Smith urges Treasury to investigate allegations that Russia influenced U.S. energy markets

U.S. Rep. Lamar Smith (R-TX) called on the Treasury Department on Friday to investigate allegations that Russian-sponsored entities have funded environmental groups opposed to fossil fuels in an effort to disrupt U.S. energy markets.

In a letter to Treasury Secretary Steven Mnuchin, Smith, the chairman of the House Science, Space, and Technology Committee, wrote that the committee has conducted oversight regarding an apparent concerted effort by foreign entities to influence U.S. energy markets by funneling millions of dollars to nonprofit groups in the United States that oppose fossil fuels.

“If you connect the dots, it is clear that Russia is funding U.S. environmental groups in an effort to suppress our domestic oil and gas industry, specifically hydraulic fracking,” Smith said. “They have established an elaborate scheme that funnels money through shell companies in Bermuda. This scheme may violate federal law and certainly distorts the U.S. energy market. The American people deserve to know the truth and I am confident Secretary Mnuchin will investigate the allegations.”

Former Secretary of State Hillary Clinton, European officials and members of the U.S. intelligence community have, the letter states, acknowledged that Russia and its government corporations undermined support for fracking in the U.S. and Europe in an effort to safeguard the influence of the Russian oil and gas sector.

“Publically available reports connect the dots in this complex scheme operated under the guise of philanthropic endeavors,” the letter states. “The Russian government and complicit parties have executed a political agenda with little or no paper trail. This scheme allows money originating from foreign countries like Russia to funnel through Bermuda-based shell companies to environmental groups in the United States with the aim of disrupting the U.S. energy industry. These allegations are ripe for investigation by the Department of Treasury.”

That scheme, the letter continues, raises questions about whether foreign entities attempting to influence U.S. policy are in violation of federal statutes regarding “agents of foreign governments or those lobbying on behalf of domestic and foreign interests.”

The letter concludes by calling on Mnuchin to undertake a full and complete investigation into the allegations.