A US consulting firm had accounts with US defense and intelligence contracts, including a state-owned Russian firm that dealt with high technology. McKinsey & Co. worked with US agencies but dealt with Rostec, a Russian firm that made engines for missiles, according to an NBC news story.
Contracts With Russian State-Owned Firm
The consulting firm said the outlet had knowingly serviced American and Russian clients that were not seen as positive but full of impropriety; since Rostec manufactured the military products used in pounding Ukraine.
Information revealed that dealing with the firm was working with a Russian company, carrying out sensitive national security projects for Washington agencies connected with defense, reported Sputnik News.
According to an outlet, the American consulting firm's job with the Russian defense and aerospace giant had little to do with weapons systems. The firm's link to the Russian company will raise potential conflicts of interest over concerns that it has dealings with several government agencies; national security is questioned how secure it is for leading corporations.
Additionally, McKinsey had other dealings with Chinese companies, which also drew scrutiny. Consultant Scott Blackin expressed how a US consulting firm can conduct its contracts in delicate areas of the Russian defense or scientific agencies; remarked the ex-head of the US Chamber of Commerce in Russia. He added that Rostec, as one of its clients, draws attention, noted RT News.
US Consulting Firm Avoid Conflict of Interest
According to US consulting firm McKinsey spokesman Neil Grace, the firm has strict policies to avoid conflicts of interest for its US defense and intelligence contracts for a state-owned Russian firm, and its international work is kept separate from its Washington projects.
He said services provided to Rostec are about commercial and operational matters and that describing this work as benefiting the military of Russia is unfair and inaccurate.
Rostec is the leading defense firm in Russia, and it has a subsidiary that controls the majority of arms exports allowed by Moscow. It did the research and development for military hardware that includes the cutting-edge Checkmate fighter. Other products are armored fighting vehicles to attack helicopters used by the Russian forces, and engines produced by the corporation are used to propel missiles used against Ukraine in the military offensive.
At the height of the US opioid crisis, the company was alleged to disregard potential conflicts of interest when advising opioid manufacturers and their federal regulator, the Food and Drug Administration, cited Sputnik News.
Last year, the company paid $573 million to cover allegations that it aided in increased opioid revenues, culminating in over 400,000 deaths as a result of substance abuse. Statements by US Senator Maggie Hassan (D-New Hampshire) hinted the consulting firm's business practices had misgivings about its contracts abroad.
Sen. Hassan added if it was a substance-misuse crisis or working for state-owned enterprises in places like Russia and China. Expressed that the choices made will be a conflict of interest for the US government.
Former consulting firm employees moved on to influential roles in business and government. Those connected to the company include Pete Buttigieg, Sheryl Sandberg, and Susan Rice; they moved on to coveted positions in the US government.
Major clients are Sberbank, VTB Bank, Gazprom, and Rosneft are major firms in Russia, said NBC in court filling; but gave up on these clients after sanctions. The US consulting firm McKinsey and its US defense and intelligence contracts that include state-owned Russian firm 'Rostec' is alleged to disregard conflicts of interests but justified business dealings.
Related Article: Moscow Names Unfriendly Nations That Have Destabilized Global Security on Energy and Food With Their Sanctions
