VATICAN CITY - POPE Benedict XVI on Thursday said he hoped 'violence, hatred and mistrust' would not prevail in the world in 2009, notably in the Middle East.

'Violence, hatred and mistrust are also forms of poverty - perhaps the greatest - that must be fought,' the pope said during a mass marking the Roman Catholic Church's traditional January 1 World Day of Peace, on the theme of fighting poverty and building peace.

BAGHDAD - THE US on Thursday handed over security control of the Green Zone, symbol of the American-led occupation, to Iraq as a UN mandate for foreign troops ran out and bilateral military accords took effect.

Iraqi government and military officials hailed the return of the heavily fortified area in central Baghdad to Iraq's control, in an emotional ceremony at the former palace of ousted dictator Saddam Hussein.

MOSCOW - RUSSIA halted supply of natural gas to Ukraine on Thursday after the two ex-Soviet neighbours failed to agree on payment terms, sparking fresh concerns about the security of energy resources controlled by Moscow.

State-run gas giant Gazprom confirmed that supply to Ukraine had been shut off at precisely 10am (3pm Singapore time) as planned following the expiry at midnight New Year's Eve of the old contract.