1st LD Writethru: Putin says Russia not to expel anyone despite U.S. sanctions

Russian President Vladimir Putin said Friday that Russia will not expel anyone despite Washington's latest sanctions, according to the Kremlin press service.

"We will not create problems for American diplomats. We will not expel anyone," Putin said in a statement.

Moscow will not prohibit their families and children to use their usual vacation spots during the New Year's holidays, Putin said, adding that he would invite all children of American diplomats in Russia to New Year's and Christmas celebration in the Kremlin.

Earlier in the day, Russian Foreign Minister Sergei Lavrov proposed expelling 35 U.S. diplomats and block the access of the U.S. Embassy in Moscow to a vacation house and a warehouse in response to a similar move by Washington.

On Thursday, the U.S. Department of State ordered the expulsion of 35 Russian diplomats suspected of spying and closed two compounds belonging to the Russian Embassy in response to "Russia's interference in the U.S. election and to a pattern of harassment of our diplomats overseas."

Outgoing U.S. President Barack Obama also imposed sanctions on two major Russian intelligence services -- the Main Intelligence Directorate (GRU) and the Federal Security Service (FSB), four individual officers of the GRU and three companies that allegedly provided material support for hacking operations aiming to interfere in the U.S. presidential elections.

Putin regretted that Obama was finishing his term by imposing new sanctions against Moscow, saying that Moscow considered new unfriendly steps of the outgoing U.S. administration a "provocation aimed at further undermining the Russia-U.S. relations."

Russia, which reserves the right to retaliate, will not stoop to the level of irresponsible "kitchen" diplomacy and will determine further steps in mending ties with the U.S. based on President-elect Donald Trump's future policy, Putin added. Endi