Russian-backed investment fund tied to influential U.S. corporate

An investment fund backed by Russian oligarchs that have been sanctioned by the European Union following the invasion of Ukraine has ties to Teneo, an influential corporate advisory firm based in the United States.

The public relations and strategy giant was hired in 2020 by LetterOne, a private equity firm based out of Luxembourg that counts sanctioned billionaires Mikhail Fridman, who is a native of Ukraine, and Petr Aven among its cofounders. The contract appears to have paid Teneo more than $3.6 million to line up interviews and consult on media strategy in the U.S.

LetterOne was founded by Fridman, Aven, Alexei Kuzmichev, Andrei Kosogov and German Khan — all of whom are some of the wealthiest business leaders based in Russia. All five founders have been on LetterOne’s board, with Fridman as the chairman, according to data from PitchBook reviewed by CNBC. The executives launched the firm in 2013 after establishing Alfa Group, one of the largest conglomerates in Russia.

Fridman and Aven have been accused by the E.U. of having ties to Russian President Vladimir Putin, claims that were denied in an emailed statement to CNBC. The statement did not answer any of CNBC’s questions on LetterOne’s work with Teneo or how the investment fund is planning to move ahead now that two of their founders have been sanctioned. Fridman’s bank, Alfa Bank, has also been sanctioned by the United States. He’s called on the war in Ukraine to end.

After CNBC asked a LetterOne representative on Monday about their business, including their relationship with Teneo, several pages of their website, including the “our people” section, appear to have been wiped as of Tuesday morning. An error message now appears on that section which listed the founders and executives at the firm. The LetterOne board section is still active but it no longer shows Fridman and Aven as members of their board.

Joshua Hardie, a spokesman for LetterOne, said Fridman and Aven resigned from the board on Tuesday. CNBC first contacted the private equity firm on Monday.

Though emails to Teneo were not returned, Kathleen Lacey, a senior managing director at Teneo who was listed in a document as working the LetterOne account, told CNBC in a brief phone call on Monday that they were no longer one of her clients and believed her firm wasn’t representing them anymore.

The Department of Justice’s FARA Unit, which monitors U.S. lobbying and consulting work for foreign representatives, told CNBC on Tuesday that the contract between Teneo and LetterOne “remains active.”

LetterOne has multiple links to Teneo, which was founded by two Democratic consultants that worked for former Presidents Bill Clinton, Barack Obama and former Secretary of State Hillary Clinton. The private equity firm has been involved with almost a dozen deals estimated to be worth over $1 billion, according to PitchBook. Uber saw a $200 million investment from LetterOne in 2016.

Teneo has since grown into a consulting giant, with past clients…