clear
Wednesday July 29th, 2015 5:37AM

Russian fund with US advisers eludes sanctions

By The Associated Press
WASHINGTON (AP) -- As President Barack Obama warns of stepped-up economic punishments against Russia for its military incursions inside Ukraine, U.S. sanctions have so far avoided one prominent financial institution: the $10 billion Russian Direct Investment Fund, which has partnered with brand-name American companies and whose advisers include top U.S. and European private equity executives.<br /> <br /> Despite its ties to Russian state businesses and officials, the Russian Direct Investment Fund has managed to operate unaffected by the sanctions imposed by the U.S. and EU in response to Russian President Vladimir Putin's military actions in Ukraine. The Ukrainian government said Russian troops invaded southeastern Ukraine on Thursday with two columns of tanks and military vehicles.<br /> <br /> The fund has been working to help replace Western investors in Russia with money from Asia and the Middle East. In one recent deal, the fund and its partners paid $700 million to a Russian petrochemical company that is partially owned by a sanctioned Russian businessman. The fund's head, Kirill Dmitriev, told the Associated Press that the company with which it did the deal, Sibur, has not been targeted by sanctions but otherwise declined to discuss fund investments.<br /> <br /> Along with its team of Russian managers, the fund's international advisory board includes private equity executives Stephen Schwarzman of The Blackstone Group LP, Leon Black of Apollo Global Management LLC and David Bonderman of TPG Capital LP.<br /> <br /> The fund has so far escaped the effects from sanctions because it has not been explicitly targeted. The situation illustrates the Obama administration's struggle to achieve conflicting goals - punishing Putin's circle without damaging American companies doing business in Russia.<br /> <br /> "We can't have a situation where a business entity is immune from (sanctions) designation because it does some good things and some bad things," said Jimmy Gurule, a senior Treasury Department enforcement official in the Bush administration and law professor at Notre Dame University.<br /> <br /> Obama said Thursday that he expects U.S. and European allies to take additional steps to respond to the Russian military's apparent invasion of Ukraine. "Capital is fleeing. Investors are increasingly staying out," Obama said.<br /> <br /> A Republican-backed bill in the Senate would extend sanctions to executives, companies and investment funds, including the $10 billion Russian fund, and penalize Americans who work with them, according to congressional staffers.
© Copyright 2015 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Judge denies motions to move, delay Tsarnaev trial
Lawyers for Boston Marathon bombing suspect Dzhokhar Tsarnaev asked a federal appeals court Wednesday to overturn a judge's decision to not move his upcoming trial out of state.
10:02PM ( 6 months ago )
High court to adopt electronic filing of cases
The Supreme Court is belatedly developing an electronic filing system similar to those used in courts around the country, Chief Justice John Roberts said Wednesday in his annual end-of-year report.
7:57PM ( 6 months ago )
Storm brings snow, cold to West for New Year's
A blustery winter storm dumped snow and ice across the West on Wednesday, making driving treacherous in the mountains from California to the Rockies and forcing residents and party-goers in some usually sun-soaked cities to bundle up for a frosty New Year's.
5:19PM ( 6 months ago )
U.S. News
State DOT awards $48M contract for NE Ga. road project
The state Department of Transportation has awarded a $47.8 million contract for nine miles of work on a northeast Georgia road.
9:37AM ( 6 months ago )
Business News
Grass fire impacts rush hour traffic on 985
Rush hour traffic on I-985 was slowed by a grass fire Wednesay afternoon with one lane closed while firefighters fought the blaze.
10:19PM ( 6 months ago )
Hall County conviction, sentencing to be reviewed by SCOGA
The State Supreme Court has agreed to hear the appeal of a Hall County man when they reconvene in January.
2:37PM ( 6 months ago )
Maysville man dies from Banks County wreck
The Georgia State Patrol reports that alcohol and/or drugs were factors a single-vehicle wreck that claimed the life of a Maysville man in Banks County Tuesday night.
11:07AM ( 6 months ago )
Local/State News
GOP leader regrets talk to white supremacists; party leaders rally around him
House Republican leaders rallied around one of their own, Whip Steve Scalise, on Tuesday after he said he regrets speaking 12 years ago to a white supremacist organization and condemns the views of such groups.
6:08PM ( 6 months ago )
Conviction of Putin foe sets off protest in Moscow
President Vladimir Putin's chief political foe was convicted along with his brother on Tuesday in a fraud case widely seen as a vendetta by the Kremlin, triggering one of Russia's boldest anti-government demonstrations in years.
6:03PM ( 6 months ago )
More Georgians signing up for health insurance
A federal report says more Georgians have selected health insurance plans through a federally facilitated marketplace.
4:16PM ( 6 months ago )
Politics
The Latest on missing boys: Search crews enter 5th night
JUPITER, Fla. (AP) — The latest on the search for the two Florida teens who went missing while on a fishing trip off Florida's Atlantic coast:7:35 p.m.The Coast Guard says it is moving forward with a...
7:41PM ( 9 hours ago )
Kerry implores Congress to back Iran nuclear deal
WASHINGTON (AP) — Secretary of State John Kerry warned skeptical lawmakers not to nix the contentious nuclear deal with Iran, insisting that it includes strict inspections and other safeguards to dete...
7:34PM ( 10 hours ago )
Court orders EPA to redo air-pollution limits in 13 states
WASHINGTON (AP) — A federal appeals court on Tuesday ordered the Environmental Protection Agency to relax some limits it set on smokestack emissions that cross state lines and taint downwind areas wit...
6:16PM ( 11 hours ago )
Short-term highway deal punts another fight until fall
WASHINGTON (AP) — House and Senate Republicans acknowledged Tuesday a long-term highway deal is out of reach for now, and embraced a three-month extension that will punt yet another messy fight into t...
4:30PM ( 13 hours ago )
Strong home sales, limited supply lift US home prices in May
WASHINGTON (AP) — U.S. home prices rose steadily in May, pushed higher by a healthy increase in sales this year.The Standard & Poor's/Case-Shiller 20-city home price index climbed 4.9 percent in May f...
12:05PM ( 17 hours ago )