One example of the claims in this headline is the Trump Soho development in Manhattan, one of Trump’s largest recent endeavors. The project was hit with a series of lawsuits in response to some typically Trumpian efforts to defraud investors by making fraudulent claims about the financial health of the project. Emerging out of that litigation however was news about secret financing for the project from Russia and Kazakhstan. Most attention about the project has focused on the presence of a twice imprisoned Russian immigrant with extensive ties to the Russian criminal underworld.
And now for the details.
Over the last year there has been a recurrent refrain about the seeming romance between Donald Trump and Russian President Vladimir Putin. More seriously, but relatedly, many believe Trump is an admirer and would-be emulator of Putin’s increasingly autocratic and illiberal rule. But there’s quite a bit more to the story. At a minimum, Trump appears to have a deep financial dependence on Russian money from persons close to Putin. And this is matched to a conspicuous solicitousness to Russian foreign policy interests where they come into conflict with US policies which go back decades through administrations of both parties. There is also something between a non-trivial and a substantial amount of evidence suggesting Putin-backed financial support for Trump or a non-tacit alliance between the two men.
Let me start by saying I’m no Russia hawk. I have long been skeptical of US efforts to extend security guarantees to countries within what the Russians consider their ‘near abroad’ or extend such guarantees and police Russian interactions with new states which for centuries were part of either the Russian Empire or the USSR. This isn’t a matter of indifference to these countries. It is based on my belief in seriously thinking through the potential costs of such policies. In the case of the Baltics, those countries are now part of NATO. Security commitments have been made which absolutely must be kept. But there are many other areas where such commitments have not been made. My point in raising this is that I do not come to this question or these policies as someone looking for confrontation or cold relations with Russia.
Let’s start with the basic facts. There is a lot of Russian money flowing into Trump’s coffers and he is conspicuously solicitous of Russian foreign policy priorities.
I’ll list off some facts.
1. All the other discussions of Trump’s finances aside, his debt load has grown dramatically over the last year, from $350 million to $630 million. This is in just one year while his liquid assets have also decreased. Trump has been blackballed by all major US banks.
2. Post-bankruptcy Trump has been highly reliant on money from Russia, most of which has over the years become increasingly concentrated among oligarchs and sub-garchs close to Vladimir Putin. Here’s a good overview from The Washington Post, with one morsel for illustration …
Since the 1980s, Trump and his family members have made numerous trips to Moscow in search of business opportunities, and they have relied on Russian investors to buy their properties around the world.
“Russians make up a pretty disproportionate cross-section of a lot of our assets,” Trump’s son, Donald Jr., told a real estate conference in 2008, according to an account posted on the website of eTurboNews, a trade publication. “We see a lot of money pouring in from Russia.”
3. One example of this is the Trump Soho development in Manhattan, one of Trump’s largest recent endeavors. The project was the hit with a series of lawsuits in response to some typically Trumpian efforts to defraud investors by making fraudulent claims about the financial health of the project. Emerging out of that litigation however was news about secret financing for the project from Russia and Kazakhstan. Most attention about the project has focused on the presence of a twice imprisoned Russian immigrant with extensive ties to the Russian criminal underworld. But that’s not the most salient part of the story. As the Times put it,
“Mr. Lauria brokered a $50 million investment in Trump SoHo and three other Bayrock projects by an Icelandic firm preferred by wealthy Russians “in favor with” President Vladimir V. Putin, according to a lawsuit against Bayrock by one of its former executives. The Icelandic company, FL Group, was identified in a Bayrock investor presentation as a “strategic partner,” along with Alexander Mashkevich, a billionaire once charged in a corruption case involving fees paid by a Belgian company seeking business in Kazakhstan; that case was settled with no admission of guilt.”
Another suit alleged the project “occasionally received unexplained infusions of cash from accounts in Kazakhstan and Russia.”
Sounds completely legit.
Read both articles: After his bankruptcy and business failures roughly a decade ago Trump has had an increasingly difficult time finding sources of capital for new investments. As I noted above, Trump has been blackballed by all major US banks with the exception of Deutschebank, which is of course a foreign bank with a major US presence. He has steadied and rebuilt his financial empire with a heavy reliance on capital from Russia. At a minimum the Trump organization is receiving lots of investment capital from people close to Vladimir Putin.
Trump’s tax returns would likely clarify the depth of his connections to and dependence on Russian capital aligned with Putin. And in case you’re keeping score at home: no, that’s not reassuring.
4. Then there’s Paul Manafort, Trump’s nominal ‘campaign chair’ who now functions as campaign manager and top advisor. Manafort spent most of the last decade as top campaign and communications advisor for Viktor Yanukovych, the pro-Russian Ukrainian Prime Minister and then President whose ouster in 2014 led to the on-going crisis and proxy war in Ukraine. Yanukovych was and remains a close Putin ally. Manafort is running Trump’s campaign.
5. Trump’s foreign policy advisor on Russia and Europe is Carter Page, a man whose entire professional career has revolved around investments in Russia and who has deep and continuing financial and employment ties to Gazprom. If you’re not familiar with Gazprom, imagine if most or all of the US energy industry were rolled up into a single company and it were personally controlled by the US President who used it as a source of revenue and patronage. That is Gazprom’s role in the Russian political and economic system. It is no exaggeration to say that you cannot be involved with Gazprom at the very high level which Page has been without being wholly in alignment with Putin’s policies. Those ties also allow Putin to put Page out of business at any time.
6. Over the course of the last year, Putin has aligned all Russian state controlled media behind Trump. As Frank Foer explains here, this fits a pattern with how Putin has sought to prop up rightist/nationalist politicians across Europe, often with direct or covert infusions of money. In some cases this is because they support Russia-backed policies; in others it is simply because they sow discord in Western aligned states. Of course, Trump has repeatedly praised Putin, not only in the abstract but often for the authoritarian policies and patterns of government which have most soured his reputation around the world.
7. Here’s where it gets more interesting. This is one of a handful of developments that tipped me from seeing all this as just a part of Trump’s larger shadiness to something more specific and ominous about the relationship between Putin and Trump. As TPM’s Tierney Sneed explained in this article, one of the most enduring dynamics of GOP conventions (there’s a comparable dynamic on the Dem side) is more mainstream nominees battling conservative activists over the party platform, with activists trying to check all the hardline ideological boxes and the nominees trying to soften most or all of those edges. This is one thing that made the Trump convention very different. The Trump Camp was totally indifferent to the platform. So party activists were able to write one of the most conservative platforms in history. Not with Trump’s backing but because he simply didn’t care. With one big exception: Trump’s team mobilized the nominee’s traditional mix of cajoling and strong-arming on one point: changing the party platform on assistance to Ukraine against Russian military operations in eastern Ukraine. For what it’s worth (and it’s not worth much) I am quite skeptical of most Republicans call for aggressively arming Ukraine to resist Russian aggression. But the single-mindedness of this focus on this one issue – in the context of total indifference to everything else in the platform – speaks volumes.
This does not mean Trump is controlled by or in the pay of Russia or Putin. It can just as easily be explained by having many of his top advisors having spent years working in Putin’s orbit and being aligned with his thinking and agenda. But it is certainly no coincidence. Again, in the context of near total indifference to the platform and willingness to let party activists write it in any way they want, his team zeroed in on one fairly obscure plank to exert maximum force and it just happens to be the one most important to Putin in terms of US policy.
Add to this that his most conspicuous foreign policy statements track not only with Putin’s positions but those in which Putin is most intensely interested. Aside from Ukraine, Trump’s suggestion that the US and thus NATO might not come to the defense of NATO member states in the Baltics in the case of a Russian invasion is a case in point.
There are many other things people are alleging about hacking and all manner of other mysteries. But those points are highly speculative, some verging on conspiratorial in their thinking. I ignore them here because I’ve wanted to focus on unimpeachable, undisputed and publicly known facts. These alone paint a stark and highly troubling picture.
To put this all into perspective, if Vladimir Putin were simply the CEO of a major American corporation and there was this much money flowing in Trump’s direction, combined with this much solicitousness of Putin’s policy agenda, it would set off alarm bells galore. That is not hyperbole or exaggeration. And yet Putin is not the CEO of an American corporation. He’s the autocrat who rules a foreign state, with an increasingly hostile posture towards the United States and a substantial stockpile of nuclear weapons. The stakes involved in finding out ‘what’s going on’ as Trump might put it are quite a bit higher.
There is something between a non-trivial and a substantial amount of circumstantial evidence for a financial relationship between Trump and Putin or a non-tacit alliance between the two men. Even if you draw no adverse conclusions, Trump’s financial empire is heavily leveraged and has a deep reliance on capital infusions from oligarchs and other sources of wealth aligned with Putin. That’s simply not something that can be waved off or ignored.