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This Aug. 22, 2018, file photo shows a sign declaring the future home of Braidy Industries' aluminum mill in Ashland, Ky.
File-This Aug. 22, 2018, file photo shows a sign declaring the future home of Braidy Industries’ aluminum mill in Ashland, Ky. An aluminum company planning to build a $1.7 billion plant in Appalachia is forming a partnership with a Russian company that until recently faced U.S. sanctions. Russian aluminum giant Rusal wants to invest $200 million in an aluminum rolling mill that Braidy Industries intends to build near Ashland, Kentucky. Rusal says it would assume a 40 percent ownership share in the mill in return for the investment. Braidy Industries would hold the other 60 percent share. (AP Photo | Adam Beam, File)

Report On Russian Interference In Elections Raises Questions About KY Project

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ASHLAND, Ky. (OVR) — A new report from the U.S. Senate Intelligence Committee about Russian interference in U.S. elections raises new questions about a struggling eastern Kentucky development project with ties to both Senator Mitch McConnell and the Russian government.

The 966-page document, the result of a years-long bipartisan investigation by the Senate Intelligence Committee, is the most explicit acknowledgement to date that Rusal, a Russian aluminum giant, was a proxy for the Russian government and that its head, oligarch and close Putin associate Oleg Deripaska, was involved in the country’s efforts to interfere in the 2016 election.

A section of the Intelligence Committee report on Rusal’s Kremlin connections.
A section of the Intelligence Committee report on Rusal’s Kremlin connections. [From U.S. Senate Intelligence Committee]
According to the report, “Deripaska’s companies, including RUSAL, are proxies for the Kremlin, including for Russian government influence efforts, economic measures, and diplomatic relations.”

The report details Oleg Deripaska’s interference in elections in other countries.
The report details Oleg Deripaska’s interference in elections in other countries. [From U.S. Senate Intelligence Committee]
The U.S. had placed sanctions against Rusal for its involvement in Russia’s annexation of Crimea. However, the Trump administration lifted those sanctions. A measure to keep the sanctions in place narrowly failed in the Senate last year. Just weeks later Rusal announced it would invest $200 million in an aluminum startup located in an economically struggling region of McConnell’s home state.

The startup, Braidy Industries, also received a $15 million investment from Kentucky taxpayers under the leadership of the former governor, Republican Matt Bevin. (The Louisville Courier-Journal reported Braidy is unlikely to meet its funding obligations by the end of the year, which means Kentucky could buy back its stake in the firm.)

Prior to voting to permit the sanctions on Rusal to be lifted, McConnell spoke with lobbyists associated with the firm.

[Alexandra Kanik | Ohio Valley ReSource]
McConnell stood behind the new intelligence report at an appearance in Hazard, Kentucky this week, saying, “The Senate Intelligence Committee report is bipartisan, and pretty much free of the partisan instincts that are going on in Washington.”

The Courier Journal reported last year that the senator has said Rusal’s investment in Braidy’s mill did not impact his actions on the sanctions against the Russian company.

Braidy Industries has undergone a leadership transition recently.  Ousted former CEO Craig Bouchard is contesting his dismissal in court.

report from the Securities and Exchange Commission found that the firm had just $53.1 million cash on hand, and unless the project secured additional funding, it was at risk of shuttering by the end of 2020. Braidy Industries’ new CEO, Don Foster, maintains a positive attitude and says he expects the Ashland mill to be running within three years.

 

Note: This story has been updated to include a statement from Senator Mitch McConnell.