U.S. D epartm ent of Justice
National Security Division

Counterintelligence and Export Control Section

Washington, D.C. 20530

March 31,2017

Bv FedEx
Melissa L. Laurenza, Esq.
Akin Gump Strauss Hauer & Feld LLP
Robert S. Strauss Building
1333 New Hampshire Avenue, NW
Washington, DC 20036-1564
Re:

DMP International, LLC
Paul J. Manafort, Jr.
Richard W. Gates

Dear Ms. Laurenza:
This is in reference to your letters of October 18, 2016, November 23,2016, and
February 10, 2017, in response to our letter of September 13,2016, as well as to our telephone
conversation of January 4,2017, regarding DMP International, LLC (“DMP”), DMP’s principal,
Paul J. Manafort, Jr., and DMP employee, Richard W. Gates, and their possible obligations to
register under the Foreign Agents Registration Act, 22 U.S.C. § 611 etseq. (“FARA” or the
“Act”) in connection with their activities within the United States on behalf of the European
Centre for a Modern Ukraine (“ECFMU”), the Ukrainian government, and/or the Party of
Regions.
In response to our request for information, including “a description of the activities, if
any, [your clients] have engaged in or the services, if any, [your clients] have provided to the
ECFMU, the Ukrainian government, [or] any Ukrainian political party,” you indicated that there
was no “agreement [by DMP, Manafort, or Gates] to provide services to the ECFMU” and that
your clients “were not counterparties to any service agreement” with the ECFMU, but you did
not elaborate further on your clients* activities because of the unavailability of email records.1
Based upon information we obtained from other sources, however,2 we have determined that Mr,

1 Letter from Melissa Laurenza to Heather Hunt, at 1 (Nov. 23, 2016). In your letter o f February 10,2017,
you stated that “DMP*s Email Retention Policy does not retain communications beyond thirty days, and the
information that would be contained in such correspondence is vital to refreshing recollections regarding [the
matters at issue).” Letter from Melissa Laurenza to Heather Hunt, at 3 (Feb. 10, 2017).

2 This information includes: (1) Letter from Matthew Sanderson, Esq., Caplin & Drysdale, Counsel for the
Podesta Group, to Heather Hunt (Nov. 14,2016); (2) Letter from Kenneth Gross and Tyler Rosen, Esqs., Skadden,
Arps, Slate, Meagher & Flom, LLP, Counsel for Mercury Public Affairs, to Heather Hunt (Oct. 5,2016) (“Letter
from Gross”); and (3) Email from the Podesta Group PR Team to Rick Gates, “ECFMU Public Relations-The

 Manafort and Mr. Gates (if not DMP) each has an obligation to register under FARA} arising
from their political activities undertaken within the United States on behalf o f the ECFMU, the
Ukrainian government, and/or the Party o f Regions, all foreign principals under FARA. We also
note that our ability at this time to present an even more detailed recitation o f your clients’
activities has been hampered by the lack of additional information from your clients.
The purpose of FARA is to inform the American public of the activities of foreign agents
working for foreign principals to influence U.S. government officials and/or the American public
with reference to the domestic or foreign policies of the United States or with reference to the
political or public interests, policies, or relations of a foreign country or foreign political party.
An “agent of a foreign principal” is defined, in pertinent part, as “any person who acts . . . at the
order, request, or under the direction or control of a foreign principal. . . and who directly or
through another person . , , engages within the United States in political activities for or in the
interests of such foreign principal.” 22 U.S.C. § 611(c)(l)(i). The term “political activities” is
defined in 22 U.S.C. § 611 (o) as “any activity that the person engaging in believes will, or that
the person intends to, in any way influence any agency or official of the Government of the
United States or any section of the public within the United States with reference to formulating,
adopting, or changing the domestic or foreign policies of the United States or with reference to
the political or public interests, policies, or relations of a government o f a foreign country or
foreign political party.” The term “foreign principal” includes “a government of a foreign
country and a foreign political party, any person outside the United States , . . and a partnership,
association, corporation, organization, or other combination of persons organized under the laws
of or having its principal place of business in a foreign country.” 22 U.S.C. § 611(b).
Richard W. Gates
Information that we have obtained indicates that Mr. Gates coordinated a public relations
campaign within the United States to promote the political and public interests of Ukraine.
Specifically, he coordinated the work of the Podesta Group (“Podesta”) and Mercury Public
Affairs (“Mercury”) in connection with contractual relationships each firm had with the
ECFMU.3 Mr. Gates worked actively with Mercury on the ECFMU campaign and frequently
participated in weekly calls with ECFMU Executive Director Ms. Ina Kirsch as well as with
representatives of Podesta.4 As a coordinator for Mercury and Podesta in their work for
ECFMU, Mr, Gates held himself out as working on behalf of the ECFMU.

Next 90 Days” 1 (Mar. 22,2013) (hereinafter the “Podesta PR Team Email”). These items are among the
documents provided by the Podesta Group in response to a letter from Heather Hunt to the Podesta Group dated
September, 1, 2016.
3 See Letter from Gross at 2.

4 Id. Documents referencing such activities include, but are not limited to, the Podesta PR Team Email, as
well as the extensive meeting schedule and materials prepared for the visit to the U nitec^tatesof
a
member of the Verkhovna Rada (the Ukrainian parliament), on May 8-9, 2013, and ^ ^ ^ m ? l a n n e d meetings
with members o f Congress, Department o f State officials, business officials, and NGO and "thought leaders ”

2

 The purpose of the ECFMU’s contractual engagements with Fodesta and Mercury5 was
to improve ties between Ukraine and the West with the ultimate goal of Ukrainian admission to
the European Union and alignment with other Western institutions. The ECFMU acted as an
intermediary between Ukraine and the West to promote Ukraine's political and economic
interests. Mr. Gates' political activities included coordinating meetings with U.S. Government
officials, members of the U.S. media, and U.S. business leaders in an effort to promote Ukrainian
public and political interests.6 Toward that end, Mr. Gates coordinated press interviews and
congressional meetings for Ukrainian government officials, and secured opinion editorials,
published in U.S media outlets, from recognized “thought leaders” in the United States.7 In
addition, he sought to build support for Ukraine in various business communities in the United
States and Europe to bolster political and economic support for Ukraine.8
Mr. Gates must register under FARA because his activities constituted “political
activities” as defined under the Act, and were conducted at the request of or under the direction
or control of a foreign principal— the ECFMU, the government of Ukraine, and/or the Party of
Regions—in furtherance of, and for the purpose of, influencing U.S, government officials, and
sections of the public within the United States, with reference to the political or public interests,
policies, or relations of a foreign government or foreign political party.
Paul J. M anafort, Jr.
Information that we have obtained indicates that Mr. Manafort was part o f the Podesta
and Mercury lobbying and public relations campaigns for Ukraine in the United States, the goal
of which was to promote the political and public interests of Ukraine.9 As part of the lobbying
team,10 Mr. Manafort used his depth of knowledge and experience with Ukraine and the Party of
Regions11 to influence U.S. Government officials and sections of the public within the United
States on matters pertaining to the political and economic interests of Ukraine. Emails and other
documents indicate that Mr. Manafort provided overall direction o f the U.S. lobbying and public
relations campaigns for Ukraine,12 personally discussed those campaigns with the President of

5
See Letter from Gross (attaching Engagement Agreement Between Mercury Public Affairs and the
ECFMU (Apr. 18,2012)); Letter from Matthew Sanderson to Heather Hunt (Sept. 30,2016) (attaching Engagement
Agreement Between the Podesta Group and the ECFMU (Apr. 18,2012)).

c PodestaPRTeam Em ail,at 1-2.
7 See id.
8 See id. at 2.

9 See Memorandum from Mercury/Clark & Weinstock to Rick Gates, “Government Relations StrategyECFMU,” at 2 (Dec. 14,2012) (hereinafter “ECFMU Strategy Memorandum”).
10 Id.
11 See Letter from Gross at 2.
12 Email from Rick Gates to Tony Podesta (Feb. 18,2013) (“Paul is co m jn ^^ D ^o m o rro w . He would
like to meet with you individually...”); Email from Rick Gates to Tony Podesta a n d ^ H H ^ ^ ^ ^ H ( S e p t. 24,
2012) (“1just spoke with Paul. The only key meeting for him with SL is
See if you can get this done.”);

3

 Ukraine and other Ukrainian government officials,13 directed that action be taken in the United
States in response to requests by the Ukrainian Government,14 personally communicated
criticism of U.S. policy regarding Ukraine to U.S. Government officials,15 and agreed in 2012,
where Mercury deemed it appropriate, to “join [Mercury’s] lobbying team to engage with
Members of Congress and senior Congressional staff’16 —all to further the political or public
interests of Ukraine and/or the Party of Regions, the principal beneficiaries o f his political
activities.
Mr. Manafort must register under FARA because his activities constituted “political
activities,” as defined under the Act, and were conducted at the request of, or under the direction
or control of, a foreign principal—the ECFMU, the government o f Ukraine and/or the Party of
Regions— in furtherance of, and for the purpose o f influencing, U.S. government officials and
sections of the public within the United States, with reference to the political or public interests,
policies, or relations of a foreign government or foreign political party. While Mr. Manafort’s
obligation is based on activities engaged in from at least April 2012 to July 2014, his obligation
to register may extend prior to, as well as beyond, these dates.

Email from Paul Manafort to Rick Gates (May 2,2012) ("We need Mercury and the FH blog ops to attack this
[Muffington Post] piece as inaccurate, untrue, and total propaganda. Then we need to start writing blogs... Then we
need stories on Europe... I want to go on offense.”); Email from Rick Gates to Vin Weber and Tony Podesta (Apr.
7.2012) (“Paul will be in DC next week for two days wanted to see if he could sit with just the two o f you.,.,”);
Email from Rick Gates to Tony Podesta (Feb. 24,2012) ("I spoke with Paul....”).
13 Email from Rick Gates to
Tony Podesta (March 3,2013) ("Paul is
meeting with the President early on Tuesday Kyiv time.”); Email from Rick Gates to Tony Podesta (Feb. 18,2013)
(“I will check with Paul. He is getting some pressure from Kyiv on US efforts.”); Email from Rick Gates to Tony
Podesta [and others] (Nov. 9,2012) ("I would like to do a brief call with this group today to discuss items regarding
our plan moving forward. Paul is meeting with the President on Monday to discuss this topic.").
14 Email from Rick Gates to
13,2013) (concerning “a fairly unpleasant email from
Paul” regarding the status of [a letter from a Member of Congress], for which Manafort sought an update prior to a
meeting the next day with the President of Ukraine); Email from Rick Gates to Vin Weber and Tony Podesta (Aug.
10.2012) ("Paul met with the big guy yesterday and we have some special requests....”).
15 Email from Paul Manafort to John Tefft, U.S. Ambassador to Ukraine (Oct. 30,2012) (“The Deptf.J of
State statement on the election is an insult to the people of Ukraine and those people in the Government who are
working so hard to bring democracy to Ukraine....”).
16 ECFMU Strategy Memorandum, at 2-3.

4

 Useful information and forms needed for registration may be found on our website at
https://www.fara.gov. Mr. Gates and Mr. Manafort should effect their registration under FARA
within thirty (30) days of the date of this letter. If the activity was conducted through DMP, then
the firm should also register. If you have any questions or wish to meet with us regarding our
determination, please contact me by telephone at (202) 233-0776 or by email to
FARA.public@usdoi.gov.
Sincerely,

Heather H. Hunt
Chief, FARA Registration Unit

5

 U.S. D epartm ent of Justice
National Security Division

Coimterhmltigence and Export Control Section

Washington, DC 20530

March 31,2017

Bv FedEx
Matthew T. Sanderson, Esq.
Caplin & Drysdale, Chartered
One Thomas Circle, NW
Suite 1100
Washington, DC 20005
Re: Podesta Group. Inc.
Dear Mr. Sanderson:
This is in reference to your letters of August 22,2016, September 30,2016, November
14,2016, and December 2,2016, as well as our letter of September 1,2016, regarding the
Podesta Group, Inc. (“Podesta”), and its possible obligation to register pursuant to the Foreign
Agents Registration Act of 1938, as amended, 22 U.S.C, § 611 etseq. (“FARA” or the “Act”) in
connection with its representation o f the European Centre for a Modern Ukraine (“ECFMU”),
Based upon the information you provided, we have determined that Podesta has an obligation to
register under FARA. Podesta’s obligation to register arises from political activities undertaken
within the United States on behalf of the ECFMU, a foreign principal under the Act.
The purpose of FARA is to inform the American public o f the activities of foreign agents
working for foreign principals to influence U.S. government officials and/or the American public
with reference to the domestic or foreign policies of the United States or with reference to the
political or public interests, policies, or relations of a foreign country or foreign political party.
An “agent of a foreign principal” is defined, in pertinent part, as "any person who acts . . . at the
order, request, or under the direction or control of a foreign principal. . . and who directly or
through another person . . . engages within the United States in political activities for or in the
interests of such foreign principal.” 22 U.S.C. § 6Il(c)(l)(i). The term “political activities” is
defined in 22 U.S.C. § 61 l(o) as “any activity that the person engaging in believes will, or that
the person intends to, in any way influence any agency or official o f the Government of the
United States or any section o f the public within the United States with reference to formulating,
adopting, or changing the domestic or foreign policies of the United States or with reference to
the political or public interests, policies, or relations of a government of a foreign country or
foreign political party.” The term “foreign principal” includes “a government of a foreign
country and a foreign political party, any person outside the United States . . . and a partnership,
association, corporation, organization, or other combination o f persons organized under the laws
of or having its principal place of business in a foreign country.” Id. at § 6 1 1(b).

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Based on the materials you provided and the representations in your letters, on or about
April 18,2012, Podesta entered into a contractual relationship1 with the ECFMU for the purpose
of improving ties between Ukraine and the West “with the ultimate goal of Ukrainian admission
to the European Union and alignment with other Western institutions.”2 According to the
information provided, the ECFMU acted as an intermediary between Ukraine and the West to
promote Ukraine’s political and economic interests,3 The email communications and other
documents you provided demonstrate that Podesta engaged within the United States in a public
relations campaign “to tell the Ukraine story to audiences”4 within the United States. Podesta’s
political activities included sending strategic communications to and arranging meetings with
U.S. Government officials, members o f the U.S, media, and U.S. business leaders to promote
Ukrainian public and political interests.5
The information provided referenced specific activities, including, but not limited to,
securing press interviews in the United States, arranging meetings between Ukrainian
government officials and members of Congress and congressional staff, and facilitating the
publication in the United States of opinion pieces from “recognized international thought
leaders.”6 In addition, Podesta sought to build support for Ukraine in various business
communities in the United States and Europe to “bolster support for Ukraine politically.”7 We
believe, taken together, that these actions were intended to influence United States officials and
the American public “with reference to the political or public interest, policies, or relations of a
government of a foreign country or a foreign political party,” 22 U.S.C. § 611 (o).
While you indicated in your November 14,2016, letter that Podesta was not retained by
the Ukrainian government or a Ukrainian political party, you acknowledged that funding of the
ECFMU was provided by individuals “in Kiev who were affiliated with the Ukrainian
government and the Party of Regions”8 and that ECFMU is “a partnership, association,
corporation, organization, or other combination of persons organized under the laws of or having

1 Letter from Matthew Sanderson to Heather Hunt (Sept. 30,2016) (attaching Engagement Agreement
Between the European Centre for a Modern Ukraine and the Podesta Group (Apr, 18,2012)).

2 Letter from Matthew Sanderson to Heather Hunt I (Nov. 14,2016).
5 Id

4 Email from The Podesta Group PR Team to Rick Gates, “ECFMU Public Relations - The Next 90 Days”
1 (Mar. 22,2013) (hereinafter the “Podesta PR Team Email”) (part of the production attached to the Letter from
Sanderson (Nov. 14,2016) (PD0009867-9869).
s Id.
6 Id. Documents referencing such activities include, but are not limited to, the Podesta PJ^Tean^maiL as
well as the extensive meeting schedule and materials prepared for the visit to the UnitedStates of
a
member o f the Verkhovna Rada (the Ukrainian parliament), on May 8-9,2013, and
planned meetings
with members o f Congress, Department of State officials, business officials, and NGO and “thought leaders,”
(PD0005711-5876).
7 Podesta PR Team Email, at 2.
3 Letter from Matthew Sanderson to Heather Hunt 2,3 (Nov. 14,2016).

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its principal place of business in a foreign country.”9 Accordingly, ECFMU is a “foreign
principal” under FARA. See 22 U.S.C. § 611(b)(3).
In your correspondence, you note that Podesta registered under the Lobbying Disclosure
Act, 2 U.S.C. § 1601 et seq. (“LDA”), claiming that the exemption in Section 613(h) of FARA
applies.10 You indicated that while your client was initially inclined to register under FARA,
because the ECFMU was a foreign entity, Podesta decided instead to register under the LDA on
the ground that the ECFMU represented it was not “directly or indirectly supervised, directed,
controlled, financed, or subsidized in whole or in major part by a government of a foreign
country or a foreign political party.” 11
We have reviewed the information you have provided, however, as well as the lobbying
reports that Podesta filed under the LDA, and we have determined that FARA registration is
required for the above-described political activities, because, regardless of who “supervised,
directed, controlled, financed, or subsidized” ECFMU, Podesta's work on its behalf was not to
benefit commercial interests of ECFMU, but instead was to promote the political or public
interests of a foreign government or foreign political party, such that the LDA exemption cannot
apply. The exemption provided in Section 613(h) of FARA, upon which Podesta relied, applies
to lobbying activities conducted to benefit the bona fide commercial interests of “a partnership,
association, corporation, organization, or other combination o f persons organized under the laws
of or having its principal place o f business in a foreign country.” 22 U.S.C. § 6 1 1(b)(3)
(emphasis added). It is not available to an entity or individual that engages in the United States
in political activities promoting the political or public interests o f a foreign government or
foreign political party. See 22 U.S.C. § 613(h) (excluding § 611(b)(1), foreign countries and
political parties, from its scope)). Indeed, the pertinent Department o f Justice regulation
expressly states that “in no case where a foreign government or foreign political party is the
principal beneficiary will the exemption under [22 U.S.C. § 613](h) be recognized.” 28 C.F.R.
§ 5.307 (emphasis added); see also 28 C.F.R, § 5.300 (“The burden of establishing the
availability of an exemption from registration under the Act shall rest upon the person for whose
benefit the exemption is claimed.”). As demonstrated in the information you provided, Podesta
undertook to promote Ukraine's public and political interests in the United States, making the
Ukrainian government and/or the Party of Regions the principal beneficiaries of its activities.
In conclusion, we have determined that Podesta must register under FARA, because the
firm's activities on behalf of the ECFMU constitute "political activities” as defined under the Act
and were conducted at the order, request, or under the direction or control o f a foreign principal
(the ECFMU) in furtherance of, and for the purpose of influencing, U.S. government officials,
and sections of the public within the United States, with reference to the political or public
interests, policies or relations of a foreign government or foreign political party. Podesta
9 See Agreement (Apr. 30,2012) (attached to Letter from Matthew Sanderson to Heather Hunt (Sept. 30,
2016)).
10 Letter from Matthew Sanderson to Heather Hunt 4-5 (Nov. 14,2016).
11 Agreement (Apr. 30,2012) (attached to Letter from Matthew Sanderson to Heather Hunt (Sept. 30,
2016)). See also Draft Letter from Kenneth Gross to
“Lise o f LDA Exemption from Foreign Agents
Registration Act for Services for the European Centre for a Modem Ukraine” (May 18, 2012) (attached to Letter
from Matthew Sanderson to Heather Hunt (Sept. 30,2016)).

 therefore cannot rely on the exemption set forth in Section 613(h) o f FARA in these
circumstances, because the principal beneficiary o f the political activities conducted within the
United States was the Ukrainian government and/or the Party of Regions.
Useful information and forms needed for registration may be found on our website at
https://www.fara.gov. Please effect Podesta’s registration under FARA, filing any necessary
short form registration statements within thirty (30) days of the date of this letter. If you have
any questions or wish to meet with us regarding our determination, please contact me by
telephone at (202) 233-0776 or by email to FARA.public@usdoi.gov.
Sincerely,

Heather H. Hunt
Chief, FARA Registration Unit

 U.S. Departm ent of Justice
National Security Division

Washington, DC 20530

March 31,2017
Bv FedEx
Kenneth A. Gross, Esq.
Skadden, Arps, Slate, Meagher & Flom LLP
1440 New York Avenue, NW
Washington, DC 20005
Re: Mercury Public Affairs
Dear Mr. Gross:
This is in reference to your letter of October 5, 2016, in response to our letter o f
September 1,2016, regarding your client, Mercury Public Affairs (“Mercury”) and its possible
obligation to register pursuant to the Foreign Agents Registration Act of 1938, as amended,
22 U.8.C, § 611 etseq, (“FARA” or the “Act”) in connection with its representation of the
European Centre for a Modem Ukraine (“ECFMU”). We further reference our meeting of
September 7,2016, in which we discussed Mercury’s possible obligation to register under
FARA, as well as its prior registration from April 2012 to May 2014 under the Lobbying
Disclosure Act, 2 U.S.C. §1601 etseq, (“LDA”). Based upon the information you have
provided, we have determined that Mercury has an obligation to register under FARA, which
arises from political activities it undertook within the United States pursuant to its relationship
with the ECFMU, a foreign principal under the Act.
The purpose o f FARA is to inform the American public o f the activities of foreign agents
working for foreign principals to influence U.S. government officials and/or the American public
with reference to the domestic or foreign policies of the United States or with reference to the
political or public interests, policies, or relations of a foreign country or foreign political party.
An “agent of a foreign principal” is defined, in pertinent part, as “any person who acts . . . at the
order, request, or under the direction or control of a foreign principal. . . and who directly or
through another person . . . engages within the United States in political activities for or in the
interests of such foreign principal ” 22 U.S.C. § 61 l(c)(l)(i). The term “political activities” is
defined in 22 U.S.C. § 611 (o) as “any activity that the person engaging in believes will, or that
the person intends to, in any way influence any agency or official o f the Government of the
United States or any section of the public within the United States with reference to formulating,
adopting, or changing the domestic or foreign policies of the United States or with reference to
the political or public interests, policies, or relations of a government of a foreign country or
foreign political party.” The term “foreign principal” includes “a government o f a foreign
country and a foreign political party, any person outside the United States . . . and a partnership,
association, corporation, organization, or other combination of persons organized under the laws
of or having its principal place of business in a foreign country.” Id, at § 611(b).

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According to an Engagement Agreement you provided, on or about April 18,2012,
Mercury entered into a contractual relationship with the ECFMU for the purpose of
“strengthening its ties to various organizations in the United States.” 1 The materials you
provided indicate that ECFMU sought to conduct an “influence!* outreach campaign” to promote
“Ukraine’s west-ward focus and goal of EU membership.”2 According to the information
provided, Mercury acted as “the public face and organizing entity” of the ECFMU campaign.3
The numerous memoranda and other documents you provided demonstrate that Mercury
engaged within the United States in a public relations campaign on behalf of the ECFMU,
entitled the “US Allies Project,” the purpose of which was “to facilitate opportunities for
engagement on Ukrainian political developments and reforms for American elected officials,
opinion leaders, the media and civil society organizations.”4 In carrying out this project, as well
as its second phase entitled the “Engage US” initiative, Mercury arranged meetings with
members o f Congress and their staffs, U.S. think tanks and other non-governmental
organizations, as well as the media, to mobilize support for strengthening Ukraine’s ties with
Western democracies.5 The materials provided reference specific political activities within the
scope of FARA, including, but not limited to, developing social media platforms; securing press
interviews;6 and arranging meetings between Ukrainian government officials and experts with
members of Congress and their staff.7 We believe, taken together, that these actions were
intended to influence United States officials and the American public “with reference to the
political or public interest, policies, or relations of a government of a foreign country or a foreign
political party.” 22 U.S.C. § 61 l(o).
Although you pointed out that Mercury did not perform any work for the Ukranian
government or any Ukrainian political party, you also acknowledge that “[s]ome employees at
Mercury were aware that members of the ECFMU leadership were also active in the Party o f
Regions.”8 In any event, however, the term "foreign principal” also includes “a partnership,
association, corporation, organization, or other combination of persons organized under the laws

1 Engagement Agreement Between European Centre for Modern Ukraine and Mercury Public Affairs,
LLC at 1 (Apr. 18,2012) (“Engagement Agreement”) (attached to Letter from Kenneth Gross and Tyler Rosen to
Heather Hunt (“Letter from Gross”)).
2 Memorandum from Mercury/Clark & Weinstock to Rick Gates, “Government Relations StrategyECFMU,” at 2 (Dec. 14,2012) (hereinafter “ECFMU Strategy Memorandum”).
3 Id. at 1.

* Letter from Gross at 2.
5 Id.
& See Memorandum from Mercury/Clark & Weinstock to Rick Gates, “Recommendations for  
IMeetings,” at I (Oct. 11,2012).
7
(Apr, 24,2013).

See “Draft agenda o f Minister o f Foreign Affairs

8 Letter from Gross at 3-4.

visit to Washington (May 7-9, 2013)’

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of or having its principal place of business in a foreign country,” which includes ECFMU.9 22
U,S.C.§ 611(b)(3).
Although Mercury filed certain reports pursuant to a registration under the LDA,
registration under FARA for the foregoing political activities was nevertheless required, because
its activities promoted the political or public interests of a foreign government or foreign political
party.
Section 613(h) of FARA provides an exemption to Section 612’s registration requirement
for any agent of an entity described in Section 611(b)(3), “if the agent has engaged in lobbying
activities and has registered under the Lobbying Disclosure Act of 1995 [2 U.S.C. § 1601 et sec/.]
in connection with the agent's representation of such person or entity.” However, that exemption
applies to lobbying activities conducted to benefit the bona fide commercial interests of “a
partnership, association, corporation, organization, or other combination of persons organized
under the laws of or having its principal place o f business in a foreign country.” 22 U.S.C.
§ 611(b)(3) (emphasis added). It is not available to an entity or individual that engages in the
United States in political activities promoting the political or public interests of a foreign
government or foreign political party. See 22 U.S.C. § 613(h) (excluding § 611(b)(1), foreign
countries, and political parties, from its scope)). Indeed, the pertinent Department o f Justice
regulation expressly states that “in no case where a foreign government or foreign political party
is the principal beneficiary will the exemption under [22 U.S.C. § 613](h) be recognized,” 28
C.F.R. § 5.307 (emphasis added); see also 28 C.F.R. § 5.300 (“The burden of establishing the
availability of an exemption from registration under the Act shall rest upon the person for whose
benefit the exemption is claimed.”). As demonstrated in the information provided, Mercury
undertook to promote Ukraine’s public and political interests, making the Ukrainian government
and/or the Party of Regions the principal beneficiaries of its activities.
In conclusion, we have determined that Mercury must register under FARA, because the
firm’s activities on behalf of the ECFMU constitute “political activities” as defined under the Act
and were conducted at the order, request, or under the direction or control of a foreign principal
(the ECFMU) in furtherance of, and for the purpose of influencing, U.S. government officials,
and sections of the public within the United States, with reference to the political or public
interests, policies or relations o f a foreign government or foreign political party. Mercury
therefore cannot rely on the exemption set forth in Section 613(h) o f FARA in these
circumstances, because the principal beneficiaries of the political activities conducted within the
United States were the Ukrainian government and/or the Party o f Regions,

9
See Agreement (Apr. 30,2012) (representing that ECFMU is “a partnership, association, corporation,
organization, or other combination o f persons organized under the laws of or having its principal place of business in
a foreign country”) (attached to Letter from Gross); Engagement Agreement at I (providing ECFMU’s “principal
office” address in Belgium).

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Useful information and forms needed for registration may be found on our website at
https://www.fara.gov. Piease effect Mercury’s registration, filing any necessary short form
registration statements within thirty (30) days of the date of this letter. If you have any questions
or wish to meet with us regarding our determination, please contact me by telephone at (202)
233-0776 or by email to FARA.public@.usdoi.gov.
Sincerely,

Chief, FARA Registration Unit