Reps. Budd, Banks, & Johnson Call for Investigation of Russian Funding of U.S. Environmental Groups

Press Release

Rep. Ted Budd (R-NC) has joined Republican Study Committee Chairman Jim Banks (R-IN) Rep. Bill Johnson (R-OH) to send a letter to Treasury Secretary Janet Yellen calling for an investigation of Russian funding of U.S. environmental groups who advocate against American energy production.

Rep. Budd said in a statement:

"The more energy independent our country becomes, the less economic power Russia possesses. It is in Russia's interest to hamper U.S. energy production. Therefore, the prospect of Russia funneling money to U.S. environmental groups to do Russia's bidding and actively oppose U.S. energy is a dangerous form of interference in our politics. This must be thoroughly investigated and exposed."

Read the full letter below:

As the world descends into yet another global conflict, it is imperative that the United States remain free from foreign manipulation.

The Russian government has sought to expand its political and cultural influence in Europe. To that end, they have gone to great lengths to increase Europe's reliance on Russian oil and gas. In 2014, NATO Secretary-General Anders Fogh Rasmussen stated:

"I have met allies who can report that Russia, as part of their sophisticated information and disinformation operations, engaged actively with so-called non-governmental organizations -- environmental organizations working against shale gas -- to maintain European dependence on imported Russian gas…"

Dependence on Russian gas has made it harder for European countries to counter Russia's invasion of Ukraine. But it's not just Europe. In 2021, the US purchased a record amount of Russian oil, and Russia has directed its influence effort at America too.

Vladimir Putin has acknowledged that America's energy industry poses a "great threat" to the Russian economy. According to former Secretary of State Hillary Clinton, Russian-backed disinformation campaigns have made their way to America. In 2014 during a private speech she complained of "phony environmental groups" lobbying against fracking.

In 2017, Representatives Lamar Smith and Randy Weber sent a letter to then Secretary of the Treasury Steven Mnuchin outlining the severity of Russia's foreign influence operation. In the letter, they explained how Russia has been laundering money through shell corporations in the Bahamas and disseminating the funds to environmental non-profit groups in the United States. Russia's effort focused on an organization called Sea Change.

According to Sea Change's tax filing, in 2010 the group received $23 million, half of its total annual contributions, from a Bahamian shell corporation tied to the Russian government. Sea Change then passed that money to groups like the Sierra Club and the Center for American Progress who lobbied strongly against fracking and pro-energy policies, to reduce competition with Russian oil and gas. In 2020, the Center for American Progress donated over $800,000 exclusively to Democrat politicians and groups and Sierra Club Independent Action spent $3.7 million supporting Democrat candidates.

Russia also used its state media and social media disinformation campaigns to attack America's energy industry. Russia Today is especially focused on energy policy. According to the Office of the Director of National Intelligence, Russia Today's coverage "is likely reflective of the Russian Government's concern about the impact of fracking and US natural gas production on the global energy market and the potential challenges to Gazprom's profitability." In 2021, after Biden's first year in office, Gazprom, a Russian state-owned energy company, earned record profits.

Eliminating the United States as a global energy producer risks further empowering Putin. According to the U.S. Energy Information Administration, the U.S. produced 11.3 million barrels of crude oil per day in 2020, compared to Russia's 10.50 million. And the U.S. produced 33.5 trillion cubic feet of natural gas in 2020 versus Russia's 22.5 trillion cubic feet of natural gas.

It is imperative that the Treasury Department investigate the claims of Russian interference in American domestic politics. Therefore, we are asking that the Treasury Department engage in the following actions:

Conduct a full investigation into donations made to Sea Change with an increased emphasis on the Lobbying Disclosure Act of 1995, 2 U.S.C § 1601.

Conduct a full investigation into the Sierra Club, League of Conservation Voters Education Fund, National Resources Defense Council, Energy Foundation, and Center for American Progress.

If Russian manipulation is confirmed in domestic anti-energy funding, we call on the Department of the Treasury to immediately partner with the Department of Justice in establishing a select committee to investigate illicit Russian influence operations.

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