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 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. Now it is owned and controlled 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 located in close proximity to major gas pipelines and are fully connected to them. 87% of EBITDA is generated in the Dnieper-Donets basin. 91% of Burisma Holdings' production volumes comes from the Dnieper-Donets basin, which contains 82% of the total natural gas reserves in Ukraine. The company has a 30% market share among independent domestic oil and gas producers.
Burisma Eurasia
Burisma Eurasia operates in the oil and gas industry in Central Asia, providing a range of 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 last year. In 2015, Burisma Eurasia signed a number of 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 is a member of geothermal energy associations, including Geothermal Energy Association,[3] Bundesverband Geothermie,[4] and Rete Geotermica.[5]
Board of directors
A number of non-Ukrainian businessmen were appointed to Burisma's board of directors in 2014. Among the first was Aleksander Kwaśniewski, former President of the Republic of Poland, appointed in January 2014.[6] Other April appointees included Ukrainian politician Vadym Pozharskyi as an advisor, and financial manager Devon Archer,[7] who was a partner at the US investment firm Rosemont Seneca Partners, along with Hunter Biden.[8]
On April 18, 2014, Burisma Holdings announced Hunter Biden's appointment to the board of directors. On their website, Biden wrote that he would 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, a number of press articles raised concerns about Hunter Biden's interests conflicting with US government positions.[11][12] CNN explained 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, argued there could be a conflict with Hunter Biden's appointment, though he had seen no direct evidence of one. He argued it was a problem of appearance, as there was an "unspoken" American tradition which "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]
The United States Agency for International Development (USAID)
Following meetings with the United States Agency for International Development (USAID) officials in Washington, Burisma Holdings signed a Memorandum of Understanding with the USAID Municipal Energy Reform Project in Ukraine in October 2014.
At the end of 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 2014.[17]
Over six months in 2014, Burisma Holdings and the MHR Project conducted a number of educative 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
- ↑ Bloomberg Business.
- ↑ New horizons: Burisma Holdings, the largest independent gas producer in Ukraine, expands into Kazakhstan, Kyiv Post, Dec. 19, 2014.
- ↑ Geothermal energy associations.
- ↑ Bundesverband Geothermie.
- ↑ 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.
- 1 2 (Ukrainian) Former President of Poland also has a position in the oil and gas holding deputy Kliuiev, Ukrayinska Pravda (14 May 2014)
- ↑ 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
- ↑ 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.
- ↑ Biden’s Son, Polish Ex-President Quietly Sign On To Ukrainian Gas Company, Buzzfeed, 14 May 2014.
- ↑ Executive profile: Robert Hunter Biden Bloomberg BusinessWeek, New York, NY: Bloomberg L.P., Undated.
- 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
- 1 2 White House nixes Biden son 'nepotism charge', China Daily, 14 May 2014
- ↑ Peligri, Justin (October 17, 2014). "Who is Hunter Biden?". CNN. Retrieved 2015-03-07.
- ↑ Biden Offers Strong Support to Ukraine and Issues a Sharp Rebuke to Russia, The New York Times, 22. April 2014
- 1 2 "Muted response to Biden son's Ukraine job". Deutsche Welle (dw.de). August 2, 1997. Retrieved May 19, 2014.
- ↑ Braun, Stephanie (October 17, 2014). "Ukrainian energy firm hires Biden's son as lawyer". The Washington Times (Associated Press). Retrieved 2015-03-07.
- ↑ 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.