[or tgrt s's'o€ ttit 'mit ttt b Mai t s' Was'fitnqton,a(t 20510 January29, 2019 The Honorable Steven Mnuchin Secretaryof the Treasury U.S. Department of the Treasury 1500 Pem'isylvaniaAve. NW Washington, DC 20220 Dear Secretary Mnuchin: We arewriting to requestinforrnation aboutthe TreasuryDepartment'sdecisionto lift sanctionson the aluminum manufacturerUnited Co. Rusal(Rusal), as well as other entities relaled to sanctionedRussianoligarch Oleg Deripaska,in light of your potential conflicts of interestregardingthat decision. In paiticular, we areseekingan explmiationasto how you managedyour own potentialconflicts of interestarisingfrom your personalandprofessional relationshipswith major RusalshareholderLen Blavatnik, a key beneficiaryfrom your decision to delist Rusal. In April 2018,the TreasuryDepartmentimposedsanctionsagainstDeripaska,and several companieshe ownedor controlled,in responseto Russia's"malign activities" aroundthe globe. Theseentitiesinch'idedRusal andits largest shareholderEn+ Group, an entity through which wereenacted, a controllinginterestin Rusal.' At thetimethesanctions Deripaska maintained (Sual).2Sualis co- ownedby smictioned wasSualPartners Rusal'ssecond largestshareholder against andU.S.citizenLenBlavatnik.3Whensanctions RussianbillionaireViktor Vekselberg Rusal were announced,Sual Partnersstatedthat they would take"all necessarystepsto facilitate on Rusal.""After Rusalreportedly sanctions theswiftlifting of U.S.TreasuryDepartment carried out an intensive international lobbying campaign,the TreasuryDepartmentamiouncedon December 19, 2018 that it intended to remove these entities from the sanetionslist becausethe companieshad"cornmitted to significantly diminish Deripaska'sownershipand severhis QuickTake,Bloomberg(Apr. ' JakeRudnitsky,TangledRusalOwnershipThwartsEasyEnd to Sanctions.' - rusal- ownershtp - tliwatts-easy-end-to- 04- 25/tangled 25, 2018) https://www.bloomberg.com/news/articles/2018 sanctions - quicktake. zld. 3Id. "Po)inaIvanova,RusalShareholderCallsfor NewStrategyin Responseto U.S.Sanctions,Reuters(Apr. 30, 2018) https://www.reuters.com/article/us-usa-russia-sanctions-rusal-sual-idUSKBNlIlOWD. The Honorable Steven Mnuchin Page 2 formally delistedtheseentities. Sual control."s On January27, the TreasuryDepartment Rusal.6 in thereorganized reportedlywill retaina significantownership There have beena number of reports describingyour personaland businessrelationships with Sualco- owner Len Blavatnik. For example,in 2013,Mr. Blavatnik reportedlywas an initial investor in RatPacEntertainrnent,the film production companywhich then partneredwith - Dune.7Duringthepartnership, toform RatPac yourowncompany,DuneEntertainment, for WarnerBrothers.8Pressreports RatPac - Dunefinanceda slateof high- profile movies describeyou and RatPacEntertainmentco-founder Brett Ratner asfrequent guestson Mr. Blavatnik'syacht.9 In April 2017, Mr. Blavatnik's firm, AccessEntertainment,acquiredco-founder James Packer's stakein RatPacEntertaimnent. This deal appearsto have beenmade during the period in which your thenfianc6e,Louis Linton, was servingasinterim CEO of DuneEntertaimnent, and aroundthe sametime you divestedyour own interestin Dune in order to comply with the At youentereduponbeingconfirmedasTreasurySecretary.'o termsof theethicsagreement least one report-denied by Mr. Blavatnik-suggested that Mr. Blavatnik purchasedyour interestin Dune." Your brother,Alan Mnuchin,throughhisfirm AGM Partners,hasa history of businessdealingswith Mr. Blavatnik,including advisingon Mr. Blavatnik's $3.3 billion film library thesaleof RatPac - Dune's purchase of WarnerMusicGroupin 2011,'2andbrokering earlierthisyear.'3 5 Department of theTreasury,PressRelease:OFACNotifiesCongressoflntent to DelistEn+, Rusal,and - releases/sm576. EuroSibEnergo(Dec. 19, 2018) https://home.treasury.gov/news/press from SanctionsDeal, DocumentShows,New York 6 KennethVogal, Deripaskaand Allies Could Benefit Times(Jan. 21, 2019) https://www.nytxmes.com/2019/01/21/us/politics/oleg-deripaska-russian-sanctions.html. ' Kim Masters,Music'sMysteryMogul.'LenBlavatnik,Trumpand TheirRussianFriends,Hollywood Repoiter(Oct. 10, 2018) https://www.hollywoodreporter.com/features/why-is-warner-music-group-owner-lenblavatnik-russia-probe-1150550. " Id. gld. 'o AccessIndustries,PressRelease: BlavatnikBuysStakesin VentureBehind WarnerBros. Hit Films (citing a Bloombergstory by Paul Barbagallo)(Apr. 18, 2017)https://www.accessindustries.coin/news/blavatnikbuys- stake- m- venture- behmd- warner- bros- hit- films/. " PamelaMcClintockandTatianaSiegel,HollywoodandFilm Financiers:A TorridLoveAffair Hits a - film RockyRoad,Hollywood Reporter(July 24, 2017) https://www.hollywoodreporter.corn/news/hollywood financiers-a-tomd-love-affair-hits-a-rocky-road-1023140. '2 Michael J. De La MercedandBen Sisario,WarnerMusic is Sold,Ending a Long Auction,New York -for - 3- 3- music- to- sell- itself- to- access Times(May 6, 2011) https://dealbook.nytimes.corn/2011/05/06/wamer billion/. '3 Mike Fleming,Jr., WarnerBros ExercisesMatchingRightsto WinRatPacDuneLibrary.' $290M$300Ai[,DeadlmeHollywood (Jan. 2, 2019) https://deadline.com/2019/Ol/ratpac-dune-libraiy-warner-bros-300million-dollar-deal-vine-alternative-mvestments-wonder-woman-batman-vs-superman-dunlark-american-smper1202528281/. The Honorable Steven Mnuchin Page 3 Given your reportedbusinessandfamily ties to Mr. Blavatnik, we are requestingthe following information about your role and potential conflicts of interest in the decisionto lift sanctionsagainstRusal, any role Sual Partnersmay have playedin that decision, and your relationship with Mr. Blavatnik: 1. Pleasedescribeyour pers6naland businessrelationship with Mr. Blavatnik. 2. Accordingto Hollywood Reporter,Mr. Blavatnik was aninitial investorin RatPacEntertainment,a companyyour own Dune Entertainmentpartneredwith andif so,please beginningin 2013.'4Pleasestatewhetherthisreportis accurate, describeMr. Blavatnik's ownershipinterestin RatPacand subsequentrole in the RatPac - Dune venture. 3. that he waspurchasingRatPac In April 2017,Mr. Blavatnik am'iounced Entertaimnent co founder JamesPacker's interest in RatPac.15Pleasedescribe when this transactiontook place and describeanyfinancial transactions,benefits, and communicationsyou had with Mr. Blavatnik, Mr. Packer,Ms. Linton, or any - otherparty concerningthis transaction,andprovide all supportingdocuments. 4. In June2017,you certified that you had completedthe saleof your interestin Dune Entertaimnent,and the RatPac- Dune venture, as required by your ethics partyor partiesandthetermsof the Please identifythepurchasing agreement.'6 transactionand any role or approvalthat Mr. Blavatnik executedin consummating this divestiture or benefit receivedby him as a result of the transaction,and provide all supportingdocuments. 5. Pleasedescribeany stepsyou took to minimize any conflicts of interest, or the of suchconflicts,in the Rusalmatterstemmingfrom your relationship appearance with Mr. Blavatnik, including all documentsrelated to any consultationwith an agencyethics official. 6. PIeasedescribeany communications,meetings,and social engagements,you have sincebeingnominated had with Mr. Blavatnik, his agents,or his representatives, to be TreasurySecretary.Pleaseprovidecopiesof any suchcommunicationsand datesand suimnariesof any meetingsor engagements. '4 Kim Masters,Music'sMysteryMogul: LenBlavatnik,Trumpand TheirRussianFriends,Hollywood Reporter(Oct. 10, 2018) https://www.hollywoodreporter.com/features/why-is-warner-i'nusic-group-owner-lenblavatnik-russia-probe-1150550. '5 AccessIndustries,PressRelease.'BlavatnikBuysStakesin VentureBehindWarnerBros.Hit Films (citing a Bloombergstory by Paul Barbagallo)(Apr. 18, 2017)https://www.accessindustries.com/news/blavatnik buys- stake- m- venture- behmd- warner- bros- hit- films/. '6 StevenT. Mnuchin, Certification of Ethics AgreementCompliance(June 19, 2017) https://extapps2.oge.gov/201/Presiden.nsf/PAS+Index/A660A5801E88974B8525813200685C6B/$FILE/Mnuchin, %20Steven%20To/o20EA%20Cert%201%20&%20Cert%202.pdf. The Honorable Steven Mnuchin Page4 7. When sanctionsagainstRusalwereannounced,SualPartnersstatedthat they would take"all necessarystepsto facilitate the swift li:fting of U.S. Treasury between onRusal."'7Pleasedescribeanycommumcations sanctions Department Sual Partnersor their agentsor representativesand the Treasury Department concermngthis matter. Pleaseprovide copies of any commumcationsand dates and surnmariesof any meetings. 8. Rusal reportedly undertook structural and governancechangesas a condition of andidentifyhowtheyaffect relief.'8 Pleasedescribethosechanges sanctions Sual's interest in the company. 9. Pleaseprovide documentssufficient to show Sual's past and current ownership structure,including whether they are a blocked entity due to'Mr. Vekselberg's ownershipinterest. AJI attachmentto this letter provides additional instmctions for respondingto our request. Pleaseprovide copies of this information to the House Committee on Oversight and Reform and the SenateCommittee on Financeby February11, 2019. Thank youfor your attention to this matter. Sincerely, cc: Chairman Ron Wyden Ranking Member Cornrnitteeon Oversight and Reform, U.S. Hori se of Representatives U.S. Senate Committee on Finance, The Honorable Chuck Grassley,Chairman, Cormnitteeon Financial Services The Honorable Jim Jordan,Ranking Member, Cornrnitteeon Oversight and Reform to US. Sanctions,Reuters(Apr. " PolinaIvanova,RusalShareholderCallsfor NewStrategyin Response 30, 2018) https://www.reuters.com/article/us- usa- russia- sanctions- rusal- sual- idUSKBNlIlOWD. '8 Departmentof theTreasury,PressRelease:OFACNotifiesCongressofIntent to DelistEn+, Rusal,and - releases/sm576. EuroSibEnergo(Dec. 19, 2018) https://home.treasury.gov/news/press