by Tyler Durden for Zero Hedge
While the West continues to press the “Russia is increasingly isolated” meme, it appears – as we noted ironically previously, that Vladimir Putin is finding plenty of friends… most notably China. While threats of ‘asymmetric’ retaliation over European sanctions may have been enough to worry Europe’s leaders, the slew of news overnight regarding increased cooperation between China and Russia is likely more damaging to Western strategy (and egos).
Not so isolated…
h/t @PersonOfAwesome
As overnight news shows… China and Russia are ramping up their cooperation…
First, as Reuters reports, Russia and China pledged on Tuesday to settle more bilateral trade in rouble and yuan and to enhance cooperation between banks, Russia’s First Deputy Prime Minister Igor Shuvalov said, as Moscow seeks to cushion the effects of Western economic sanctions…
Russia’s First Deputy Prime Minister Igor Shuvalov said told reporters in Beijing that he had agreed an economic cooperation pact with China’s Vice Premier Zhang Gaoli that included boosting use of the rouble and yuan for trade transactions.
The pact also lets Russian banks set up accounts with Chinese banks, and makes provisions for Russian companies to seek loans from Chinese firms.
“We are not going to break old contracts, most of which were denominated in dollars,” Shuvalov said through an interpreter.
“But, we’re going to encourage companies from the two countries to settle more in local currencies, to avoid using a currency from a third country.”
* * *
So that blows the oil/gas funding sanctions plan out of the water as Russian firms will merely fund via China.
* * *
Second, as RBTH reports, The Chinese company CNPC is to get up to 10 percent in Russia’s Vankor oilfields, Rosneft’s biggest production asset…
Russian President Vladimir Putin announced the plan at the construction launch of the Power of Siberia gas pipeline on 1 September, business newspaper Kommersant reported.
“The plan will secure state support, and we will encourage your participation,” said Putin to the members of the Chinese delegation.
“There are no restrictions for our Chinese friends,” he said. According to Kommersant, the Chinese state company CNPC could get up to 10 percent in Vankorneft for approximately $1 billion.
* * *
So that knocks another leg out of the sanctions stool as investment in energy infrastructure and technology is covered.
* * *
And finally, as ITAR-TASS reports, Russian Railways are set to get RUB400 Billion investment from Chinese investors…
Chinese investors have expressed their willingness to invest 400 billion rubles. in the construction of high-speed highway Moscow – Kazan. Itar-Tass said the first vice-president of Russian Railways Alexander Misharin.
“Even today, the Chinese banks, China Development Bank in the first place, ready to raise the funding needed for this project, we are talking about the order of 400 billion rubles.” – Said Misharin, noting that the final decision on the construction of high-speed rail is in Russian government.
Misharin emphasized that the stated funds are sufficient to “provide funding for the project in terms of funds raised.”
* * *
But apart from that, yeah Russia is isolated…
You are waxing between Russia’s great needs to preempt the sanctions in magnitude of impeding NAF’s battle field progress, cause more lost of lives, and threw Norvorossia to Nazi wolf, to this. Can you tell me why you can not make up your mind? Do you have a principle to adhere, or strategy to follow?
Sorry, I am fan of Dugin, I’d like to see your sophisticated Surkov under bus.
China and Russia have reserve treasury funds that make a joke of the Western poverty syndicate. Not only do they have reserve currencies and sovereign funds in the trillions, they have gold.
And they have billionaires and millionaires (China has a million millionaires). These capitalists who have risen from raw poverty understand the huge potential for growth in Russia. Not just natural resources, but the development of infrastructure and the development of resorts and recreational areas.
Russia and China have to work out comfort zones of development where China’s natural aggressiveness doesn’t overwhelm Russian partners. But in the Far East and Siberia as well as Central Asia areas and in Novorossiya and Crimea there will be huge pipelines of Foreign Direct Investment from China.
Russia and India (another gold rich developing country) will also work to cripple the sanctions.
Not to worry. Russia has a huge future with stunning growth across the expanse of its land mass.
All they need is more children. (And that is a fun element once young adults realize they have a great life ahead of them and begin to procreate again.)
What a 21st Century Russians can shape for humanity once they get up and at it!
I’m proud of my country (Saker, you should’ve chosen some other color, it sounds bad when I write “a small black stain in the south east Europe”) – we are not a part of of all this madness that is radiating from the “civilized western world”. We are under enormous EU/USA pressure because of our position in this matter, but I hope that we will endure.
Best wishes from Serbia, I hope that “villainous” Russia will once again be victorious against imperialism and anti-humanism.
but I think the REAL idea is not the ‘isolation’. Right now the idea is to ruin EU economy so that they have no option to accept TTIP in its current guise without amendments, EU will thenm just be an extension of US economy and will be owned wholly by US thus making it easier for them to use european soil for war on Russia/China. It makes me luagh that in western press, especially during NATO week, we had all of that ‘dont appease Putin like we did Hitler’ rubbish, the truth is that Europe is appeasing the biggest danger of them all America .. the 21st Century economic fascists
“The plan will secure state support, and we will encourage your participation,” said Putin to the members of the Chinese delegation.
“There are no restrictions for our Chinese friends,” he said.
Well it is never too late but as recently as 2005, Russia was saying the Chinese are thieves. But has now decided to sell SU25’s to china as well as S400’s..
But if Russia had decided in 2005 or even 2009 that it might be prudent to prepare for this day, things might not look so desperate.
Anonymous is in one sense right about the TTIP, but in another sense maybe wrong. He is right that it is part of the US agenda, but as things get worse in Europe, there should be less incentive, not more, to sign that treaty.
Core Eurasia consists of Russia-Kazakhstan-China (R-K-C). If these 3 states enhance their economic cooperation into all-round strategic cooperation, AngloZionist Elites ruling the 5-eyes USA-Canada-Australia-NZ-UK will not be able to win any competition be it economic, be it military, even if the 5-eyes muster support of AngloZionist camp-follower Elites of west+ central Europe.
Over and above this, if R-K-C grp can keep Iran-India-Indonesia as ‘friends’, the 5-eyes will not even dare to try to alter their inevitable decline (even if they badly need a WW to revive their ‘war’ economy, and kick-start the AngloZionist world order once again).
And, WE KNOW FOR SURE IT’S HAPPENING IN THE R-K-C WAY!
Anonymous Indian
Wow!
Now this is really good news, primarily bc the war in Novorossiya is not going to be won in Novorossiya. All that suffering, and all the noble goals the honest ones among us so deeply want to have happen there, are unfortunately just a minor front in this genuine clash of civilizations. These other battle lines are the ones that will determine everything, and Putin and Russia have clearly gamed it all out and are proceeding apace in taking us down. And really, if you look at it, Saker called it early on: what we’re really doing is sucking the (economic) lifeblood right out of Europe, with the consent of all the leeches (we put) on the top of the EC. It’s almost like a cartoon: we’re an increasingly enraged, desperate, half-blind giant just swinging around one of those clubs with nails in them and Putin’s, I don’t know, King David or Jack in the Beanstalk, just out-thinking us at every move. Except real people are suffering and dying with every step the damned giant takes. And will continue to until he’s finally brought down.
Larchmonter,
Yes, except for two minor quibbles. :~) We’ve got a fraction of the Chinese population and ten times as many millionaires, though right now that simply puts you in the top 5%, hardly the .01% who really run things. And those guys, the real movers and shakers, measure their wealth in billions. Is that the case in China too? Now (giggle) for my second quibble: I suspect most young adults have already found that “fun element”, with or without children… the rearing of which is hardly an unalloyed pleasure and has certainly been known to dampen the fun just a bit sometimes… ;~)
Seriously though, yes to what you said, though I think we need to watch out for further Empire efforts against the BRICS — especially, right now, both terrorism in India and upcoming elections in Brazil. We’re probably behind that plane crash and I don’t trust George Soros any further than I could throw him if ever I could get near enough to try. And of course we’re doing all we can to at least sting China wherever we can — but again, I’m sure they’ve gamed it all out too. With real knowledge and strategy, not just game theory.
Alien Tech,
Exactly.
RF do not have a effective foreign policy that serve its interest.
It manage to loose brotherly nation so completely, they prefer die fighting it then admit they are brothers. But no fear, RF is now think it is good ideal to force Novorossia to stay in Ukraine while the people voted in referendum and blood to be independent Ukraine. Brilliant strategy I am sure.
I do question RF sincerity for the partnership with China in the wake of betrayal of people of Novorossia.
@krcko
The map is also from zero hedge. It is intended as a joke. This is a reflection of the chauvinistic thinking of US/NATO leaders (and a large portion of the US population).
Pat
An acceleration in co-operation and relations between China-Russia and potentially India can only be a good thing, but it’s only going to be driven by “trade”, going by this it would seem China would be in the driving seat as Russia has been “forced by external factors” to approach “the rest of the world”.
India and China are energy hungry; all three need each other and bounce off each other’s need.
Proud to be BLACK in this Europe , so called “world”. Serbian
What is the chance that Italy, Finland and Slovakia say nyet to sanctions happening.
I assumed the MH17 Report would lay blame at Putin’s door making the “delay” more about timing than policy. FAIL! That report is a frigging joke. The Dutch should be embarassed and the Malaysian untermensch/gooks should be screaming in outrage over this injustice
Is the delay meant to threaten and beg the recalcitrants to stand firm while Obama stays warm this winter in DC?
Obviously 100% sanctions against Russia are the end game by Obama.
http://www.zerohedge.com/news/2014-09-09/mh17-was-struck-multiple-high-energy-objects-outside-aircraft-crash-report-reveals
It’s embarassing how the Malays still grovel that it was a SAM when even the report avoids going there.
Relatives should demand Najab Razak’s resignation.
From a comment at Zero Hedge
Clearly, photographic evidence proves the plane suffered a barrage of 30 mm cannon fire exclusively in the cockpit area; these penetrations are identical to the guns used on the Ukrainian SU-25 the Russians tracked tailing the flight. One photo even shows the grazed mark on the left wing of one of the projectiles.
If the Dutch told the truth, it would result in the overthrow of the government, and the overthrow of others in the EU. NATO would be totally discredited and there would to calls to execute the junta’s leadership in Kiev as war criminals.
To use the quote of a former EU president – “When it’s really bad, you have to lie.”
Well, it’s really bad, and the Dutch are lying.
And the western media are lying along with them.
Questions the Dutch – and the western MSM propaganda hacks – won’t answer:
1) Why haven’t the air traffic control tapes been released in full?
2) Why weren’t the cockpit conversations from the “black box” released with this preliminary report?
3) Why was the plane diverted north to purposely fly over a combat zone? (The report notes a need for altitude change – not location change . . .)
4) Why have absolutely NO missile parts been found anywhere? (They don’t vaporize . . .)
5) Why are there no other penetrations except into the cockpit / forward of the passenger compartment area? (Missiles throw shrapnel everywhere . . )
6) Why were the Russian’s publicly released radar trackings ignored? (Not trustworthy? And the CIA/NSA, and the Ukrainian NAZIs are . . . ?)
7) Why hasn’t the 30mm cannon fire theory been tested for credibility? (Afraid of the results proving it is true?)
8) Why has the Spanish air traffic controller on-duty who ordered the flight change been hidden away by the Ukrainian secret police? Why haven’t the Dutch interviewed him? (In fact, is he even alive?)
9) Ever seen what happens when a surface to air missile hits its target? It explodes in a massive fireball (check any YouTube video to see it for yourself). Why has not one single witness reported seeing the fireball if this is a missile attack? (Uh, because it isn’t a missile attack . . ?)
10) Why have no smoke trails ever been reported – smoke trails that every missile leaves as a track of its ascent towards its target? (Again, because there never was a missile fired . . )
11) Why has the US – which had a spy satellite directly over the incident (gee, what a coincidence . . .) – refused to release the photos of the incident?
There are more questions, and the EU/US/NATO powers are terrified to face them. They know that if the truth of the plane being shot down by the Ukrainian SU-25 gets out – the civic revulsion will turn the current political situation in these countries upside down. Leaders, proven to be liars and puppets of the US, will hang.
Before you swallow any more western lies, make your leaders answer these questions first.
Then ask them why they won’t.
@Axel Sohn:
Well, Axel, I see your point, but there’s a couple of questions you have to answer:
1.) What sense did it make for Bulgaria to cancel South Stream?
2.) What sense did it make for France to cancel the Mistral sale?
3.) What sense does it make for the EU to start up a trade war with Russia, their own fuel supply?
Sadly, it’s starting to look like Europe’s rulers don’t care about what’s good for Europe at all. They simply do as their told by Washington.
The Man in the Middle
The US sanctions are not so much damaging to the Russian Federation – one could argue that in some ways they are helping to push reasonable but otherwise unpopular economic and military reforms in the east.
The real target seems to be the “old” Europe: Germany, France and Italy. Both the sanctions and the counter-sanctions are most damaging to Europe’s economy and foreign relations. It seems to me that the project Europa has become a total failure:
– unable to defend the sovereignty of its members
– unable to defend its basic economic interests
– unable to even defend its declared human values.
Europe – what a sad joke what once was the considered the hight of civilisation.
Q
Guys, beware of Zerohedge.com and “Tyler Durdens” as they are in the financial pockets of the Vulture Financial Terrorists like Paul “I am Financial Terrrorist!” Singer who is currently doing an eCONomical hit on Argentina (demanding 1,608% return on their Johnny-come-lately “investment” of $48 million USD in 2008, some 7 years AFTER Argentina defaulted and suffer the consequences thereof in 2001).
Their reporting (Zerohedge.com) is biased and filled with a lot of exaggerations. Take for example that map at the top. To include ALL of Africa in the “Axis of Evil” camp is ludicrious. For WW3, the “Axis of Evil” is China, Russia, SCO members, and their partners like Iran, North Korea, etc.
The “Axis of the Righteous” will be of course US/UK/Israel and their All-Lies!
By tying itself too closely to China, the danger is that Russia will end up being controlled by China. or exploited by China.
Last year, Russia pulled out of airplane and submarine deals with China because the Chinese bought only a few airplanes and then attempted to copy the design, violating the agreement.
http://www.defensenews.com/article/20130325/DEFREG03/303250014/Russia-No-Deal-Sale-Fighters-Subs-China
I hope the Russians will play China and India off against each other.
Actions against the BRICS?
Eduardo Campos was one of the front runners in the Brazilian elections. Not exactly one expected to be very subservient to Washington. Died in a plane crash three weeks ago. The black boxes apparently did not record the flight. Just like that.
http://www.bbc.com/news/world-latin-america-28812872
My faith in this being a real accident is about as high as the Paul Wellstone crash in 2002.
There was this Washington hot shot a few days ago, can’t recall his name, openly saying they should shoot down Putin’s plane for chrisake.
@Voss:”By tying itself too closely to China, the danger is that Russia will end up being controlled by China. or exploited by China.
Last year, Russia pulled out of airplane and submarine deals with China because the Chinese bought only a few airplanes and then attempted to copy the design, violating the agreement.”
Very true – for 2 reasons:
– the Chinese tradition does not include the idea of intellectual property (that is why their advanced systems – like Tai-Chi, Strategems etc) were generally secret knowledge
– Chinese are extremely sensitive to their own desires, but extremely insensitive to the desires of others (except when the others are strong – but they pounce at the slightest weakness)
Cultural differences… very interesting topic
In my opinion, the US has the upper hand so far.
They have achieved significantly important outcomes from the Ukrainian Operation such as:
1) Overthrow of a Moscow friendly govt with a rabidly Russophobic one.
2) Mass Media Campaign painting Russia as the most Evil country and worse enemy of the Ukrainian people.
3) Creating deep divisions in the European/Russian relations.
4) Dissecting the business ties that Russia had painstakingly nurtured over the last couple of decades with Europe.
These sanctions are designed to have multi-faceted effects of enhancing that dissection, severing EUs energy dependance on Russia and tilting the Europeans in favour of TTIP.
Russia did a fine job by
1) Annexing Crimea
2)Supporting Novorossiya covertly
3) Avoiding to get dragged in hot war with Ukraine.
4) Limiting the blowback from EU.
It appears to me that the scores are almost even in the current match too. Novorossiya with Russian support gained significant victories on the battlefield but the advantage had to be given up to water down the momentum and objectives of the NATO summit.
So I think its neither a victory nor a defeat for Russia but in the face of these new sanctions, one should expect that they will be enforced soon and Russia needs to be prepared for it.
The Novorossiya needs to be backed unconditionally and strongly because thats the only way to achieve the goals which Russia is pursuing. You can’t negotiate from a point of weakness and Novorossiya and Putin need to press on although it would be harder to achieve the momentum that they abandoned for strategic reasons.
The Empire can’t be trusted and the EU will do as it is told. Merkel has proven time and again that she is in the US team despite having a mutual cultural and lingual understanding with Putin and Hollande is simply incapable of any sensible and meaningful decision. Puttin has to continue the policy of ‘look East’ and rest the fears of another invasion from the Chinese horde. The integration with ‘European Partners’ was always a dream and has failed splendidly. To East lies the destiny.
Amr: “… business ties that Russia had painstakingly nurtured over the last couple of decades with Europe.”
These ties form naturally. Germany and Russia, after WW2, are set to gravitate towards each other. Anglo sabotage of Germany inhibits this natural process.
I read comments suggesting that the Russians have ‘lost’ something because of the existence of the Poroshenko government. That seems odd to me.
The Poroshenko government will not last past the next election and the successor government will be either another place holder or will be led by representatives from the Donbas region.
It is important to consider the longer term view.
The Poroshenko regime is not the worst that could have been and is serving as the transition back to a more stable regime that is not run a kleptocracy.
If commentary that I am now reading is at all on point then the US is now seeking a way out of the mess it made in Ukraine. The only long term issue is whether Russia will have to support Ukraine alone or in concert with other actors.
The Russian war is far from over but the battle of Ukraine may be entering a new phase more conducive to Russian interests.
While it may not seem so at the moment the interests of Russia and Novorossiya are largely coincident.
David Chu, what are you rambling? Zero Hedge most definitely is not “in the pocket of financial vultures”, if you ever spent time to actually read the site you’d understand their slant is opposed to such, as well as crony capitalism and other forms of vile corruption.
The map above is not a map of “axis of evil” but an ironic map showing USA’s comprehension of how isolated Russia is, or isn’t.
Seems like your comprehension needs some much needed sharpening.
Of course we all know the nauseating expression ‘the world community’, denoting Israel, the USA and their stooges. The glorious West, bringer of so much joy, peace and prosperity to the ‘lesser breeds’.
dusty, the Ukie Nazis have already outlawed the Communist Party, which received 13% of the vote in the last parliamentary election. The Party of the Regions may be next, then there are the NED etc billions and, in the end, the election can be stolen, as it was in the USA in 2000 and 2004. The Real Evil Empire never lets loose its grip of Death, once applied.
Seamus Padraig, it looks to me as if all that NSA spying has yielded a rich crop of material useful for arm-twisting purposes. Mind you, after seventy years of US domination Western ‘elites’ are pretty mediocre, the better types being long ago sifted out. In Australia our elites have never been more craven and self-abasing in their obeisance to Washington and Tel Aviv, and never more scabrous and fifth-rate.
Axel Sohn, the TTIP will be imposed even if 90% of the plebs were to be against it. That’s how really existing ‘Free Market Democracy’ works-one dollar, one vote.
Most funniest map I have ever seen.
I think Today EU and USA cannot make Russia alone. Russia is not 1991. Today Russia is much more powerful and strong. The world what shows on the Map US CANADA AND EU is joke. Why do you depend on Asian China India for goods and spices and Russia for Oil and Gas. Today USA buy a lot of Energy from Russia, EU too. Therefore who ever made this article dump fellow. Modern world has change its world order. So USA terror destroying Middle East will end. End of the game China Russia and India will stand. Thats reason why BRICS is formed…
@voss, @ NotSoFast.
You both have it ass backwards and are projecting Russia’s nature onto China.
It’s China that should not trust Russia.
Russia is a wannabe European imperialist nation.
The only reason that Russia is turning to China is because Russia’s beloved Europeans have rejected it.
And ask Iran about Russian backstabbing with Russia’s on-again, off-again (non)deliveries of the S-300 missile system or material for the Bushehr nuclear program to Iran.
This Russian behavior is probably one reason why China tried to copy the design of those Russian planes and subs: You can’t trust the reliability of Russia military suppliers any more than you can trust the Americans or French (e.g. the scuppered Mistral sale), as they could cut you off on a whim.
Russia is also helping the Western colonial occupation of Afghanistan, as the Russians are allowing the transport of NATO/ISAF military materials through its territory for this criminal Western occupation.
The blood of ordinary Afghanis who are being murdered and raped by these Western war criminal countries is also on Russia’s hands as well.
Finally, Russia itself is a European colonizer nation as much of the land that it occupies was stolen by Russia from Central Asians like the Chechens, Tartars, etc.
This is just like America itself, which is based upon the theft of an entire continent that the European “pilgrims” (i.e., invaders) stole from Native Indian tribes and Hawaiians.
It’s Western Civilization (of which Russia is a part of) that has no respect for the rights of others–despite its self-righteous propaganda about “property rights,” “democracy” and the “rule of law.”
After all, that is how these Western imperialist nations were able to colonize the Western Hemisphere and much of the Eastern Hemsiphere from Africa to Asia for the past 500 years since Christopher Columbus.
The West is a predatory civilization that always projects its voracious appetites onto its “enemies” by accusing them of what they themselves are guilty of to a much greater degree.
You two both evidence this warped Western mentality to a T.