Breakingviews: Tillerson would take more bad than good to State

Published Mon, Dec 12 20164:00 PM EST

Breakingviews

Kevin Allison

Rex Tillerson would bring more bad than good to the U.S. State Department. The Exxon chief executive's global dealmaking means he's already a diplomat of sorts. But his ties to Russian President Vladimir Putin and his cronies would make him an inflammatory pick as secretary of state. Tillerson, who took the top job at Exxon in 2006 after coming up through the company ranks, has never worked in government. Now among President-elect Donald Trump's favorites for the United States' top diplomatic post, he does bring some relevant skills. As CEO, Tillerson forged relationships with governments in dozens of countries where the $360 billion crude producer does business. More from Breakingviews : Trump's stock sales earn at best a "hold" rating His experience striking deals would probably make Tillerson good at the bilateral, transactional foreign policy that Trump seems to support, judging by the incoming president's campaign rhetoric about making America's NATO allies "pay up" for mutual defense. It's less clear that he'd be successful at building consensus on tough international issues like climate change or the Iran nuclear deal. Exxon did, though, eventually back the idea of a global carbon tax during his tenure and publicly supports the United Nations accord on climate change struck in Paris 12 months ago. The positives are bound to be overshadowed during the confirmation process by the Exxon boss's Russian connections, however. Tillerson, who owned about $160 million in Exxon stock as of February and will hit mandatory retirement age in March, cut his teeth running Exxon's business in the country. Tillerson cultivated ties with Putin and former KGB associate Igor Sechin, the chief executive of Russia's state-controlled oil company, Rosneft, with which he struck a $3.2 billion oil-exploration deal in 2011. Putin two years later awarded Tillerson one of Russia's highest civilian honors. The partners discovered huge oil reserves in the Russian Arctic before Exxon put the project on ice in 2014 amid escalating U.S. sanctions over Ukraine. Prominent U.S. senators are already calling for an investigation into whether Putin actively plotted to help Trump win the White House. So tapping an executive whose business relationship with Russia at times has pitted his company's interests against those of the United States would be akin to throwing kerosene on a fire. Republican Senator Marco Rubio , who sits on the Foreign Relations Committee that would vet his appointment, has already expressed skepticism. Installing Tillerson at State might be a step too far. For more independent commentary and analysis from Reuters Breakingviews, visit breakingviews.com

Russian President Vladimir Putin, center, and then-Exxon Mobil CEO Rex Tillerson shake hands at a signing ceremony of an agreement between state-controlled Russian oil company Rosneft and Exxon Mobil corporation at the Black Sea port of Tuapse, southern Russia, June 15, 2012.

Mikhail Klimentyev | RIA-Novosti | Presidential Press Service | AP

Tillerson, who took the top job at Exxon in 2006 after coming up through the company ranks, has never worked in government. Now among President-elect Donald Trump's favorites for the United States' top diplomatic post, he does bring some relevant skills. As CEO, Tillerson forged relationships with governments in dozens of countries where the $360 billion crude producer does business.