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Luis Miguel Goitizolo

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RE: ARE WE NOW IN THE END TIMES?
3/15/2014 6:18:22 PM

Treasury Securities: Americans Pay Interest on $163 Billion Held Offshore by Top Tech Firms



Reuters/Lee Jae-Won

Reuters/Lee Jae-Won

From RT.com - March 14, 2014

http://tinyurl.com/kg2q8z2

United States taxpayers make large interest payments to the top four technology firms for the $163 billion in US government debt the companies own and shelter in tax-free offshore accounts.

Apple, Cisco Systems, Google, and Microsoft legally hold $124 billion in US Treasury securities and $39 billion in US government agency debt in accounts overseas, allowing them to avoid the 35 percent (maximum) corporate tax rate in the United States, according to Securities & Exchange Commission reports.

Together, the companies would be the 14th biggest overseas holder of Treasury securities, just ahead of countries like Norway, Singapore, and India.

“If a US multinational puts its offshore cash into a US bank and uses the money to buy US treasuries, stocks and bonds, those funds ought to be treated as having been repatriated and subject to US tax,” Sen. Carl Levin, chair of the Senate permanent subcommittee on investigations told the Bureau of Investigative Journalism.

Combined, the four top technology giants have $255 billion in “cash, cash equivalents, and marketable securities…in their foreign subsidiaries,” the Bureau of Investigative Journalism reported.

If that total amount was held onshore, making it subject to being taxed by the US government, it would yield $89 billion – or 17 percent of America’s projected $514 billion budget deficit this year.

Overall, the companies hold $333 billion in domestic and foreign accounts, making them the most lucrative American firms outside the financial sector.

The companies also hold $93.3 billion of corporate, municipal, and sovereign debt.

“This is a ridiculous situation,” said University of Michigan professor of law, Reuven Avi-Yonah. “The result is US taxpayers pay interest on this money as opposed to the government receiving taxes. Bringing this cash onshore and taxing it at 35% would significantly help reduce the annual deficit of the US government.”

Cisco Systems, which holds $40.4 billion in cash in foreign subsidiaries and has $27.8 billion in Treasury bonds, was the only firm to respond to the Bureau on the subject of debt held offshore.

“Cisco pays all taxes that are due. The cash held in Cisco’s non-US subsidiaries is generated from Cisco’s international operations. Cisco has approximately 50% of its employees outside the US and Cisco’s sales are approximately 50% from non-US customers,” Cisco said.

“US government obligations have long been one of the most stable investments in the world. The US Congress long ago enacted laws to promote investment in the US by individuals and businesses overseas, including non-US subsidiaries. Any interest income that Cisco receives on its U.S. government obligations is US taxable income to Cisco.”

Microsoft, which holds far more in US securities ($64.9 billion) than the other three, said it “complies with the tax rules in each jurisdiction in which it operates and pays billions of dollars each year in total taxes, including U.S. federal, state, and local taxes and foreign taxes.”

Apple, with $111.3 billion in foreign subsidiaries and $44.5 billion in US debt, did not address the issue, but said it also follows US tax law.

“We not only comply with the laws, but we comply with the spirit of the laws. We don’t depend on tax gimmicks. Apple carefully manages its foreign cash holdings to support its overseas operations in the best interests of its shareholders. Apple pays an extraordinary amount in US taxes.”

Twenty-six of the most powerful American corporations – such as Boeing, General Electric, and Verizon – actually paid no federal income tax from 2008 to 2012, according to a recent report that detailed how Fortune 500 companies exploit tax breaks and loopholes.

The report, conducted by public advocacy group Citizens for Tax Justice (CTJ), focused on the 288 companies in the Fortune 500 that registered consistent profit every year from 2008 to 2012. Those 288 profitable corporations paid an “effective federal income tax rate of just 19.4 percent over the five-year period — far less than the statutory 35 percent tax rate,” CTJ stated.

The non-profit group said this lax taxation climate among the most powerful US corporations comes amid an aggressive push by lobby and trade groups on Capitol Hill “to reduce the federal corporate income tax rate, based on the claim that our corporate tax is uncompetitively high compared to other developed nations.”

While the US corporate tax rate is technically the highest among Organization for Economic Cooperation and Development’s 34 member countries, the US Congressional Budget Office found two years ago that the total corporate federal tax amount paid by US companies came to 12.1 percent of profits, the lowest total since 1972.

Besides offshore tax sheltering, CTJ said the companies are allowed to skirt tax rates based on factors that include accelerated asset depreciation based on continued investment, stock options, and industry-specific tax breaks.

On Wednesday, Bloomberg reported that the 317 largest US-based companies have $1.95 trillion held outside the US, an increase of 11.8 percent from last year.


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Luis Miguel Goitizolo

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RE: ARE WE NOW IN THE END TIMES?
3/15/2014 9:46:51 PM

Thousands march in Moscow to protest Crimea vote

Associated Press

Demonstrators hold Russian and Ukrainian flags during a massive rally to oppose president Vladimir Putin's policies in Ukraine, in Moscow, Saturday, March 15, 2014. Large rival marches have taken place in Moscow over Kremlin-backed plans for Ukraine’s province of Crimea to break away and merge with Russia. More than 10,000 people turned out Saturday for a rally in the center of the city held to oppose what many demonstrators described as Russia’s invasion of the Crimean Peninsula. In a nearby location, a similar sized crowd voiced its support for Crimea’s ethnic Russian majority, who Moscow insists is at threat from an aggressively nationalist leadership now running Ukraine. (AP Photo/Alexander Zemlianichenko) (AP Photo/Alexander Zemlianichenko)

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MOSCOW (AP) — Tens of thousands of anti-government protesters marched in central Moscow Saturday against a Kremlin-backed referendum in Crimea on whether to break away from Ukraine and join Russia.

It was the largest anti-government demonstration since 2012. Demonstrators waved Russian and Ukrainian flags, while opposition activists — including two members of the Pussy Riot punk band — shouted "Say no to war!" and "Putin, go away!" from the stage.

Protesters also held up banners that read: "For your freedom and for ours!" One demonstrator held up a plate of salo — cured pork fat that is a staple of Ukrainian cuisine and adored by many Russians — along with a poster that read: "Make salo, not war!"

Nearby, a rally of several thousand was held close to the Kremlin in support of Russian intervention in Crimea.

Crimea's referendum Sunday has been loudly condemned as illegitimate by much of the international community. As heavily armed forces apparently under Russian command have effectively taken control of the peninsula, the vote to join Russia has been widely criticized as a mere formality.

Russian support for reclaiming Crimea majority has intensified amid weeks of relentless state television coverage of purported aggression toward ethnic Russians by the new Kiev government, which came to power after Ukraine's Moscow-friendly president, Viktor Yanukovych, fled the country in February.

While President Vladimir Putin's ratings have risen since he announced Russia's willingness to use force in Ukraine, the anti-government demonstration Saturday showed that not everyone is happy with the decision.

"I love Ukraine — it's Putin who needs war and an empire, not me," said Dmitry Maksimov, a 29-year-old lawyer who held a bouquet of flowers dyed blue and yellow, the colors of the Ukrainian flag.

Nadezhda Tolokonnikova, a member of Pussy Riot, called for defiance against the authorities.

"Don't believe it when they say that we are few, that we are weak. Together we will change this country," she said in a speech from a stage.

None of Russia's state-owned news channels showed footage from the anti-government protest, and instead showed live video from the rally near the Kremlin, where large gangs of men from a group called "Essence of Time" dressed in uniform red jackets and marched to the sound of Soviet-era military music in disciplined columns.




Marchers stage the largest anti-government demonstration since 2012, fueling tensions.

Nearby pro-Russia rally




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Luis Miguel Goitizolo

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RE: ARE WE NOW IN THE END TIMES?
3/15/2014 9:56:08 PM

Ukraine says Russian forces move outside Crimea

Associated Press

Ukrainian acting president dons combat fatigues, says army is ready to protect people. Deborah Lutterbeck reports.


SIMFEROPOL, Ukraine (AP) — Russian forces backed by helicopter gunships and armored vehicles Saturday took control of a village near the border with Crimea on the eve of a referendum on whether the region should seek annexation by Moscow, Ukrainian officials said.

The action in Strilkove appeared to be the first move outside Crimea, where Russian forces have been in effective control since late last month. There were no reports of gunfire or injuries. The incident raises tensions already at a high level before Sunday's referendum.

In a statement, the Foreign Ministry denounced the foray outside Crimea, and said Ukraine "reserves the right to use all necessary measures to stop the military invasion by Russia."

The village is on a long spit reaching northward from the main part of the Black Sea peninsula, about 10 kilometers (six miles) north of the border between Crimea and the Kherson region.

A spokesman for the Ukrainian border guard service, Oleg Slobodyan, told The Associated Press the Russians, about 120 in all, took control of a natural gas distribution station in the village. The Foreign Ministry said the force consisted of about 80 and didn't mention the station, but said the village was seized.

As Crimea prepares for Sunday's referendum, dozens of billboards throughout the regional capital proclaim "Together With Russia." But a few have been hit by spray-painters who scrawled out "Russia" and replaced it with "Ukraine."

The referendum is denounced by Kiev and the West as illegitimate ; the West is threatening costly sanctions against Russia if it moves to incorporate Crimea. But the result is seen as a foregone conclusion — Crimea is almost certain to vote to split off, further aggravating Ukraine's political crisis and one of the harshest East-West confrontations since the end of the Cold war.

In Moscow, tens of thousands of anti-government protesters marched in central Moscow against the referendum. Protesters carried banners that read: "For your freedom and for ours!" One demonstrator held up a plate of salo — cured pork fat that is a staple of Ukrainian cuisine and adored by many Russians — along with a poster that read: "Make salo, not war!"

Nearby, a rally of several thousand people was held close to the Kremlin in support of Russian intervention in Crimea.

At the United Nations, Russia vetoed a Security Council resolution declaring the referendum illegal, and close ally China abstained in a sign of Moscow's isolation on the issue. Supporters of the U.S.-sponsored resolution knew that Russia would use its veto. But they put the resolution to a vote Saturday morning to show the strength of opposition in the 15-member Security Council to Moscow's takeover of Crimea. The final vote was 13 members in favor, China's abstention, and Russia as a permanent council member casting a veto.

The question of whether Crimea, a strategically important Black Sea peninsula that is home to a key Russian naval base, should become part of Moscow's orbit raises strong passions on both sides.

Supporters say the region rightfully belongs to Russia and that the government that replaced fugitive President Viktor Yanukovych is a coterie of fascist-minded nationalists who will abuse Crimea's majority ethnic-Russian population. Opponents bristle at Russia's heavy hand. Crimea effectively is already under Russian control after forces were sent in last month.

Tensions are also high elsewhere in Ukraine. On Friday night, two people were killed and several wounded in a shootout that erupted after a clash in the city of Kharkiv between pro-Russian demonstrators and their opponents.

On Saturday, thousands of pro-Russia demonstrators in the eastern city of Donetsk stormed the local offices of the national security service, smashing windows, taking down the building's Ukrainian flag and raising a Russian one.

In downtown Simferopol, at least 1,000 people on Saturday jammed a square in front of a soundstage and two massive TV screens as a long succession of Russian musical acts lauding "friendship of nations" and Russia itself. Musical acts from distant regions of Russia sang folk songs and danced traditional dance. One ensemble dressed as fairy-tale characters sang "Don't Fall Out Of Love with Russia!" No Ukrainian flags or colors were visible.

"We have our great mother, Russia, who has taken us in her arms," said 40-year-old demonstrator Nikolai Antonov. "If Russia hadn't protected us, we would have had to take up arms" against the new authorities in Kiev.

Posters pasted to walls throughout the city center made comparisons between Russia and Ukraine for gasoline prices, doctors' salaries and student benefits. The comparisons all suggested Russia was a more prosperous country.

But referendum opponents at a smaller rally said the economic argument is foolish.

"It's better to be poor and live in a normal country than to live in a police state," said Ine Sultanova, a 66-year-old retired engineer.

"I'm a citizen of Ukraine. I don't want to be a citizen of another country, or of Russia. It's well known what it's like to live in Russia. There's absolutely no civil society whatsoever. You can't say what you want. People can't gather for demonstrations unless it's good for the government," said Andrei Voloshin, a 20-year-old law student.

Details of the Friday night shooting in the city of Kharkiv were murky, but local news reports said it broke out after a skirmish between pro-Russia demonstrators and their opponents.

Violence has escalated in Ukraine's Russia-leaning east in recent days, as pro-Russia demonstrators have seized government buildings and clashed with supporters of the new Kiev government. At least one person died and 17 were wounded in clashes in Donetsk on Thursday.

Kharkiv, near the Russian border, is a hotbed of pro-Russia sentiment and opposition to the acting Ukrainian government that took power last month after Yanukovych fled the country in the wake of months of protests.

After the skirmish, according to the reports, there was gunfire outside a building housing the offices of several nationalist groups including Right Sector, which was one of the drivers of the protests against Yanukovych and that vehemently opposes Russian influence in Ukraine.

Russia has denounced Right Sector and similar groups as "fascists" who allegedly want to oppress ethnic Russians in Ukraine.

A spokesman for Right Sector in eastern Ukraine, Igor Moseichuk, was quoted by the Interfax news agency as saying the shooting was a "planned provocation by pro-Russian forces."

Interior Minister Arsen Avakov said on his Facebook page that two people were killed and several wounded, including a policeman who was seriously injured. He said some 30 people "from both sides" had been detained.

The victims' identities were not immediately made public. Moseichuk was quoted as saying the two killed were not among those inside the Right Sector offices.

The violence in Kharkiv and Donetsk has raised concern that Russia, which has massed troops near eastern Ukraine's border, could use bloodshed as a justification for sending in forces to protect the ethnic Russian population.

Ukraine's acting president, Oleksandr Turchynov, warned Saturday that "there's a real danger of the threat of invasion of the territory of Ukraine."

Russian Foreign Minister Sergey Lavrov on Friday, after meeting with U.S. Secretary of State John Kerry, said Russia has no plans to send troops into eastern Ukraine.

But in the wake of Saturday's movement, U.S. Sen. John McCain, part of an American delegation visiting Kiev, told a news conference that "the United States and our European allies will be contemplating actions that we never have had before in our relations with Russia."

___

Jim Heintz reported from Kiev. Yuras Karmanau in Kiev, John-Thor Dahlburg in Simferopol, and Edith M. Lederer at the United Nations contributed to this report.




Officials claim Russian military with helicopter gunships and vehicles has taken control of a village near the border.
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Luis Miguel Goitizolo

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RE: ARE WE NOW IN THE END TIMES?
3/16/2014 10:57:34 AM

Crimea holds secession referendum amid Ukraine turmoil

AFP

Pro-Russian Cossack volunteers take part in an oath-taking ceremony in Sevastopol, on March 15, 2014 (AFP Photo/Viktor Drachev)

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Simferopol (Ukraine) (AFP) - People in Crimea took to the polls on Sunday for a referendum on breaking away from Ukraine to join Russia that has precipitated a Cold War-style security crisis on Europe's eastern frontier.

Ukraine's new government and most of the international community except Russia have said they will not recognise a result expected to be overwhelmingly in favour of immediate secession.

"This is a historic moment, everyone will live happily," Sergiy Aksyonov, the local pro-Moscow prime minister, told reporters after casting his ballot in the regional capital Simferopol.

"This is a new era," he said, after a man waving a Ukrainian flag was pushed away by security guards.

"We will celebrate this evening," Aksyonov said.

Some 1.5 million people are called to vote on the Black Sea peninsula, which is mostly inhabited by ethnic Russians and has been seized by Russian forces over the past month.

Ukraine's interim President Oleksandr Turchynov called on Crimeans to boycott the ballot, accusing Russia of engineering it as part of an invasion plan.

"The result has been pre-planned by the Kremlin as a formal justification to send in its troops and start a war that will destroy people's lives and the economic prospects for Crimea," he said.

AFP reporters saw voters cast their ballots in Simferopol and the naval base of Sevastopol, home to Russia's Black Sea fleet.

"Everything will be easier. I'm only for Russia," said Russian-born Raisa, a 77-year-old woman with a walking stick who was among the first to vote in Simferopol.

In Bakhchysaray -- the centre of Crimea's native Muslim Tatar community, which is urging a boycott of the referendum -- only ethnic Russians were seen coming to vote.

"We have waited years for this moment," said 71-year-old Ivan Konstantinovich, who raised his hands in victory after voting in the town.

"Everyone will vote for Russia," he said.

Crimea says foreign observers are monitoring the vote but the Organisation for Security and Co-operation in Europe (OSCE) is not because it needs to be invited by a a member state.

OSCE military observers aiming to defuse tensions have been prevented from entering Crimea, which is at the centre of the worst East-West confrontation since the fall of the Berlin Wall in 1989.

Voters can choose to become part of Russia or retain more autonomy but stay in Ukraine -- a vote for the status quo is not an option.

Preliminary results were expected soon after polls close at 8:00pm (1800 GMT) and Russian flags were already being handed out in the streets in Sevastopol.

Preparations to become part of the Russian Federation -- a process that could take months -- are to begin this week if the people vote for Moscow.

Rehearsals for the big day have included a show by Cossack troops and the slogan "We are in Russia!" beamed onto the government building in Simferopol, leaving no doubt as to the expected outcome.

Pro-Russia authorities and Moscow say the referendum is an example of self-determination like Kosovo's decision to leave Serbia but Washington says the vote cannot be democratic because it is taking place "under the barrel of a gun".

Tensions have escalated in mostly Russian-speaking parts of eastern Ukraine ahead of the referendum.

Three activists have been killed in the eastern cities of Donetsk and Kharkiv in the run-up to the Crimea referendum and pro-Moscow supporters have called for similar separatist polls to be held in other Ukrainian regions.

- 'Extremely worrying' -

Russian troops and pro-Moscow militias took control of the strategic peninsula soon after the Kremlin-backed Ukrainian president Viktor Yanukovych fled Kiev last month in the wake of three months of deadly protests against his rule.

Russian lawmakers have also given the go-ahead for President Vladimir Putin to invade Ukraine when he wants, citing the need to defend ethnic Russians against ultra-nationalist radicals.

Ukrainian military bases in the region are surrounded by militias but there has been no armed Russia-Ukraine armed confrontation so far.

There have however been several attacks on journalists and pro-unity activists condemned by Amnesty International as "extremely worrying".

It is also unclear what will happen to the thousands of Ukrainian military personnel currently based in Crimea after the secession vote.

Ukraine is on full combat alert and on the eve of the vote it accused Russian forces of seizing a village just outside Crimea, saying: "Ukraine reserves the right to use all necessary measures to stop the military invasion by Russia".

- 'Crimean Spring' -

The diplomatic wrangling and brinksmanship over Crimea have been startling, including a confrontation at the United Nations Security Council in which Ukrainian interim Prime Minister Arseniy Yatsenyuk asked: "Do the Russians want war?"

Successive rounds of negotiations between US Secretary of State John Kerry and his Russian counterpart Sergei Lavrov have failed and Kerry appeared to break diplomatic protocol by not showing up for planned talks in Moscow.

While the West has been powerless to stop annexation, Russia faces a painful round of sanctions against top officials that Washington and EU nations are set to unveil on Monday and it could be ostracised or even ejected from the Group of Eight (G8) leading world powers.

Local authorities are calling this a "Crimean Spring" but many Crimeans are simply confused and concerned about a possible legal vacuum and economic turmoil in their region.

"Whether we stay with Ukraine or go with Russia, it's understandable that people are concerned," said Aleksiy Yefremov, head of the student association "New People of Crimea".

"We do not have enough information. Do we listen to officials in Kiev or to the local authorities?"

One immediate concern is about the availability of cash and there have been long queues outside banks with Crimeans rushing to take their money out.

Crimea would not automatically join Russia after the vote but Aksyonov said it could take "a year maximum".

Ukraine's government has said Crimea cannot survive on its own since it depends on electricity, energy and water supplies from the mainland.

Aksyonov has however assured residents that the region can manage with assistance only from Moscow.

"We are ready to sit without electricity, without water... We're afraid of nothing and we want a historic choice," he already said ahead of the referendum.




Residents in the Black Sea peninsula head to the polls to decide if they want to leave Ukraine.
'Everyone will vote for Russia'




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Luis Miguel Goitizolo

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RE: ARE WE NOW IN THE END TIMES?
3/16/2014 4:34:22 PM

Crimeans vote on union with Russia as troops build up rapidly

Reuters

Polls open in the Crimean port of Sevastopol in a referendum on breaking up from Ukraine and joining Russia. Rough Cut (no reporter narration).


By Mike Collett-White and Ronald Popeski

SIMFEROPOL, Ukraine/KIEV (Reuters) - Crimeans voted in a referendum on Sunday on whether to break away from Ukraine and join Russia, with Kiev accusing Moscow of rapidly building up its armed forces on the peninsula in "crude violation" of an international treaty.

Caught in an East-West crisis reminiscent of the Cold War, Ukrainian acting defense minister Ihor Tenyukh said Russian troop numbers in Crimea were now almost double the level agreed with Moscow, and Kiev's forces were taking "appropriate measures" along the border with Russia.

Tenyukh dismissed any suggestion that a militarily and economically weakened Ukraine might give up in the face of the Russian power.

"Decisions will be taken depending on how events unfold. But let me say once again that this is our land and we will not be leaving it," he told Interfax news agency.

Western countries say the vote, which is likely to favor union with Russia for a region which has a Russian-speaking majority, is illegal and being conducted at the barrel of a gun.

At the United Nations, 13 Security Council members voted for a draft resolution saying the result should not be recognized internationally, but Moscow exercised its veto while China abstained. Russian Foreign Minister Sergei Lavrov rejected the Western accusations, telling his U.S. counterpart John Kerry that the referendum complied with international law.

Both the West and Kiev have been powerless to stop the referendum. At a polling booth at a school in Simferopol, the Crimean regional capital, dozens of people lined up outside to cast their ballots early.

"I have voted for Russia," said Svetlana Vasilyeva, a veterinary nurse who is 27. "This is what we have been waiting for. We are one family and we want to live with our brothers."

Last month's fall of Moscow-backed Ukrainian President Viktor Yanukovich following deadly protests in Kiev has aroused fears among some of the country's native Russian-speakers.

"We want to leave Ukraine because Ukrainians told us that we are people of a lower kind. How can you stay in such a country?" said Vasilyeva.

Polling stations opened at 8 a.m. (0600 GMT) and close 12 hours later. Provisional results will be released late on Sunday with the final tally expected a day or two later.

Crimea's 1.5 million voters have two options: union with Russia or giving their region, which is controlled by pro-Kremlin politicians, the broad right to determine its own path and choose relations with whom it wants - including Moscow.

A CRUDE VIOLATION

Russia has the right to keep forces on the Black Sea peninsula, including at its naval base in the port of Sevastopol, under a treaty signed after Ukraine gained independence from the wreckage of the Soviet Union in 1991.

But Tenyukh accused Moscow of going far beyond an agreed limit on servicemen which he said was 12,500 for 2014. "Unfortunately, in a very short period of time, this 12,500 has grown to 22,000. This is a crude violation of the bilateral agreements and is proof that Russia has unlawfully brought its troops onto the territory of Crimea," he said.

This figure had risen from 18,400 on Friday. "The Ukrainian armed forces are therefore taking appropriate measures along the southern borders," he said.

Many Crimeans hope union with Russia will bring better pay and make them citizens of a country capable of asserting itself on the world stage. But others see the referendum as a land grab by the Kremlin from Ukraine, whose new rulers want to move the country towards the European Union and away from Russia's sway.

Ethnic Tatars, Sunni Muslims who make up 12 percent of Crimea's population, said they would boycott the vote despite promises by the authorities to give them financial aid and proper land rights.

"This is my land. This is the land of my ancestors. Who asked me if I want it or not? Who asked me?," said Shevkaye Assanova, a Crimean Tatar in her 40s. "For the rest of my life I will be cursing those who brought these people here. I don't recognize this at all. I curse all of them."

PROTECTION FROM "FASCISTS"

Russian President Vladimir Putin has justified his stance on Crimea by saying he must protect people from "fascists" in Kiev who ousted Yanukovich following the uprising in which more than 100 people were killed.

Western powers, preparing economic sanctions against Moscow over Crimea, largely dismiss his characterization of the new authorities in Kiev as the successors of Nazi-allied Ukrainian forces which fought the Red Army in World War Two.

At the United Nations Russia vetoed on Saturday the draft resolution drawn up by the United States which called on "all states, international organizations and specialized agencies not to recognize any alteration of the status of Crimea on the basis of this referendum".

"This is a sad and remarkable moment," Samantha Power, the U.S. ambassador to the United Nations, said after the vote. "Crimea is part of Ukraine today. It will be part of Ukraine tomorrow. It will be part of Ukraine next week," she said.

Paris also tried to portray Moscow as isolated. "This annexation...goes beyond Ukraine, it concerns us all," Gerard Araud, France's U.N. ambassador, said in a statement. "This veto must be seen as a defeat only for Russia."

However, the Russian Foreign Ministry said on Sunday that Lavrov had told U.S. Secretary of State Kerry in a phone call the previous day that the referendum was legal.

"Lavrov reiterated that the Crimean referendum fully complies with international law and the United Nations Charter and the results should be the starting point in determining the future of the peninsula," the ministry said in a statement.

TENSIONS IN CYBERSPACE

Tenions over Crimea appear also to be spreading in cyberspace. Unidentified hackers brought down several public NATO websites with attacks on Saturday, the alliance said.

Spokeswoman Oana Lungescu said on Twitter that the attacks, which began on Saturday evening, continued on Sunday, although most services had now been restored.

"It doesn't impede our ability to command and control our forces. At no time was there any risk to our classified networks," another NATO official said.

A group calling itself "cyber berkut" - named after riot police formally disbanded by the central powers in Kiev - said the attack had been carried out by patriotic Ukrainians angry over what they saw as NATO interference in their country.

The streets of Simferopol have been largely calm in the days leading up to the vote, although the heavy presence of armed men, many wearing black balaclavas, has created an unnerving atmosphere in the normally sleepy town.

On Saturday night, about 30 men in balaclavas with automatic weapons barged into the Hotel Moscow, a Soviet-era hotel where many Western reporters covering Sunday's referendum are staying.

They said they had come to investigate an unspecified security alert and did not threaten anyone, but some witnesses saw it as a move to intimidate journalists.

Crimean Prime Minister Sergei Aksyonov, whose election two weeks ago in a closed session of the regional parliament is not recognized by Kiev, does not officially acknowledge that Russian troops are in control of Crimea - a position also maintained by Moscow.

They say that thousands of unidentified armed men, visible across the region, belong to "self-defense" groups created to ensure stability.

(Additional reporting by Andrew Osborn in Simferopol, Ron Popeski and Richard Balmforth in Kiev, Mirjam Donath at the United Nations, Adrian Croft in Brussels, Peter Apps in London; Writing by David Stamp)

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