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Russia and the US are facing their most serious diplomatic crisis of the Obama era after the Kremlin angrily denounced the arrest of 10 US-based Russian spies and said the FBI operation to apprehend them was an unsavoury cold war plot.
The alleged spies are in US custody, after being charged in court on Monday, June 28 with conspiracy to act as an agent of a foreign government. Police in Cyprus arrested the ring's alleged paymaster and 11th spy, Christopher Metsos, at Lanarca airport. Metsos was attempting to catch a morning flight to Budapest in Hungary, they said.
A district court in Lanarca later released Metsos on bail for €20,000 (£16,000), prompting fears he would flee to the Turkish-run north of the island, or take a boat to nearby Turkey or Syria. Greek police said they were dumbfounded by the court's decision. "It's not what we expected," said police spokesman Michalis Michael, adding that they were seeking more documents from the US and would go back to court.
Russia's foreign minister, Sergei Lavrov, questioned the timing of the arrests in the US, which came just three days after Barack Obama hosted Russia's president, Dmitry Medvedev, on a successful US visit, which included talks in Washington, a joint presidential cheeseburger and a tour of Silicon Valley.
"The moment when all this was done was chosen quite smartly," Lavrov said. In a statement, Russia's foreign ministry described the arrests as "groundless" and "unseemly", and suggested they were a shadowy attempt to undermine the recent "reset" in US-Russian relations "announced by the US administration". It said the suspects were Russian citizens who had never acted against US interests.
President Obama declined to comment on the case when asked about the alleged spies during a briefing with reporters on the economy.
The diplomatic scandal spread to Britain after it emerged that one of the 11 alleged spies involved in the "long-term deep cover" espionage ring had used a fake British passport. According to US court documents, Tracey Lee Ann Foley travelled on a fraudulent British passport prepared by the SVR, Russia's foreign intelligence agency.
Foley was given the passport in Vienna en route to Moscow, the FBI indictment said. Another Russian spy, Richard Murphy, picked up a fake Irish passport at a "brush past" meeting with a Russian agent in Rome. He then used it to travel to Moscow.
A Foreign Office spokeswoman said: "We are aware that the indictments state that one of the accused has travelled on a UK passport. We will be investigating this fully with the US. We are establishing the facts so it would be wrong to comment further at this stage. We remain confident that the British passport is one of the most secure documents of its kind – fully meeting rigorous international standards."
There was no indication whether the passport used the identity of a genuine UK national, as happened in a case earlier this year that severely tested relations between Britain and Israel.
The spy scandal places Medvedev in one of the most uncomfortable dilemmas of his two-year presidency. He now has to weigh up the Kremlin's response – and whether to expel or even arrest Americans living in Russia. Relations between Washington and Moscow have improved significantly since the semi- cold war days of the Bush era, with both Obama and Medvedev investing heavily in their personal friendship – and there have been results: a new, if modest, Start treaty on nuclear arms reduction; a deal on civilian nuclear cooperation; the US has backed Russia's long-delayed WTO application and Russia has taken a tougher line on Iran.
The Russian foreign ministry said: "We are counting on the American side to display the appropriate understanding in this matter, including taking into account the positive character of the current stage of Russian-American relations."
A 55-page US dossier reveals in humiliating detail the frequently amateurish and bungling behaviour of Moscow's agents – who lived in leafy suburban homes in Boston, New York and Washington DC.
The FBI said the spies were urged to adopt Americanised names to blend in, and ferret out information from thinktanks and government officials.
Far from staying hidden, however, the FBI appears to have known about the espionage ring since at least 2000, and tracked its every move.BI agents secretly FBI observed numerous encounters
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