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Vladimir Putin, the ruler of Russia, wants to ban fracking in other countries. He is very concerned about their environments. If you frack, Putin told a global economic conference last year, “black stuff comes out of the tap.”

Alexey Miller — a longtime Putin crony going back to the early 1990s, when they stole the money that was supposed to buy food for the starving city of Leningrad, who now oversees the Russian state-owned gas company Gazprom — strongly supports his friend on this issue. He would like to see an EU-wide ban on fracking, and the Gazprom board is with him 100 percent. “The production of shale gas is associated with significant environmental risks, in particular the hazard of surface and underground water contamination with chemicals applied in the production process,” they warned the world in 2011. “This fact has already caused the prohibition of the shale gas development and production in France.”

Alexandr Medvedev, the general director of Gazprom Export, is also very supportive of efforts to ban fracking in Europe. “I would like to quote the president of France, who said that as long as he’s president, he will not allow the production of shale gas in France,” Medvedev said in a television interview last August. “The cost of production of shale gas in Europe is incomparably higher than in the U.S. and also the situation with the environment is different, because in the U.S. its main production is in unpopulated areas, which are quite available in the U.S., but in Europe we can’t find such big unpopulated areas with reach to the water.”

The fact that Kremlin opposition to European fracking has nothing to do with environmental concerns should be clear even to the dullest among us, because Russia has massive fracking projects of its own underway in Siberia. The real goal is to keep Europe dependent upon Russia for its fuel supply. Natural-gas prices in Europe are quadruple those prevailing in the United States, and by maintaining a near-monopoly on overpriced European natural-gas imports, the Putin regime assures itself of a vast source of revenue. This allows it to rule and rearm Russia without permitting the freedom necessary to develop the country’s human potential. Furthermore, so long as Europe is kept critically dependent upon Russia for fuel, Moscow can paralyze and render ineffective any Western response to its plans for conquest, whose initial steps are currently being demonstrated in Ukraine. More, and much worse, is certain to follow so long as Europe remains helpless.

In a recent four-hour television appearance in Moscow, Putin explicitly embraced Kremlin fascist ideologue Alexander Dugin’s grand design of creating a united totalitarian Eurasia, “from Lisbon to Vladivostok.” If he can maintain control of Europe’s critical fuel supplies, he just might be able to pull it off.

So it should come as no surprise that the Putin regime is pulling out all the stops in fomenting the global anti-fracking movement, with Europe as its central target. Leading the propaganda campaign has been RT News, Russia’s state-owned television network, which broadcasts around the world in English and other languages.

Here is a small sample of RT’s incessant anti-fracking drumbeat:

Wrecking the Earth: Fracking has grave radiation risks few talk about, August 28, 2013

Fracking fluid linked to fish die-off, August 29, 2013

US fracking wells annually produce 280bn gallons of toxic waste water destroying environment – report, October 4, 2013

Chevron halts search for shale gas in Romania following public outrage, October 17, 2013

“We say no to shale gas”: World unites against fracking, October 20, 2013

Money & influence: Oil & gas co’s hush threats of fracking, November 21, 2013

Fracking dilemma: Fresh water or cheap gas? The latter “is not likely to happen,” November 25, 2013

Fracking nightmare: “Like living in a very heavy industrial zone,” November 29, 2013

Massachusetts seeks 10-yr ban on gas fracking after series of Texas quakes, November 30, 2011

City of Dallas effectively bans fracking, December 13, 2013

Hazardous fracking waste: Activists alarm at proposal to move it by river, December 16, 2013

Fracking chemicals disrupt human hormone functions, study claims, December 17, 2013

RosneftExecutives at a Bermudan firm funneling money to U.S. environmentalists run investment funds with Russian tycoons

BY:
January 27, 2015 5:00 am

A shadowy Bermudan company that has funneled tens of millions of dollars to anti-fracking environmentalist groups in the United States is run by executives with deep ties to Russian oil interests and offshore money laundering schemes involving members of President Vladimir Putin’s inner circle.

One of those executives, Nicholas Hoskins, is a director at a hedge fund management firm that has invested heavily in Russian oil and gas. He is also senior counsel at the Bermudan law firm Wakefield Quin and the vice president of a London-based investment firm whose president until recently chaired the board of the state-owned Russian oil company Rosneft.

In addition to those roles, Hoskins is a director at a company called Klein Ltd. No one knows where that firm’s money comes from. Its only publicly documented activities have been transfers of $23 million to U.S. environmentalist groups that push policies that would hamstring surging American oil and gas production, which has hurt Russia’s energy-reliant economy.

With oil prices plunging as a result of a fracking-induced oil glut in the United States, experts say the links between Russian oil interests, secretive foreign political donors, and high-profile American environmentalists suggest Russia may be backing anti-fracking efforts in the United States.

The interest of Russian oil companies and American environmentalist financiers intersect at a Bermuda-based law firm called Wakefield Quin. The firm acts as a corporate registered agent, providing office space for clients, and, for some, “managing the day to day affairs,” according to its website.

As many as 20 companies and investment funds with ties to the Russian government are Wakefield Quin clients. Many list the firm’s address on official documentation.

Klein Ltd. also shares that address. Documents filed with Bermuda’s registrar of companies list just two individuals associated with the company: Hoskins, Wakefield Quin senior counsel and managing director, and Marlies Smith, a corporate administrator at the firm.

According to documents filed with Bermuda’s registrar of companies, Klein Ltd. was incorporated in March 2011 “exclusively for philanthropic purposes,” meaning “no part of the net earnings … inures to the benefit of any private shareholder or individual.”

“The company does not propose to carry on business in Bermuda,” the documents stated.

The only publicly available documentation of any business conducted by Klein Ltd. were two Internal Revenue Service filings by the California-based Sea Change Foundation, which showed that Klein had contributed $23 million to the group in 2010 and 2011. Klein Ltd. was responsible for more than 40 percent of contributions to Sea Change during those years.

The foundation passed those millions along to some of the nation’s most prominent and politically active environmentalist groups. The Sierra Club, the Natural Resource Defense Council, Food and Water Watch, the League of Conservation Voters, and the Center for American Progress were among the recipients of Sea Change’s $100 million in grants in 2010 and 2011.

Neither Wakefield Quin nor Sea Change responded to multiple requests for more information about their relationships with Klein Ltd.

“None of this foreign corporation’s funding is disclosed in any way,” the Senate Environment and Public Works Committee wrote of the company in a report last year. “This is clearly a deceitful way to hide the source of millions of dollars that are active in our system, attempting to effect political change.”

The Sierra Club, which received nearly $8.5 million from Sea Change in 2010 and 2011, launched its “Beyond Natural Gas” campaign the following year. The effort has become one of the largest and best-funded environmentalist campaigns combating fracking and the extraction of natural gas in general.

Sea Change’s “skeletal staff quietly shovels tens of millions of dollars out the door annually to combat climate change. And that’s pretty much all it does,” noted Inside Philanthropy, which awarded the foundation its “sharpest laser focus in grantmaking” award last year.

Nathaniel Simons and his wife run the foundation and are, except for Klein Ltd., its only donors. Simons, a hedge fund millionaire who commutes to work across San Francisco Bay aboard a 50-foot yacht, also runs a venture capital firm that invests in companies that benefit from environmental and energy policies that Sea Change grantees promote.

Simons himself has ties to Klein Ltd. Several Wakefield Quin attorneys are listed as directors of hedge funds that his firm manages, and in which Sea Change has assets.

Senior counsel Rod Forrest was listed on documents filed with the Securities and Exchange Commission as a director of two investment funds, Medallion International Ltd. and Meritage Holdings Ltd., in which Sea Change had tens of millions invested while it received money from Klein Ltd.

Simons’ company runs the Meritage Fund. The Medallion Fund is run by Renaissance Technologies, the hedge fund management firm run by his father, billionaire and Democratic mega-donor Jim Simons. Both funds listed Wakefield Quin’s Hamilton, Bermuda, address on SEC filings.

Wakefield Quin’s Hoskins and Smith, as well as a number of other employees of Wakefield Quin, have worked in some capacity for companies or investment funds owned by or tied to Russian state-owned corporations and high-level officials in the country.

Hoskins, Forrest, and another Wakefield employee named Penny Cornell were all listed as executives of Spectrum Partners Ltd., a fund with offices in Moscow, Cypress, and Bermuda, Cornell at the address of Wakefield Quin’s offices.

According to a performance report for one of Spectrum Partners’ funds, its portfolio consisted of “Russian and CIS [former Soviet state] securities and securities outside of Russia or CIS but having significant economic or business involvement with Russia and/or CIS.”

As of 2008, more than half of the fund’s holdings were in the oil and gas sectors.

Numerous executives at Wakefield Quin have ties to Russian oil and gas companies, including Rosneft, which is majority-owned by the Russian government and in 2013 became the largest oil company in the world.

Hoskins is the vice president of a London-based company called Marcuard Services Limited, and a member of the firm’s board, according to its website.

The company’s president, and the chairman of its parent company, Bermuda-based Marcuard Holding Limited, is Hans-Joerg Rudloff. Rudloff is also a former vice-chairman of the Rosneft’s board.

Hoskins is also a director at a Bermuda-based subsidiary of Russian investment bank Troika Dialog. That firm organized an initial public offering for Timan Oil & Gas, which is run by Russian oligarch Alexander Lebedev.

The Environmental Policy Alliance, which provided the Washington Free Beacon with a copy of an upcoming report on Klein Ltd.’s Kremlin ties, said Wakefield Quin’s ties to environmental financiers and Russian oil barons merit closer scrutiny.

“The American public deserves to know whether environmentalists are attacking US energy companies at the behest of a Russian government that would like nothing more than to see their international competition weakened,” Will Coggin, a senior research analyst at the EPA, said in an emailed statement.

“In the face of mounting evidence, environmental groups are going to have to start answering hard questions about their international funding sources,” Coggin said.

The overlap between executives at firms with ties to Russian oil interests and a multi-million-dollar donor to U.S. environmentalist groups has some experts worried that Russians may be replicating anti-fracking tactics used in Europe to attack the practice in the United States.

“I have met allies who can report that Russia, as part of their sophisticated information and disinformation operations, engaged actively with so-called non-governmental organizations—environmental organizations working against shale gas—to maintain European dependence on imported Russian gas,” Anders Fogh Rasmussen, formerly NATO’s secretary general, said last year.

It is unlikely that the Kremlin is directly involved in doing so in the United States, according to Ron Arnold of the Center for the Defense of Free Enterprise.

“If anybody in Russia is behind all the secretive Bermuda investment house and law firm action, it’s most likely some oligarch bidding against U.S. competition,” he said in an email.

Arnold, the author of Undue Influence: Wealthy Foundations, Grant Driven Environmental Groups, and Zealous Bureaucrats That Control Your Future, said that the opacity of Klein Ltd.’s involvement with the Sea Change Foundation exemplifies attempts to shield the source of donations to such groups.

“In my experience of trying to penetrate offshore money funnels for U.S. leftist foundations and green groups, I have found that Liechtenstein, Panama and Bermuda are the Big Three green equivalents of the Cayman Islands for hedge fund managers—totally opaque and impervious to my specially designed research tools,” Arnold said.

SM Putin Fracking

As a senior archivist for the KGB’s foreign-intelligence directorate, VasiliMitrokhin had access to a treasure trove of information. He unveiled those secrets after defecting to Britain in 1992.

One such secret concerned the “active measures” — the lies –  the KGB had used against the West during the Cold War. In the 1980s, for example, the KGB spread a couple of particularly pernicious rumors. It claimed the United States had manufactured the AIDS virus and that rich Americans were murdering children in the Third World for organ-harvesting purposes.

Framed by faux science and ideologically screened “experts,” and harnessing anti-American sentiments, these rumors gained huge traction. In October 1986, the Sunday Express, a British newspaper, reported the AIDS conspiracy, giving it credence, on its front page. In September 1988, the EU parliament passed a motion condemning trafficking in “baby parts.” As Christopher Andrew and Vasili Mitrokhin, summed it up in The Sword and the Shield: The Mitrokhin Archive and the Secret History of the KGB: “Thus fortified by spurious scientific jargon, the AIDS fabrication not merely swept through the Third World, but took in some of the Western media as well.”

Today, Russia is waging another active-measures campaign. But this time Russia’s target is fracking. The facts are clear. Fracking, which is revolutionizing energy politics, offers a cheap, new source of global power. But that’s not all. In offering Europe independence from Russian energy exports, fracking poses a direct challenge to Russia. Because Putin depends for revenue on his oil and natural gas-exports, fracking’s cheaper alternative presents him with a big problem. Indeed, lower oil prices are already driving Russia’s economy into recession.

Facing this threat, Russian intelligence has implemented a three-pronged strategy.

First, Russia has ramped up covert payments to environmental groups in the West. By supporting well-intentioned environmentalists with hard cash (often without their knowledge), Russian intelligence gains Western mouthpieces to petition Western audiences in its favor. Based on Russia’s prior record, we can also assume that Putin has funneled money through intermediaries to sympathetic Western politicians.

Second, the Russian SVR (CIA equivalent) has directed its spies to gather intelligence on the American energy industry. Just last Monday, the Justice Department charged two SVR cover officers and an SVR agent with spying on “United States’ efforts to develop alternative energy resources.”  This is what Russian intelligence officers do when they’re not offering polonium tea (the means by which, in 2006, Russian contract agents acting under official orders murdered a defector in London).

Finally, Russian intelligence’s biggest cover operation — its RT “news” outlet — is undertaking a massive propaganda campaign against fracking. Take Max Keiser, one of RT’s human puppets in the U.K. (see my take

Aware that Western populations are largely uninformed about fracking, Russia is able by its various agitations to “guide” lightly informed citizens toward its agenda.

And it is finding success. Last week, to placate environmental groups, Britain’s Labour Party forced the government to introduce new regulations on fracking.

Such efforts will only increase. Facing the collapse of its energy-export market, the destruction of its energy-blackmail capabilities, and the depletion of its foreign-exchange reserves, Russia regards fracking as a critical national-security threat. And now more than ever, for President Putin, probably no option is off-limits.

Don’t rule out a fracking “accident.”

Tom Rogan, based in Washington, D.C., writes for the Daily Telegraph. He’s a panelist on The McLaughlin Group and holds the Tony Blankley Chair at the Steamboat Institute. He tweets @TomRtweets.

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