West Desperate To Break Russia-China Axis, But "Money Talks" Straight To Putin

Tyler Durden's picture

Among other things, there is one major obstacle to the West's "costs" imposition on Vladimir Putin and his Russian economy - China. So far, a Xi Jinping has described, China has been a "sleeping lion" but today "the lion is awake" and with the Chinese President's first trip to Europe, as WSJ reports, western leaders are hoping to enlist his support over the crisis in Ukraine. However, privately, European diplomats concede that China's relationship with Russia remains solid and that was evidenced by their most recent investment in Russia's $10bn state-backed Direct Investment Fund (which just happens to be run by a former Goldman Sachs banker. It seems "money talks" once again and China will likely continue to play the middle ground.


US and European leaders, as the Wall Street Journal notes, will try to bring Xi to the other side of the red line...

European leaders are seizing on Chinese President Xi Jinping's inaugural trip to Europe to enlist his support over the crisis in Ukraine, but so far the Chinese leader has given no sign the diplomacy will succeed in driving a wedge between China and its strategic partner Russia.




In a Thursday address commemorating the 50th anniversary of China's diplomatic ties with France, Mr. Xi conveyed his views of foreign policy through grand pronouncements, quoting Napoleon Bonaparte's warning that China was a "sleeping lion" that would shake the world if awakened.


"Today, the lion is awake, and it's peaceful, nice and civilized," Mr. Xi said.


From the start, however, the Ukraine crisis has loomed large over Mr. Xi's closely watched visit.




European policy makers have sought to cast as a diplomatic victory China's decision to abstain from a United Nations Security Council vote condemning a referendum that cleared the way for Crimea to break away from Ukraine and join Russia.

But that is just spin as even they know that is unlikely China will take up support 'against' Russia...

Privately, European diplomats concede that China's relationship with Russia remains solid. China has often joined Russia in vetoing Security Council resolutions on issues like the civil war in Syria. In addition, Beijing's abstention vote on Crimea was less a departure from Moscow than a move consistent with Beijing's long-standing rejection of any meddling by foreign countries in its own domestic affairs, said a senior French diplomat.


Mr. Xi is walking a tightrope as he weighs China's partnership with Russia against its growing economic ties with the West.



"China will try to steer a middle course" on Ukraine, said Gudrun Wacker, an Asia specialist at the German Institute for International and Security Affairs in Berlin. "The conversation will be about what has to happen to make sure that Russia doesn't become an obstacle in these other negotiations."

While the three-day trip to Germany is unlikely to produce diplomatic breakthroughs, it could strengthen economic ties.

But, as The FT reports, it is always about "follow the money" and China is not pulling back from Russian investment at all...

Russia’s $10bn state-backed fund has tapped Chinese and Middle Eastern sovereign wealth fund money in a bid to show it can attract foreign capital into the country even if US and European investors turn away following the annexation of Crimea.


Russian Direct Investment Fund (RDIF), which was set up by President Vladimir Putin three years ago and which counts Blackstone chief executive Stephen Schwarzman, Apollo’s co-founder Leon Black and Apax’s boss Martin Halusa on its international advisory board, is leading the purchase of a $200m stake in Sodrugestvo, a large oilseed processor and trader, alongside sovereign wealth funds including China Investment Corp.




“Obviously, what we see now, is that US and European investors are slowing down their investment pace. I expect we’ll do many more deals with Chinese and Middle Eastern investors going forward,” Mr Dmitriev said. “But we have significant hope of de-escalation going forward.”

But it's not just China...

In July, Mr Dmitriev, a former Goldman Sachs banker, announced the appointment of Ahmad Mohamed Al-Sayed, the chief executive of the Qatar Investment Authority, to RDIF’s international advisory board, heralding a possible collaboration with Qatar.

So Stephen Schwarzmann, Leon Black, Martin Halusa, the Qatar Investment authorirty, and Dominique Strauss Kahn are all on the advisory board of the RDIF and it's run by this guy:

Kirill A. Dmitriev, Chief Executive Officer, Russian Direct Investment Fund


Kirill Dmitriev is the Chief Executive Officer of the Russian Direct Investment Fund. Before being asked by the Russian government to run the fund, Mr. Dmitriev was President of Icon Private Equity, a leading private equity fund in the CIS with over $1 billion under management. Prior to establishing Icon, he was Co-Managing Partner of Delta Private Equity Partners, a leading private equity fund in Russia with over $500 million under management. Prior to joining Delta Private Equity in 2002, Mr. Dmitriev was Deputy General Director at IBS, the top Russian IT services provider.


He also worked as an investment banker with Goldman Sachs in New York and as a consultant with McKinsey & Company in Los Angeles, Moscow and Prague. Mr. Dmitriev is a Young Global Leader of the World Economic Forum in Davos and past Chairman of the Russian Venture Capital and Private Equity Association. He holds a BA in Economics with Honors and Distinction from Stanford University and an MBA with High Distinction (Baker Scholar) from the Harvard Business School.

Once again, Goldman's tentacles are embroiled...

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Ahmeexnal's picture

Impeach Ogolfer!

fonzannoon's picture

Why just Ogolfer? Look at this fuckin article...Blackstone...Goldman....etc. etc...and we are to believe that this shit we are watching is not all by design? What a global circle jerk with 1% bukake flying everywhere. What a total fucking joke this all is.

Yen Cross's picture

 Fonz when the "shit show" ends.   It's getting ugly. You mentioned "slow motion" train wrecks 2 years ago. You were right Fonz.

Docking the USS- Titanic takes time/

fonzannoon's picture

Good on you for finding a way to distance your money from your emotion Yen. Thats key. I still have a hard time with it.

Troll Magnet's picture

Too many Jews on the advisory board. Probably brought on to lie, cheat and steal. Not a bad move from Russia's perspective as long as they don't get double-crossed by them.

SafelyGraze's picture

"US Desperate To Join Russia-China Axis"

patience, US.  patience

sorry, europe

onthesquare's picture

There are the askanasian jews running the US with a strong direction from the head office in Isreal.

Now we see the tension between the original askanasian jews from ukrane, russia, georgia getting into a spat but that will be settled by the head office; one way or another.

I fail to find a askansian connect in china unless the askanasian bankers are there to close the circle.

keep your eye on the money and those who love money over everything else.

Yen Cross's picture

 Me casa es Su Casa Fonz.

fonzannoon's picture

remember the good times Yen

"Suddenly, the shadowy figure behind Zero Hedge was a full-blown cult hero—a blogger with a bullet. His readership of angry traders and anti-government malcontents celebrated his newfound power. “Welcome to the party pal!!!” declared one of his fans in the comments section."


Yen Cross's picture

  Thanks for the link.  As you age Fonz,anger takes a "back seat" to being alive and never giving up!

   Being a pussy in your thirties is ok. Once you realize your mortality, in your late 40's. things take perspective in a whole new way!

     You realize that the world doesn;t revolve around you, and that your family supercedes any need you'll ever have.

fonzannoon's picture

Thats good to know because I am still a pussy in my 30's :)

Yen Cross's picture

 Didn't mean it that way Fonz. freudian slip

    You'll see things differently.

  Does anyone like {VIKINGS} on History Channel?

fonzannoon's picture

dude I already have an enlarged prostate and early signs of tinnitus. Sadly my dream of playing shortstop for the yankees slips away more every day. All I have left is sharp language on here. That and your FX insight. Always appreciate you putting your 2 cents in on here without a link to a blog...which btw I would be glad to pay for. But the fact that you don't need to makes you the real deal.

DoChenRollingBearing's picture

+ 1's to dudes fonz and Yen for excellent dialog that matches THIS GUY'S experiences too with midde age...

onthesquare's picture


Check our Orthoprostate and stay away from things like proscar and maxflow; that stuff is not good for your boys.

Tinnitus; well try to get more sleep.

fonzannoon's picture

thanks for the tips man. much appreciated.

bobert's picture

And when you get to be 60 you start to get angry again and direct it better.

UselessEater's picture

About the age my folks became 'awake'. Incredible family unity has resulted. The spin off is we're all a little better at balancing directed anger with action.

(errm fumbling action possibly but its better than risking a path to bitterness IMHO -btw that is not an observation I am directing at anyone here).

Ifigenia's picture

"Being a pussy in your thirties is ok. Once you realize your mortality, in your late 40's. things take perspective in a whole new way!

     You realize that the world doesn;t revolve around you, and that your family supercedes any need you'll ever have."


Very well said and it is what i feel.

When you see what those bastards are doing, fucking up the future of my children, i go nuts.

matrix2012's picture

Thanks for the great link to revisit the past, fonz...


it's a MUST read for all ZHers who are new to it, a 6-page article covering the early years of this blog ;-) hey, i do believe it's older than the most readership here


fonz, for an enlarged prostate u need to see an urologist (a friend of mine is in that profession).

Latina Lover's picture

I'll bet the Mulatto Messiah loves being in the center of the bukake circle...

Freddie's picture

What a joke.  We are being played.  Putin should have hired someone good like Ray Dalio or James Chanos or Kyle Bass but looks like he may be owned by Goldman too.

UselessEater's picture

SHIT! Fonz, I sent this article to my mum, she picked up on your comment and likes it with no idea of what some of your terminology means....Buggered if I'm explaining it and by God I hope she doesn't repeat it in her decent innocence.


kaiserhoff's picture

For High Treason, or being married to a skank?

Normalcy Bias's picture

If we didn't know better, one would swear that our illustrious President's actions are exactly what our enemies would have us do...

Wahooo's picture

We'll thank goodness the Russians and Chinese are finally going to break America as a world economic "power". At least we'll then have to stop spending so much fiat debt to finance war and the FSA. Too bad we don't do anything until we have to.

walküre's picture

He's put in power to be an abject failure and the President held responsible for the downfall of America. That will be his legacy and he is either too arrogant to see it or he's pushing for it on purpose. Hard to say because he's such a narcissist!

Vampyroteuthis infernalis's picture

he's such a narcissist!

That could be said about libtards in general.


MeelionDollerBogus's picture

Libtards = contards.

Sheeple are sheeple no matter if you spray-paint them blue or red. You might get a choice later in what colour wool you use but when the mint sauce is prepared the mutton tastes the same to the Kings. Kings & serfs, that's the truth.

Ifigenia's picture

no pity for him, he must be inteligent enough to know what those Masters of universe want of him, a guy out of the system and with no power bases. But he pick the job, didnt he, and fuck everything, not even putting a break on money printing, the last straw that fuck every sheep in town to provide the last big feast for the 1%, before game over. Here in Europe at least there is some sense not to print euro to the kindom come.

matrix2012's picture

c'mon dudes, admittedly it's a very well-paid job with tons of fringe benefits...knowing the Mulatto narcissist has access to private golf course all the time in every place, flying in and out aboard own A-One... cant blame him to accept that assignment from his masters due to his cloaking color and teleprompting capability, an alternative look high in demand after all the messes created by the Texan oil dumb cowboy... indeed this guy is pretty "fortunate" to fit the favored profile regardless his murky background.  But  he has the alphabet pedigree! His mom was an NOC agent; his step-father involved in the agency's much bloody plot to topple the host country's founding father and highly popular president then, even his grandma worked for the agency's financial interests in Hawaii. So luck may not be the right word here. (if one ever imagines to be the grandmasters who laid out the decade-long grand chessboard, putting one grand lackey after another in positions...)

But can we really blame it to all the sheeples who support him to the 2nd election? is there really any choice? Is Romney da man??

Supposed there's any "good" candidate that can pass through the very tightly knitted filtration, will such candidate ever win against the Diebold electronic voting machines? Let say if all fail to block the unwanted one, forced termination still avails to various ways as happened in the past... you see, the cabals have countless ways

Sorry dudes, i just witness the Cabal Banksters are having in full control of the cowboy nation, one hundred years funded with the endless confetti papers are more than enough to place each lackey in each position covering all the playing fields and every layer of importance there...with redundancies! Red Team vs. Blue Team, the choice is yours... the plans, objectives and executions are all the Masters' ones.... the people are fully owned and living inside the matrix world.

Good luck, for a remedy a mass wake-up is needed... yet they also get ready with dhsfematsa/nsafbicia/xe/... plenty of luck is needed...or alternatively the locusts may just dump their victims when they finish sucking everything as such their costs outweigh their uses...

JuliaS's picture

Impeachment is meaningless. Bush was gone and what did we get in return? Another banker puppet. If we didn't get Bush, who would we have instead? A global warming carbon credit nutcase Gore or warmongering horse-face deserter Kerry. If we didn't have Obama, we'd have Clinton McMoron, or Russia-watching Alaskan mom.

Look at every past candidate (with exceptions of RP). Think the future lineup will be any different? And who cares anyway. The president holds no actual power. The bankers are pulling all the strings and the Fed chairman affects your daily life more than all the past presidents combined...

new game's picture

Comment of the century-100 year history thing: their/the policy of zirp and resulting inflation from currency expansion is costing me 100/week unless I put my life labor/savings at risk(in their venues of vulturism). everyone else on the list except RP are the supporting cast to keep this debt/ponzi scheme alive and kicking our ass. what i do is refuse to vote. vote with my actions and have a level of ignorance that allows my anger to not consume my enjoyment of life...all else is futile, unless i want to get locked up for criminal behavior. the best laid plans have a way of getting fucked up, meaning i would get caught. and furthermore, it is not my place in life to save the fucking world from 90+/100 stupids...ps. i logged in just to up vote and comment-loggin back out - bye, and have a great weekend being partially ignorant!

MeelionDollerBogus's picture

Excellent! OGolfer will be removed, Biden will take his place & Biden will then advance the Honorable Jon Corzine as the new VP!

Wonderous plan.

kaiserhoff's picture

"Western Leaders" are obsessed with their pensions.

Find me a kleptocrat who gives a tinker's damn about anything else.

Reaper's picture

Are other nations stupid? What Obama or the US can do to Russia, they can do to you.

kaiserhoff's picture

China + Russia = Two drunks leaning on each other for support.

fonzannoon's picture

China + Blackstone + Russia + Goldman + U.S - 90% of the global population  = big picture. 

kaiserhoff's picture

I hope you're wrong Fonz, but that's not the way I'm betting.

fonzannoon's picture

I'm not wrong my man. Listen to the people on here who produce stuff for a living (my aoplogies if you do). I specialize in pushing a piece of paper from one side of the desk to the other. I can only hope after the reset there is a need for fart jokes. My point is Goldman knows the same thing LOP and Seek know. Too many mouths to feed, There needs to be a lot less of us. They are making their plans. We should be making ours. 

kito's picture

Fonz- shale gas, robotics and yellen will save us. You worry too much.

kito's picture

You think eel will play a part in the plan to reduce world population?

fonzannoon's picture

Yes. It has to, Because nobody orders it when ordering sushi. so any other motive including eel is sinister.

walküre's picture

You forgot the Chevy Cruze!!!! oh, wait... nvmd

onthesquare's picture

now they are planning the crime of the century

well what will it be?

who are these men of lust, greed and glory?

rip of the masks and lets see


ps watch out for low flying 777s

MeelionDollerBogus's picture

Not quite correct. Those mouths need only do more work for the slave-masters with each meal & die before they get so old they can't work yet still need feeding. Increase population, increase hardship of work, decrease life-span.

WhyWait's picture

Solving their problems by getting rid of "useless eaters" won't work any better than solving them by replacing McDonalds workers with computers.  The decrease in unemployment will be temporary, very temporary, because once again they solve a short term problem by further hollowing out their market.  That would be supplementing a figurative  economic death spiral with a literal one!

Which brings us back around to the core problem, the system itself.

If you love your life as part of this system, you will want to save it.

Which will require a hard reset. 

Yen Cross's picture

  Kaiserhoff, we've apexed demand/  


Seasmoke's picture

So what's that 700 million. I plan on my family being in that group.