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On Sun, Jun 1, 2014 at 8:12 PM, Heather King <hking@bsfllp.com> wrote:

> Are people avail to join Ryan and I on the 10am call tomorrow so we can
> discuss the press inquiries?
>
>
>
> Heather King, Esq.
> Partner
> BOIES, SCHILLER & FLEXNER LLP
> 5301 Wisconsin Avenue, N.W.
> Washington, D.C. 20015
> 202-274-1129 (Phone)
> 202-237-6131 (Fax)
> hking@bsfllp.com
>
>
> -----Original Message-----
> *From: *Alan Apter [alan.apter@burisma.com]
> *Sent: *Sunday, June 01, 2014 03:05 PM Eastern Standard Time
> *To: *Toohey, Ryan
> *Cc: *Vadim Pozharskyi; Hunter Biden (hbiden@rosemontseneca.com);
> darcher@rosemontseneca.com; Heather King; McInerney, Jamie; Pacheco,
> Lawrence
> *Subject: *Re: Privileged and Confidential
>
> this looks good to me with one exception: it says that NZ is a major
> shareholder in Burisma, not the sole shareholder - I wonder if we are
> opening ourselves up to questions on who the other shareholders are if we
> say this
>
> also has NZ agreed we can officially acknowledge his shareholding at this
> point??
>
> also I think we should say western style corporate governance initiative
> was initiated in 2013 (I came onto the Board with this mandate in May 2013)
>
> I would welcome a call tomorrow on this to ensure all parties are on same
> page
>
> Thank you for your fast work on this Ryan
>
> BR,
> Alan
>
>
> On Sun, Jun 1, 2014 at 7:42 PM, Toohey, Ryan <
> Ryan.Toohey@fticonsulting.com> wrote:
>
>> Alan, Vadim et al:
>>
>> Here is our take on a suggested response to Steve Braun from the AP —
>> this would come from the FTI team via email. For your reference his
>> initial questions are pasted below the response. We can take comments via
>> email but I would suggest we try to gather on the phone tomorrow morning.
>>
>>
>>
>>
>>
>>
>>
>>
>>
>> *1.1. Nikolai Zlochevsky is a prominent Ukrainian and a major
>> shareholder in Burisma Holdings. It is important to note that Burisma is
>> one of many investments he has made in Ukraine and elsewhere. 1.2. The
>> company has an experienced and talented management team and, in 2014
>> Burisma adopted a Western-style governance structure including a Board of
>> Directors, Strategic Planning Committee, Audit Committee, and Corporate
>> Secretary.
>>
>> 2. As a corporate entity, Burisma does not take positions on political
>> matters. Burisma’s success in the gas market supports energy independence,
>> national sovereignty and regional stability. 2.1. Burisma’s operations in
>> Eastern and Western Ukraine have not been impacted by recent unrest in
>> parts of Ukraine. Production and drilling are unaffected. 3. Mr. Biden will
>> not lobby on behalf of Burisma. His role is to advise the company’s legal
>> and compliance unit, including guidance on corporate governance standards.*
>>
>>
>>
>>
>>
>> *3.1. Mr. Biden is a private citizen, a lawyer and investor and is
>> involved with several global not for profit organizations. 3.2. Mr. Biden
>> is one of several new members whom I recruited to join the Board of
>> Directors including Aleksander Kwasniewsk, the former President of Poland
>> who will help provide strategic guidance on the global geopolitical
>> environment, and Devon Archer who will provide strategic expansion guidance
>> based on his experience with investor relations and global stakeholder
>> engagement. All of these board members share our commitment to energy
>> independence in Ukraine. 3.3. I initially met Devon through mutual business
>> associates and he ultimately introduced me to Hunter Biden. *
>>
>> 1. AP reporters have been examining U.S. Securities and Exchange
>> documents and Cypriot corporation documents that reference Burisma in
>> recent days. Those documents show that Burisma, organized in Limassol,
>> Cyprus, is a subsidiary of another Cyprus-based firm, Brociti Investments
>> Limited, registered in Nicosia. Cypriot documents we reviewed show that
>> Burisma was set up and initially controlled by two Ukrainian nationals,
>> Mykola Zlochevsky and Mykola Lisin (each man held 500 shares according to
>> these filings). The two men transferred their shares to Bayardia Trading
>> Ltd in April, 2011, and Bayardia then transferred ownership to Raven
>> Financial Services Corp, based in the British Virgin Islands, in May, 2011.
>> In July 2011, Raven then transferred the shares to Brociti. Documents
>> reviewed by AP show that the controlling interest in Brociti _ about 1
>> million shares -- is owned by Mykola Zlochevsky, the same man who had owned
>> Burisma with Lisin in early 2011 (our understanding is that Lisin is now
>> deceased). A May 14, 2013 Burisma filing (which came after the transfer of
>> Burisma Holding’s 1000 shares to Brociti) names you as one of two directors
>> of Burisma, along with Riginos Charalampous of Cyprus. *As chairman of
>> the board of Burisma Holdings, do you report to Mr. Zlochevsky? Does Mr.
>> Zlochevsky exercise authority over Burisma’s decision-making, hiring and
>> legal operations? If so, did Mr. Zlochevsky approve or was he consulted in
>> Mr. Biden’s hiring? If so, can you provide an explanation of why Mr.
>> Zlochevsky wanted Mr. Biden to join Burisma? Did Burisma first approach Mr.
>> Biden prior to his hiring, and if so, what brought him to the company’s
>> attention? Will Mr. Biden report to Mr. Zlochevsky and/or does Mr.
>> Zlochevsky have oversight in Mr. Biden’s work due to his controlling
>> interest in Burisma?*
>>
>> 2. Corporate documents and media and official Ukrainian government
>> reports from the past decade show that Mr. Zlochevsky was a prominent
>> Ukrainian political and government figure. He was a ranking member of the
>> Party of Regions, the political party once run by Viktor Yanukovych, who
>> was ousted by pro-democracy protests earlier this year in Ukraine. And from
>> 2004 until Mr. Yanukovych’s exile, Mr. Zlochevsky worked as a government
>> minister _ overseeing natural resources, the environment and defense during
>> the span of three Ukrainian administrations. Ukrainian reform critics also
>> named Mr. Zlochevsky as one of the several ministers who built up extensive
>> private holdings during their tenures in government and cited several
>> subsidiaries of Mr. Zlochevsky’s firm, Burisma, for obtaining lucrative oil
>> and natural gas leases during the period he worked as a government minister
>> under Mr. Yanukovych. As you likely know as well, Mr. Yanukovych was openly
>> trying to draw Ukraine closer economically to Russia and turned up in
>> Russia after his ouster. *What is Burisma’s attitude toward the change
>> of government in Ukraine? Does Mr. Zlochevsky still live and work in
>> Ukraine or has he also fled to Russia or Crimea? Has Burisma approached the
>> current Ukraine government about continuing to operate its leases in
>> Dnieper-Donets, the Carpathian and the Azov-Kuban basins? Will Mr. Biden be
>> involved in any consultations or legal discussions with the current
>> government about those leases? As a subsidiary of Brociti, does Burisma
>> have any concerns about doing business both with Ukraine and with the
>> United States while it is controlled by a former minister in a now-exiled
>> government that was criticized as pro-Russia?*
>>
>> 3. *U*nder U.S. law, any lobbyist for foreign governments or
>> political parties are required to disclose to the U.S. Justice Department
>> detailed information about their activities on behalf of their clients _
>> including all contacts with U.S. officials, campaign contributions, fees
>> received from clients and expenses incurred in lobbying. However, lawyers
>> engaged in legal representation of foreign principals in courts or similar
>> legal proceedings are exempt from those rules as long as those lawyers do
>> not try to influence U.S. policy at the behest of their client. *Since
>> your company was well aware that Mr. Biden is the son of the current U.S.
>> vice president, Joe Biden, (as was made clear in your press release
>> announcing his hiring) do you plan on restricting his legal work from any
>> U.S. lobbying? Since the current U.S. foreign policy regarding Ukraine is
>> to support the current government, do you see any conflict of interest in
>> your firm being run by a member of Ukraine’s former pro-Russian government?
>> Would you expect Mr. Biden to support the company’s position if it
>> conflicted in any way with U.S. diplomatic policy in Ukraine? Does Mr.
>> Zlochevsky’s history as a top official in the Party of Regions and with
>> former pro-Russian president Yanukovych conflict with Burisma’s stated
>> preference for an independent gas and oil industry in Ukraine (as cited in
>> Devon Archer’s April 28 release about “3 Steps Towards Energu
>> Independence”)?*
>>
>>
>>
>> From: Alan Apter <alan.apter@burisma.com>
>> Date: Saturday, May 31, 2014 at 1:06 PM
>> To: Ryan Toohey <ryan.toohey@fticonsulting.com>
>> Cc: Vadim Pozharskyi <v.pozharskyi.ukraine@gmail.com>, Hunter Biden <
>> hbiden@rosemontseneca.com>, "darcher@rosemontseneca.com" <
>> darcher@rosemontseneca.com>, Heather King <hking@BSFLLP.com>,
>> "McInerney, Jamie" <Jamie.McInerney@FTIConsulting.com>, Lawrence Pacheco
>> <Lawrence.Pacheco@FTIConsulting.com>
>> Subject: Re: Privileged and Confidential
>>
>> never got his email
>>
>> agree fully with Ryan's plan
>>
>> look forward to draft response
>>
>>
>> On Sat, May 31, 2014 at 4:31 PM, Toohey, Ryan <
>> Ryan.Toohey@fticonsulting.com> wrote:
>>
>>> All,
>>>
>>> I spoke late yesterday with Steve Braun, the AP reporter who called
>>> Alan on Thursday. He indicated he had also sent a list of questions to Alan
>>> and he has now passed these on in his email below. You'll see from his
>>> biography, also pasted below, that he is an experienced and very credible
>>> journalist.
>>>
>>> Our sense is that the AP has put a good deal of resources behind their
>>> reporting but are still fishing and unsure about what their final angle
>>> will be. To that end, where we can rebut points Braun makes in his note we
>>> should, while at the same time conveying some of our better messages about
>>> transparency, good governance and western standards. We may have to
>>> ignore or not speak to some of his questions and that is fully ok.
>>>
>>> We would suggest that we do this via a fairly detailed email to the
>>> reporter, followed by a call from us to clarify certain points. We can
>>> always come back to this team with specific questions.
>>>
>>> We can send around a draft response this weekend and can discuss early
>>> Monday.
>>>
>>> As always, we are happy to talk through this. I am at + 1 917-280-2198
>>>
>>> Thanks,
>>>
>>> Ryan
>>>
>>> Stephen Braun
>>> <http://www.amazon.com/Stephen-Braun/e/B004G8EY04/ref=ntt_athr_dp_pel_2>is
>>> based in Washington for the Associated Press
>>> <http://hosted.ap.org/dynamic/fronts/HOME?SITE=AP&SECTION=HOME>, where
>>> he has worked as a national investigative reporter and as AP’s National
>>> Security Editor. Previously, he was a national correspondent based in
>>> Washington for the Los Angeles Times
>>> <http://articles.latimes.com/2004/dec/14/world/fg-bout14>. He shared in
>>> the Times’ 1991 Pulitzer Prize for coverage of the Los Angeles riots and a
>>> 2002 Overseas Press Club international reporting award for “Inside al
>>> Qaeda,” a series of stories about the rise of the terror group. His
>>> reportage has ranged from presidential politics and investigations to
>>> foreign and domestic terrorism, and he has covered many landmark American
>>> news stories of the past two decades, including the Sept. 11attacks,
>>> Hurricane Katrina and five national elections.
>>>
>>> As a Times national correspondent from 1993 to 2008, Braun covered
>>> national affairs and the Midwest from Chicago, then transferred to
>>> Washington, where his work included national politics, international
>>> investigations and national affairs. Before joining the Times national
>>> staff, he worked on the paper’s metropolitan desk in Los Angeles as an
>>> editor and staff writer. He also reported at the Detroit Free Press,
>>> Philadelphia Daily News and Baltimore News American, where he was a
>>> Pulitzer finalist in 1981. A 1975 graduate of the University of
>>> Pennsylvania, he has written for Foreign Policy Magazine
>>> <http://www.douglasfarah.com/pdfs/bout.pdf>, Men’s Vogue, Rolling
>>> Stone, the Washington Monthly and Los Angeles Times Magazine.
>>>
>>> Begin forwarded message:
>>>
>>> *From:* "Braun, Stephen S." <SBraun@ap.org>
>>> *Date:* May 30, 2014 at 4:18:12 PM EDT
>>> *To:* "ryan.toohey@fticonsulting.com" <ryan.toohey@fticonsulting.com>
>>> *Subject:* *Apter email*
>>>
>>> Ryan—
>>>
>>>
>>>
>>> Here’s the email I sent to Mr. Apter, slightly modified with more recent
>>> details we’ve since learned. Again, thanks for taking this up.
>>>
>>>
>>>
>>> Dear Mr. Apter:
>>>
>>>
>>>
>>> I am a reporter with the Associated Press in Washington and am working
>>> with other AP reporters here and in several international locations on a
>>> story about Hunter Biden’s joining Burisma Holdings Ltd on the company’s
>>> board and as director of its legal unit. We are trying to obtain some more
>>> information about Burisma, its corporate ownership and structure, as well
>>> as the circumstances of Mr. Biden’s decision to join the firm, as well as
>>> its political and international implications, and hope you can help us by
>>> either talking with me by telephone or responding by email. We plan to
>>> publish a news story in the coming days and hope you can respond to me by
>>> Monday noon E.S.T. at the latest. I called you in London earlier today and
>>> left a message but since I did not receive a reply by the day’s end, I
>>> decided to send these questions by email.
>>>
>>>
>>>
>>>
>>>
>>> 1. AP reporters have been examining U.S. Securities and Exchange
>>> documents and Cypriot corporation documents that reference Burisma in
>>> recent days. Those documents show that Burisma, organized in Limassol,
>>> Cyprus, is a subsidiary of another Cyprus-based firm, Brociti Investments
>>> Limited, registered in Nicosia. Cypriot documents we reviewed show that
>>> Burisma was set up and initially controlled by two Ukrainian nationals,
>>> Mykola Zlochevsky and Mykola Lisin (each man held 500 shares according to
>>> these filings). The two men transferred their shares to Bayardia Trading
>>> Ltd in April, 2011, and Bayardia then transferred ownership to Raven
>>> Financial Services Corp, based in the British Virgin Islands, in May, 2011.
>>> In July 2011, Raven then transferred the shares to Brociti. Documents
>>> reviewed by AP show that the controlling interest in Brociti _ about 1
>>> million shares -- is owned by Mykola Zlochevsky, the same man who had owned
>>> Burisma with Lisin in early 2011 (our understanding is that Lisin is now
>>> deceased). A May 14, 2013 Burisma filing (which came after the transfer of
>>> Burisma Holding’s 1000 shares to Brociti) names you as one of two directors
>>> of Burisma, along with Riginos Charalampous of Cyprus. *As chairman of
>>> the board of Burisma Holdings, do you report to Mr. Zlochevsky? Does Mr.
>>> Zlochevsky exercise authority over Burisma’s decision-making, hiring and
>>> legal operations? If so, did Mr. Zlochevsky approve or was he consulted in
>>> Mr. Biden’s hiring? If so, can you provide an explanation of why Mr.
>>> Zlochevsky wanted Mr. Biden to join Burisma? Did Burisma first approach Mr.
>>> Biden prior to his hiring, and if so, what brought him to the company’s
>>> attention? Will Mr. Biden report to Mr. Zlochevsky and/or does Mr.
>>> Zlochevsky have oversight in Mr. Biden’s work due to his controlling
>>> interest in Burisma? *
>>>
>>>
>>>
>>>
>>>
>>>
>>>
>>>
>>> 2. Corporate documents and media and official Ukrainian
>>> government reports from the past decade show that Mr. Zlochevsky was a
>>> prominent Ukrainian political and government figure. He was a ranking
>>> member of the Party of Regions, the political party once run by Viktor
>>> Yanukovych, who was ousted by pro-democracy protests earlier this year in
>>> Ukraine. And from 2004 until Mr. Yanukovych’s exile, Mr. Zlochevsky worked
>>> as a government minister _ overseeing natural resources, the environment
>>> and defense during the span of three Ukrainian administrations. Ukrainian
>>> reform critics also named Mr. Zlochevsky as one of the several ministers
>>> who built up extensive private holdings during their tenures in government
>>> and cited several subsidiaries of Mr. Zlochevsky’s firm, Burisma, for
>>> obtaining lucrative oil and natural gas leases during the period he worked
>>> as a government minister under Mr. Yanukovych. As you likely know as well,
>>> Mr. Yanukovych was openly trying to draw Ukraine closer economically to
>>> Russia and turned up in Russia after his ouster. *What is Burisma’s
>>> attitude toward the change of government in Ukraine? Does Mr. Zlochevsky
>>> still live and work in Ukraine or has he also fled to Russia or Crimea? Has
>>> Burisma approached the current Ukraine government about continuing to
>>> operate its leases in Dnieper-Donets, the Carpathian and the Azov-Kuban
>>> basins? Will Mr. Biden be involved in any consultations or legal
>>> discussions with the current government about those leases? As a subsidiary
>>> of Brociti, does Burisma have any concerns about doing business both with
>>> Ukraine and with the United States while it is controlled by a former
>>> minister in a now-exiled government that was criticized as pro-Russia?*
>>>
>>>
>>>
>>>
>>>
>>> 3. *U*nder U.S. law, any lobbyist for foreign governments or
>>> political parties are required to disclose to the U.S. Justice Department
>>> detailed information about their activities on behalf of their clients _
>>> including all contacts with U.S. officials, campaign contributions, fees
>>> received from clients and expenses incurred in lobbying. However, lawyers
>>> engaged in legal representation of foreign principals in courts or similar
>>> legal proceedings are exempt from those rules as long as those lawyers do
>>> not try to influence U.S. policy at the behest of their client. *Since
>>> your company was well aware that Mr. Biden is the son of the current U.S.
>>> vice president, Joe Biden, (as was made clear in your press release
>>> announcing his hiring) do you plan on restricting his legal work from any
>>> U.S. lobbying? Since the current U.S. foreign policy regarding Ukraine is
>>> to support the current government, do you see any conflict of interest in
>>> your firm being run by a member of Ukraine’s former pro-Russian government?
>>> Would you expect Mr. Biden to support the company’s position if it
>>> conflicted in any way with U.S. diplomatic policy in Ukraine? Does Mr.
>>> Zlochevsky’s history as a top official in the Party of Regions and with
>>> former pro-Russian president Yanukovych conflict with Burisma’s stated
>>> preference for an independent gas and oil industry in Ukraine (as cited in
>>> Devon Archer’s April 28 release about “3 Steps Towards Energu
>>> Independence”)?*
>>>
>>>
>>>
>>>
>>>
>>> Thanks much,
>>>
>>>
>>>
>>> Steve Braun, AP Washington
>>>
>>>
>>>
>>>
>>>
>>>
>>>
>>> Stephen Braun
>>>
>>> Associated Press, Washington Bureau
>>>
>>> 1100 13th St. NW Suite 700
>>>
>>> Washington, DC 20005-4076
>>>
>>> (O): 202-641-9405
>>>
>>> (C): 202-365-2667
>>>
>>> sbraun@ap.org
>>>
>>>
>>>
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>>
>>
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