Konstantin Sokolov, who heads the Trans-Caspian Enterprise Fund with a declared funding of US$$201 million, has business interests in Armenia. Six ethics experts interviewed identified this as a potential conflict of interest due to the fund’s remit to invest in the region; however, the agency found no evidence of wrongdoing.
Briefly about the main points
- Sokolov has been at the helm of the Trans-Caspian Enterprise Fund since January 2026.
- The Fund may provide grants, loans and investments in eight countries.
- Sokolov has an indirect interest in Viva Armenia and is linked to the Teghout deal.
A fund for eight countries and broad investment powers
According to Reuters and the founding documents, Sokolov took charge of the Trans-Caspian Enterprise Fund in January 2026. The fund was officially launched in September. The TCEF has a stated initial funding of US$$201 million and operates as a vehicle to support the private sector and trans-Caspian trade connectivity.
The Fund’s Board, chaired by Sokolov, may award grants, provide loans and make investments in Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan. The TCEF cites critical minerals, energy and rail infrastructure as its priorities.
The development of routes through the South Caucasus and Central Asia forms part of a broader US strategy. The fund and US policy present reducing the region’s dependence on Russian and Chinese infrastructure as a goal, rather than as an achievement that has already been realised.
Why are experts talking about a potential conflict of interest?
Six ethics experts interviewed by Reuters believe that Sokolov’s regional assets create a potential conflict of interest: as chairman of the board, he influences the allocation of funds that could, in theory, be linked to the markets in which his companies operate. One of the experts interviewed, Anne Skitt from Santa Clara University, said that the US Congress should raise questions about this situation.
At the same time, Reuters notes that it has found no evidence of any wrongdoing on Sokolov’s part. US legislation governing such enterprise funds does not explicitly prohibit directors from holding investments in the regions where the fund operates.
The agency also reviewed public documents relating to three other active US enterprise funds — those for Egypt, Tunisia and Ukraine-Moldova. Reuters found no evidence of significant business interests held by their managers in the countries where the respective funds operate.
What assets does Sokolov have in Armenia?
Viva Armenia’s records list Sokolov as one of the ultimate beneficiaries of Nofal Holding Ltd: his stake in the company stands at 25%, whilst the stake held by the Chinese businessman Zhe Zhang — 75%. Through his holding company, Sokolov has a stake in a major Armenian mobile operator. In January 2024, Viva reported a change in its shareholder structure.
These figures do not imply that Sokolov directly owns 25% of all Viva Armenia shares: the stake relates to the ownership structure. Following the transfer of 20% shares to the state Armenia controls this part of the operator, whilst Fedilco Group Ltd owns the remaining 80%.
Dynamic Frontier Holdings, a company linked to Sokolov, also acquired the Teghout copper-molybdenum mine from VTB, a Russian state-owned bank subject to sanctions. The Armenian Commission for the Protection of Competition approved the acquisition in July 2026. According to a spokesperson for Sokolov, the US Treasury Department’s Office of Foreign Assets Control (OFAC) issued a licence for the transaction on 1 June; the text of the licence has not been made public.
Fuses, political donations and the Russian context
A representative of Sokolov’s private investment firm, IJS Investments, told Reuters that TCEF is not authorised to invest in his businesses, and that Sokolov himself has complied with all due diligence and security requirements. The US State Department has stated that the fund will be subject to annual reporting, independent audits and applicable conflict-of-interest requirements.
Reuters, citing data from the US Federal Election Commission, estimates Sokolov’s contributions to Republican political organisations at approximately $13 million. He was also listed as a donor to the White House Ballroom project. The agency did not provide any evidence that these donations influenced his appointment or decisions regarding the fund.
Reuters also described his previous business dealings linked to Russia, including a 2015 brochure from the Gotthard Investment Fund and records of international travel using a Russian passport until at least 2016. Sokolov’s representatives denied his links to the Russian authorities, stated that he does not hold Russian citizenship, and questioned the authenticity of the brochure. Reuters noted that it had been unable to independently verify his current citizenship status.
