Baltimore Sun Sunday

Trump closer to picking Exxon CEO to run State

Tillerson’s deep ties to Putin could face increased scrutiny

- By Steven Mufson, Philip Rucker and Carol Morello

WASHINGTON — President-elect Donald Trump is expected to name Rex Tillerson, chief executive of Exxon Mobil who has worked extensivel­y around the globe and built relationsh­ips with such leaders as Russian President Vladimir Putin, as his secretary of state, three people close to the transition team confirmed Saturday.

Tillerson’s nomination could face intense scrutiny in the Senate considerin­g his years of work in Russia on behalf of the multinatio­nal petroleum company and his close ties to Putin.

Already, two leading Republican hawks, Sens. John McCain of Arizona and Lindsey Graham of South Carolina, have voiced concerns about Tillerson serving as the nation’s top diplomat.

Trump spokesman Jason Miller said Saturday that there would be no official announceme­nt until this coming week “at the earliest.”

But three officials briefed on Trump’s deliberati­ons, who spoke on condition of anonymity because of the sensitivit­y of the matter, said that the pick would be Tillerson barring a late shift in Trump’s thinking.

Trump spent a month deliberati­ng over the secretary of state position and interviewe­d an array of candidates, including Mitt Romney, the 2012 GOP presidenti­al nominee and onetime critic who was the face of the Republican resistance to Trump’s candidacy.

The president-elect settled on Tillerson because he is regarded as a skillful manager and knows many foreign heads of state through his dealings on behalf of the energy giant, people close to Trump said.

In an excerpt of an interview with Fox News, which will be aired in full Sunday, Trump praised Tillerson, though did not reveal his decision.

“He’s much more than a business executive; he’s a world-class player,” Trump said. “He knows many of the players, and he knows them well. He does massive deals in Russia — for the company, not for himself.”

Tillerson’s nomination would fit the pattern of other Trump appointmen­ts, installing a wealthy business leader with little experience in policymaki­ng.

But Tillerson, 64, has spent much of his career dealing with the complexiti­es of one of the world’s biggest enterprise­s, spanning six continents and about six dozen nations.

The company’s ties to Russia would potentiall­y serve Tillerson well given Trump’s desire to repair relations with the Kremlin.

But Tillerson’s close relationsh­ip with Putin could also become a flashpoint during confirmati­on hearings, especially in light of a recent CIA assessment that Russia intervened in the 2016 election to help Trump win the presidency, rather than just to undermine confidence in the U.S. electoral system.

“Few corporate titans are closer to Putin than Tillerson,” said Jason Bordoff, founder of Columbia University’s center for global energy.

During the 1990s, Tillerson oversaw an Exxon project on Russia’s Sakhalin island and developed a working relationsh­ip with Putin.

In 2011, the company signed an agreement with the state-controlled oil company, Rosneft, to work jointly on oil exploratio­n and developmen­t in the Arctic and Siberia.

Two years later, the Kremlin awarded Tillerson the Order of Friendship, honoring foreigners.

“I don’t know the man much at all, but let’s put it this way: If you received an award from the Kremlin, (an) order of friendship, then we’re gonna have some talkin’,” Graham said. “We’ll have some questions. I don’t want to prejudge the guy but that’s a bit unnerving.”

Exxon discovered oil in a well it drilled in the Kara Sea, but the joint partnershi­p was put on ice after Russian interventi­on in Ukraine and annexation of the Crimea led to internatio­nal economic sanctions.

As secretary of state, Tillerson, who has been critical of the sanctions, would be in a position to argue for an easing them, which could allow Exxon to resume operations.

“Russia is critical for Exxon,” said Fadel Gheit, oil analyst for Oppenheime­r & Co. “Not only for how much production it has there, but the potential growth is huge.”

His selection ends one of the most high-profile contests for a top cabinet post, whose losing candidates included former New York Mayor Rudy Giuliani, Romney and Sen. Bob Corker, R-Tenn.

Tillerson joined the company in 1975.

 ?? BEN STANSALL/GETTY-AFP ?? President-elect Donald Trump is reportedly leaning toward Exxon Mobil CEO Rex Tillerson, above, as secretary of state. An announceme­nt could come this week, a spokesman said.
BEN STANSALL/GETTY-AFP President-elect Donald Trump is reportedly leaning toward Exxon Mobil CEO Rex Tillerson, above, as secretary of state. An announceme­nt could come this week, a spokesman said.

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