Louis Proyect: The Unrepentant Marxist

February 21, 2017

Donald Trump’s team of con men drafts a peace plan for Ukraine

Filed under: Trump,Ukraine — louisproyect @ 8:58 pm

Felix Sater, a key player in a Ukrainian peace plan, once spent time in prison for attacking a commodities broker with a broken margarita glass

For most people on the left, there was unquestionably a preference for Donald Trump’s foreign policy in the 2016 election especially with respect to Russia and more particularly taking its side against Ukraine. Just as was the case with Syria, anybody that Obama or Clinton supported even if only rhetorically was the enemy of the left. This meant that Ukraine became as much of a symbol of evil as the “jihadists” in Syria. Granted that Trump is about as articulate as a garden rake, his reply to George Stephanopolous of ABC News on the Russian takeover of Crimea must have warmed the cockle of the hearts of people like Stephen F. Cohen:

I’m going to take a look at it. But, you know, the people of Crimea, from what I’ve heard, would rather be with Russia than where they were. And you have to look at that also. Now, that was under, just so you understand, that was done under Obama’s administration. And as far as the Ukraine is concerned, it’s a mess and that’s under the Obama administration, with his strong ties to NATO.

So with all of these strong ties to NATO, Ukraine is a mess, Crimea has been taken. Don’t blame Donald Trump for that. And we’ll do better. And yet, we’ll have better relationship with Russia. And having a good relationship, maybe. And having a good relationship with Russia is a good thing, not a bad thing.

Now, admittedly it is pretty hard for me to get inside the head of people like Cohen, Mike Whitney and Boris Kagarlitsky but I wonder what they make of the report in yesterday’s NY Times about a “peace plan” Trump’s cohorts have put together. The amateur hour group of diplomats include Michael D. Cohen, who is Trump’s personal lawyer; Felix H. Sater, a business associate who helped Trump look for deals in Russia; and Andrii V. Artemenko, a Ukrainian legislator who is part of a political opposition movement that is taking its cue from Trump’s former campaign manager Paul Manafort.

Artemenko claims that he has evidence of corruption in President Petro O. Poroshenko’s administration, something that does not strain credulity. And it might even confirm that old saw “it takes a thief to catch a thief” since Artemenko spent time behind bars in a Kiev jail in the early 2000s for an embezzlement conviction. He maintains that he was framed for political reasons. Who knows?

Artemenko is obviously aspiring to be the new Yanukovych, the former president who fled to Russia as the Euromaidan protests made him dispensable, even to his own Party of Regions. At a gathering of his party on March 29, 2014 delegates voted to expel Yanukovych and senior members of his government, including prime minister Mykola Azarov, the head of the Ministry of Revenues Oleksandr Klymenko, deputy prime minister Serhiy Arbuzov, minister of the Department of Energy Eduard Stavytskyy, and the head of the Donetsk Oblast Administration Andriy Shyshatskyy. To my knowledge, Victoria Nuland was not in touch with the delegates who voted to boot these people from their pro-Kremlin party.

If ex-con Artemenko seems a bit dicey, he is small potatoes compared to Felix H. Sater, who seems to have stepped out of a “Sopranos” episode. He acted as a middle-man, conveying Artemenko’s peace plan to Trump. It should be mentioned that the plan is not quite what you’d expect from a tool of the Kremlin, at least on the face of it. It calls for the withdrawal of all Russian forces from eastern Ukraine and leasing Crimea to the Russians for 50 to 100 years, as if it were real estate. Since Russia claims that there are no Russian troops in Ukraine, it is not clear what the first plank is meant to accomplish.

Sater, a Russian Jew who came to the USA as a political refugee, was involved with Trump in real estate deals for the better part of a decade. His ties to Trump were first reported by the NY Times in a December 17, 2007 article.

Before Sater got involved with real estate, he was a stockbroker. In 1991, he was celebrating at El Rio Grande, a midtown NYC restaurant, with a friend who had passed the stockbroker’s exam that day. He was also feeling good about the $3,000 commissions he made at work earlier. A bit lubricated from one too many cocktails, Sater got into a beef with a commodities broker at the bar that quickly escalated. According to NY Times, “he grabbed a large margarita glass, smashed it on the bar and plunged the stem into the right side of the broker’s face. The man suffered nerve damage and required 110 stitches to close the laceration on his face.”

Sater went to prison for this assault and was banned from selling stock. That did not get in the way of him forming a stock brokerage with two partners not long after his release. It was basically a “pump and dump” firm that sold securities at inflated prices based on false information. In the mid-90s, there were so many of these criminal enterprises that you needed hired muscle from the Mafia to protect your turf as if you were a crack dealer. In 1995, Edward Garafola, a soldier in the Gambino crime family, tried to extort money from Sater, who hired Ernest Montevecchi, a soldier in the Genovese crime family, to lean on Garafola to back off.

In 1998, the law caught up with Sater. He was charged with money laundering and stock manipulation. Two years later, there was another indictment that named him as an “unindicted co-conspirator” in a $40 million scam involving 19 stockbrokers and members of four Mafia families. He never went to prison for his crimes, apparently because he cooperated with investigators.

Under ordinary circumstances, people like Artemenko and Sater would never be taken seriously by an American president but we are now operating under extraordinary circumstances. When Donald Trump’s personal lawyer and his one-time campaign manager give these two whack jobs the kosher stamp of approval, this tells you that we are not in Kansas anymore. It is likely that Trump lent them his ear since he has had ties to organized crime for most of his career.

Wayne Barrett, the long-time Village Voice investigative journalist who died this year from a lung ailment, exposed Trump’s mafia ties in a 1991 bio titled “Trump: The Greatest Show on Earth: The Deals, the Downfall, the Reinvention”. For a recap of Barrett’s findings, I recommend an article written by fellow Trump biographer David Cay Johnston that appeared in the Politico on May 22, 2016 under the title “Just What Were Donald Trump’s Ties to the Mob?” Johnston writes:

FBI agents subpoenaed Trump in 1980 to ask about his dealing with John Cody, a Teamsters official described by law enforcement as a very close associate of the Gambino crime family. The FBI believed that Cody previously had obtained free apartments from other developers. FBI agents suspected that Cody, who controlled the flow of concrete trucks, might get a free Trump Tower apartment. Trump denied it. But a female friend of Cody’s, a woman with no job who attributed her lavish lifestyle to the kindness of friends, bought three Trump Tower apartments right beneath the triplex where Donald lived with his wife Ivana. Cody stayed there on occasion and invested $500,000 in the units. Trump, Barrett reported, helped the woman get a $3 million mortgage without filling out a loan application or showing financials.

In the summer of 1982 Cody, then under indictment, ordered a citywide strike—but the concrete work continued at Trump Tower. After Cody was convicted of racketeering, imprisoned and lost control of the union, Trump sued the woman for $250,000 for alteration work. She countersued for $20 million and in court papers accused Trump of taking kickbacks from contractors, asserting this could “be the basis of a criminal proceeding requiring an attorney general’s investigation” into Trump. Trump then quickly settled, paying the woman a half-million dollars. Trump said at the time and since then that he hardly knew those involved and there was nothing improper his dealings with Cody or the woman.

This is par for the course. The real estate industry and the mob are joined at the hip in New York. My building was created under the Mitchell-Lama law that was intended to create affordable housing for middle-class people in exchange for tax breaks for the developer, which in my case was the DeMatteis company. The NY Times reported on December 26, 1991:

New York City has revoked a $1.2 million contract with a major construction company that officials say concealed and altered reports about possible ties to organized-crime figures.

The contract was awarded in July to the Leon D. DeMatteis Construction Company of Elmont, L.I., to supervise the building of a $67 million jail annex on Rikers Island. But in a decision made public this week, the city said the company had withheld “troubling” information about its business associations and had submitted an altered copy of a report concerning its possible ties to reputed organized-crime figures.

Now this is the way that business is done in New York. But did anybody anticipate that the White House would be following the rules of the NY real estate game after January 20th? Donald Trump is using his political office to make money. People who have convinced themselves that he is ideologically driven to create a fascist state that will mold people according to some master race schema are deluded. Trump has about as much ideological conviction as the Home Shopping Network.

Even Putin, who is as big a crook as Trump, feels that this “peace plan” does not pass the smell test. Immediately after the NY Times reported on it, he dismissed it as absurd. As I said before, he denies that there are Russian troops in Ukraine. He also insists that Crimea is now part of Russia. Even as articles continue to be churned out on why the Deep State seeks to oust Trump because of his friendliness to Russia, there is scant recognition that the peace plan for Ukraine might signal a policy much more like Clinton’s than people like Stephen F. Cohen might have anticipated. Keep in mind what Nikki Haley, Trump’s Ambassador to the UN, said about the conflict:

The United States stands with the people of Ukraine, who have suffered for nearly three years under Russian occupation and military intervention. Until Russia and the separatists it supports respect Ukraine’s sovereignty and territorial integrity, this crisis will continue.

Eastern Ukraine, of course, is not the only part of the country suffering because of Russia’s aggressive actions. The United States continues to condemn and call for an immediate end to the Russian occupation of Crimea. Crimea is a part of Ukraine. Our Crimea-related sanctions will remain in place until Russia returns control over the peninsula to Ukraine. The basic principle of this United Nations is that states should live side by side in peace.

Showing more clarity than leftist supporters like Stephen F. Cohen, Putin ordered state media to back off from their fawning coverage of Trump. This is probably a reaction to Haley’s comments at the UN as well as concerns about FBI investigations into the contacts that Trump’s advisers had with Russia during and after the 2016 campaign. The peace plan crafted by Artemenko and sponsored by Sater was designed to end the sanctions against Russia. Given the fecklessness of their efforts, which are consistent with the overall ineptitude of the Trump White House, it appears that the sanctions will remain in place for the foreseeable future.

Russia is in dire straits now economically, just as is the USA. Their problems are related to falling oil prices while ours are more complex. Although economist Nick Eberstadt is a neoconservative, his article for the echt-neocon Commentary Magazine titled “Our Miserable 21st Century” gives you a sense of how bad things are:

Between late 2000 and late 2007, per capita GDP growth averaged less than 1.5 percent per annum. That compares with the nation’s long-term postwar 1948–2000 per capita growth rate of almost 2.3 percent, which in turn can be compared to the “snap back” tempo of 1.1 percent per annum since per capita GDP bottomed out in 2009. Between 2000 and 2016, per capita growth in America has averaged less than 1 percent a year. To state it plainly: With postwar, pre-21st-century rates for the years 2000–2016, per capita GDP in America would be more than 20 percent higher than it is today.

For both the USA and Russia, a quick fix would be to eliminate its military starting with nuclear weapons. Costa Rica disbanded its military in 1948 and the country has been better off for that, with worries about counter-revolutionary coups being put to rest as well as helping to afford a welfare state some compare to Sweden’s.

The USA spends 600 billion dollars per year on the military while Russia spends a tenth of that. Since Russia’s population is less than half of ours, that would still represent a considerable savings. Instead what we can expect is a ratcheting up of military expenditures as Trump brandishes the sword against China, Iran and maybe even Russia. The world is confronted by what Haile Selassie described as war and rumors of war, words that Bob Marley put to music.

On “Sixty Minutes” last Sunday there was a segment on North Korea’s “threat” to the USA with a top American officer on duty in South Korea, an African-American no less, reassuring his African-American 60 Minutes interviewer that if Kim Jong-un used nuclear weapons, his country would be “wiped off the map”.

In the Junius Pamphlet written one year after the outbreak of WWI, Rosa Luxemburg said:

Friedrich Engels once said: “Bourgeois society stands at the crossroads, either transition to socialism or regression into barbarism.” What does “regression into barbarism” mean to our lofty European civilization? Until now, we have all probably read and repeated these words thoughtlessly, without suspecting their fearsome seriousness. A look around us at this moment shows what the regression of bourgeois society into barbarism means. This world war is a regression into barbarism. The triumph of imperialism leads to the annihilation of civilization. At first, this happens sporadically for the duration of a modern war, but then when the period of unlimited wars begins it progresses toward its inevitable consequences. Today, we face the choice exactly as Friedrich Engels foresaw it a generation ago: either the triumph of imperialism and the collapse of all civilization as in ancient Rome, depopulation, desolation, degeneration – a great cemetery. Or the victory of socialism, that means the conscious active struggle of the international proletariat against imperialism and its method of war. This is a dilemma of world history, an either/or; the scales are wavering before the decision of the class-conscious proletariat. The future of civilization and humanity depends on whether or not the proletariat resolves manfully to throw its revolutionary broadsword into the scales. In this war imperialism has won. Its bloody sword of genocide has brutally tilted the scale toward the abyss of misery. The only compensation for all the misery and all the shame would be if we learn from the war how the proletariat can seize mastery of its own destiny and escape the role of the lackey to the ruling classes.

These words are as relevant today as they were just over a century ago.


  1. Cohen is exactly right about Russia. Crimean population chose Russia in free elections by 95%. And Cohen is right about Nato missiles on their border are highly provocative. What is so hard to understand about that? Why are you so dismissive of him? Doesn’t make me want to read rest of your article.

    Comment by William Schmidt — February 21, 2017 @ 10:13 pm

  2. I didn’t question the Crimean election. Most people living there are ethnically Russian. However, the Crimeans have dug themselves into a hole over that sorry mistake. It is too vulnerable economically and night likely to get much Russian aid, given its woes. I wouldn’t be surprised if they reverse it in the future. In terms of NATO on Russia’s border, that’s the same reason JFK used to make war on Cuba. Big powers have no right to dictate to smaller and weaker nations who they can ally with. In fact the Czech Republic is both a NATO member and pro-Kremlin.

    Comment by louisproyect — February 21, 2017 @ 10:17 pm

  3. In 1964 Cohen spent a couple weeks at 116 University Place (the SWP headquarters) reading back issues of the Militant, old documents, and all the old magazines of the period that were in the archives doing research for his book on Bukharin. He was friendly with George Shriver at the time, from IU days, and seemed like a good guy then.

    Comment by Michael Tormey — February 21, 2017 @ 11:10 pm

  4. This is a devastating takedown of the shameful and ignorant pro-Putin views on the Left. Thanks for writing it.

    Comment by Voline (@pyotr_kropotkin) — February 22, 2017 @ 6:24 am

  5. William Schmidt,

    “Crimean population chose Russia in free elections by 95%.”

    The greater crime is Putin’s not so secret invasion of eastern Ukraine, complete with staged local rebellions and “people’s republics,” and ongoing war that has killed over 10K Ukrainians and caused unbelievable suffering to many more for no apparent reason except Tsar Putin doesn’t like not having control over Kyiv.

    NATO’s presence nearby in no way justifies Putin’s invasion of Ukraine.

    Comment by Voline (@pyotr_kropotkin) — February 22, 2017 @ 6:31 am

  6. As supplemental reading to this post, read Velychenko on western leftists’ pro-imperialist, colonialist views on Ukraine. https://krytyka.com/en/articles/russian-bolsheviks-ukrainian-communists-and-comintern-how-russian-bolsheviks-shaped-foreign

    Comment by Voline (@pyotr_kropotkin) — February 22, 2017 @ 7:31 am

  7. Louis wrote: “People who have convinced themselves that he [Trump] is ideologically driven to create a fascist state that will mold people according to some master race schema are deluded.”

    What about Bannon and Miller? Trump gets most animated when talking about the right wing nationalist conspiratorial agendas of Breitbart and Alex Jones. (the 3-5 illegal voters)

    Comment by Voline (@pyotr_kropotkin) — February 22, 2017 @ 9:26 am

  8. If Bannon and Jones are to get their way, then it would qualify as a neo-fascist state, no?

    Comment by Voline (@pyotr_kropotkin) — February 22, 2017 @ 9:40 am

  9. One can understand the Putinolatry of things like John Wight and Mike Whitney. Both of them are in the pay of the Russians–Wight on Russia Today and Whitney on the far less amusing Russia Insider News.

    But Wight went to Hollywood to become a star and nobody noticed–and the landscaping business in Seattle is no doubt highly competitive. Their current convulsions as relayed by Counterpunch remind one of slugs in salt, but these guys, like the poor schmuck whose limousine was torched by the Black Bloc in DC, have a living to make and, of necessity, a master to serve. They do so with a brio and inventiveness worthy of Goebbels.

    It’s harder to understand the starry-eyed campists who persist in ignoring the facts about the Russian mob that Louis lays out so tellingly here. Can anyone not being paid for it and confronted with the reality of the mafia don in the White house persist in worshiping Putin? Yet they do, even as they join the chorus of apocalyptic warnings about the alleged Deep State.

    Five stars for this thoughtful piece–especially for the swift and sure segue at the end into a portrayal of the real dangers of the U.S. state, so economical and yet so telling when juxtaposed to the Saturday morning cartoons being put on by nearly everyone on the pseudo-left from Glenn Greenwald on down.

    Comment by Farans Kalosar — February 22, 2017 @ 12:43 pm

  10. What I see here personally is a red choir with all the military sense of a baby that has not yet emerged from the womb. Of course NATO threats to Russia justified everything the Russians have done up to now, even more. NO the Urkraining people DO NOT HAVE THE RIGHT to join a continuing criminal enterprise just because they are weaker than the Russians, who in turn are weaker than the Germans and the Americans let alone both of those forces combined.
    I have doubts about Putin’s military sense as well. Althought the Russians are correct in demanding the entire Ukraine remain under Russian Control, the country could reasonably be divided in many different ways. The first way that I would suggest is to divide the country along the Donau River. Putin gets to keep that part which is east of the Donau and NATO can keep that part to the west. The idea that Putin tried to divide the country with 10% for Russia and 90% for NATO shows a complete lack of boldness. Putin apparently does not understand that sometimes it is neccessary to hide ones weakness by taking bold risks.
    I read that tract by Trotsky a few days ago called Learn to Think. What a fool Trotsky was. No wonder he got his ass kicked by Stalin. I thank God that i did not become a Red until I was over 40 and did not have my development infuenced by people who would be incapable of influencing events in Aetna Kansas.
    (popülation 2)
    If we beileve that Trump is a player for the deep state why should we believe anything at all the press reports about the details about the apparent conflicts between different personalities or institutions that are part of the same system of misrule? There is no reliable evidence that there ever was going to be an attempt by Trump to turn down the heat on the Russians. All the details about this General talking to that one about the prositutes in here or there could just as easily be smoke and mirrors as reality. To believe that Trump was actually going to try anything at all on his own without the prior approval of those who really are in control of the deep state is eveidence that one does not really believe in the deep state.

    Comment by Curt Kastens — February 22, 2017 @ 1:32 pm

  11. Curt, you should use a spell checker before posting a comment. Too bad that Microsoft doesn’t make an idea checker.

    Comment by louisproyect — February 22, 2017 @ 1:39 pm

  12. Oui. Five planets to you too. Could an anarchic order state artificially prop up the welfare state?

    Comment by Lawrence Donegan — February 28, 2017 @ 8:00 pm

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