clear
Thursday September 3rd, 2015 5:29PM

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 ( 8 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 ( 8 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 ( 8 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 ( 8 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 ( 8 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 ( 8 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 ( 8 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 ( 8 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 ( 8 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 ( 8 months ago )
Politics
The Latest: Attorney for couples says defiant Kentucky clerk holds the keys to her jail cell
ASHLAND, Ky. (AP) — The latest on the county clerk in Kentucky who has refused to issue marriage licenses since the Supreme Court legalized gay marriage (all times local):4:20 p.m.An attorney for the...
4:29PM ( 1 hour ago )
Trump signs GOP loyalty pledge to back party's 2016 nominee, forego potential third-party bid
WASHINGTON (AP) — Presidential candidate Donald Trump ruled out the prospect of a third-party White House bid Thursday and vowed to support the Republican Party's nominee — whoever it may be.The billi...
3:59PM ( 1 hour ago )
Judge nixes 4-game 'Deflategate' suspension for Tom Brady; NFL quickly appeals to 2nd Circuit
NEW YORK (AP) — Tom Brady learned Thursday he will start the season on the field after a judge lifted the league's four-game suspension of the star quarterback for a scandal over deflated footballs, s...
3:45PM ( 1 hour ago )
College Board reports lower SAT scores, most test-takers missing college-ready benchmark
WASHINGTON (AP) — Student performance on the SAT college entrance exam is lagging, continuing a mostly downward trend over the last five years.The College Board says in a report that a record number o...
8:14AM ( 9 hours ago )
1 Marine killed, 9 others hurt in helicopter hard landing at Camp Lejeune, North Carolina
CAMP LEJEUNE, N.C. (AP) — One Marine has been killed and 9 others were hurt when a helicopter made a hard landing at Camp Lejeune in North Carolina.The CH-53E Super Stallion helicopter came down hard...
7:41AM ( 9 hours ago )