German-born agent initially refused newly created, more senior post
An American citizen of Ukrainian descent, who has had active business and political ties in his ethnic homeland, has accepted an appointment to be a senior advisor to the director of the Central Intelligence Agency after initially refusing a more senior post.
The appointment of Michael Kostiw, 57, of Hamburg, Germany, and who later immigrated to the U.S., marks him as one of the most influential individuals in the United States with Ukrainian roots. His appointment to the newly-created post of Executive Director on Sept. 30 did not pass without controversy.
Originally picked by newly appointed U.S. spymaster Porter Goss for the position of Executive Director, Kostiw turned it down in connection with his involvement in an alleged incident of theft that occurred more than 20 years ago at CIA headquarters in Langley, Virginia. A scandal erupted recently after news reports alleged a bizarre though vaguely detailed incident involving Kostiw when he worked as an operative in 1981. Kostiw says the reports forced him to reject the job offer, and he instead accepted the post of senior advisor to Goss.
Avoiding speculation
In a statement issued through the CIA on Oct. 4, Kostiw explained that his decision followed negative media coverage and “attendant speculation,” but he did not deny the shoplifting allegations.
“As a result of recent press articles and attendant speculation, I have decided that I cannot accept an appointment as CIA’s Executive Director,” he said. “Allegations about my past would be a distraction from the critical work the Director of Central Intelligence needs to focus on.
“In light of my decision, [Goss] asked me this morning to serve as a senior adviser to him. I accepted this assignment with pride and very much look forward to serving [him] in this capacity,” Kostiw added.
Goss, a former Republican Congressman who replaced outgoing director William Tenet last month, announced the appointment of Kostiw a week after being sworn into office on Sept. 24.
The news reports which emerged last week in leading American dailies such as the Washington Post did not detail what Kostiw had allegedly stolen. Citing an unidentified source, the Washington Post reported on Oct. 3 that Kostiw had not yet received security clearance.
On Oct. 6 the Kyiv Post learned from CIA press spokesman Mark Mansfield that Kostiw was sworn in on Oct. 4. Mansfield added that Kostiw does have security clearance with the agency.
The Oct. 3 Washington Post article cited retired and acting agency officials, who alleged Kostiw, already a 10-year CIA vet by 1981, was fingered for the theft. Kostiw was put on administrative leave after questions were raised following a polygraph test he took in connection with the incident, the newspaper reported.
‘Full confidence’
CIA spokesperson Mansfield said he could not discuss the allegations detailed in the press, saying instead: “Director Goss has full confidence in Kostiw,” whom Mansfield said has intelligence experience and is an expert in many fields including energy and the former Soviet region, “among other” areas.
Kostiw’s language skills include Ukrainian, Russian, Spanish and Italian, as well as English.
In addition to Kostiw’s language abilities, he has been an active figure regarding business and political issues related to his ethnic homeland, including the disputed Odessa-Brody oil pipeline.
Among Kostiw’s considerable business experience is his work as a former lobbyist for U.S. oil giant ChevronTexaco Corporation, which has expressed interest in pumping oil from a production facility in Kazakhstan through Ukraine’s Odessa-Brody pipeline to Europe. The westward usage of the pipeline has been supported by the U.S. for the purpose of diversifying energy supplies in the region. The direction of the pipeline was reversed this year in favor of Russian oil interests, which have in recent weeks begun using it to transport crude from the Urals to the Black Sea.
In addition to his work with ChevronTexaco, Kostiw has been a staffer on the House of Representatives Intelligence Committee, and has served as a member of the U.S.-Ukraine Foundation, a nonprofit, non-governmental organization established in 1991 to facilitate democratic development, encourage free market reform, and enhance human rights in Ukraine.
He has also served as an advisor to the Ukraine-U.S. Business Council, an advocacy group that represents U.S. businesses in Ukraine.
Kostiw’s other business and political contacts largely stem from his role as Vice Chairman of the International Republican Institute, a non-government organization affiliated with the Republican Party. In the past Kostiw has served as an IRI election observer in Russia, Ukraine, Mexico and Venezuela.
IRI, which receives U.S. government funding, supports democracy initiatives in Ukraine and in many other countries.
