From Russia with bugs - Moscow denies G20 gifts of phone chargers and USBs could be used for spying Rome: Russia denied reports in the Italian media and elsewhere that Russian spy agencies distributed special USB thumb drives doctored to let them eavesdrop on delegations attending last month's Group of 20 summit meeting in St. Petersburg, Russia. "We don't know the sources of the information," said Dmitry Peskov, the spokesman for President Vladimir V. Putin of Russia, according to RIA Novosti, the state news agency. However, this is undoubtedly nothing but an attempt to shift the focus from issues that truly exist in relations between European capitals and Washington to unsubstantiated, nonexistent issues. European leaders have been outraged by reports that the US National Security Agency spied on allies in Europe, including Chancellor Angela Merkel of Germany. The US spying operation has created a diplomatic crisis for the Obama administration, stirring fury in France, Spain and Germany, while intensifying criticism in Washington about the scope and methods of U.S. espionage. On Wednesday, the focus shifted to Russia, as Corriere della Sera, a leading Italian newspaper, carried allegations that the G-20 meeting was the scene of a major effort in Russian espionage. According to the paper, Herman Van Rompuy, president of the European Council, had a debriefing with security officials after returning from St. Petersburg. The report was swiftly picked up by news agencies and newspapers in other countries. The security team then conducted an examination of the thumb drives, which the Russians distributed as gifts to the 300 foreign delegates, who also received stuffed teddy bears, cups, diaries and cables to connect smartphones with computers, the Italian paper reported. Later, the European Council's security office sent a report to G-20 participants, warning that some of the USB drives, as well as the cables, appeared to have been tampered with, Corriere della Sera said. The European officials then handed the devices to German intelligence services, which conducted more tests and concluded that the sabotaged electronic equipment could be used to intercept data from computers and mobile phones. Corriere della Sera also reported that Italian secret service agents were still examining some of the devices distributed to Italy's delegation. In Brussels, a media official in Mr Rompuy's office declined to comment Wednesday. "There are always measures in place to protect the infrastructure of the council and, as a rule, there is a cooperation with member states," said the official, Nicolas Kerleroux. But we won't comment on any specific matter. Reports of possible spying also touched the Vatican on Wednesday. The next issue of the Italian newsmagazine Panorama, to be published on Thursday, reports allegations that the NSA gathered data on Vatican phone calls last year and may have continued the snooping until the conclave that elected Pope Francis in March. Federico Lombardi, a spokesman for the Vatican, said Wednesday that he knew nothing of any spying, and played down the report. "We have no indication on this matter," he said, "and we are not worried in the least."