women who are trained in the use of firearms and they have come with the intention of occupying state buildings.

"These are buildings that are symbols of the state. Their attempts are being resisted. And we will resist these with full force."

Protesters were carrying batons, iron rods and sling-shots. The injured were taken to Islamabad's two main hospitals, with the number of casualties expected to rise as clashes continue.

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Kerry Calls For Coalition Against IS Jihadists

US Secretary of State John Kerry has called for a global coalition to combat Islamic State extremists and their "genocidal agenda".

His comments came as Saudi Arabia's King Abdullah warned the West would be the jihadist group's next target unless there was urgent action to halt its advances through Iraq and Syria.

The UK Government has raised Britain's terror threat level from substantial to severe because of the threat from militant groups in the Middle East.

Writing in the New York Times ahead of this week's NATO summit in Wales, Mr Kerry pressed for "a united response led by the United States and the broadest possible coalition of nations".

Mr Kerry said the US would present an action plan to the UN in September

He said he and Defence Secretary Chuck Hagel would meet European counterparts on the sidelines of the summit to enlist assistance, and then travel to the Middle East to build support "among the countries that are most directly threatened".

US President Barack Obama has acknowledged Washington has no strategy yet to tackle the Islamic State, which has declared an Islamic "caliphate" in large swathes of territory under its control in Iraq and Syria.

But Mr Kerry said the US would be putting forward an action plan at a summit meeting of the UN Security Council in September, when Washington will hold the group's presidency.

"What's needed to confront its nihilistic vision and genocidal agenda is a global coalition using political, humanitarian, economic, law enforcement and intelligence tools to support military force," Mr Kerry said.

The UK has raised its terror threat level because of the extremist threat

The Islamic State (IS) has sparked growing alarm in the West at its rapid and brutal advance in both Syria and Iraq, killing hundreds of people, including in gruesome beheadings and mass executions.

The US began carrying out airstrikes against the group in Iraq earlier this month, but has yet to decide if it will expand that military action into Syria.

The cost of American military operations have cost about $560m (£337m) since mid-June, according to the Pentagon - an average of £7.5m (£4.5m) a day.

Syrian President Bashar al Assad has said he is willing to co-operate in tackling jihadists, but that any military action on its territory must be co-ordinated.

This causes a dilemma for Washington, which has long backed the rebels seeking President Assad's overthrow, and accuses his regime of rights violations including the use of chemical weapons.

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