Burisma Holdings Limited ( uk, Бурісма Холдингс) is a holding company for a group of energy exploration and production companies. It is registered in

Limassol Limassol (; el, Λεμεσός, Lemesós ; tr, Limasol or ) is a city on the southern coast of Cyprus and capital of the district with the same name. Limassol is the second largest urban area in Cyprus after Nicosia, with an urban population ...

Cyprus Cyprus ; tr, Kıbrıs (), officially the Republic of Cyprus,, , lit: Republic of Cyprus is an island country located south of the Anatolian Peninsula in the eastern Mediterranean Sea. Its continental position is disputed; while it is ge ...

, but based in

Kyiv Kyiv, also spelled Kiev, is the capital and most populous city of Ukraine. It is in north-central Ukraine along the Dnieper River. As of 1 January 2021, its population was 2,962,180, making Kyiv the seventh-most populous city in Europe. Kyi ...

Ukraine Ukraine ( uk, Україна, Ukraïna, ) is a country in Eastern Europe. It is the second-largest European country after Russia, which it borders to the east and northeast. Ukraine covers approximately . Prior to the ongoing Russian inv ...

. Burisma Holdings has operated in the Ukrainian natural gas market since 2002. It is one of the largest private

natural gas Natural gas (also called fossil gas or simply gas) is a naturally occurring mixture of gaseous hydrocarbons consisting primarily of methane in addition to various smaller amounts of other higher alkanes. Low levels of trace gases like carbo ...

producers in Ukraine. It is owned by Ukrainian oligarch Mykola Zlochevsky through his company Brociti Investments Limited ( uk, Бросіті Інвестментс Лімітед). Burisma's subsidiaries include Esko-Pivnich, Pari, Persha Ukrainska Naftogazova Kompaniya, Naftogaz Garant, KUB-Gas and Astroinvest-Ukraine.

History

Burisma was founded in 2002. Consolidation of the Burisma Group took place mainly in 2006 and 2007. It became a major shareholder of Sunrise Energy Resources, a

Delaware Corporation The Delaware General Corporation Law (Title 8, Chapter 1 of the Delaware Code) is the statute of the Delaware Code that governs corporate law in the U.S. state of Delaware. Adopted in 1899, the statute has since seen Delaware become the most im ...

, which in 2004 acquired Ukrainian companies Esko-Pivnich ( uk, Еско-Північ) and Pari ( uk, Парі), which owned

exploration licences. In 2009, shares in these companies were transferred to Millington Solutions Limited. However, shortly thereafter Millington ceased to exist, at which point Burisma claimed ownership of those two companies. In 2012, Persha Ukrainska Naftogazova Kompaniya (First Ukrainian Oil and Gas Company, uk, Перша Українська нафтогазова компанія), Naftogaz Garant (Oil and Gas Guarantee, uk, Нафтогаз гарант), and KrymTopEnergoServis (CrimeaTopEnergoService, uk, Кримтопенергосервіс) became a part of the Burisma Group. In 2014, Burisma signed a cooperation agreement with KazMunayGas, the national oil and gas company of Kazakhstan. In 2016, Burisma bought two hydraulic fracturing (fracking) fleets. In 2017, it bought a 3,000-

horsepower Horsepower (hp) is a unit of measurement of power, or the rate at which work is done, usually in reference to the output of engines or motors. There are many different standards and types of horsepower. Two common definitions used today are t ...

Service King Manufacturing SK 3000

drilling rig A drilling rig is an integrated system that drills wells, such as oil or water wells, or holes for piling and other construction purposes, into the earth's subsurface. Drilling rigs can be massive structures housing equipment used to drill wa ...

for $40 million (USD); it was the most powerful drilling rig in Eastern Europe at the time. In February 2016, Burisma acquired a 70% stake in KUB-Gas (КУБ-Газ). In 2017, it bought a majority stake in Diloretio Holdings Limited, a company which owned Ukrainian gas companies SystemOilEngineering ( uk, Системойлинжиниринг), Naftogazopromyslova geologiya, (Oil and Gas Industrial Geology, uk, Нафтогазпромислова геологія), and Tehnokomservis (TechnoComService, uk, Технокомсервіс). Also in 2017, Burisma bought Nadragasvydobuvannya (Subsoil Gas Extraction, uk, Надрагазвидобування) and GasOilInvest (Гасоілінвест). In April 2019, Burisma acquired Astroinvest Ukraine (Астроінвест-Україна), a natural gas trader. In 2015, Burisma was one of the founders of the International Forum on Energy Security for the Future and partnered the Electric Marathon. In 2017, it signed a partnership agreement with the Atlantic Council to promote anti-corruption measures. In the 2020 United States presidential election, the re-election campaign of President

Donald Trump Donald John Trump (born June 14, 1946) is an American politician, media personality, and businessman who served as the 45th president of the United States from 2017 to 2021. Trump graduated from the Wharton School of the University of P ...

and his allies promoted allegations of corruption focused on the relationship between Burisma and

Hunter Biden Robert Hunter Biden (born February 4, 1970) is an American attorney who is the second son of U.S. President Joe Biden and his first wife Neilia Hunter Biden. He is also a hedge fund, venture capital, and private-equity fund investor who for ...

. The claims were first stated by an editor of

Breitbart News ''Breitbart News Network'' (known commonly as ''Breitbart News'', ''Breitbart'', or ''Breitbart.com'') is an Radical right (United States), American far-rightMultiple sources: * * * * * * * * * * * * syndicated news, opinion, and commentary ...

, and subsequently formed the basis of a pressure campaign by Trump and associates to push the Ukrainian government to announce an investigation of the younger Biden's role with Burisma, culminating in Trump's impeachment and acquittal. Republicans hoped to use the Burisma allegations to tarnish Biden's 2020 Presidential campaign, but an investigation by the Republican-controlled Senate Homeland Security and Finance Committees shortly before the 2020 presidential election concluded that there was no evidence of improper influence or wrongdoing by Joe Biden.

Operations

Burisma's primary operations are in Ukraine, supplemented by activities in Germany, Mexico, Italy, and Kazakhstan. It holds 35 gas production licences in Ukraine in the Dnieper-Donets, Carpathian, and

Azov Azov (russian: Азов), previously known as Azak, is a town in Rostov Oblast, Russia, situated on the Don River just from the Sea of Azov, which derives its name from the town. Population: History Early settlements in the vicinity The mout ...

- Kuban Basins. Exploration and production activities are carried out at eight sites in five regions. Burisma also provides natural gas well services, including hydraulic fracturing. Burisma plans to build a liquefied petroleum gas (LPG) plant in

Kharkiv Kharkiv ( uk, wikt:Харків, Ха́рків, ), also known as Kharkov (russian: Харькoв, ), is the second-largest List of cities in Ukraine, city and List of hromadas of Ukraine, municipality in Ukraine.DTEK DTEK (Ukrainian language, Ukrainian: ДТЕК) is the largest private investor in the energy industry in Ukraine. The company's enterprises generate electricity at solar, wind and thermal power plants; extract coal and natural gas, trade energy pr ...

, accounting for 26% of all natural gas produced by privately owned companies and more than 5% of total gas production in Ukraine. According to the company, it produced of natural gas in Ukraine in 2018. In Kazakhstan, the company has provided drilling services to KazMunayGas and its subsidiaries, including at the

Urikhtau gas field Energy in Kazakhstan describes World energy resources and consumption, energy and Electricity generation, electricity production, consumption and import in Kazakhstan and the politics of Kazakhstan related to energy. Kazakhstan is net energy expor ...

. In Italy, Burisma develops three geothermal power projects in partnership with Gesto Investimento e Gestão. Burisma's subsidiary Esko-Pivnich operates in the

Kharkiv Oblast Kharkiv Oblast ( uk, Харківська́ о́бласть, translit=Kharkivska oblast), also referred to as Kharkivshchyna ( uk, Ха́рківщина), is an oblast (province) of eastern Ukraine. The oblast borders Russia to the north, Luhan ...

, and Pari operates in Western Ukraine (

Lviv Lviv ( uk, Львів) is the largest city in western Ukraine, and the seventh-largest in Ukraine, with a population of . It serves as the administrative centre of Lviv Oblast and Lviv Raion, and is one of the main cultural centres of Ukrain ...

, Ivano-Frankivsk and Chernivtsi oblasts). KUB-Gas operates in

Luhansk Oblast Luhansk Oblast ( uk, Луга́нська о́бласть, translit=Luhanska oblast; russian: Луганская область, translit=Luganskaya oblast; also referred to as Luhanshchyna, uk, Луга́нщина) is the easternmost oblast ...

, GasOilInvest in

Poltava Oblast Poltava Oblast ( uk, Полта́вська о́бласть, translit=Poltavska oblast; also referred to as Poltavshchyna – uk, Полта́вщина, literally 'Poltava Country') is an oblast (province) of central Ukraine. The administrative ...

, and Nadragasvydobuvannya in

Dnipropetrovsk Oblast Dnipropetrovsk Oblast ( uk, Дніпропетро́вська о́бласть, translit=Dnipropetrovska oblast), also referred to as Dnipropetrovshchyna ( uk, Дніпропетро́вщина), is an oblast (province) of central-eastern Ukra ...

. Burisma also owned KrymTopEnergoServis, a company which leased three gas deposits in

Crimea Crimea, crh, Къырым, Qırım, grc, Κιμμερία / Ταυρική, translit=Kimmería / Taurikḗ ( ) is a peninsula in Ukraine, on the northern coast of the Black Sea, that has been occupied by Russia since 2014. It has a pop ...

. However, after annexation of Crimea by the Russian Federation, KrymTopEnergoServis ceased operation as Burisma subsidiary.

Corporate matters

Ownership

Burisma Holdings is owned by Brociti Investments Limited, a

-based company owned by Ukrainian former politician and businessman Mykola Zlochevsky. Zlochevsky was minister of natural resources under

Viktor Yanukovych Viktor Fedorovych Yanukovych ( uk, Віктор Федорович Янукович, ; ; born 9 July 1950) is a former politician who served as the fourth president of Ukraine from 2010 until he was removed from office in the Revolution of D ...

, then president of Ukraine. Brociti Investments acquired Burisma Holdings in 2011. Before that acquisition, Mykola Zlochevsky and Mykola Lisin each owned a 50% interest in Burisma Holdings. Lisin, a Ukrainian politician, died in a traffic accident in 2011.

Management

Taras Burdeinyi is the

chief executive officer A chief executive officer (CEO), also known as a central executive officer (CEO), chief administrator officer (CAO) or just chief executive (CE), is one of a number of corporate executives charged with the management of an organization especial ...

of Burisma Holdings, and Alan Apter is chairman of the board of directors. As of 14 October 2019, the members of the board of directors, in order of seniority, are Alan Apter,

Aleksander Kwaśniewski Aleksander Kwaśniewski (; born 15 November 1954) is a Polish politician and journalist. He served as the President of Poland from 1995 to 2005. He was born in Białogard, and during communist rule, he was active in the Socialist Union of Pol ...

Joseph Cofer Black Joseph Cofer Black (born 1950) is an American former CIA officer who served as director of the Counterterrorism Center in the years surrounding the September 11th attacks, and was later appointed Ambassador-at-Large and Coordinator for Counter ...

, Karina Zlochevska, Christina Sofocleous, Riginos Charalampous, and Marina Pericleous. Aleksander Kwaśniewski, former president of

Poland Poland, officially the Republic of Poland, is a country in Central Europe. It is divided into 16 administrative provinces called voivodeships, covering an area of . Poland has a population of over 38 million and is the fifth-most populou ...

, joined the board in January 2014. In 2017,

, former director of the

Counterterrorism Center The U.S. Central Intelligence Agency's Mission Center for Counterterrorism (often referred to as the Counterterrorism Mission Center or CTMC, formerly the Counterterrorism Center, or simply CTC) was established in 1986, and is a division of the CI ...

of the

Central Intelligence Agency The Central Intelligence Agency (CIA ), known informally as the Agency and historically as the Company, is a civilian foreign intelligence service of the federal government of the United States, officially tasked with gathering, processing, ...

(1999–2002) in the George W. Bush administration and former Ambassador-at-Large for

counter-terrorism Counterterrorism (also spelled counter-terrorism), also known as anti-terrorism, incorporates the practices, military tactics, techniques, and strategies that governments, law enforcement, business, and intelligence agencies use to combat or ...

(2002–2004), was appointed to the board. Karina Zlochevska, daughter of Mykola Zlochevskiy, was also appointed in February 2016. In April 2014,

Devon Archer Devon ( , historically known as Devonshire , ) is a ceremonial and non-metropolitan county in South West England. The most populous settlement in Devon is the city of Plymouth, followed by Devon's county town, the city of Exeter. Devon is a ...

, a former senior adviser to the

John Kerry 2004 presidential campaign The 2004 presidential campaign of John Kerry, the longtime U.S. senator from Massachusetts, began when he formed an exploratory committee on December 1, 2002. On September 2, 2003, he formally announced his candidacy for Democratic nomination. ...

, and

, an attorney and the son of then-US vice president Joe Biden, joined the board. Archer left the company in 2018 and Hunter Biden left in April 2019, when his term as a director expired.

Financial results

Burisma Holdings does not disclose its financial results. It has been calculated, based on a minimal natural gas price, that the company's revenue in 2018 may have totaled at least US$400 million.

Investigations

In April 2014, the Serious Fraud Office of the United Kingdom launched a money laundering investigation against Zlochevsky, and as a result, accounts of Burisma Holdings and its parent Brociti Investments at the London branch of BNP Paribas containing US$23 million were frozen. That money was transferred as a result of complex transactions by a company controlled by a Ukrainian businessman Serhiy Kurchenko, a subject of the European Union restrictive measures. When the Ukrainian prosecutor general's office failed to provide documents needed for the investigation, a British court in January 2015 dropped the case and ordered to unfreeze the assets. In September 2015, then-U.S. Ambassador to Ukraine

Geoffrey Pyatt Geoffrey Ross Pyatt (born November 16, 1963)Welcome, Mr. Pyatt!
, ''Den (ne ...

gave a speech in which he called out Ukrainian prosecutors for failing to cooperate with the investigation. Office of the Prosecutor General of Ukraine and National Anti-Corruption Bureau of Ukraine (NABU) have conducted in total 15 investigations on Burisma's owner Zlochevsky. In 2016, former Prosecutor General

Yuriy Lutsenko Yuriy Vitaliyovych Lutsenko ( uk, Юрій Віталійович Луценко; born 14 December 1964) is a Ukrainian politician whose most recent post was Prosecutor General of Ukraine from 12 May 2016 hryvnias The or ( ; uk, гривня , : ''hrn''; sign: ₴; code: UAH) has been the national currency of Ukraine since 2 September 1996. The hryvnia is divided into 100 . It is named after a measure of weight used in medieval Kievan Rus'. Name Ety ...

(US$70 million) in 2014–2015, but later during investigation subsidiaries of Burisma were not mentioned. Tax audit of Esko-Pivnich by the State Fiscal Service found some violations in 2016. As a result, 50 million

hryvnias The or ( ; uk, гривня , : ''hrn''; sign: ₴; code: UAH) has been the national currency of Ukraine since 2 September 1996. The hryvnia is divided into 100 . It is named after a measure of weight used in medieval Kievan Rus'. Name Ety ...

(US$1.9 million) of additional taxes was paid to eliminate criminal charges. In total, Burisma paid additional 180 million

(US$7.44 million) of taxes to avoid further criminal proceedings. A criminal investigation was conducted if natural resources extraction licenses were issued to Burisma subsidiaries legally during the period Zlochevsky held government office. Although violations of the procedure were established by NABU, the Specialized Anti-Corruption Prosecutor's Office missed procedural deadlines for a lawsuit and the case for nullifying licenses was dismissed by the court. In October 2019, Prosecutor General Ruslan Riaboshapka announced that all 15 investigation cases will be reviewed.

References

External links

* {{official, https://burisma-group.com/eng/ Ukrainian companies established in 2002 Black Sea energy Oil and gas companies of Ukraine Oil and gas companies of Cyprus Companies based in Limassol Energy companies established in 2002 Trump–Ukraine scandal