Burisma Holdings

Burisma Holdings
Private
Industry Oil and gas
Founded 2002
Founder Mykola Zlochevsky
Headquarters Limassol, Cyprus
Key people
 Alan Apter (Non-executive chairman), Aleksander Kwaśniewski (Independent director), Hunter Biden (Independent director), Devon Archer (Independent director)
Website http://burisma.com/

Burisma Holdings is an energy exploration and production company operating in the Ukrainian oil and gas market since 2002. The head office is in Limassol, Cyprus.[1]

History

Burisma Holdings was founded in 2002 by Ukrainian businessman Mykola Zlochevskyi and Nikolay Lysin. It is owned by Zlochevskyi.

Operations

Burisma Holdings is organised into three major business groupings: Burisma Ukraine, Burisma Eurasia and Burisma Geothermal.

Burisma Ukraine

The company holds 20 licenses for hydrocarbon production in all main oil and gas basins of Ukraine, including Dnieper-Donets and Carpathian. The fields are connected to nearby gas pipelines. 87% of EBITDA is generated in the Dnieper-Donets basin. 91% of Burisma Holdings' production volume comes from the Dnieper-Donets basin, which contains 82% of the natural gas reserves in Ukraine. The company has a 30% share among independent domestic oil and gas producers.

Burisma Eurasia

Burisma Eurasia operates in the oil and gas industry in Central Asia, providing industrial engineering work, including search and exploration, drilling and measurement-while-drilling, formation evaluation, maintenance of wells and production control, information technology and consulting.[2]

Burisma Eurasia established operations in Kazakhstan in 2014. In 2015, Burisma Eurasia signed agreements with JSC NC KazMunayGas and its affiliate companies, and performs drilling and other contracts for state-owned companies.

Burisma Geothermal

Founded in 2015, Burisma Geothermal specializes in geothermal energy development and electricity production. Burisma Geothermal acquired one of the largest continental geothermal projects. The firm signed an agreement with the international group Gesto Investimento e Gestão (GIG) to invest in three projects: Montenero, Mazzolla and Cinigiano. Burisma plans to invest €175 mln in geothermal projects in Italy.

Burisma Geothermal is a member Geothermal Energy Association,[3] Bundesverband Geothermie[4] and Rete Geotermica.[5]

Board of directors

Aleksander Kwaśniewski, former President of the Republic of Poland, was appointed to the board in January 2014.[6]

A number of non-Ukrainian directors were appointed in 2014, including Aleksander Kwaśniewski, former President of the Republic of Poland, appointed in January 2014.[6] Other appointees include Ukrainian politician Vadym Pozharskyi and financial manager Devon Archer,[7] who was a partner at the US investment firm Rosemont Seneca Partners.[8]

On April 18, 2014, Burisma Holdings announced Hunter Biden's appointment to the board. On their website, Biden wrote that he believed Burisma was important to the economy of Ukraine and that he would be "consulting the company on matters of transparency, corporate governance and responsibility, international expansion and other priorities”.[9] He became an acting member of the board of directors on May 12, 2014.[10]

Press reaction

After the appointments were announced, press articles raised concerns about Biden's potential conflicts with US government positions.[11][12] CNN stated that "The [Biden] appointment caused a stir, given that it occurred around the same time that his father and the White House were engaged in diplomatic missions in the region to wean Ukraine off Russian energy sources. Critics argued that Hunter's work for a country promoting Ukrainian energy independence was a blatant conflict of interest."[13]

Biden traveled to Kiev on April 22, 2014 and urged the Ukraine government "... to reduce its dependence on Russia for supplies of natural gas".[14]

The White House dismissed nepotism charges against Biden,[11][12] and Press Secretary Jay Carney stated that "the Biden family are obviously private citizens, and where they work does not reflect an endorsement by the administration or by the vice president or president," a comment that was supported by Michael Sawkiw of the Ukrainian Congress Committee of America.[15]

Morgan Williams, director of the US-Ukraine Business Council, discerned a conflict, though he had seen no direct evidence of one. He argued it was a problem of appearance, as there was an "unspoken" American tradition that "frowns" on "close family members of government working for organizations with business links to active politics."[15] At the same time, Melanie Sloan, Executive Director for the non-profit Citizens for Responsibility and Ethics in Washington (CREW) stated that “unless there is solid evidence that Hunter Biden got his job to influence American foreign policy, there’s no clear line that has been crossed”.[16]

International Forum on Energy Security for the Future

Burisma Group and Prince Albert II of Monaco (Prince Albert II of Monaco Foundation) co-founded the first international initiative on energy security focused on alternative energy sources in Europe.[17] The Forum strives to become the largest public institution of green diplomacy in continental Europe, supporting dialogue between states, governments, business and civil society about the necessity of upgrading standards and renewable energy. Held on June 2, 2016, at the Yacht Club De Monaco, the Forum was attended by more than 200 guests, including European politicians, owners of Europe’s largest energy companies, energy experts and journalists.

The Prince stated, “Energy security planning has to be done in a long-term perspective. We should pay more attention to the renewable energy sources that would enable getting cheap energy without polluting the environment“.[18]

Among key speakers were Aleksander Kwaśniewski (President of Poland, 1995-2005), Joschka Fischer (Vice-Chancellor of Germany, 1998-2005), Andris Piebalgs (EU Commissioner for Energy, 2004 and 2009), T. J. Glautier (US Vice-Secretary of Energy 1999-2001, President of TJG Energy Associates), Biden, Ireneusz Bil (Director at the Foundation of Aleksander Kwaśniewski "Amicus Europae"), Jean-Arnold Vinois (European Commission representative on Energy Policy issues) and others.

The Forum was used as a platform to present to the general public the English version of the book Mission Ukraine by Polish publicist Maciej Olchawa.[19] It reflects the vision of the European Community and Ukraine´s place in it. Particular attention is given to European integration issues, Ukraine´s place and global leaders.

"It is a unique occasion for an event to bring together people of different social backgrounds over the idea of European energy security. The International Forum founded by the Prince Albert II of Monaco Foundation and Burisma Group isn’t just an attempt to unite socially responsible businesses and civil society, but also an opportunity to provide a discussion platform for a wide range of ideas, which will result in a comprehensive, long-term and substantial work on a new strategy for energy security in Europe", noted Zlochevskyi.

The United States Agency for International Development (USAID)

Following meetings with United States Agency for International Development (USAID) officials in Washington, Burisma Holdings signed a Memorandum of Understanding with USAID's Municipal Energy Reform Project in Ukraine in October 2014.

In October 2015, Burisma Holdings joined the four-year USAID Municipal Energy Reform Project, implemented by the International Resources group to enhance Ukraine’s energy security.[20]

Burisma Holdings and the MHR Project conducted educational seminars for journalists in nine Ukrainian cities to raise awareness and understanding of energy efficiency issues.

In October 2015, the MHR Project Project invited Burisma Holdings to continue cooperation on transforming Ukraine’s municipal heating into a financially viable, well-managed, and fairly regulated sector. The Project is in conjunction with the National Government of Ukraine and local governments. Its goal is to strengthen the legal, regulatory, and institutional framework leading to the improvement of heating services, tariff regulations, and compliance with European Union legislation in this sphere.

References

  1. ↑ Bloomberg Business.
  2. ↑ New horizons: Burisma Holdings, the largest independent gas producer in Ukraine, expands into Kazakhstan, Kyiv Post, Dec. 19, 2014.
  3. ↑ Geothermal energy associations.
  4. ↑ Bundesverband Geothermie.
  5. ↑ La tecnologia utilizzata consente ingombri contenuti. L’unico componente di dimensioni significative è il condensatore ad aria, che rappresenta, dunque, la parte visibile dell’impianto, Rete Geotermica.
  6. 1 2 (Ukrainian) Former President of Poland also has a position in the oil and gas holding deputy Kliuiev, Ukrayinska Pravda (14 May 2014)
  7. ↑ Biden's Son, Kerry Family Friend Join Ukrainian Gas Producer's Board - Ukraine's Burisma Holdings Is Controlled by Former Energy Official Under Yanukovych, The Wall Street Journal, 14 May 2014
  8. ↑ Another Biden Has Waded Into the Ukraine Crisis - The vice president's son has taken a new role in the country's energy industry, National Journal, 13 May 2014.
  9. ↑ Biden’s Son, Polish Ex-President Quietly Sign On To Ukrainian Gas Company, Buzzfeed, 14 May 2014.
  10. ↑ Executive profile: Robert Hunter Biden Bloomberg BusinessWeek, New York, NY: Bloomberg L.P., Undated.
  11. 1 2 Hunter Biden’s new job at a Ukrainian gas company is a problem for U.S. soft power, The Washington Post, 14 May 2014
  12. 1 2 White House nixes Biden son 'nepotism charge', China Daily, 14 May 2014
  13. ↑ Peligri, Justin (October 17, 2014). "Who is Hunter Biden?". CNN. Retrieved 2015-03-07.
  14. ↑ Biden Offers Strong Support to Ukraine and Issues a Sharp Rebuke to Russia, The New York Times, 22. April 2014
  15. 1 2 "Muted response to Biden son's Ukraine job". Deutsche Welle. dw.de. August 2, 1997. Retrieved May 19, 2014.
  16. ↑ Braun, Stephanie (October 17, 2014). "Ukrainian energy firm hires Biden's son as lawyer". The Washington Times. Associated Press. Retrieved 2015-03-07.
  17. ↑ "Albert II Prince of Monaco and Burisma held the first International Forum on Energy Security in Europe".
  18. ↑ "Князь Монако Альбер II і Burisma готові підтримувати енергетичні реформи в Україні (ФОТО, ВІДЕО)".
  19. ↑ "Aleksander Kwaśniewski presented a book "Mission Ukraine" at the Energy Forum of Nikolay Zlochevskyi in Monaco » Accents » economy news » Kyivweekly.com.ua".
  20. ↑ Burisma Holdings, the largest independent gas producer in Ukraine, has signed a Memorandum of Understanding with the USAID Municipal Energy Reform Project (MERP) in Ukraine.
This article is issued from Wikipedia - version of the 9/28/2016. The text is available under the Creative Commons Attribution/Share Alike but additional terms may apply for the media files.