Exxon keeps Russian Arctic assets frozen with an eye on Tillerson

Moscow hopes for a new round of US-Russia energy talks that could open up oil and gas investment

- Advertisement -

Only a week to go until Donald Trump officially becomes US President, pundits are still trying to predict the policies of his administration, including their stance on energy, climate change and relations with Russia.

Rex Tillerson’s appointment as Trump’s secretary of state has paved the way for a new round of US-Russia energy talks that could open up oil and gas investment, the Guardian quoted former Russian energy minister Igor Yusufov as saying. Sanctions against Moscow have prevented ExxonMobil from exploring its massive oil assets in the Russian Arctic.

At a Senate confirmation hearing on November 11 Senators reportedly questioned Tillerson about his position on US sanctions that the Obama administration has imposed against Russia in response to its annexation of Crimea and its cyberattacks in an attempt to influence the November election. “If confirmed, senator, I would want to examine it and all aspects of it,” Tillerson said. He also said he would want to maintain “the status quo until we are able to develop what our approach is going to be”.

The former ExxonMobil chief executive will have a new role as the head of US diplomacy wearing a different hat, facing many challenges going forward, including dealing with Russian President Vladimir Putin.

“This is a man who spent all his life working for Exxon – all the way from a university graduate to the chairman of the board for the last ten years. He had to put Exxon first. Basically he would do anything to benefit the company,” Fadel Gheit, a senior energy analyst at Oppenheimer in New York told New Europe before the hearings. “He is no longer on this role. He is going to completely change his focus. Now he is going to serve the president and the people of the United States so his priorities in life will change,” Gheit said.

A US institute, the Center for American Progress, reminded in a report posted on its website on November 9 that “Tillerson is the former CEO of Exxon Mobil, a corporation well-known for funding climate denial groups; for the investigations by attorneys general into whether it deliberately deceived investors and the public about the risks of climate change; and for its ties with Russia, including the agreement with Russian state-owned Rosneft that facilitates oil and gas drilling in the Arctic Ocean and Black Sea”.

Putin’s spokesman, Dmitry Peskov, told reporters on November 1 that the Kremlin understands that if Tillerson is confirmed as the next US Secretary of State, his line will be tough but expects that he will listen to Russia’s arguments. “This does not mean that we wear rose-coloured glasses. We understand that naturally, Mr. Tillerson will continue being a rather tough person in pursuing his line,” TASS quoted Peskov as saying. “At the same time, we would certainly like to appreciate his readiness to listen to arguments of the opponents,” he added.

“Right now the next visit that Rex Tillerson will be making to Russia, he is going to be wearing a different uniform,” Gheit told New Europe. “He’s going to have a different mindset. So I’m not sure how he’s going to be able – I’m not saying that I doubt it or I don’t think he’s going to do it – I’m saying it is going to be interesting to watch how he is going to change his role and change the way he discusses issues with Putin because they are no longer going to be on oil leases or whatever”.

follow on twitter @energyinsider

- Advertisement -

Subscribe to our newsletter

Co-founder / Director of Energy & Climate Policy and Security at NE Global Media

Latest

Georgia’s democratic election dream becomes a screamer

Georgia’s October 26 Parliamentary elections did not hold up...

Kazakhstan’s Bold Leap Towards Establishing an Academic Hub

The ConnectED 2024 conference, held in Astana on October...

How French Neocolonialism converges with Iranian terrorism

France raised one billion euros "for the people of...

Don't miss

Georgia’s democratic election dream becomes a screamer

Georgia’s October 26 Parliamentary elections did not hold up...

Kazakhstan’s Bold Leap Towards Establishing an Academic Hub

The ConnectED 2024 conference, held in Astana on October...

How French Neocolonialism converges with Iranian terrorism

France raised one billion euros "for the people of...

IMF pronounces victory over inflation while sounding debt and tariff warnings

The 2024 Annual Meetings of the International Monetary Fund...

Georgia’s democratic election dream becomes a screamer

Georgia’s October 26 Parliamentary elections did not hold up as “free and fair” even under the lightest of scrutiny. Despite the presence of a...

IMF pronounces victory over inflation while sounding debt and tariff warnings

The 2024 Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) took place in Washington D.C. from October 21...

EU-GCC to expand cooperation on green energy, minerals, and bringing peace to Ukraine

The EU heads of state and government and the Gulf Cooperation Council (GCC) held their first summit on October 16 in Brussels under the...

Drone producers in China and Russia face new U.S. sanctions

In recent months, the Biden administration’s sanctions taskmasters at the State and Treasury Departments have clearly gone into overdrive, designating new targets/entities at least...

The complex politics of Caspian gas

For the countries bordering the Caspian Sea, gas has always been a major economic resource and, in most cases, one of the biggest contributors...

U.S. expands sanctions on Iranian petroleum sector, targeting “ghost fleet”

In the aftermath of Iran’s unprecedented October 1 ballistic missile attack against Israel, Washington made it clear that Iran would face consequences for its...

Kazakhstan opts for nuclear power following national referendum

Following an October 6 national referendum on the construction of a nuclear power plant in Kazakhstan, an overwhelming majority of voters, totaling 5,561,937 people...

Washington orders new sanctions against Hamas’ sham fundraising network

Going after key elements of the Hamas European fundraising network on the anniversary of the Gaza war, on October 7 the U.S. Treasury Department’s...