Putin: Ukraine must withdraw, rebels must halt

A day ahead of a NATO summit, Russian President Vladimir Putin issued his own peace plan for eastern Ukraine, calling on the Russian-backed insurgents there to "stop advancing" and urging Ukraine to withdraw its troops from the region.

Hours earlier, Ukraine had issued a vague statement about agreeing with Putin on cease-fire steps. The separatists rejected the move, saying no cease-fire was possible without a pullback by Ukraine, while Putin's spokesman claimed that Moscow was not in a position to agree to a cease-fire because it was not a party to the conflict.

The back-and-forth came as President Barack Obama arrived in Estonia in a show of solidarity with NATO allies who fear they could be the next target of Russia's aggression. NATO is holding a summit in Wales on Thursday, with plans to approve a rapid-response team to counter the Russian threat.

Putin, speaking in the Mongolian capital of Ulan Bator, said he came up with a 7-point peace plan on the plane trip there in which Kiev must withdraw its troops and stop its artillery strikes.

"The warring parties should immediately coordinate and do the following things together," Putin said in televised comments. "The first thing is for the armed forces and insurgents of the south-east of Ukraine to stop active advancing in the Donetsk and Luhansk regions.

"Second is for the Ukrainian military to withdraw their troops at a safe distance that will make artillery and other strikes on populated areas impossible," he added.

Putin also urged an unconditional exchange of prisoners and said he expected a final agreement between Kiev and the rebels to be reached Friday at peace talks in Minsk, Belarus.

The Interfax news agency later carried remarks from top rebel commander Miroslav Rudenko, who said "there'll be no sense in a military solution to the conflict" if Kiev was to withdraw its troops.

Stock markets jumped on first reports of a possible cease-fire deal, but later eased back slightly. By early afternoon in Europe, Russia's MICEX benchmark was up 2.7 percent, while the ruble rose 1.4 percent against the U.S. dollar.

Germany's DAX index, which has been particularly sensitive to news regarding the Ukrainian crisis because of the country's economic ties with Russia, was up 1.2 percent.

Rebel leader said earlier this week that they would respect Ukraine's sovereignty in exchange for autonomy. The rebels previously have called for full independence for their regions or possible absorption into Russia. Putin has ignored their calls for annexation — unlike in March, when Russia annexed Crimea.

Ukrainian President Petro Poroshenko has spoken in favor of devolving some of the central government's power to regions, but that is far short of autonomy for the rebel regions.

Obama said it was too early to tell what the announcements Wednesday from Ukraine and Russia meant. He noted previous unsuccessful cease-fire attempts and questioned whether the separatists would abide by a new cease-fire.

"We haven't seen a lot of follow-up on so-called announced cease-fires," Obama said. "Having said that, if in fact Russia is prepared to stop financing, arming, training, in many cases joining with Russian troops activities in Ukraine and is serious about a political settlement, that is something we all hope for."

Ukraine, NATO and the West have accused Russia of sending its troops and weapons to support the insurgents. Moscow has denied the charge. AP reporters on the ground have run into numerous Russian fighters among the rebels and have seen large convoys of heavy military equipment driving in eastern Ukraine from the direction of Russia.

Over the weekend, the European Union leaders agreed to prepare a new round of sanctions that could be enacted in a week, after NATO accused Russia of sending tanks and troops into southeastern Ukraine.

Fighting in eastern Ukraine has killed nearly 2,600 people and forced over 340,000 to flee their homes, according to the U.N.

US mission to rescue hostages in Syria failed

President Barack Obama sent special operations troops to Syria this summer on a secret mission to rescue American hostages, including journalist James Foley, held by Islamic State extremists, but they did not find them, the Obama administration said Wednesday

Officials said the rescue mission was authorized after intelligence agencies believed they had identified the location inside Syria where the hostages were being held. But the several dozen special operations forces dropped by aircraft into Syria did not find them at that location and engaged in a firefight with Islamic State militants before departing.

"The U.S. government had what we believed was sufficient intelligence, and when the opportunity presented itself, the president authorized the Department of Defense to move aggressively to recover our citizens," said Lisa Monaco, Obama's top counterterrorism adviser, in a statement. "Unfortunately, that mission was ultimately not successful because the hostages were not present."

Officials disclosed the rescue operation a day after the militants released a video showing the beheading of Foley and threatened to kill a second hostage, Steven Sotloff, if U.S. airstrikes against the militants in Iraq continued.

Despite the militants' threats, the U.S. launched a new barrage of airstrikes against Islamic State targets in Syria Wednesday. The Obama administration did not rule out the prospect of a military operation in Syria to bring those responsible for Foley's death to justice.

The disclosure of the rescue mission marks the first time the U.S. has revealed that American military personnel have been on the ground in Syria since a bloody civil war there broke out more than three years ago. Obama has resisted calls to insert the U.S. military in the middle of Syria's war, a cautious approach his critics say has allowed the Islamic State to strengthen there and make gains across the border in Iraq.

A number of militants but no Americans were killed in the firefight in Syria. One American sustained a minor injury when an aircraft was hit, officials said.

"As we have said repeatedly, the United States government is committed to the safety and well-being of its citizens, particularly those suffering in captivity. In this case, we put the best of the United States military in harms' way to try and bring our citizens home," Pentagon spokesman Rear Adm. John Kirby said in a statement Wednesday night. "The United States government uses the full breadth of our military, intelligence and diplomatic capabilities to bring people home whenever we can. The United States will not tolerate the abduction of our people, and will work tirelessly to secure the safety of our citizens and to hold their captors accountable."

Administration officials would not say specifically when or where the operation took place, citing the need to protect operational details in order to preserve the ability to carry out future rescue missions. They did say that nearly every branch of the military was involved and that the special forces on the ground were supported from the air by fixed wing, rotary and surveillance aircraft.

BREAKING NEWS: President Obama says up to 275 U.S. military troops will deploy to Iraq!

BAGHDAD --

The U.S. is urgently deploying several hundred armed troops in and around Iraq and considering sending an additional contingent of special forces soldiers as Baghdad struggles to repel a rampant insurgency, even as the White House insists anew that America will not be dragged into another war.

President Barack Obama notified Congress Monday that up to 275 troops could be sent to Iraq to provide support and security for U.S. personnel and the American Embassy in Baghdad. About 170 of those forces have already arrived and another 100 soldiers be on standby in a nearby country until they are needed, a U.S. official said.

While Obama has vowed to keep U.S. forces out of combat in Iraq, he said in his notification to Congress that the personnel moving into the region are equipped for direct fighting.

And separately, three U.S. officials said the White House was considering sending a contingent of special forces soldiers to Iraq. Their limited mission - which has not yet been approved - would focus on training and advising beleaguered Iraqi troops, many of whom have fled their posts across the nation's north and west as the al-Qaida-inspired insurgency has advanced in the worst threat to the country since American troops left in 2011.

The moves come at the White House wrestles with an array of options for helping Iraq repel a Sunni Muslim insurgency that has captured large swaths of territory collaring Baghdad, the capital of the Shiite-led government. In a rare move, U.S. officials reached out to Iran Monday to discuss ways the long-time foes might help stop the militants known as the Islamic State of Iraq and the Levant.

The conversations took place on the sidelines of separate nuclear negotiations taking place in Vienna, Austria. U.S. officials quickly tamped down speculation that the discussion might include military coordination or consultation, though Secretary of State John Kerry said in an interview with Yahoo! News that the U.S. would "not rule out anything that would be constructive."

Kerry stressed that any contacts with Iran would move "step-by-step."

Taken together, the developments suggest a willingness by Obama to send Americans into a collapsing security situation in order to quell the brutal fighting in Iraq before it morphs into outright war.

The White House said the forces authorized for support and security will assist with the temporary relocation of some staff from the Baghdad embassy. The forces are entering Iraq with the consent of that country's government, the White House said.

Pentagon press secretary Rear Adm. John Kirby said the troops on standby could "provide airfield management, security, and logistics support, if required." They could work with embassy security teams or operate as a stand-alone force as directed.

Officials would not say where the soldiers would be on standby, but It is likely they would be in Kuwait, which was a major basing ground for U.S. troops during the Iraq war.

If the U.S. were to deploy an additional team of special forces, the mission would almost certainly be small. One U.S. official said it could be up to 100 special forces soldiers. It also could be authorized only as an advising and training mission - meaning the soldiers would work closely with Iraqi forces that are fighting the insurgency but would not officially be considered as combat troops.

It's not clear how quickly the special forces could arrive in Iraq. It's also unknown whether they would remain in Baghdad or be sent to the nation's north, where the Sunni Muslim insurgency has captured large swaths of territory collaring Baghdad, the capital of the Shiite-led government.

The troops would fall under the authority of the U.S. ambassador in Baghdad and would not be authorized to engage in combat, another U.S. official said. Their mission would be "non-operational training" of both regular and counter terrorism units, which the military has in the past interpreted to mean training on military bases, the official said.

However, all U.S. troops are allowed to defend themselves in Iraq if they are under attack. Already, about 100 Marines and Army soldiers have been sent to Baghdad to help with embassy security, according to a U.S. official.

The three U.S. officials all spoke on condition of anonymity because they were not authorized to publicly discuss the plans by name.

Obama made the end of the war in Iraq one of his signature campaign issues, and has touted the U.S. military withdrawal in December 2011 as one of his top foreign policy successes. But he has been caught over the past week between Iraqi officials pleading for help - as well as Republicans blaming him for the loss of a decade's worth of gains in Iraq - and his anti-war Democratic political base, which is demanding that the U.S. stay out of the fight.

While the White House continues to review its options, Iran's military leaders are starting to step into the beach.

The commander of Iran's elite Quds Force, Gen. Ghasem Soleimani, was in Iraq on Monday and consulting with the government there on how to stave off insurgents' gains. Iraqi security officials said the U.S. government was notified in advance of the visit by Soleimani, whose forces are a secretive branch of Iran's Revolutionary Guard that in the past has organized Shiite militias to target U.S. troops in Iraq and, more recently, was involved in helping Syria's President Bashar Assad in his fight against Sunni rebels.

In the short term, the U.S. and Iran both want the Shiite-led government of Prime Minister Nouri al-Maliki stabilized and the Sunni-led insurgency stopped. But in the long run, the United States would like to see an inclusive, representative democracy take hold in Iraq, while predominantly Shiite Iran is more focused on protecting Iraq's Shiite population and bolstering its own position as a regional power against powerful Sunni Arab states in the Gulf.

State Department spokeswoman Jen Psaki said any discussion with Iran would concern ways that Iran could help press al-Maliki's government to be more inclusive and treat all of Iraq's religious and ethnic groups equally.

Any talks with Iran "would be to discuss the political component here and our interest in encouraging Iraqi leaders to act in a responsible, nonsectarian way," she told reporters. "Certainly a discussion of that is something that we would be open to."