Donald Trump's Secretary Of State Pick Rex Tillerson Forged Ties With Putin Over Decades

December 14, 2016

Dec 14: When ExxonMobil chief executive Rex Tillerson showed up in June at the annual St. Petersburg international economic forum that is dubbed Russia's Davos, he was asked about the impact international sanctions on Russia were having on his company, which had abandoned ambitious drilling plans there.

Rex

"It's a question for the government - if you find anyone from the U.S. government who's willing to answer this question," he replied to laughter from the audience of Western executives, who had been lavishing praise on their Russian hosts.

It was the first time in three years that Tillerson or most other chief executives had attended the confab, for the moment laying aside friction over Russia's abrupt annexation of Crimea and its backing of violent separatist forces in eastern Ukraine. Back in Washington, the State Department was not amused. State Department spokesman John Kirby commented that "most American companies understand" that taking part in the forum "sends the wrong message about the acceptability of Russia's actions."

Six months later, Tillerson's relationships with autocrats remain a source of friction after his surprise appointment by President-elect Donald Trump to be secretary of state. The ExxonMobil chief's ties to Russia have alarmed hawks in Congress, who vow to scrutinize Tillerson's good working relationship with President Putin and the latter's longtime confidante Igor Sechin, the chairman of the Russian petroleum giant Rosneft.

With his nomination, the 64-year-old Tillerson has been thrust into the long-standing U.S. foreign-policy divide separating those who value pragmatism and dealmaking, and those who attach greater importance to principles, human rights and democracy. This is a divide that cuts across both parties.

Should he be confirmed, Tillerson will no longer answer to the more than 93,000 shareholders of ExxonMobil but primarily to a single shareholder named Trump. And he will draw on views refined in industry, not diplomacy.

To fans of Tillerson, his relationship with Putin is a sign of his pragmatism, seeking advantage for his company with a blunt, straightforward style that has won respect abroad. Speaking to students from the Texas Tech business school last year, Tillerson said the reason "why I've been able to gain Vladimir Putin's trust" is "because throughout my career I've wanted people to view me as an honest person."

To his critics, however, Tillerson and ExxonMobil come across as arrogant and indifferent to Russia's record in Ukraine or Putin's harsh suppression of domestic opposition. The oil giant's vast enterprise spanning six continents and more than 50 nations has embraced a varied cast of national leaders, including the Saudi oil ministers, Equatorial Guinea's corrupt Teodoro Obiang Nguema, the autocratic government of Kazakhstan and the emir of Qatar.

These contrary views are in some ways connected. Edward Verona, who worked for ExxonMobil for two years and spent several more working in Moscow, said one reason Tillerson was respected in Moscow was because of the way the company dealt with Venezuela's then-president, the voluble Hugo Chávez. In 2007, Chávez had wanted to rewrite contract terms for companies operating in the country's vast, oil-rich Orinoco belt. Exxon said no, abandoning 2 percent of its worldwide reserves and winning arbitration court orders to freeze Venezuelan assets.

In the same way, Exxon exited Nigeria's Niger Delta after insurgents disputed operations there.

"You have to be willing to say, 'No, we aren't going to do it that way, we are going to do it this way; if we can't do it this way, we won't be here,' " Tillerson said about the company's strategy of keeping its Nigerian exploration to offshore areas, where it was safer.

"Rex Tillerson gained the respect of Russians, particularly Sechin and Putin, because he was prepared to stand up and push back when he felt his company was being treated unfairly," said Verona, now a senior adviser to McLarty Associates.

The fight coincided with efforts by Russia's Gazprom, a state-owned company, to horn its way into a Sakhalin Island project off eastern Russia that Tillerson had helped negotiate years earlier. ExxonMobil was able to navigate the dispute with help from Putin and Sechin. The project, built in extremely harsh conditions, remains one of the company's most lucrative, Tillerson has said.

Some of Exxon's perceived arrogance is rooted in the company's history as the largest of the corporations split off from the Standard Oil Trust, the enterprise built by John D. Rockefeller.

Tillerson was born in Wichita Falls, Texas, the son of a Boy Scout administrator. He still lists the rank of Eagle Scout on his resume; and has remained active in the organization. In 2012, he was instrumental in pushing the Boy Scouts board to admit openly gay youths.

His experience as a scout fit well into the company, which insisted on rules that were more detailed than most other oil companies.

In 1997, Exxon sent Tillerson, then a promising executive who had been in Yemen, to Moscow to "pick up the relationship and repair it," Tillerson later recalled. His predecessor had been kicked out of the country. Tillerson met six different prime ministers over the course of 14 months.

The last of those was Putin.

Nearly 15 years later in Sochi, Putin provided the blessing for what could become Exxon's largest Russian deal, a joint exploration agreement with Rosneft covering almost 190 million acres, almost halfway across the Arctic shoreline and covering nine time zones.

Speaking later at Texas Tech, Tillerson cited the Boy Scout motto and urged students to have honor and integrity.

"Those words mean a lot to me," Tillerson said. "And I can tell you they mean a lot in any culture." He added that "integrity is recognized by every government, every leader. It's the most valuable asset you have, your personal integrity."

But while Tillerson preaches the value of honesty and integrity, ExxonMobil has not shied away from doing what is good for its bottom line, which has made environmental groups and others suspicious of its aims.

While Tillerson has acknowledged human involvement in the warming of the globe and backed a carbon tax to deal with it, the oil giant has continued to fund groups such as the American Legislative Exchange Council, whose leading members have cast doubt on climate change or its urgency. The relationship contrasted with that of Shell, which also acknowledges climate change but dropped its membership of ALEC last year citing differences over the issue.

The company is also in the midst of a bitter fight with the attorneys general of New York and Massachusetts and with more than a dozen nongovernmental organizations that are looking at whether the oil giant failed to disclose what it knew 40 years ago about the damage fossil fuels were doing to the Earth's climate. The attorneys general issued broad subpoenas for internal Exxon documents, and the NGOs have encouraged them to consider bringing a fraud case similar to the one that extracted billions of dollars from tobacco companies years ago.

ExxonMobil has fought back, going to a Texas federal court near its headquarters and winning the judge's highly unusual backing for discovery on the attorneys general, including with regard to internal emails, to determine whether they were acting "in good faith."

The company also is scrutinizing individuals and organizations. The day after the presidential election, for example, the company hand-delivered a subpoena to Carroll Muffett, the head of the Center for International Environmental Law, a nonprofit organization focused on environmental and human rights issues.

"The subpoena is in fact a fishing expedition that goes far beyond any issue arguably before the Texas court," Muffett said in an email. "It is clear that Exxon is trying to leverage this case, outrageous as it is, to intimidate and silence its critics."

Another important piece of Tillerson's background is his engineering background. ExxonMobil has been widely seen as a place with a higher "EQ," for engineering quotient, than IQ, or intelligence quotient.

Even the EQ has failed from time to time. The Exxon Valdez oil-tanker accident spilled crude off the pristine coast of Alaska in 1989, and more recently company pipelines leaked in Montana's Yellowstone River and in Mayflower, Arkansas. The company has taken tough legal strategies in those instances, too, and it litigated the Valdez spill for 20 years.

Still, Tillerson draws on that engineering construct and has applied it to the problem of climate change.

"It's an engineering problem, and it has engineering solutions," he said at an event sponsored by the Council on Foreign Relations in 2012.

As he looked back on his career during the Texas Tech event, Tillerson said that he views the company's oil and gas operation on Sakhalin Island - an area beset by poverty, seismic instability, long icebound winters and 100-foot waves in the summer - as one of his crowning achievements.

It might look easy compared to being secretary of state.

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News Network
June 25,2020

Jun 25: Tencent Holdings Ltd.'s $40 billion surge this week and the recent ascent of Pinduoduo Inc. have reshuffled the ranking of China's richest people.

The country's largest game developer has surpassed Alibaba Group Holding Ltd. as Asia's most-valuable company, with its shares rising above HK$500 in intraday trading Wednesday for the first time. Pinduoduo, a Groupon-like shopping app also known as PDD, has more than doubled this year.

The rallies have propelled the wealth of their founders, with an added twist: Tencent's Pony Ma, worth $50 billion, has surpassed Jack Ma's $48 billion fortune, becoming China's richest person. And Colin Huang of PDD, whose net worth stands at $43 billion, has squeezed real estate mogul Hui Ka Yan of China Evergrande Group out of the top three earlier this year, according to the Bloomberg Billionaires Index.

The coronavirus pandemic has accelerated the digitization of the workplace and changed consumers' habits, boosting shares of many internet companies. Now tech tycoons are dominating the ranks of China's richest people. They occupy four of the top five spots: Ding Lei of Tencent peer NetEase Inc. follows China Evergrande's Hui.

‘Perform Strongly'

Tencent has come a long way since hitting a low in 2018, when China froze the approval process for new games. Since then, the stock has almost doubled, and last month the tech giant reported a 26 per cent jump in first-quarter revenue.

“Tencent's online games segment will probably perform strongly through the Covid-19 pandemic, and most of its other businesses are relatively unscathed,” said Vey-Sern Ling, a Bloomberg Intelligence analyst.

That has been a boon for Pony Ma, 48, who owns a 7 per cent stake in the company and pocketed about $757 million from selling some 14.6 million of his Tencent shares this year, data complied by Bloomberg show.

The native of China's southern Guangdong province studied computer science at Shenzhen University and was a software developer at a supplier of telecom services and products before co-founding Tencent with four others in the late 1990s. At the time, the company focused on instant-messaging services.

It has been a long comeback for Pony Ma. He overtook real estate tycoon Wang Jianlin as China's second-richest person in 2013 and topped Baidu Inc.'s Robin Li as the wealthiest in early 2014. Later that year, Alibaba went public in the U.S., catapulting Jack Ma's fortune.

Bloomberg Intelligence's Ling notes, however, that Tencent's jump this year has lagged behind some internet peers, especially those in e-commerce, games and online entertainment. Just consider: Tencent shares have climbed 31 per cent in 2020, while PDD's American depositary receipts have more than doubled. Alibaba, meanwhile, has advanced just 6.9 per cent.

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News Network
June 2,2020

Jun 2: A new female billionaire has emerged from one of Asia's most-expensive breakups.

Du Weimin, the chairman of Shenzhen Kangtai Biological Products Co., transferred 161.3 million shares of the vaccine maker to his ex-wife, Yuan Liping, according to a May 29 filing, immediately catapulting her into the ranks of the world's richest.

The stock was worth $3.2 billion as of Monday's close.

Yuan, 49 this year, owns the shares directly, but signed an agreement delegating the voting rights to her ex-husband, the filing shows. The Canadian citizen, who resides in Shenzhen, served as a director of Kangtai between May 2011 and August 2018. She's now the vice general manager of subsidiary Beijing Minhai Biotechnology Co. Yuan holds a bachelor's degree in economics from Beijing's University of International Business and Economics.

Kangtai shares have more than doubled in the past year and have continued their ascent since February, when the company announced a plan to develop a vaccine to fight the coronavirus. They slipped for a second day Tuesday following news of the divorce terms, losing 3.1% as of 9:43 a.m. in Hong Kong and bringing the company's market value to $12.9 billion.

Du's net worth has now dropped to about $3.1 billion from $6.5 billion before the split, excluding his pledged shares.

The 56-year-old was born into a farming family in China's Jiangxi province. After studying chemistry in college, he began working in a clinic in 1987 and became a sales manager for a biotech company in 1995, according to the prospectus of Kangtai's 2017 initial public offering. In 2009, Kangtai acquired Minhai, the company Du founded in 2004, and he became the chairman of the combined entity.

China's rapidly growing economy has been an engine for the country's richest, and Du is not the only tycoon who's had to pay a steep price for a divorce. In 2012, Wu Yajun, at one point the nation's richest woman, transferred a stake worth about $2.3 billion to her ex-husband, Cai Kui, who co-founded developer Longfor Group Holdings Ltd. In 2016, tech billionaire Zhou Yahui gave $1.1 billion of shares in his online gaming company, Beijing Kunlun Tech Co., to ex-wife Li Qiong after a civil court settlement.

Sometimes, a goodbye can be time-consuming too. South Korean tycoon Chey Tae-won's wife filed a lawsuit in December asking for a 42.3% stake in SK Holdings Co. valued at $1.2 billion. That would make her the second-largest shareholder of the company should she win the case, which is still ongoing.

The most expensive divorce in history is that of Jeff and MacKenzie Bezos. The Amazon.com Inc. founder gave 4% of the online retailer to Mackenzie, who now has a $48 billion fortune and is the world's fourth-richest woman.

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Agencies
January 21,2020

Fifty-six journalists were killed in 2019 and most of them died outside conflict zones, a United Nations spokesperson said.

The number dropped by nearly half from the year 2018, but perpetrators enjoyed almost total impunity, Xinhua news agency quoted Stephane Dujarric, spokesperson for UN Secretary-General Antonio Guterres, as saying on Monday citing Unesco figures.

The figure was published in the 'Unesco Observatory of Killed Journalists' on Monday.

In total, Unesco recorded 894 journalist killings in the decade from 2010 to 2019, an average of almost 90 per year. The number in 2019 was 99.

Journalists were murdered in all regions of the world, with Latin America and the Caribbean recording 22 killings, the highest number, followed by 15 in Asia-Pacific, and 10 in Arab States.

"The figures show that journalists not only suffer extreme risks when covering violent conflict, but that they are also targeted when reporting on local politics, corruption and crime - often in their hometowns," the Unesco said.

Almost two thirds (61 per cent) of the cases in 2019 occurred in countries not experiencing armed conflict, a notable spike in a wider trend in recent years, and a reversal of the situation of 2014, when this figure was one third.

More than 90 per cent of cases recorded in 2019 concerned local journalists, consistent with previous years, it added.

In response to these figures, Audrey Azoulay, the Director-General of Unesco, said: "Unesco remains deeply troubled by the hostility and violence directed at all too many journalists around the world.

"As long as this situation lasts, it will undermine democratic debate."

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