Worcester Business Journal

4 Worcester Business Journal | August 20, 2018 | wbjournal.com C E N T R A L M AS S I N B R I E F Oxford manufacturing CEO listed for possible Russian sanctions BY ZACHARY COMEAU Worcester Business Journal Staff Writer V E R BAT I M Marketing & manufacturing "Whatever the profession you happen to be in, whether a lawyer, doctor or accountant, you have to find a way to draw people to it. It's more than just putting pieces together and building a piece of equipment here." James Coghlin, Sr., co-founder of Westborough manufacturing parent Coghlin Cos., on his donation of $25,000 for a scholarship at his alma mater, Nichols College Departing Union Station "For us, it's an important step in our long-term growth in the area and dedication to Worcester." Justin Dufresne, principal and Worcester office manager for engineering firm VHB, on its move from Union Station to the Mercantile Center Tolls to stay put "While automobile congestion is a problem on the roads of the commonwealth, lowering tolls for drivers on the small number of roadways with tolls is not an effective response to road con- gestion." Gov. Charlie Baker, on his rationale for vetoing a bill aimed at relieving traffic congestion by lowering tolls during certain times of the day. I PG Photonics' Chairman and CEO Valentin Gapontsev, a Worcester resident and an American citizen, has been listed as a Russian oligarch and operative by the U.S. Department of the Treasury. e Treasury, at the behest of Con- gress, compiled a list of Russian political operatives and oligarchs in January. Included on the oligarch list at No. 27 out of 96 wealthy Russians is Gapontsev, who founded the Oxford laser manufacturer in 1990. e list is required by the Countering America's Adversaries rough Sanctions Act of 2017 that imposed sanctions on Iran, North Korea and Russia. e law requires the Treasury to submit a report on the effects of imposing sanctions on Kremlin-linked entities and Russian businesses in the U.S. In an Aug. 3 Washington Post story, the Russia-educated Gapontsev said he doesn't belong on that list, which is iden- tical to a Forbes magazine list of Russian billionaires the financial publication released in March 2017. A spokesman for IPG Photonics denied WBJ's request for comment for this story. Gapontsev, a dual citizen, persuad- ed Forbes to move him to the list of American billionaires, according to the Washington Post. According to his Forbes profile, Gapontsev's net worth is $2.2 billion. He owns about $1.25 billion in shares of his company, which took in $1.4 billion in 2017 revenue. Congress is taking steps toward black- listing people on the oligarchs list from entering the U.S. and their assets could be frozen if they played a role in election interference, the Post reported. In April, New Hampshire Sens. Jeanne Shaheen and Sheldon White- house sent letters to eight major American and European financial in- stitutions requesting details on actions taken following the publication of the oligarchs list. e senators asked the banks whether they conducted any reviews of accounts, loans or other services performed for anyone on the list. "Given their wealth and relationship to the Russian state, many oligarchs in Russia either wield or are susceptible to considerable political influence," the senators wrote. It's unclear what relationship, if any, Gapontsev has with Russian officials, but he did tell the Washington Post former Russian President Dmitry Medvedev asked him to move IPG Photonics to a suburb of Moscow, but the billionaire kept his company head- quartered in Oxford. At least three members of Congress have appeared to come to Gapontsev's aide. e Massachusetts delegation of James McGovern, Richard Neal and Katherine Clark penned Treasury Secretary Steven Mnuchin asking if Gapontsev's name will be taken off the list. e lawmakers pointed to Gapont- sev now being listed by Forbes as an American billionaire rather than his native Russia. "Does the Treasury Department intend to correct or update it publicly posted … list of Russian oligarchs as its source material changes, namely the Forbes listing of global billionaires?" the representatives asked. As of Aug. 14, the Treasury had not responded to the letter, according to McGovern's office. Valentin Gapontsev was able to move his name from Forbes' Russian billionaires list to its American billionaires list, but he still is listed by the U.S. Treasury as a Russian oligarch. W

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