Trump Fundraiser Offered Russian Gas Company Plan to Get Sanctions Lifted for $26 Million
Trump Fundraiser Offered Russian Gas Company Plan to Get Sanctions Lifted for $26 Million
April 20 2018, 12:44 p.m.
Shortly after President Donald Trump was inaugurated last year, top Republican fundraiser Elliott Broidy offered Russian gas giant Novatek a $26 million lobbying plan aimed at removing the company from a U.S. sanctions list, according to documents obtained by The Intercept.
Broidy is a Trump associate who was deputy finance chair of the Republican National Committee until he resigned last week amid reports that he had agreed to pay $1.6 million to a former Playboy model with whom he had an affair. But in February 2017, when he laid out his lobbying proposal for Novatek, he was acting as a well-connected businessman and longtime Republican donor in a bid to help the Russian company avoid
sanctionsimposed by the Obama administration. The 2014 sanctions were aimed at punishing Russia for annexing Crimea and supporting pro-Russia separatists in eastern Ukraine.
In February 2017, Broidy sent a draft of the plan by email to attorney Andrei Baev, then a Moscow- and London-based lawyer who represented major Russian energy companies for the firm Chadbourne & Parke LLP. Baev had already been communicating with Novatek about finding a way to lift U.S. sanctions.
Broidy proposed arranging meetings with key White House and congressional leaders and generating op-eds and other articles favorable to the Russian company, along with a full suite of lobbying activities to be undertaken by consultants brought on board. Yet even as he offered those services, Broidy was adamant that his company, Fieldcrest Advisors LLC, would not perform lobbying services but would hire others to do it. He suggested that parties to the deal sign a sweeping non-disclosure agreement that would shield their work from public scrutiny.
The plan is outlined in a series of emails and other documents obtained by The Intercept. Broidy and Baev did not dispute the authenticity of the exchanges but said the deal was never consummated.
In March,
Bloomberg News reported that Broidy “offered last year to help a Moscow-based lawyer” — Baev — “get Russian companies removed from a U.S. sanctions list.” The news outlet did not identify the Russian firms or provide details of that proposal.
“At the time when I was a partner of Chadbourne & Parke LLP I had very preliminary discussions with Elliott Broidy with regard to possible engagement of him as a strategic consultant with regard to a possible instruction by one of my corporate clients. This instruction has never materialized,” Baev told The Intercept in an email. “Nor did I or Chadbourne provide any services to any other individual or entity in connection with any attempt to remove any Russian company or an individual from the US sanctions list.”
Broidy told The Intercept through a spokesperson that Baev had approached him about the proposal, but that Broidy had decided not to go through with it for political reasons. “At the time Mr. Baev had approached us he was then a managing partner of a major U.S. law firm and the new Administration had indicated an interest in normalizing relations with Russia and potentially easing sanctions,” Broidy told The Intercept in a statement provided by his spokesperson. “Subsequently, the geopolitical landscape changed and I made the decision not to pursue it.”
Baev was introduced to Broidy in October 2016, before Trump was elected. At the time, Broidy was serving as a top fundraiser for the Trump campaign; he would later become vice chair of Trump’s inaugural committee before transitioning to his most recent position at the RNC.
Broidy began sharing drafts of his lobbying plan with Baev by December. That month, he also sent Baev a
Wall Street Journal article headlined “France Poised for Pro-Russia Pivot.”
The article describes how François Fillon and Marine Le Pen, the center-right and far-right candidates, respectively, during the 2017 French presidential election, both opposed punitive sanctions levied by French President François Hollande against Russia for its activity in eastern Ukraine. “With U.S. President-elect Donald Trump also promising friendlier relations with Moscow, Western agreement on sanctions against Russia could crumble,” the article says. Fillon and Le Pen were eventually defeated by France’s current president, Emmanuel Macron.
As the discussions continued, Sen. John McCain, R-Ariz., and others began pushing legislation that would take the decision on whether to lift sanctions out of Trump’s hands and put Congress in control, a development that Novatek apparently recognized as a threat given that Broidy’s power to affect policy lay in his presumed influence with Trump.
In January 2017, Baev wrote to Broidy asking whether McCain’s bill would put their efforts at risk. “The client is asking how our road map would be affected by a new bill sponsored by Senator McCain to codify the existing sanctions and to impose new ones as a matter of federal law which the Administration will not be in a position to lift without consent of the US Congress. What are your thoughts on this?”
Broidy responded: “We need to convince McCain to abandon or water down the bill while we push the admin and other members of Senate to water down and vote no. Not a game changer.
In a proposal dated February 23, 2017, Broidy told Baev that he had found “many influential experts, lobbyists, and attorneys” who were “willing and able to work immediately on your behalf and on behalf of Novatek.” The document, marked “strictly-confidential, attorney client privilege,” lays out a plan for a two-year influence campaign that Broidy claimed could dilute McCain’s bill and lift sanctions by February 2019.
The plan outlines a 25-step “Roadmap” that includes getting buy-in from congressional Foreign Relations committees, as well as outreach to the White House, the Treasury, and the Commerce, State, and Justice departments.
It also lists “issues for Congress” that would have to be overcome in order to implement the plan, including progress on agreements to resolve the situation in Ukraine. Congress would also “need information as to whether Russia did indeed hack DNC and attempt to influence US Presidential election,” according to the document.
Broidy added: “Congress would require agreement with Russia that Russia will not do so again.”
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