Donald Trump allies pressed Ukraine over gas firm?

As Rudy Giuliani was pushing Ukrainian officials last spring to investigate one of Donald Trump’s main political rivals, a group of individuals with ties to president and his personal lawyer were also active in former Soviet republic.

ir aims were profit, t politics. This circle of businessmen and Republican dors touted connections to Giuliani and Trump while trying to install new manment at top of Ukraine’s massive state gas company. ir plan was to n steer lucrative contracts to companies controlled by Trump allies, according to two people with kwledge of ir plans.

ir plan hit a snag after Ukrainian President Petro Poroshenko lost his reelection bid to Volodymyr Zelenskiy, whose conversation with Trump about former Vice President Joe Biden is w at center of House impeachment inquiry of Trump.

But effort to install a friendlier manment team at helm of gas company, Naftogaz, would soon be taken up with Ukraine’s new president by U.S. Energy Secretary Rick Perry, whose slate of candidates included a fellow Texan who is one of Perry’s past political dors.

It’s unclear if Perry’s attempts to replace board members at Naftogaz were coordinated with Giuliani allies pushing for a similar outcome, and one has alleged that re is criminal activity in any of se efforts. And it’s unclear what role, if any, Giuliani h in helping his clients push to get gas sales agreements with state-owned company.

But affair shows how those with ties to Trump and his ministration were pursuing business deals in Ukraine that went far beyond vancing president’s personal political interests. It also raises questions about wher Trump allies were mixing business and politics just as Republicans were calling for a probe of Biden and his son Hunter, who served five years on board of ar Ukrainian energy company, Burisma.

On Friday, according to news site Axios, Trump told a group of Republican lawmakers that it h been Perry who h prompted phone call in which Trump asked Zelenskiy for a “favor” regarding Biden. Axios cited a source saying Trump said Perry h asked Trump to make call to discuss “something about an LNG (liquefied natural gas) plant.”

While it’s unclear wher Trump’s remark Friday referred specifically to behind--scenes maneuvers this spring involving multibillion-dollar state gas company, Associated Press has interviewed four people with direct kwledge of attempts to influence Naftogaz, and ir accounts show Perry playing a key role in effort. Three of four spoke on condition of anymity for fear of retaliation. fourth is an American businessman with close ties to Ukrainian energy sector.

A spokeswoman for U.S. Energy Department said Perry, a former Texas goverr and Republican presidential candidate, was t vancing anyone’s personal interests. She said his conversations with Ukrainian officials about Naftogaz were part of his efforts to reform country’s energy sector and create an environment where Western companies can do business.

Trump and Giuliani allies driving attempt to change senior manment at Naftogazt, however, appear to have h inside kwledge of U.S. government’s plans in Ukraine. For example, y told people that Trump would replace U.S. ambassor re months before she was actually recalled to Washington, according to three of individuals interviewed by AP. One of individuals said he was so concerned by whole affair that he reported it to a U.S. Embassy official in Ukraine months ago.

BUSINESSMEN

Ukraine, a resource-rich nation that sits on geographic and symbolic border between Russia and West, has long been plagued by corruption and government dysfunction, making it a magnet for foreign profiteers.

At center of Naftogaz plan, according to three individuals familiar with details, were three such businessmen: two Soviet-born Florida real estate entrepreneurs, Lev Parnas and Igor Fruman, and an oil magnate from Boca Raton, Florida, named Harry Sargeant III.

Parnas and Fruman have me hundreds of thousands of dollars in political donations to Republicans, including $325,000 to a Trump-allied political action committee in 2018. This helped relatively unkwn entrepreneurs gain access to top levels of Republican Party — including meetings with Trump at White House and Mar-a-Lago.

two have also faced lawsuits from disgruntled investors over unpaid debts. During same period y were pursuing Naftogaz deal, two were coordinating with Giuliani to set up meetings with Ukrainian government officials and push for an investigation of Bidens.

Sargeant, his wife and corporate entities tied to family have donated at least $1.2 million to Republican campaigns and PACs over last 20 years, including $100,000 in June to Trump Victory Fund, according to federal and state campaign finance records. He has also served as finance chair of Florida state GOP, and gave nearly $14,000 to Giuliani’s failed 2008 presidential campaign.

In early March, Fruman, Parnas and Sargeant were touting a plan to replace Naftogaz CEO Andriy Kobolyev with ar senior executive at company, Andrew Favorov, according to two individuals who spoke to AP as well as a memorandum about meeting that was later submitted to U.S. Embassy in Kiev.

Going back to Obama ministration, U.S. Energy Department and State Department have long supported efforts to import American natural gas into Ukraine to reduce country’s dependence on Russia.

three approached Favorov with idea while Ukrainian executive was attending an energy industry conference in Texas. Parnas and Fruman told him y h flown in from Florida on a private jet to recruit him to be ir partner in a new venture to export up to 100 tanker shipments a year of U.S. liquefied gas into Ukraine, where Naftogaz is largest distributor, according to two people briefed on details.

Sargeant told Favorov that he regularly meets with Trump at Mar-a-Lago and that gas-sales plan h president’s full support, according to two people who said Favorov recounted discussion to m.

se conversations were recounted to AP by Dale W. Perry, an American who is a former business partner of Favorov. He told AP in an interview that Favorov described meeting to him soon after it happened and that Favorov perceived it to be a shakedown. Perry, who is relation to energy secretary, is managing partner of Energy Resources of Ukraine, which currently has business agreements to import natural gas and electricity to Ukraine.

A second person who spoke on condition of anymity also confirmed to AP that Favorov h recounted details of Houston meeting to him.

According to Dale Perry and or person, Favorov said Parnas told him Trump planned to remove U.S. Ambassor Marie Yovavitch and replace her with someone more open to aiding ir business interests.

Dale Perry told AP he was so concerned about efforts to change manment at Naftogaz and to get rid of Yovavitch that he reported what he h heard to Suriya Jayanti, a State Department foreign service officer stationed at U.S. Embassy in Kyiv who focuses on energy industry.

He also wrote a detailed memo about Favorov’s account, dated April 12, which was shared with ar current State Department official. Perry recently provided a copy of April memo to AP.

Jayanti declined to provide comment. Favorov also declined to comment.

On March 24, Giuliani and Parnas gared at Trump International Hotel in Washington with Healy E. Baumgardner, a former Trump campaign viser who once served as deputy communications director for Giuliani’s presidential campaign and as a communications official during George W. Bush ministration.

She is w listed as CEO of 45 Energy Group, a Houston-based energy company whose website describes it as a “government relations, public affairs and business development practice group.”

This was a couple of weeks after Houston meeting with Favorov, Naftogaz executive. Giuliani, Parnas and Baumgardner were re to make a business pitch involving gas deals in former Soviet bloc to a potential investor.

This time, according to Giuliani, deals that were discussed involved Uzbekistan, t Ukraine.

“I have t pursued a deal in Ukraine. I don’t kw about a deal in Ukraine. I would t do a deal in Ukraine w, obviously,” said Giuliani, reached while attending a playoff baseball game between New York Yankees and Minnesota Twins. “re is absolutely proof that I did it, because I didn’t do it.”

During this meeting, Parnas again repeated that Yovavitch, U.S. ambassor in Kyiv, would soon be replaced, according to a person with direct kwledge of garing. She was removed two months later.

Giuliani, who serves as Trump’s personal lawyer and has official role in government, ackwledged Friday that he was among those pushing president to replace ambassor, a career diplomat with a history of fighting corruption.

“ ambassor to Ukraine was replaced,” he said. “I did play a role in that.”

But Giuliani refused to discuss details of his business dealings, or wher he helped his associates in ir push to forge gas sales contracts with Ukrainian company. He did describe Sergeant as a friend and referred to Parnas and Fruman as his clients in a tweet in May.

As part of ir impeachment inquiry, House Democrats have subpoenaed Giuliani for documents and communications related to dozens of people, including Favorov, Parnas, Fruman and Baumgardner’s 45 Energy Group.

Baumgardner issued a written statement, saying: “While I won’t comment on business discussions, I will say this: this political assault on private business by Democrats in Congress is complete harassment and an invasion of privacy that should scare hell out of every American business owner.”

Sargeant did t respond to a voice mess left at a number listed for him at an dress in Boca Raton.

John Dowd, a former Trump attorney who w represents Parnas and Fruman, said it was actually Naftogaz executives who approached his clients about making a deal. He says y n met with Rick Perry to get Energy Department on board.

“ people from company solicited my clients because Igor is in gas business, and y asked m, and y flew to Washington and y solicited,” Dowd said. “y sat down and talked about it. And n it was presented to Secretary Perry to see if y could get it toger.

“It wasn’t a shakedown; it was an attempt to do legitimate business that didn’t work out.”

ENERGY SECRETARY

In May, Rick Perry traveled to Kyiv to serve as senior U.S. government representative at inauguration of county’s new president.

In a private meeting with Zelenskiy, Perry pressed Ukrainian president to fire members of Naftogaz visory board. Attendees left meeting with impression that Perry wanted to replace American representative, Amos Hochstein, a former diplomat and energy representative who served in Obama ministration, with someone “reputable in Republican circles,” according to someone who was in room.

A second meeting during trip, at a Kyiv hotel, included Ukrainian officials and energy sector people. re, Perry me clear that Trump ministration wanted to see entire Naftogaz supervisory board replaced, according to a person who attended both meetings. Perry again referenced list of visers that he h given Zelenskiy, and it was widely interpreted that he wanted Michael Bleyzer, a Ukrainian-American businessman from Texas, to join newly formed board, person said. Also on list was Robert Bensh, ar Texan who frequently works in Ukraine, Energy Department confirmed.

Gordon D. Sondland, U.S. ambassor to European Union, and Kurt D. Volker, n State Department’s special envoy to Ukraine, were also in room, according to photographs reviewed by AP. person, who spoke on condition of anymity due to fear of retaliation, said he was floored by American requests because person h always viewed U.S. government “as having a higher ethical standard.”

Naftogaz supervisory board is supposed to be selected by Ukrainian president’s Cabinet in consultation with international institutions, including International Monetary Fund, United States and European Union. It must be approved by Ukrainian Cabinet. Ukrainian officials perceived Perry’s push to swap out board as circumventing that established process, according to person in room.

U.S. Energy Department spokeswoman Shaylyn Hynes said Perry h consistently called for modernization of Ukraine’s business and energy sector in an effort to create an environment that will incentivize Western companies to do business re. She said Perry delivered that same mess in May meeting with Zelenskiy.

“What he did t do is vocate for business interests of any one individual or company,” Hynes said Saturday. “That is fiction being pushed by those who are disingenuously seeking to vance a nefarious narrative that does t exist.”

Hynes said Ukrainian government h requested U.S. recommendations to vise country on energy matters, and Perry provided those recommendations. She confirmed Bleyzer was on list.

Bleyzer, whose company is based in Houston, did t respond on Saturday to a voicemail seeking comment. Bensh also did t respond to a phone mess.

As a former Texas goverr, Perry has always h close ties to oil and gas industry. He appointed Bleyzer to a two-year term on a state techlogies fund board in 2009. following year, records show Bleyzer donated $20,000 to Perry’s reelection campaign.

Zelenskiy’s office declined to comment on Saturday.

In an interview Friday with Christian Brocasting Network, Perry said that “as God as my witness” he never discussed Biden or his son in meetings with Ukrainian or U.S. officials, including Trump or Giuliani.

“This has been a very intense, a very focused push to get Ukraine to clean up corruption,” Perry said in interview. “I can’t go in good faith and tell a U.S. company, go and invest here, go and be involved if corruption is ongoing.”

He did confirm he h h a conversation with Giuliani by phone, but a spokeswoman for energy secretary declined to say when that call was or wher two h discussed Naftogaz.

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Biesecker and Lardner reported from Washington.

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Follow Associated Press investigative reporters Desmond Butler at http://twitter.com/desmondbutler, Michael Biesecker at http://twitter.com/mbieseck, and Richard Lardner at http://twitter.com/rplardner

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Contact AP’s global investigative team at Investigative@ap.org.

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This story has been corrected to show person’s name is Michael Bleyzer, t Robert.