- Oct 17, 2011
- 33,237
- 36,550
- Country
- United States
- Faith
- Atheist
- Marital Status
- Legal Union (Other)
A Kremlin-Linked Firm Invested Millions in Kentucky. Were They After More Than Money?
In the little-used park just off I-64, Braidy would build the largest aluminum mill constructed in the U.S. in nearly four decades. The $1.7 billion plant would take aluminum slab and roll it into the material used in everything from cars and planes to soda cans. It would employ 600 full-time workers earning twice the average salary in the region, Bouchard said, and create 18,000 other jobs across the state.
There was just one problem: Bouchard still needed a major investor to make the vision a reality. After months of searching, the only option was problematic. Rusal, the Russian aluminum giant, was tailor-made to join forces on the project. But it was under sanctions imposed by the U.S. Treasury Department. Its billionaire owner, Oleg Deripaska, a close ally of Russian President Vladimir Putin’s, was being investigated by special counsel Robert Mueller for his potential involvement in the effort to swing the 2016 presidential election. The Treasury sanctions—punishment for the Kremlin’s “malign activities” around the world, including “attempting to subvert Western democracies”—made it illegal for Americans to do business with Rusal or its boss.
after a long talk with his lawyers about the risks of even discussing such a partnership, [Bouchard] traveled to Zurich in January 2019 for what he calls a “meet and greet” with a Rusal sales executive. Over dinner at La Rôtisserie, a restaurant with a view of the city’s 12th century cathedral, the executive told Bouchard that the company was ready to do business. “They said, ‘If we get the sanctions off, let’s meet again,’” he recalls. “And I said, ‘Wow, that’s interesting.’”
To free itself from sanctions, Rusal fielded a team of high-paid lobbyists for an intense, months-long effort in Washington. One of the targets was Kentucky’s own Mitch McConnell, the Senate majority leader, who helped thwart a bipartisan push to keep the sanctions in place. Since May, two of McConnell’s former staffers have lobbied Congress on behalf of Braidy, according to filings. Ahead of the 2018 midterm elections, one of Rusal’s longtime major shareholders, Len Blavatnik, contributed more than $1 million through his companies to a GOP campaign fund tied to McConnell.
...
The Senate vote on Rusal came the next day. Eleven GOP Senators joined 46 Democrats in voting to uphold the sanctions, but it wasn’t enough. The critics needed a 60-vote supermajority to override the Trump Administration, but fell short by three votes—two of which were cast by McConnell and Kentucky’s Republican junior Senator, Rand Paul. The following day, 136 House Republicans broke ranks and joined House Democrats to oppose lifting sanctions, a rare but symbolic rebuke.
Ten days later, the sanctions on Rusal were formally lifted. Eleven weeks after that, Rusal announced its deal with Braidy.
In the little-used park just off I-64, Braidy would build the largest aluminum mill constructed in the U.S. in nearly four decades. The $1.7 billion plant would take aluminum slab and roll it into the material used in everything from cars and planes to soda cans. It would employ 600 full-time workers earning twice the average salary in the region, Bouchard said, and create 18,000 other jobs across the state.
There was just one problem: Bouchard still needed a major investor to make the vision a reality. After months of searching, the only option was problematic. Rusal, the Russian aluminum giant, was tailor-made to join forces on the project. But it was under sanctions imposed by the U.S. Treasury Department. Its billionaire owner, Oleg Deripaska, a close ally of Russian President Vladimir Putin’s, was being investigated by special counsel Robert Mueller for his potential involvement in the effort to swing the 2016 presidential election. The Treasury sanctions—punishment for the Kremlin’s “malign activities” around the world, including “attempting to subvert Western democracies”—made it illegal for Americans to do business with Rusal or its boss.
after a long talk with his lawyers about the risks of even discussing such a partnership, [Bouchard] traveled to Zurich in January 2019 for what he calls a “meet and greet” with a Rusal sales executive. Over dinner at La Rôtisserie, a restaurant with a view of the city’s 12th century cathedral, the executive told Bouchard that the company was ready to do business. “They said, ‘If we get the sanctions off, let’s meet again,’” he recalls. “And I said, ‘Wow, that’s interesting.’”
To free itself from sanctions, Rusal fielded a team of high-paid lobbyists for an intense, months-long effort in Washington. One of the targets was Kentucky’s own Mitch McConnell, the Senate majority leader, who helped thwart a bipartisan push to keep the sanctions in place. Since May, two of McConnell’s former staffers have lobbied Congress on behalf of Braidy, according to filings. Ahead of the 2018 midterm elections, one of Rusal’s longtime major shareholders, Len Blavatnik, contributed more than $1 million through his companies to a GOP campaign fund tied to McConnell.
...
The Senate vote on Rusal came the next day. Eleven GOP Senators joined 46 Democrats in voting to uphold the sanctions, but it wasn’t enough. The critics needed a 60-vote supermajority to override the Trump Administration, but fell short by three votes—two of which were cast by McConnell and Kentucky’s Republican junior Senator, Rand Paul. The following day, 136 House Republicans broke ranks and joined House Democrats to oppose lifting sanctions, a rare but symbolic rebuke.
Ten days later, the sanctions on Rusal were formally lifted. Eleven weeks after that, Rusal announced its deal with Braidy.
