(2010-0999-F) Tyumen Oil Company

The materials in FOIA 2010-0999-F are a selective body of documents responsive to the topic of the FOIA. Researchers should consult the archivist about related materials. In December 1999, the Export-Import (Ex-Im) Bank was nearing a final decision on a $500 million loan guarantee on a project for Tyumen Oil (TNK), a Russian energy company controlled by the Alfa Group holding company. American oil field services company Halliburton was to provide $279 million in exports for the planned refurbishment of the operations at Samotlor oil field in central Russia. However, the State Department and the Clinton Administration had concerns about Tyumen’s involvement in an ongoing dispute with rival BP-Amoco concerning the November 1999 acquisition of Chernogorneft, a subsidiary of the bankrupt oil conglomerate Sidanko. BP-Amoco alleged that Tyumen had used improper tactics, including the dilution of shareholder rights, to buy Chernogorneft at auction for a fraction of its value. American businessman George Soros, who had invested in BP-Amoco, echoed their concerns, as did several members of Congress. Although there was increasing pressure on Ex-Im Bank Chairman James Harmon to deny the loan guarantee, the accusations fell outside of the banks mandate to make decisions solely on financial grounds. Consequently, on December 21, 1999, Secretary of State Madeleine Albright invoked the Chafee Amendment to the Export-Import Bank Act. The Amendment states that the President can inform the Ex-Im Bank that a particular action is not in the national interest of the United States, effectively asking the bank to deny or delay that action. President Carter had delegated this authority to the Secretary of State in Executive Order 12166. Following a deal between BP-Amoco and TNK which resolved the dispute, Secretary Albright lifted the Chafee Amendment determination and allowed the Ex-Im bank to proceed with the loan approval. Materials responsive to this FOIA request include memos, briefing materials, correspondence, press materials, emails, and cables. Most of the memos and briefing materials, found in the files of National Economic Council staffer Robert Westcott, discuss the dispute with BP-Amoco, the potential use of the Chafee Amendment to block the Tyumen loan, and Congressional support for a Chafee invocation. The correspondence, located in Westcott’s files, the NSC Emails, and the NSC Records Management files largely consists of letters from BP-Amoco, George Soros, Senator McCain, and Congressman Lantos, as well as the administration’s response. In addition, the NSC Emails contain general discussion between National Security Council staff regarding the Ex-Im loan and the Chafee Amendment, as well as press guidance on the issue. Lastly, the NSC Cables address Ex-Im Bank staff meetings with Russian officials and observations from the corporate community on the dispute between BP-Amoco and TNK. The Automated Records Management System (ARMS) Emails consist of one of these forwarded cables.