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Aerostar Hotel
During the negotiations to purchase the Enamel and Heating Ltd. factory in Amherst, I worked quite closely with Mr. Ken Rowe, the principal of IMP Aerospace. The business soon became a branch of IMP Aerospace, where major aircraft fuselage components are manufactured. It is one of Amherst's major employers.
Later, when Mr. Rowe learned that his Aerostar Hotel in Moscow had been taken over by Russian “business interests,” he called me to see if I could help.
The Aerostar Hotel was Moscow’s first four-star, Western-style hotel. It was a significant step for Ken Rowe and his company, IMP Group, and held great promise for the future. IMP had entered a joint venture with Aeroflot, the Russian state airline.
However, in August 2004, a Russian firm named Aviacity abruptly seized control of the hotel, instantly evicting the Canadian management, staff, and guests. Private guards shut the operation down even though legal proceedings were still underway, citing a rent dispute. The Russians assumed ownership at zero cost and simply moved in and took over. It appeared to IMP to be legalized grand theft.
I wasn’t sure how to respond to Mr. Rowe’s call for help. I had no idea where to start, so I phoned the Russian Embassy. I requested a meeting with His Excellency Ambassador Georgiy Mamedov, the Russian Ambassador to Canada, and my request was granted immediately.
I gathered what documentation I had and met with Ambassador Mamedov. To my surprise, he was very sympathetic to our position. He made it clear that Russia did not want this sort of action taking place, as it would severely undermine foreign investment. However, he said there was little he could do directly.
When I asked for his advice, he told me that the only person who might be able to help was the Prosecutor General of Russia, located in Moscow. He provided me with his name and address.
I attempted to contact the Prosecutor General, but none of my emails received a response. In later discussions with Ambassador Mamedov, I learned that, as Ambassador, he was not permitted to contact the Prosecutor General on behalf of a foreign citizen. It was up to me to find another route.
Through Canada’s Department of Foreign Affairs, I managed to get a phone number for the Prosecutor General’s office in Moscow. I called, not knowing what to expect. The person who answered spoke only Russian, and I spoke only English, so he hung up on me.
I called again. Same result. On the third call, I just repeated “Bill Casey Canada, Bill Casey Canada, Bill Casey Canada” until he hung up again.
Then, like magic, about ten minutes later, Ambassador Mamedov called me, asking if I had contacted the Prosecutor General's office. I told him I had. He explained that the Prosecutor General’s office was alarmed and wanted to know who I was. Apparently, they thought I might be related to the former CIA Director, also named Bill Casey. Ambassador Mamedov said that this confusion might now allow him to "open a door" for me to speak with someone.
Shortly after that, I was on the phone with the Assistant Prosecutor General. His English was rough, but better than my Russian. He repeatedly asked why I was involved. Why was I bothering his office? Why didn’t I mind my own business? Who did I think I was? He was not friendly.
I explained that the Government of Canada was deeply concerned about what had occurred and wanted to see the situation corrected. He made it very clear that this was none of my business. It was strictly a matter for Russian justice.
This episode marked the beginning of an ongoing series of meetings between my office and Ambassador Mamedov on several issues. By then, he was the longest-serving foreign ambassador in Canada and frequently hosted events to which I was invited. In fact, we met so often that it eventually caught the attention of CSIS.
Unbeknownst to me, my executive assistant, Lorne Berndt, was summoned for an interview with Canadian Security Intelligence Service (CSIS) investigators downtown, where he was questioned about my activities at the Russian Embassy. Fortunately, Lorne was fully aware of our efforts to seek justice in the Aerostar Hotel case, and he helped ensure I stayed out of jail. They never did question me, only my staff, and always away from Parliament.
Despite our best efforts, we were unable to reverse the seizure of the hotel. Eventually, after years of legal and diplomatic negotiations, I understand that a settlement was reached and IMP withdrew from Russia. The Aerostar Hotel case became widely known in business circles and served as a stark warning to Canadian companies considering investment in Russia.
I don’t know whether my efforts were helpful or not, but it certainly was interesting.
Later, when Mr. Rowe learned that his Aerostar Hotel in Moscow had been taken over by Russian “business interests,” he called me to see if I could help.
The Aerostar Hotel was Moscow’s first four-star, Western-style hotel. It was a significant step for Ken Rowe and his company, IMP Group, and held great promise for the future. IMP had entered a joint venture with Aeroflot, the Russian state airline.
However, in August 2004, a Russian firm named Aviacity abruptly seized control of the hotel, instantly evicting the Canadian management, staff, and guests. Private guards shut the operation down even though legal proceedings were still underway, citing a rent dispute. The Russians assumed ownership at zero cost and simply moved in and took over. It appeared to IMP to be legalized grand theft.
I wasn’t sure how to respond to Mr. Rowe’s call for help. I had no idea where to start, so I phoned the Russian Embassy. I requested a meeting with His Excellency Ambassador Georgiy Mamedov, the Russian Ambassador to Canada, and my request was granted immediately.
I gathered what documentation I had and met with Ambassador Mamedov. To my surprise, he was very sympathetic to our position. He made it clear that Russia did not want this sort of action taking place, as it would severely undermine foreign investment. However, he said there was little he could do directly.
When I asked for his advice, he told me that the only person who might be able to help was the Prosecutor General of Russia, located in Moscow. He provided me with his name and address.
I attempted to contact the Prosecutor General, but none of my emails received a response. In later discussions with Ambassador Mamedov, I learned that, as Ambassador, he was not permitted to contact the Prosecutor General on behalf of a foreign citizen. It was up to me to find another route.
Through Canada’s Department of Foreign Affairs, I managed to get a phone number for the Prosecutor General’s office in Moscow. I called, not knowing what to expect. The person who answered spoke only Russian, and I spoke only English, so he hung up on me.
I called again. Same result. On the third call, I just repeated “Bill Casey Canada, Bill Casey Canada, Bill Casey Canada” until he hung up again.
Then, like magic, about ten minutes later, Ambassador Mamedov called me, asking if I had contacted the Prosecutor General's office. I told him I had. He explained that the Prosecutor General’s office was alarmed and wanted to know who I was. Apparently, they thought I might be related to the former CIA Director, also named Bill Casey. Ambassador Mamedov said that this confusion might now allow him to "open a door" for me to speak with someone.
Shortly after that, I was on the phone with the Assistant Prosecutor General. His English was rough, but better than my Russian. He repeatedly asked why I was involved. Why was I bothering his office? Why didn’t I mind my own business? Who did I think I was? He was not friendly.
I explained that the Government of Canada was deeply concerned about what had occurred and wanted to see the situation corrected. He made it very clear that this was none of my business. It was strictly a matter for Russian justice.
This episode marked the beginning of an ongoing series of meetings between my office and Ambassador Mamedov on several issues. By then, he was the longest-serving foreign ambassador in Canada and frequently hosted events to which I was invited. In fact, we met so often that it eventually caught the attention of CSIS.
Unbeknownst to me, my executive assistant, Lorne Berndt, was summoned for an interview with Canadian Security Intelligence Service (CSIS) investigators downtown, where he was questioned about my activities at the Russian Embassy. Fortunately, Lorne was fully aware of our efforts to seek justice in the Aerostar Hotel case, and he helped ensure I stayed out of jail. They never did question me, only my staff, and always away from Parliament.
Despite our best efforts, we were unable to reverse the seizure of the hotel. Eventually, after years of legal and diplomatic negotiations, I understand that a settlement was reached and IMP withdrew from Russia. The Aerostar Hotel case became widely known in business circles and served as a stark warning to Canadian companies considering investment in Russia.
I don’t know whether my efforts were helpful or not, but it certainly was interesting.