The Kremlin is denying reports that it spied on foreign leaders attending the Group of 20 Summit in Saint Petersburg last month, tricking them with a goody bag that allegedly turned out to be a Trojan Horse.

Italy's Corriere della Sera daily claims the gift bags contained Teddy Bears, Diaries, datal cables to connect smart phones with computers, and USB sticks – the latter two items doctored to give Russia access to whatever data the international dignitaries chose to upload to it.

“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, non-existent issues,” said Kremlin spokesman Dmitry Peskov, referring to recent reports of US National Security Agency spying on German Chancellor Angela Merkel, among others.

But two reports contradict that.  According to Corriere della Sera, German intelligence conducted detail tests on the USB sticks and the smart phone cables.  La Stampa reported they found anomalies that would allow for data interception.