Reuters has identified a conflict of interest in Sokolov`s appointment as chairman of the TRIPP+ Enterprise Fund.

ArmInfo. US President Donald Trump's nominee to lead a $201 million investment fund in the South Caucasus owns major telecommunications and mining assets in the region and previously ran a Russia-focused investment firm that touted close ties to the Kremlin, documents reviewed by Reuters show.

According to the founding documents, 51-year-old Russian-born businessman Konstantin Sokolov was appointed head of the investment fund, now called the Trans-Caspian Enterprise Fund, in January. He owns large stakes in Armenia's largest mobile phone company, Viva Armenia, and earlier this year acquired Armenia's second-largest copper-molybdenum mine after receiving special permission from the U.S. government to buy it, Reuters reports.

A Reuters review of public filings for three other active U.S. investment funds found no indication that any of their executives have significant investments in the countries where they invest.

Six ethics experts who reviewed Reuters' materials said Sokolov's business interests pose a conflict of interest because his position gives him control over public funds that could potentially benefit his companies.

Ann Skeet, an ethics expert at Santa Clara University, said: "I think Congress should be asking questions."

Reuters found no evidence of wrongdoing by Sokolov. US law governing such investment funds does not prohibit directors from owning investments in their regions of operation.

A representative of Sokolov's private investment firm, IJS Investments, stated that the fund was prohibited from investing in any of his businesses and that Sokolov had met "all due diligence and security requirements."

A State Department spokesperson stated that the fund will comply with annual reporting and independent audit requirements, "as well as applicable grant provisions, including conflict of interest requirements."

The Trans-Caspian Fund is part of a broader US initiative to develop trade routes and investment in the South Caucasus and Central Asia, which could reduce the region's dependence on Russian and Chinese infrastructure. The Trans-Caspian Fund's board of directors, chaired by Sokolov, has the authority to provide grants, loans, and make investments in Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan. Its website lists key mineral resources, energy, and rail infrastructure among its top investment priorities.

It's worth noting that on July 16, it was announced that Russian-American investor Konstantin Sokolov had been appointed chairman of the TRIPP+ Enterprise Fund, a new fund designed to finance infrastructure projects in Armenia, Azerbaijan, Georgia, and Central Asia. The appointment was confirmed by the US State Department.