Trump’s Pick for Sec. of Army, but Tillerson is Still a Problem

For the most part, the team leading the auditions for Cabinet posts in the Trump administration are pretty good. It was announced on December 19, that Trump’s choice for Secretary of the Army is Vincent Viola. Viola is a billionaire and a West Point graduate. Formerly an air borne ranger, Viola is in fact a military patriot as he helped fund the ‘counter-terrorism’ center.

Hat tip on this choice.

Upon continued deeper dives however on Rex Tillerson, there is an iceberg ahead on this as his Russian ties are even more robust than previously reported.

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ExxonMobil helped defeat Russia sanctions bill

The company’s formidable lobbying operation cleared the way for outgoing CEO Rex Tillerson to help restore a program worth billions of dollars as secretary of state.

ExxonMobil successfully lobbied against a bill that would have made it harder for the next president to lift sanctions against Russia, clearing the way for the oil giant to restart a program worth billions of dollars if Donald Trump eases those restrictions as president.

The company’s effort could be helped by outgoing CEO Rex Tillerson, who, if confirmed as secretary of state, would be a key adviser on the decision.

The bill, known as the STAND for Ukraine Act, would have converted into law for five years President Barack Obama’s measures punishing Russia for annexing Crimea, making it more difficult for Trump to roll them back. The Senate left town on Monday without acting on the bill, making it easier for Trump to end the sanctions with a stroke of the pen.

The sanctions forced Exxon to step back from a drilling project in Russia’s Arctic, a loss that the company valued in a regulatory filing at as much as $1 billion. Exxon also lobbied the Senate Foreign Relations Committee against previous bills punishing Russia for the invasion of Ukraine, according to a person familiar with the company’s efforts on Capitol Hill.

Exxon’s intervention against the sanctions bill could add to concerns among senators — including Republicans John McCain, Lindsey Graham and Marco Rubio — that Tillerson is too chummy with Vladimir Putin. Exxon’s business partner in Russia is state-owned Rosneft, led by Igor Sechin, a close Putin ally who was sanctioned by the Treasury Department in 2014. Tillerson and Putin personally concluded the joint venture in 2011.

In a statement, Exxon spokesman Alan Jeffers said the company “sought and provided information” about its activities in Russia and Ukraine and disclosed its lobbying as required. “Our contacts were reported per congressional requirements, but were mainly in the first half of 2014,” when the Russia sanctions were first imposed, he added. More detail here from Politico.

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Yes there is more:

Leak reveals Rex Tillerson was director of Bahamas-based US-Russian oil firm

Documents from tax haven will raise more questions over suitability of Donald Trump’s pick for US secretary of state

Rex Tillerson, the businessman nominated by Donald Trump to be the next US secretary of state, was the long-time director of a US-Russian oil firm based in the tax haven of the Bahamas, leaked documents show.

 Mediaite

Tillerson – the chief executive of ExxonMobil – became a director of the oil company’s Russian subsidiary, Exxon Neftegas, in 1998. His name – RW Tillerson – appears next to other officers who are based at Houston, Texas; Moscow; and Sakhalin, in Russia’s far east.

The leaked 2001 document comes from the corporate registry in the Bahamas. It was one of 1.3m files given to the Germany newspaper Süddeutsche Zeitung by an anonymous source. The registry is public but details of individual directors are typically incomplete or missing entirely.

Though there is nothing untoward about this directorship, it has not been reported before and is likely to raise fresh questions over Tillerson’s relationship with Russia ahead of a potentially stormy confirmation hearing by the US senate foreign relations committee. Exxon said on Sunday that Tillerson was no longer a director after becoming the company’s CEO in 2006.

ExxonMobil’s use of offshore regimes – while legal – may also jar with Trump’s avowal to put “America first”.

Tillerson’s critics say he is too close to the Russian president, Vladimir Putin, and that his appointment could raise potential conflicts of interest.

ExxonMobil is the world’s largest oil company and has for a long time been eyeing Russia’s vast oil and gas deposits. Tillerson currently has Exxon stock worth more than $200m.

Since his nomination, Tillerson’s Russia ties have become a source of bipartisan concern. In 2013, Putin awarded him the Russian Order of Friendship. Tillerson is close to Igor Sechin, the head of Russian state oil company Rosneft and the de facto second most powerful figure inside the Kremlin. A hardliner, Sechin is ex-KGB.

Tillerson’s award followed a 2011 deal between ExxonMobil and Rosneft to explore the Kara Sea, in Russia’s Arctic.

It was put on hold in 2014 after the Obama administration imposed wide-ranging sanctions against Russia. The sanctions were punishment for Putin’s Crimea annexation that spring and Russia’s undercover invasion of eastern Ukraine.

The ban covers the US sharing of sophisticated offshore and shale oil technology. Exxon was supposed to halt its drilling with Rosneft. The firm successfully pleaded with the US Treasury department to delay the ban by a few weeks, with the Kremlin threatening to seize its rig. In this brief window Exxon discovered a major Arctic field with some 750m barrels of new oil.

Tillerson has criticised the US government’s policy on Russia. In 2014 he told Exxon’s annual meeting that “we do not support sanctions”. He added: “We always encourage the people who are making those decisions to consider the very broad collateral damage of who they are really harming.”

It is widely assumed by investors that the new Trump administration will drop sanctions. This would allow the Kara joint venture to resume, boosting Exxon’s share price and yielding potential profits in the tens of billions of dollars. According to company records, Tillerson currently owns $218m of stock. His Exxon pension is worth about $70m. The complete summary is here from the Guardian.

 

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Denise Simon