New candidate for Secretary of State: businessmen control US politics - COMMENT

Baku. 15 December. REPORT.AZ/ US President-elect Donald Trump named his candidate to the position of Secretary of State. The name of the person to occupy this position is no less important for other countries. Because Secretary of state is a main figure to regulate relations between US and other countries. He also handles implementation of country’s foreign policy course.

Because of this and other factors, the secretary of state sometimes seem more important from outside than even US vice president.

At least 10 names had been considering to the position of head of US foreign policy department. Former presidential contender from Republican Party Mitt Romney seemed to have advantage for this position.

The expectations weren’t groundless. Thus, Donald Trump supported Mitt Romney when he was running for presidency in 2012. But he lost the race to current president Barack Obama.

Romney and Trump were criticizing each other during 2015-2016 presidential campaign. Former candidate denounced Trump as a ‘phony’ and ‘fraud’.

But after elections he congratulated a billionaire on his victory and told: “Trump is the man who can lead us to that better future”.

Moreover, there is an example of former presidential candidate to be appointed as secretary of state in John Kerry. He used to challenge Republican George W.Bush in 2004 presidential campaign.

US attitude towards Russia related to Syrian and Ukrainian crises is known. Washington even powered sanctions against Moscow because of situation in Ukraine and annexation of Crimea. From this point of view, it is reasonable to expect that US will further toughen its policy against Russia. M.Romney was considered a best candidate to handle this course. He is on harsh position towards Russia. M.Romney called Russia ‘geopolitical foe’ of United States and told that he cannot approach Russian President Vladimir Putin naively.

But the final candidate for the position of secretary of state came out as surprising as the result of presidential election. Beyond all expectations, D.Trump picked not M.Romney, but Rex Tillerson, head of country’s biggest oil company - ExxonMobil.

Another news related to M.Romney says D.Trump may support his nephew’s candidacy for chairman of Republican Party.

First time in US history the person without political or diplomatic degree will act as a secretary of state. Let’s have a look on some information about ExxonMobil oil and gas company:

The company is descendant from Standard Oil founded by John Rockefeller in 1890. Its head office is located in Irving, Texas, USA.

According to information dated January 28, 2013, total capital of ExxonMobil Corporation is 417.2 billion USD. The company is engaged in oil and gas production and exploration of fields; it also produces oil related products. Previous year the company had 16.2 billion net income. Data from 2015 shows the company employs 75.3 thousand people.

Imperial Oil, Esso Australia, Aera Energy, XTO Energy, ExxonMobil Chemical and ExxonMobil Research and Engineering are its subsidiaries.

This company is one of ‘Seven Sisters’ (British Petroleum, Exxon, Gulf Oil, Mobil, Royal Dutch Shell, Chevron and Texaco), which used to control up to 85% of world’s oil reserves until 1980. They also had power to influence global political processes.

R.Tillerson’s candidacy, although controversial in terms of US-Russia relations, can be regarded as consolatory in terms of normalization of relations.

Yesterday CBS TV channel released material about his relations with Russia.

R.Tillerson has been employed in this company since 1975. He was appointed a vice president in January 1998. He operates as president during 14 years.

- ExxonMobil participates in ‘Sakhalin-1’ project in Russia. It holds 30% of shares of the project. Each of other partners - Japanese ‘Sodeco’, Russian ‘Rosneft’ and Indian ‘ONGC’ hold 20% percent of shares.

- ExxonMobil operates Chayvo, Odoptu, and Arkutun-Dagi gas fields on Sakhalin Island and immediately offshore.

- R.Tillerson met with Russian president Vladimir Putin in 2003 at Global Energy forum held in Saint Petersburg. Then they had meetings in Washington in 2005 and in Tuapse in June 2012. Tillerson numerous times attended international economic forum in Saint Petersburg, including this year.

- Russian president awarded him order of ‘Friendship’ in 2013.

- ExxonMobil is a major company suffering from sanctions against Russia. The company suspended 9 projects in Russia.

- President-elect Donald Trump’s campaign manager Kellyanne Conway, commenting on Tillerson’s relations with Russian president, told that It’s not like he’s pounding down vodka with Vladimir Putin at the local bar, but he’s dealt with him in a business context.

- US company seeks reduction of tax from 35 to 20% for its incomes from ‘Sakhalin-1’. It hopes to return taxes worth 500 million USD paid during 7 years.

By the way, ExxonMobil holds 8% of shares in ‘Azeri-Chirag-Gunashli’ project.

D.Trump also posted on his Twitter page on his candidate for secretary of state: “The thing I like best about Rex Tillerson is that he has vast experience at dealing successfully with all types of foreign governments”.

From this point of view, it is expected that he will be able to deal with Russian government, which has serious controversies with US.

If to believe allegations of Russian support to Trump’s election, R.Tillerson’s nomination for secretary of state can be regarded as concession to Moscow.

It can be expected that the businessman Rex Tillerson will soften Washington’s tough attitude towards Moscow.

Republican president played an important role in improvement of relations of US with former Soviet Union. Richard Milhous Nixon had official trip to USSR with his wife in 1972 for the first time since 1945 (F.Roosevelt was first US president travelling to USSR). He signed ‘Strategic Arms Limitation Treaty -1’ with Leonid Brezhnev. It was one of most important documents signed between two countries during ‘Cold War’.

Thus, the republicans have come to power again. Attitude of new president and his candidate for secretary of state to Russia is not harsh. Both of them are businessmen.

This implies prevalence of economic interests in relations between White House and Kremlin.

Trump’s pre-election slogan was ‘Make America great again!’. US has to reach greater economic power to realize this slogan.

Thus, Russia’s another tough friend will participate in US government. Notably, there are various allegations on Russia’s role in Trump’s election as a president. At the same time, it is reported that Trump promised to lift sanctions against Russia. Trump’s campaign office and Moscow deny this rumors.

However, European leaders – German chancellor Angela Merkel and French president François Hollande told they will extend sanctions against Russia for another 6 months.

Thus, US government with Trump and Tillerson in top roles can be considered encouraging in terms of mutual understanding, as well as contribution to resolution of existing problems between Washington and Moscow and conflicts in the world through negotiations. Normalization of US-Russian relations is in some sense also for the benefit of European Union.

It is interesting, if the businessmen will be able to settle the problems that the politicians and diplomats couldn’t cope with?! Answer to this question will gradually come to light in next 4 months.