Hires Powerhouse Lobbyist To Plead His Case with Ex-Im Bank

Billionaire Russian businessman Gennady Timchenko, a long-time associate of Russian President Vladimir Putin, hopes buy as many as 11 aircraft from Gulfstream Aerospace of Savannah, Georgia, but wants a loan guarantee from the Export-Import bank to do so. Reuters reports the plane order would bolster the fleet of Timchenko's Finland-based luxury jet charterer, Airfix Aviation Oy, whose aircraft have reportedly transported Kremlin-linked businessmen and Russian government officials.

Timchenko is one of Russia's richest oligarchs, the billionaire business barons who emerged following the fall of the Soviet Union, some of whom enjoy close ties to Putin. Timchenko's quest for U.S. government-backed funding is perfectly legal, but comes as subsidiaries of Timchenko's flagship firm, global commodities trader Gunvor Group, are under investigation by the U.S. Department of Justice. Gunvor said in May the investigation relates to oil trading activities but has not provided further details. The Department of Justice would not comment.

To smooth the path for the financial backing and allay possible U.S. government concerns about him, Timchenko hired lobbyists from powerhouse Washington law firm Patton Boggs, according to emails and documents viewed by Reuters.

Patton Boggs acknowledged its work on Timchenko's behalf. It told Reuters it has held preliminary talks with Ex-Im Bank, officials from two Senate offices and a U.S. congressional policy advisor, without naming the officials. The firm said the talks with Ex-Im Bank involved a loan guarantee for a single jet that Airfix has already ordered.

"These discussions were preliminary," said Patton Boggs partner Joseph Brand in an email.

A U.S. official, who spoke on condition of anonymity, said that Patton Boggs partners told him in May that Airfix would seek Ex-Im Bank backing to buy 11 Gulfstream jets. An order of that size could carry a list value of anywhere between $173 million and $710 million, based on the catalogue prices of Gulfstream planes. The jets range from $15.7 million to $64.5 million apiece.

Any future Ex-Im Bank deal for Timchenko or his firms would require him to pass a detailed vetting process the bank carries out on potential customers, which can include sharing information with several U.S. government agencies.

"We represent one of Gennady Timchenko's companies, Airfix Aviation," Patton Boggs partner Laurence Harris wrote in a May e-mail, seen by Reuters, in which he requested a meeting with the U.S. government official. "We know you have concerns about Gennady. We'd like to talk to you about this."

Patton Boggs later met with the U.S. official, and the lobbyists sought to address what they said were "unfounded allegations" about Timchenko, including that he was part of a cadre of businessmen who potentially benefit from close ties to Putin.

Timchenko, who owns 44 percent of Gunvor, has seen his wealth multiply over the past decade after Gunvor captured deals to market crude exports from state-run Russian energy firms. He now has a fortune estimated by Forbes at $14.1 billion.

The Russian billionaire declined to be interviewed by Reuters, but has consistently denied claims that his relationship with Putin has led to any benefits for his businesses.

"To connect my success to the fact that I know (Putin) is nonsense," Timchenko told Swiss newspaper Neue Zurcher Zeitung in April.

Timchenko has known Putin since at least 1990, he told the paper.

Helsinki-based Airfix lists a fleet of 14 aircraft for charter, including five French-made Dassault Falcon aircraft.

Airfix also operates Gulfstreams, including a top-of-the-line G650. That eight-passenger jet is billed as the world's fastest civilian aircraft and boasts a 7,000-mile range. On its web site, the firm offers "carefree premium travel" on jets stocked with "fine wines." In 2011, Russian newspaper Novaya Gazeta reported that top Russian officials and state-run companies have used its services.

If Timchenko's company passed Ex-Im Bank's vetting, it would enable the oligarch to point to a form of U.S. government approval. The bank, a federal credit agency, promotes exports by backing foreign buyers with "the full faith and credit of the U.S. government," according to its website. It loaned or guaranteed funding of around $38.5 billion in 2012, including $600 million for business jets and helicopters.

FMI: www.reuters.com