Paradise Papers: Wilbur Ross Under Pressure Over Russia Links

Donald Trump's commerce secretary has been accused of misleading senators after leaked documents revealed his business links to Russian figures who are currently under US sanctions.

Democratic Senator Richard Blumenthal said Wilbur Ross's failure to disclose this information was "inexcusable".

The Paradise Papers show he retained an interest in a company shipping oil and gas for a Russian energy firm, Sibur.

Two of Sibur's owners are subject to some form of US sanctions.

The US commerce department says Mr Ross has not done anything illegal and never met any of the figures under sanctions.

The revelations come as part of a huge leak of financial documents revealing how the powerful and ultra-wealthy, including the Queen's private estate, secretly invest vast amounts of cash in offshore tax havens.

What did Wilbur Ross do, according to the leaks?

The leaks show he has investments in Navigator Holdings, which earns millions a year transporting oil and gas for Sibur. Two major Sibur shareholders have been sanctioned by the US:

• Russian billionaire Gennady Timchenko, who has at least 12 companies connected to him
• The Russian natural gas company, Novatek, belonging to Leonid Mikhelson

Another key Sibur shareholder is President Vladimir Putin's son-in-law, Kirill Shamalov, who holds a 3.9% stake in the firm. While he is not subject to sanctions, his father, Nikolai, is.

A commerce department spokesman did not dispute the revelations.

"Secretary Ross recuses himself from any matters focused on transoceanic shipping vessels," the spokesman told BBC Panorama, adding that the secretary worked "closely with Commerce Department ethics officials to ensure the highest ethical standards".

The US imposed some sanctions after Russia annexed Crimea in 2014. Others were imposed last year for alleged interference in the US presidential election.

The commerce department said Mr Ross had "been generally supportive of the administration's sanctions of Russian and other entities".

What's the problem then?

Prior to being confirmed in office as treasury secretary, Wilbur Ross did not reveal to Congress the full details of his company holdings.

According to the leaks, he retains a financial interest in Navigator Holdings via a number of companies in the Cayman Islands, some of which he did disclose at the time of his confirmation.

However, under the disclosure rules he did not have to declare his interest in Navigator Holdings.

But questions will be raised about Mr Ross's potential conflicts of interest and whether his ties undermine US sanctions against Russia.

"Our committee was misled, the American people were misled by the concealment of those companies," Democratic Senator Richard Blumenthal told NBC Newsafter the revelations came to light.

Mr Blumenthal has called for an investigation into the treasury secretary's links to President Putin's son-in-law.

The leaks come as an investigation led by special counsel Robert Mueller into Russian connections to Donald Trump's 2016 campaign team continues.

Mr Trump's presidency has been dogged by allegations that Russians colluded to try to influence the outcome of the election. He has called the allegations "fake news".

How close is Ross to Trump?

They have known each other for more than a quarter of a century. Mr Ross played a key part in a pre-packaged bankruptcy deal - an agreement between a company and its creditors - for Mr Trump's Atlantic City casino, the Taj Mahal, in the 1990s.

He stepped in to represent the angry bondholders but liked Donald Trump's style.

Mr Ross, according to Trump biographer David Cay Johnston, was the key negotiator preventing Donald Trump from "being swept into the dustbin of history because he saw the value in the Trump name".

"If it hadn't been for Wilbur Ross, Donald Trump would not be in the White House."

How close is Ross to Navigator Holdings?

WL Ross & Co, which was founded by Wilbur Ross, appears to have maintained a close relationship with the shipping company.

On the night that he was nominated as commerce secretary, Mr Ross was congratulated on his promotion by the senior management of Navigator Holdings at a New York restaurant, Bloomberg reports.

Mr Ross reportedly told the CEO of Navigator: "Your interest is aligned to mine. The US economy will grow, and Navigator will be a beneficiary."

Another key Navigator customer has been PDVSA, the Venezuelan state oil company. It was targeted by US sanctions this year.

Timeline: Wilbur Ross's links with Sibur

November 2012: Navigator sign charter deal with Sibur. Mr Ross becomes Navigator board member

March - November 2014: He remains a board member as the US sanctions Russia for annexing Crimea

November 2014: Mr Ross leaves Navigator's board with Ross group partner Wendy Teramoto taking his place until 2017

2015: Navigator increases business with Sibur, with energy firm accounting for 9.1% of its total revenues (compared to 5.3% in 2014)

2016: Figures show Sibur remains among Navigator's top five clients, predominantly exporting Russian gas to Europe and potentially providing significant income to sanctioned Putin allies

2017: Navigator doubles the fleet it uses on Sibur exports to four

What are the Paradise papers?

They are a huge batch of leaked documents mostly from offshore law firm Appleby, along with corporate registries in 19 tax jurisdictions, which reveal the financial dealings of politicians, celebrities, corporate giants and business leaders.

The 13.4 million records were passed to German newspaper Süddeutsche Zeitung and then shared with the International Consortium of Investigative Journalists (ICIJ). Panorama has led research for the BBC as part of a global investigation involving nearly 100 other media organisations, including the Guardian, in 67 countries. The BBC does not know the identity of the source.

Paradise Papers: Full coverage; follow reaction on Twitter using #ParadisePapers; in the BBC News app, follow the tag "Paradise Papers"

Source: BBC