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| Times, May 3, 2016; Neil Buckley & Richard Milne, French Probe Danske Bank Link to Alleged Russian Fraud Financial Times, Oct. 12, 2017. Peter Hobson, How Europe Became a Russian Gangster Playground The Moscow Times, May 12, 2016. Rachel Louise Ensign & Serena Ng, Law Firms Accounts Pose Money-Laundering Risk The Wall Street Journal, Dec. 26, 2016. billion entered the UK each month without being recorded in official statistics, and that half of that money comes from Russia. 346 Hermitage Capital’s investigation of the Klyuev organized crime group found that it used EU banks to launder portions of the $230 million the group stole through fraudulent tax refunds. 347 Of that amount, some $39 million ended up in Germany, $33 million in France, and $30 million in Britain, where it was reportedly spent on yachts, private jets, designer dresses, and boarding school fees. 348 All of this illicit money is reportedly a boon for real estate agents, lawyers, and luxury service providers in the West. 349 Recent years have seen some progress in cracking down on Russian organized crime in Europe, especially Spain, and uncovering illicit money flowing out of Russia. But the size of the problem still far outweighs the response, particularly in prime destinations for illicit funds like Britain and the United States, where corrupt Russian government officials and criminals can easily hide and protect the assets they have stolen from the Russian people. In the United States, current law allows the true owners of shell corporations to remain anonymous and hidden from public sight. In addition, opaque bank accounts held bylaw firms are used to launder illicit funds into the country to purchase real estate and other assets, making the United States an attractive conduit and destination for the ill-gotten gains of corrupt Russian officials and other bad actors around the world. 350 THE LEVERAGING OF ENERGY SUPPLIES FOR INFLUENCE Russia’s use of energy to influence politics in Europe is part of the Kremlin’s energy superpower strategy, coined by Igor Shuvalov when he was Putin’s chief economic aide. As Putin’s sher- pa to the 2005 G summit, Shuvalov developed anew energy policy approach for Russia and proposed that the Kremlin make the European countries an offer at the upcoming G summit Moscow would take care of ensuring a flow of fuel sufficient to supply every house in Europe, and in return Europe would show friendship, understanding, and loyalty, as Silvio Berlusconi had. The concept appealed very much to Putin. It allowed him to demonstrate anew, more pragmatic approach to relations with Europe. He did not want to talk to European leaders about human rights, freedom of speech, or Chechnya. He was tired of hearing only criticism. The only way to silence the liberals was to steer the conversation toward business matters. Putin appointed Shuvalov as his chief economic negotiator, whereupon the latter began to represent Russia in the Gin the WTO, VerDate Mar 15 2010 04:06 Jan 09, 2018 Jkt PO 00000 Frm 00064 Fmt 6601 Sfmt 6601 S:\FULL COMMITTEE\HEARING FILES\COMMITTEE PRINT 2018\HENRY\JAN. 9 REPORT FOREI-42327 with DISTILLER 59 351 Zygar, All the Kremlin’s Men, at 118-19 (emphasis added. Statement of Heather Conley, Senior Vice President for Europe, Eurasia and the Arctic, Center for Strategic and International Studies, The Modus Operandi and Toolbox of Russia and Other Autocracies for Undermining Democracies Throughout the World, Hearing before the US. Senate Committee on the Judiciary, Subcommittee on Crime and Terrorism, at 3, Mar. 15, 2017. 353 Ibid. 354 Heather Conley et al., The Kremlin Playbook Understanding Russian Influence in Central and Eastern Europe, Center for Strategic and International Studies, at 7 (Oct. 2016). Michael Ratner et al., Europe’s Energy Security Options and Challenges to Natural Gas Download 0.63 Mb. Share with your friends:
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