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Trump Tower Moscow, or the so-called "Moscow Project," is a planned but still unrealized project conceived by Donald Trump's Trump Organization. The idea is to construct a 100-story glass tower on the grounds of the Moscow International Business Center, a height that would have made it the tallest building in Europe. However, it remains entirely unclear whether this project will ever be realized, as it is currently being investigated by US Attorney General Robert Mueller regarding Russia's alleged interference in the 2016 US presidential election.
Nevertheless, Donald Trump himself, as well as his entourage, insist to the public that they had no involvement in the creation of the "Trump Tower Moscow" project. They call it a "rough plan" in which Michael Cohen, Trump's former lawyer, and his Russian-born aide, Felix Sater, were interested.
Rudolph Giuliani, currently the lawyer for the 45th US President, insisted in an interview with The New Yorker that the proposal to build a building in Moscow City is still under consideration, and that no plans or even a building design exist yet. However, BuzzFeed News published a series of documents that eloquently prove otherwise.
A bit of history
Trump first conceived the idea of building his own skyscraper in Moscow back in 1987, during a visit to the Russian capital. Initially, the project was planned to be developed in collaboration with the Soviet travel agency Goscom Intourist. The collapse of the USSR later did not dampen Trump's interest in building a tower in Moscow. However, for a long time, the idea remained just an idea.
The first steps toward its implementation were taken in 2005. They were marked by the signing of a one-year contract between the Trump Organization and the real estate company, Bayrock Group. Among the executives of this organization was the aforementioned Felix Sater, a Russian businessman with, according to some reports, ties to criminal circles. The document sealed the parties' agreement to develop a skyscraper construction project in Moscow.
F. Sater proposed building a "Trump Tower Moscow" on a site in a former industrial zone near the center of the Russian capital, in Moscow City, which was then just beginning to undergo rapid development. But these plans fell through, although Sater remained in touch with Trump. And after the 2013 Miss Universe beauty pageant, held in Krasnogorsk, near Moscow, Trump himself tweeted, "TRUMP TOWER MOSCOW is next."
Was there a Trump Tower Moscow project?
In 2015, Trump Tower Moscow moved even closer to becoming a reality. The skyscraper's construction was conceived as a lucrative business venture, promising to generate substantial profits. In early autumn 2015, the first sketches of the tower were created by a New York architect, whose name remains unknown. He proposed constructing a glass building with a hundred floors, the upper tiers of which would be adorned with the Trump Organization logo.
Negotiations for the construction of this skyscraper were conducted with Moscow developer Andrey Rozov. In a letter addressed to Michael Cohen, he expressed his readiness to undertake the project and found it highly intriguing. He stated that the tower was to be a magnificent building and a true architectural triumph, and that Moscow was a must-have for Europe's tallest building. Therefore, according to preliminary agreements, Rozov would handle all matters directly related to the building's construction, while the other party would provide the renowned Trump brand. They would also retain control over the skyscraper's infrastructure, including restaurants and bars.
In late October of that year, Trump signed a letter stating that the future skyscraper would house approximately 250 luxury residential condominiums. It also planned to house a hotel, approximately 15 stories high, with 150 rooms. Trump Tower Moscow would also include office and commercial space, as well as an elite fitness center and spa. The American side expressed a desire to name it "The Spa by Ivanka Trump."
Of all the residential units included in the project, the most expensive was to be the penthouse, valued at approximately $50 million. According to preliminary plans, it was intended to be a gift to current Russian President Vladimir Putin. BuzzFeed News, which published sketches and documents for the Trump Tower Moscow project that supposedly did not exist, reports that Cohen discussed the existing construction plans with representative Dmitry Peskov.
Felix Sater once mentioned that his plan was to give Putin a penthouse with a market value of $50 million as a gift, and then sell the remaining apartments to oligarchs for $250 million, as they would all want to own property in the same building as Vladimir Vladimirovich. But the idea fell apart in 2016, when the media began publishing information about a Russian attack on the Democratic National Committee, which immediately made Trump's ties to Russia, just as he was starting his political career, compromising.
Financial responsibilities
The plan created by the Trump Organization outlined clear financial responsibilities between the parties. A letter of intent addressed to Rozov and signed by Donald Trump stated that the Trump Organization was to receive a $4 million advance. The next payment was to be 25% upon fulfillment of the licensing agreement. Another 25% was due to the Trump Organization upon the allocation of the site for the skyscraper's construction, and the final 50% was to be deposited into its account either one week before construction began or two years after the licensing agreement was fulfilled (whichever came first).
Furthermore, the letter stated that Trump's company would receive a percentage of sales of condominiums in the skyscraper. The amount of this percentage would be directly related to the transaction price:
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up to $100 million – 5%;
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$100-250 million – 4%;
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$250-500 million – 3%;
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$500-1000 million – 2%;
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more than $1 billion – 1%.
Additionally, the Trump Organization expected to receive 3% of the rent on office and commercial space, as well as the same percentage of revenue from the spa, fitness center, food and beverage sales, and conference fees.
The letter also specified the Trump Organization's revenue for operating Trump Tower Moscow for a quarter-century. For the first five years of operation, the company would receive 3% of the hotel's monthly revenue, and 4% for the next 20 years. It was also planned that, based on annual negotiations, the management company would receive a bonus of 20% of the hotel's gross profit.
However, all those involved in these far-reaching plans, including Trump, Rozov, and Giuliani, declined to comment on these matters. The White House also declined to comment on this information.
2016 US Presidential Election
Trump's election campaign began in June 2015. According to several sources, the aforementioned letter of intent to build a supertall building in Moscow City was signed several months later, in October 2015.
Throughout the election campaign, he repeatedly spoke positively of Vladimir Putin's activities, but also emphasized the lack of business relations with Russia. However, as early as November 2018, Donald Trump openly told the media that he had indeed considered building a tower in the Russian capital, adding, "Everyone knew about it," and "There would be nothing wrong with it."
According to Michael Cohen, Trump's interest in the potential tower project persisted throughout much of the campaign, which concluded in June 2016. Trump's current attorney, in turn, noted that the skyscraper, tentatively named Trump Tower Moscow, remained an "active proposal" throughout the entire campaign, and Trump recalled discussing the possibility of bringing this idea to life with Cohen in the fall of 2016. According to Cohen, Trump said the debate continued from the day he decided to run until the day he won.
The House Intelligence Committee declassified a report on Trump's cooperation with Russia during the presidential election. According to the report, there is no evidence that Trump's business dealings prior to the campaign became the basis for his ties with Moscow during the campaign itself.
What's happening today?
The ongoing investigation into Russia's alleged interference in the 2016 US presidential election led to M. Cohen pleading guilty in late autumn 2018 and admitting that he had lied about Trump Tower Moscow to a special Senate committee investigating Donald Trump's ties to Russia during the election campaign the previous year.
During his trial, he explained to Congress that his claims that the Trump Tower Moscow project was abandoned in 2016 due to a failure to obtain the necessary permits were false. This was a necessary measure to ensure consistency with Trump's political statements. In fact, he continued to explore the possibility of constructing a skyscraper in Moscow City until June 2016 and even held direct negotiations with a Kremlin press service representative. Cohen also admitted that he had entertained the idea of flying to Moscow himself, but never followed through. He added that he had offered to personally fly to the Russian capital to close the deal with Trump while he was still campaigning. Michael Cohen also mentioned that he had personally briefed Trump on the project on numerous occasions, as well as members of his family.
Rudolph Giuliani responded to the unfolding situation with a statement he made in early 2019. He emphasized that he had never denied Trump's associates any ties to Russia, and had only spoken of such ties with the 45th US President himself. Later, in an interview with The New Yorker, the lawyer stated that the Trump Tower Moscow project was only in its early stages of development. However, even earlier, it was revealed that the FBI had initiated an investigation into Donald Trump.
Letter of intent
Back in late 2018, Trump and Giuliani declared the "Moscow Project" to be nothing more than a real estate project. They didn't deny the existence of a letter of intent to move forward, but claimed no one had signed it. However, a copy of the document provided to CNN was allegedly signed by Trump and Rozov. The latter, it should be noted, was apparently acting as the US president's Russian partner. Giuliani then declared the aforementioned letter of intent to be meaningless, as it had achieved nothing. However, he insisted he hadn't denied signing it.
