The US President-elect Donald Trump has announced that he would nominate ExxonMobil chief Rex W. Tillerson as the secretary of state. “I have chosen one of the truly great business leaders of the world, Rex Tillerson, Chairman and CEO of ExxonMobil to be Secretary of State,” Trump tweeted on Tuesday. He justified Tillerson's selection for his “vast experience at dealing successfully with all types of governments.”
Trump praised his business acumen, bargaining and negotiation skills, and obviously considers them as more important for the job than mere diplomatic skills. Tillerson's nomination as secretary of state would require approval from the US Senate.
Sceptical Senate
Many US lawmakers have questioned Trump's priorities as Tillerson with little diplomatic or governmental experience has been chosen to head an office that handles America's global relationships. They say Trump sees everything through a business eye.
But Tillerson's selection fits in with Trump's determination to build closer ties with Russia. Trump praised Russian President Vladimir Putin several times during the campaign trail, and Trump's victory was celebrated with heavy applause at the Duma, the Russian parliament. Trump has underlined his resolve to improve ties with Russia by nominating Tillerson who is very close to Russian leaders.
Under the Obama administration, relationship with Russia took a turn for the worse after Russia annexed Crimea. Recently, Obama has talked of a Russian role in Trump's election.
The appointment of Tillerson is seen as a significant gain for Russians. Some of the US Senate members see his proximity to power centres in Moscow as a threat to the established principles of the US foreign policy. Republicans have only a slender majority—52 against 48—in the house. Tillerson's appointment will suffer if the Democrats could win over at least three votes from Republican camp.
Russian link
Trump's victory renewed hopes of economic revival in Russia against which the US and the European Union have imposed economic sanctions. If Tillerson, too, becomes secretary of state, it will be double bonus for Russia.
Russia's President Vladimir Putin, Rosneft Chief Executive Igor Sechin and Exxon Mobil Chief Executive Rex Tillerson take part in a signing ceremony at a Rosneft refinery in the Black Sea town of Tuapse, Russia June 15, 2012. File photo: Reuters
Tillerson has two powerful connections in Russia: President Putin and the state-owned oil giant Rosneft's executive chairman Igor Sechin, who is said to be second most powerful man in Russia. Tillerson has been meeting with Putin since 1999. In 2011, as Exxon chief, he forged a multibillion-dollar deal with Rosneft that gave Exxon the privilege to dig oil in Siberia. In exchange, Rosneft was allowed to invest in ExxonMobil's overseas businesses.
After the deal with Rosneft, Tillerson was awarded 'Order of Friendship' by President Putin in 2013. Exxon suffered a loss of $1 billion on account of the sanctions against Russia after Crimea was annexed from Ukraine. Tillerson has been outspoken against economic sanctions on Russia.
Tillerson joined Exxon as production engineer in 1975 soon after graduating from the University of Texas. He worked his way up to the top position to lead ExxonMobil, which came into being with the merger of Exxon and Mobil. It has about 75,000 employees around the world. During his tenure as its chairman and chief executive, in a decade, Exxon made a profit of more than $200 billion. Tillerson has been with the company for more than 40 years and is due to retire at the mandatory retirement age of 65 in 2017.
While Trump considers Tillerson’s Russian connection would come handy for dealing with Russia and China, his critics say Tillerson would be sympathetic to Russia.
Realpolitik or values
Then Russian Prime Minister Vladimir Putin and Exxon Mobil Chief Executive Rex Tillerson attend a meeting at the Novo-Ogaryovo state residence outside Moscow, Russia April 16, 2012. File photo: Reuters
On and off the presidential election campaign, Trump singled out China for practising trade policies that are harmful to the US. He believes 'One China' policy followed by the US is ripe for review. He thinks that the US can use it to bargain with China for settling other issues like trade imbalance, currency manipulation and its claim over the South China Sea.
In 1972, during the Cold War days, US president Nixon and his national security adviser Henry Kissinger travelled to China and talked Mao Zedong into joining them against the Soviet Union, which included Russia. Russia and China were not in good terms then. The situation has reversed now. Russia and China have enhanced economic ties in the recent times. Chinese President Xi Jinking told Putin in June that Russia and China were friends forever.
As China is challenging the dominance of the United States economically, politically and militarily, Trump wants to use Russia against China. The US thinks it is strategically important to free Russia from the Chinese hold. At the same time, China is concerned that Trump is warming up to Russia to keep China at bay.
Like Trump, Tillerson, too, has been vociferous about lifting sanctions against Russia. Ukraine and countries of the eastern Europe are distressed that any concession to Russia would be at their cost.
