

By John Helmer, Moscow
@bears_with
On September 3 President Donald Trump accused Vladimir Putin, Xi Jinping, and Kim Jong Un of “conspir[ing] against the United States of America”.
Four days later on September 7, when asked by a reporter “Mr. President! Are you ready, are you ready to enter the second phase — Are you ready to enter the second phase of sanctions against Russia or punishing Putin”, Trump replied: “Yeah, I am.”
Trump then promised to telephone Putin “over the next couple of days”, adding that this week at the White House “certain European leaders, are coming over to our country on Monday or Tuesday and, uh, individually. And I think we’re gonna get that settled. I think we’re gonna get it settled.”
By the start of Wednesday there has been no telephone call to Putin, and no European leaders have appeared in Washington to talk to Trump. Instead, Trump dialled into a conference call with EU leaders to announce he would join the European Union (EU) in a 100% penalty tariff on India and China for buying Russian oil on condition the EU moved first. As Trump was threatening, his Treasury Secretary Scott Bessent was meeting an EU delegation to determine if the EU can follow through over opposition from Hungary, Slovakia and other member states.
“We’re ready to go, ready to go right now, but we’re only going to do this if our European partners step up with us,” a US Treasury official briefed the Financial Times. “The president came on this morning and his view is that the obvious approach here is, let’s all put on dramatic tariffs and keep the tariffs on until the Chinese agree to stop buying the oil. There really aren’t many other places that oil can go.” A second US official told the Japanese-owned propaganda platform against China: “Washington was prepared to mirror any tariffs on China and India imposed by the EU, potentially leading to a further increase in US levies on imports from both countries.”
There was no corroboration of EU agreement on the US terms from David O’Sullivan, the EU sanctions official who led the European delegation at the US Treasury. US Treasury Secretary Bessent was threatening in principle, evasive in practice after meeting O’Sullivan. “The United States and European Union are aligned on the importance of ending the war in Ukraine,” Bessent tweeted. “All options remain on the table as part of @POTUS’ strategy to support peace negotiations. Business as usual has not worked. We are willing to take strong measures against Russia, but our European partners must fully join us in this to be successful. I made this clear today when meeting with @EU_Commission Sanctions Envoy David O’Sullivan.”
The Kremlin responded that “this unprecedented number of sanctions that have been imposed against our country over the past four years has had no effect…no sanctions will be able to force the Russian Federation to change this stalwart position.”
Putin had told reporters in Beijing on September 3 he is waiting for the commitment of the Trump administration “to find a solution, not just to issue appeals…We will see how it goes from here. If not, we will have to achieve the tasks set before us by military means.” He then added in Vladivostok on September 5: “We have an open dialogue with President Trump. We have agreed to call each other, if need be, and talk. He knows that I am open to such talks, as well as he is – I know it. However, so far, based on the results of these consultations in Europe, we have not had any discussions.”
Putin acknowledged also: “Regarding possible military contingents in Ukraine. This is one of the basic reasons for dragging Ukraine into NATO. So, if any troops appear there, especially now, during combat operations, we will deem them legitimate targets for destruction. And if any decisions leading to peace, a lasting peace, are achieved, then I will not see the sense of their deployment in Ukraine, that’s it. If agreements are achieved, then no one should doubt that Russia will execute them in full. We will observe the security guarantees, which, of course, would be drafted both for Russia and Ukraine. And I will say it again: Russia will observe these agreements. Anyway, nobody has ever discussed it with us seriously, that’s that.”
While Trump and Putin wait on each other, Putin and Xi appear to have agreed to begin state to state financing of the two countries’ energy trade, bypassing US and EU sanctions on Russian and international banks, and replacing US dollar pricing and payment systems for their oil and gas trade. The Tianjin Declaration of last week, the 25-page communiqué of the Shanghai Cooperation Council (SCO) summit meeting chaired by Xi, had camouflaged the new details in a general commitment to “emphasize the important role of cooperation in the financial sphere in promoting economic growth in the SCO area”. Also, “given the instability in international energy markets, member states noted the importance of strengthening cooperation, including in the areas of energy security, energy infrastructure protection, promotion of investment cooperation.”
Agreement by China to the new scheme was leaked to the Financial Times from unidentified Japanese sources. “China is preparing to reopen its domestic bond market to major Russian energy companies, in a shift of policy that reflects deepening diplomatic and economic ties between Beijing and Moscow. Two [Japanese] people familiar with the matter said senior Chinese financial regulators told top Russian energy executives at a late August meeting in China’s southern city of Guangzhou that they would support their companies’ plans to sell renminbi panda bonds. Such borrowing would be the first Russian corporate fundraising in mainland China since Moscow’s full-scale invasion of Ukraine in 2022 and the first Russian debt sold on China’s public onshore market since state aluminium producer Rusal’s panda bond issue raised a total Rmb1.5bn ($210mn) in 2017.”
In Moscow, the strategic significance of the new Sino-Russian financing plan is acknowledged without fanfare. Read the analysis just published by Vzglyad, the Moscow security analysis platform.
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