A 2016 FBI investigation discovered Hunter Biden's involvement in a Ukrainian energy venture that almost secured $120 million while his father was Vice President.
Just The News reported that Hunter Biden and his business associates planned a new venture, Burnham Energy Security LLC, in 2016. It was to be a significant move, capitalized with resources from Ukrainian oligarch Mykola Zlochevsky. Zlochevsky, the owner of Burisma Holdings, aimed to position Burisma as a global energy leader.
The venture intended to leverage Zlochevsky's $120 million in funding for exploration and leasehold improvements over three years. This news was unearthed from 3.39 million documents seized from Biden and his partners, which were later handed over to congressional investigators.
Devon Archer, Biden’s former business partner, provided these documents to aid the ongoing impeachment inquiry against President Joe Biden.
The arrangements took place during a period when Hunter Biden not only served on Burisma's board but also when his father, Joe Biden, was the Vice President of the United States, overseeing U.S.-Ukraine relations. Despite the high-profile time frame, the venture went unnoticed in both Hunter Biden's reported laptop contents and the 2019 impeachment proceedings.
Burnham Energy Security LLC was exploiting tax benefits by setting up in Liechtenstein. This locale was chosen possibly to obscure the connections with Zlochevsky, who then faced various legal challenges.
Yet, it could offer substantial tax advantages benefiting all parties involved, enriching their chances of global expansion into markets like Mexico and Kazakhstan.
During the venture’s formation, Jason Galanis, involved in the legal discussions for Burnham, was arrested for securities fraud in September 2015.
This arrest was a significant setback, as Galanis testified that while Mykola was to fund the venture entirely, Burnham would contribute its investment banking expertise and political connections.
This period also witnessed a notable disruption from a speech by the U.S. Ambassador to Ukraine, Geoffrey Pyatt, who criticized certain Ukrainian practices.
Following this, Burisma rushed to hire Blue Star Strategies, a lobbying firm to manage the fallout. Galanis later mentioned in his Congressional testimony, “At the end of the day, the other non-legal protection is the relationship cover of DA and HB,” indicating the reliance on political connections to shield the venture.
The project essentially depended not just on financial commitments but also on leveraging the Biden name. Hunter was guaranteed 25% of the net revenues from Burnham Energy Security LLC’s operations without contributing any capital—an agreement highlighting his role within the venture.
The Yuzivska Block in Eastern Ukraine was a key site for the proposed energy expansion. However, no reports confirm the deal's progression beyond the planning phase after the disruptions in late 2015.
Vadym Pozharskyi, noted as Zlochevsky’s top lieutenant, once indicated in a 2015 email, “For credibility ‘Ukrainian’ purposes you both would be better.” He further discussed legal structures in another email, signaling the legal complexities involved: “Burnham Energy Security Fund: we started a legal discussion between our lawyers and legal counsels from your side.”
Jason Galanis, reflecting on his involvement, expressed remorse in his statement to investigators. “To build this financial platform, I engaged in unlawful conduct. Our companies were entrusted with $11 billion of union members' pension fund money, whose trust I betrayed. I pleaded guilty, and I had 8 years in Federal custody to reflect on my actions, and I'm profoundly sorry for my role in these actions.”
It remains unclear if the Burnham Energy Security LLC deal ever materialized after the challenges of Fall 2015.
This development ties into a broader discussion of business conduct, political influence, and the intricate dance between personal gain and public scrutiny in international energy deals.
In conclusion, the uncovered FBI findings throw a harsh light on the complex interplay of international business deals, political influence, and legal strategies. Although the project faced major obstacles and might not have been fully realized, the documents and testimonies provide a deep dive into the potentially significant consequences of combining business with political leverage, all under the shadow of familial connections in high political office.