Bush says spy row 'closed'

The US Embassy employees must leave within a few days

President George Bush has signalled that the United States will not retaliate further in the running tit-for-tat row with Russia over spying allegations.

White House spokesman Ari Fleischer said Mr Bush was aware of Russia's planned retaliation for the expulsion of 50 diplomats from the United States.

''The president now considers the matter closed,'' Mr Fleischer said.

President Putin: Not worried

Russian President Vladimir Putin played down the impact of the spy row with the United States.

''I don't think it will have big consequences,'' he said as he left a news conference at the EU summit in Stockholm.

Further action

Russia is to expel four diplomats at the American embassy in Moscow.

Another 46 are to be ordered out by July, the US State Department said.

The Russian Foreign Ministry said the four embassy workers must leave the country for "activities incompatible with their status".

Russia will firmly and steadfastly defend its national interests

Russian Foreign Minister Igor Ivanov

The wording is a familiar euphemism for espionage.

The ministry promised that further steps would be taken "to stop illegal activities of US representatives in Russia".

Russia's security chief has also ruled out co-operation with US security forces and anti-terrorism operations in the near future.

FBI link

The White House said its decision on Thursday to declare the 50 Russians "persona non grata" was linked to the recent arrest of an FBI agent, Robert Hanssen, who is accused of spying for Moscow.

The Russians retaliated by summoning the US deputy chief of mission, John Ordway, to the ministry.

Robert Hanssen: Accused of spying for Russia since 1985

A ministry statement said Mr Ordway was read "a decisive protest in connection with the unlawful activities of a number of official American representatives in Russia".

He was told the embassy employees should leave Russia within the next few days.

No details have been given about the positions of the embassy staff.

Russian officials described the US action as politically driven and a throwback to the Cold War which could seriously injure relations between the former rivals.

Co-operation called off

Chief of Russia's Security Council Sergei Ivanov told Polish state television the Russian response to the expulsions would be "more painful".

"We have time to think, to carefully pick from among more than 1,000 US diplomats in Russia, to choose those who are most precious to the Americans," he said on Thursday.

"We might as well forget about fruitful co-operation between Russian and American special services for the next few months."

But Washington-based former KGB general Oleg Kalugin, an expert on relations, told BBC News Online there was no significant threat to co-operation.