Azerbaijan State Oil Company Paid Travel Expenses for 10 U.S. Congress Members

According to Radio Free Europe/Radio Liberty, a congressional ethics investigation in the U.S. states that the State Oil Company of Azerbaijan Republic (SOCAR) spent hundreds of thousands of dollars for the travel and accommodation of 10 U.S. Congress members to Baku in 2013 and for gifts for them. The Washington Post reported on May 13, citing a confidential congressional report, that SOCAR paid about $750,000 for the Congress members' trip to Azerbaijan, using two U.S.-based nonprofit organizations to conceal the source of the funds. The American lawmakers apparently traveled to participate in a conference in Baku, where three senior former advisors to President Barack Obama were speakers. The report is the result of an investigation by the Office of Congressional Ethics, which stated that the funds were used to provide gifts such as silk scarves, crystal tea sets, and Azerbaijani carpets to Congress members and their staff. Radio Free Europe/Radio Liberty has not independently reviewed the Office of Congressional Ethics report. The Washington Post adds that the congressional report could not determine whether the Congress members used their official positions to benefit SOCAR; furthermore, the investigative committee found no evidence that the Congress members were aware that their travel expenses were being paid by a foreign government. The newspaper states that all 10 members of the U.S. House of Representatives told the ethics committee investigators that they were unaware of SOCAR covering the travel costs. The report indicates that the Azerbaijani company used the cover of two Texas-based organizations named the 'Azerbaijan Friends Association' and the 'U.S.-Europe-Asia Relations Council' to hide the original source of the payment. However, SOCAR has denied the allegations regarding concealing the source of the conference expenses and condemned the two U.S. nonprofits for not informing Congress about this matter. In a statement released on May 13, SOCAR said, 'The company has never been investigated for this matter because the responsibility to disclose our company's role in funding the conference lies with those who arranged the trip.' SOCAR added, 'We are disappointed by the potential and precise non-compliance with regulations by the sponsors of this trip, and it is unclear to us why these disclosures have been omitted. Our company is willing to cooperate clearly on this matter and hopes to familiarize decision-makers with regional issues in the future.' The company emphasizes that it has 'never' concealed its participation in this program from the conference participants in Baku. The Washington Post, citing investigators from the Office of Congressional Ethics, reports that SOCAR and the Azerbaijan Friends Association violated congressional regulations and U.S. federal laws by gifting unauthorized gifts to Congress members. In recent years, Azerbaijan has increased its lobbying efforts in the U.S. amid growing criticism from Western governments and human rights organizations regarding its government’s actions. The Azerbaijani government has also been accused of using a method known as 'caviar diplomacy,' attempting to win the friendship and cooperation of policymakers through gifts such as carpets, jewelry, caviar, and vacations. The Washington Post notes that the conference held in Baku, titled 'The U.S. and Azerbaijan: Future Horizons,' took place just one year after SOCAR and other major Azerbaijani energy companies requested that the U.S. Congress exempt a $28 billion project for the construction of a Caspian Sea gas pipeline from sanctions against Iran. The newspaper adds that the 10 Congress members claimed they were unaware that their travel expenses were covered by SOCAR and that they fully cooperated with the Office of Congressional Ethics investigations. Nevertheless, the ethics committee report states that 'a person's ignorance of the actual source of travel expenses is not a completely acceptable defense against the accusation of receiving expenses from an improper source.' The Washington Post cites another part of the Office of Congressional Ethics report stating that Ted Poe, a Texas representative and member of the House Foreign Affairs Committee, did not fully cooperate with investigators. However, a spokesperson for this Congress member told Radio Free Europe/Radio Liberty that contrary to the Washington Post report, Mr. Poe fully cooperated with these investigations. Since the annexation of Crimea by Russia in March 2014, the Azerbaijani government has intensified its efforts to increase its influence in the U.S. and seeks to present itself as a key player in European energy security capable of reducing Europe’s dependence on Russian gas. Besides Mr. Poe, the other Congress members who traveled to Azerbaijan include Jim Bridenstine, Yvette Clarke, Danny Davis, Roben Hinojosa, Sheila Jackson Lee, Leonard Lance, Michelle Lujan Grisham, Gregory Meeks, and Steve Stockman.