Treasury Secretary Steven Mnuchin’s decision to ease sanctions on companies affiliated with a blacklisted Russian oligarch has drawn skepticism from congressional Democrats, a new letter shows.
A group of seven Democratic committee chairs are questioning the Treasury Department’s agreement to lift sanctions on three companies owned by oligarch Oleg Deripaska, who was sanctioned for his relationship with Russian President Vladimir Putin and “has abetted the Putin Regime’s malign activity against the United States,” as they put it. The letter marks the first act of oversight related to Russia policy for the Foreign Affairs Chairman Eliot Engel since the New York Democrat took over the panel this week.
“As the Chairs of committees with oversight jurisdiction over the U.S. response to Russia’s attempts to interfere in our elections and other hostile actions, we have a number of concerns about the agreement that the U.S. has reached with Mr. Deripaska,” the lawmakers wrote. “We request that you be available for a meeting with all interested Members, in an appropriate setting to allow for a full discussion of all aspects of the agreement, the sanctions termination, and the impact that these decisions would have on the U.S. effort to end Russia’s malign activities aimed at our country.”
The letter was signed by Ways and Means Chairman Richard Neal, D-Mass., Financial Services chairwoman Maxine Waters, D-Calif., Intelligence Chairman Adam Schiff, D-Mass., Judiciary Chairman Jerrold Nadler, D-N.Y., and Homeland Security Chairman Bennie Thompson, D-Miss.
Mnuchin announced in December that three companies owned by Deripaska qualified for removal from a U.S. blacklist created under a law passed in response to Russian interference in the 2016 elections.
“Treasury sanctioned these companies because of their ownership and control by sanctioned Russian oligarch Oleg Deripaska, not for the conduct of the companies themselves,” he explained in a Dec. 19 announcement. “These companies have committed to significantly diminish Deripaska’s ownership and sever his control. The companies will be subject to ongoing compliance and will face severe consequences if they fail to comply.”
The lawmakers are skeptical of the agreement. “[T]he agreement appears to keep intact significant ownership of EN+ by Mr. Deripaska, while reportedly transferring some shares and financial interests to the Kremlin-linked sanctioned Russian bank VTB,” they wrote.
They discouraged Mnuchin from implementing the sanctions until after they can review the decision, which would normally be eligible to take effect on Jan. 18 under the language of the Countering America’s Adversaries Through Sanctions Act.
“The notification to Congress was delivered just prior to an adjournment for an extended recess and during which time a government shutdown ensued, which makes it difficult to complete our review of this matter within the 30-day period provided in CAATSA,” they wrote.
The letter stops short of launching a formal investigation. “Asking for a member briefing is a pretty basic oversight request,” a Foreign Affairs Committee aide said.
