U.S. Treasury fines ExxonMobile meager $2m for violation of the Russian-Ukraine Sanctions!

Some days you wonder if the connections of the New York isn’t to strong for the moment. When the joys of their loot and their power is not making them lose their senses. The common sense is clearly gone, as the company formerly run by Rex Tillerson, the now State Secretary of United States. Who couldn’t care less about the relationship between the United States of America and the Russian Federation. As the illegal and not internationally accepted annexation of the Crimea from the Republic of Ukraine happen. Still, even as that was happening the former Standard Oil baby ExxonMobile decided to be a trading partner and create opportunities in the vast resources in Russia and Russian territories. Now today they we’re fined, but that was a little slap on their wrist, as the real wealth inside the deal shows how much they really could have earned. Therefore, the crime and the penalty doesn’t fit. The Company gets away with a heist, but has to pay small interests for doing so. Now they are waiting for the possible time for their giant payoff and this will be simple write-off in their results in the next quarterly estimates. This sort of fine isn’t that serious, as it can easily chop it off and continue to eat.

First we will look into what the Wall Street Journal wrote about the deal between Russia and ExxonMobile, the second and third are about today’s fine and you see why it insulting fine to give.

“A U.S. official said the new penalties would affect Exxon’s current drilling in the icy Kara Sea with its Kremlin-controlled partner, OAO Rosneft, though the extent of the impact was unclear Thursday. No other Western energy company has as much direct exposure to Russia as Exxon, thanks to a $3.2 billion deal giving the company access to a swath of the Arctic larger than Texas that could hold the equivalent of billions of barrels of oil and gas. Officials in Europe, which has extensive trade links to Russia, have insisted that Western nations share the fallout from sanctions against Moscow. Russia has said it would retaliate against additional sanctions with measures of its own, further heightening the risks to companies operating there, legal experts said. Exxon is “assessing the sanctions,” said Alan Jeffers, a company spokesman. “It’s our policy to comply with all laws.” (Gilbert, 2014)

“ExxonMobil Corporation Assessed a Penalty for Violating the Ukraine-Related Sanctions Regulations: ExxonMobil Corp., oflrving, Texas, including its U.S. subsidiaries ExxonMobil Development Company and ExxonMobil Oil Corp. (collectively, “ExxonMobil”), has been assessed a civil monetary penalty of $2,000,000 for violations of the Ukraine-Related Sanctions Regulations, 31 C.F.R. part 589 (Ukraine-Related Sanctions Regulations). Between on or about May 14, 2014 and on or about May 23, 2014, ExxonMobil violated§ 589.201 of the Ukraine Related Sanctions Regulations when the presidents of its U.S. subsidiaries dealt in services of an individual whose property and interests in property were blocked, namely, by signing eight legal documents related to oil and gas projects in Russia with Igor Sechin, the President of Rosneft OAO, 1 and an individual identified on OF AC’s List of Specially Designated Nationals and Blocked Persons (the “SDN List”) (referred to hereinafter as an “SDN”)” (U.S. Treasury, 20.07.2017).

“OF AC considered the following to be aggravating factors: (1) ExxonMobil demonstrated reckless disregard for U.S. sanctions requirements when it failed to consider warning signs associated with dealing in the blocked services of an SDN; (2) ExxonMobil’s senior-most executives knew of Sechin’ s status as an SDN when they dealt in the blocked services of Sechin; (3) ExxonMobil caused significant harm to the Ukraine-related sanctions program objectives by engaging the services of an SDN designated on the basis that he is an official of the Government of the Russian Federation contributing to the crisis in Ukraine; and (4) ExxonMobil is a sophisticated and experienced oil and gas company that has global operations and routinely deals in goods, services, and technology subject to U.S economic sanctions and U.S. export controls” (U.S. Treasury, 20.07.2017).

So it’s okay, the company ExxonMobile was fined for intervening in a Republic and inside a state where there was clear sanctions against trade. That was something Rex Tillerson knew and also the Russian counterparts, but ExxonMobile didn’t care. They just wanted the profits and earn on the fragile arctic and also into areas like the annexed Crimea. This shows the intent of profiting while being under sanctions and not respecting the laws of the United States and being a registered company residing in the United States.

This show the ethical backdrop of the New York Gang and the Administration of today, we cannot know how much the company earned before the stop between Rosneft and ExxonMobile. The suspension of activity between them. What we can imagine is that it was vastly more than the little they paid for breaking the law. Peace.

Reference:

Gilbert, Daniel – ‘Sanctions Over Ukraine Put Exxon at Risk’ (11.09.2014) – Wall Street Journal

A look into Donald Trump’s possible nominee for Secretary of State: Rex Tillerson, what has he said and done?

“Whether I choose him or not for “State”- Rex Tillerson, the Chairman & CEO of ExxonMobil, is a world class player and dealmaker. Stay tuned!” – Donald J. Trump on Twitter 11.12.2016.

We have to scrutinize and look over the men that possibly will be the most powerful men and woman in the Trump Administration, as they should not be forgotten what they did in the past. Especially when Trump himself has branded Obama Administration as ‘hopeless’ and ‘bad’; therefore his Administration should be better, though by the men and woman who is already picked his stature for military and rich-men is staggering, more than the qualifications for each role in Government. That is what is worrying. This time around it is the current Chairman of ExxonMobile, a negotiator and deal-maker for the grand-oil empire from Texas, the Rex Tillerson who is connected in Venezuela, Russia and Kazakhstan. He is the next in line for the possible task of Secretary of State!

“If you ask the average person on the street about U.S. energy and U.S. oil in particular, our situation, most Americans would say, ‘Oh, we’re energy poor; we don’t have enough oil; we don’t have enough natural gas.’” – Rex Tillerman

What he even wished to happen inside the US in the midst of the Obama Administration:

“Q: President Obama has outlined a plan to cut oil imports by one-third over the next 10 years. Is this feasible?

A: We expect gasoline demand in the U.S. to decline about 17% over the next 20 years. And that’s a function of both efficiency standards that have been put in place for automobiles, but also an ongoing penetration of hybrid and hybrid-electric vehicles. There’s going to be a natural decline in demand for motor fuels from that. That will be partially offset by increasing demand for heavy-duty fuels like diesel. That, along with the penetration of bio fuels, is going to result in a mitigation of imports. Whether we eliminate a third of the imports is hard to say. Another piece of our success will rest on whether the U.S. government decides to make available the lands that it controls, because 60% of the remaining oil resource in the U.S. is on federal lands and 40% of the remaining gas resource. It’s up to the federal government to allow the industry to explore those lands and develop those resources that could have a big impact on supply in the future” (Bartiromo, 2011).

Secretary of State does: “The Secretary of State, appointed by the President with the advice and consent of the Senate, is the President’s chief foreign affairs adviser. The Secretary carries out the President’s foreign policies through the State Department, which includes the Foreign Service, Civil Service, and U.S. Agency for International Development” (Secretary of State, link: http://www.state.gov/secretary/).

So as the foreign affairs job has lots of responsibility to be the face of the nation when the President self cannot travel or negotiate, even do diplomatic missions to keep up with alliances and treaties that the US Government have or currently in the works. So the position should be done by somebody with tact and courtesy for the will of the US Government and the foreign dignitaries so that the person doesn’t offend either party while working for the common good. That is something that the possible former ExxonMobile chairman Tillerson has to do.

Negotiations in Venezuela:

“According to the XM executives, the last significant contact XM had with the BRV or PDVSA was XM Chairman and CEO Rex Tillerson’s May 16 meeting with Ambassador Bernardo Alvarez. During the meeting, Tillerson told Alvarez that XM must have a confidentiality agreement before it could begin negotiations on the remaining migration issues. In addition, he stated book value was not an acceptable basis for compensation for lost value. Finally, Tillerson said XM was looking for a win-win solution but warned that XM was willing to go to arbitration if it had to do so. The executives later mentioned that PDVSA’s stake in the Chalmette refinery was mentioned as a possible component in a compensation package. They did not specify who raised the topic” (…) “When asked if other IOCs had entered into negotiations with the BRV, XM executives replied they did not believe any companies had entered into meaningful negotiations. They stated they met with Total executives on May 22 to discuss the general situation. The Total executives stated their company has also rejected book value as a basis for compensation for lost value. In addition, they told the XM executives they believe the Sincor strategic association will be hit with a large tax assessment in the near future. Seniat, the BRV tax authority, presented CP and Chevron earlier this month with tax bills for close to USD 550 million for back taxes for the Petrozuata and Hamaca strategic associations for the years 2003 to 2005” (WikiLeaks, 2007).

In 2008 – Trading oil in Kazakstan:

“(Note: The one exception was a threat by President Nazarbayev in a December meeting with Tillerson’s deputy to use the subsoil legislation. Nazarbayev, however, reverted to his previous public line when he reassured the Ambassador privately the next day that the legislation would not/not be used against any existing contract. End Note.) In the end, both ExxonMobil and ConocoPhilips confirmed that the GOK used tough, but legitimate business pressures to pursue their case” (…) “ExxonMobil told us that CEO Rex Tillerson had decided that Exxon was going to hold the line on this issue. However, all our sources indidated that Tillerson was subjected to very strong pressure in the final negotiations, both by the other CEOs and by the Kazakhstani side. According to our in-country ExxonMobil contact (who was not in the meetings but who was extensively debriefed about them), it was the lure of future business in Kazakhstan that eventually led Tillerson to reverse course, and to agree to a “below market price” figure of $1.8 billion as the valuation of KMG’s increased share. (Note: Determining the “market price” for this share is essentially impossible, as different financial models will yield wildly varying results depending on the assumptions used. That said, all parties involved agree that $1.8 billion is a “below market price,” even if they can not tell you how much below market. End Note.)” (WikiLeaks, 2008). In 2011: “0100 Kazakh President Nursultan Nazarbayev meets Rex Tillerson, the CEO of ExxonMobile corporation, and Dhimitrios Khristofias, the  president of Cyprus, within the framework of his visit to New York to  attend 66th session of the UN General Assembly. Video shows meetings;  Rex Tillerson and Dhimitrios Khristofias, speaking to camera” (WikiLeaks, 2011).

“Experience tells us that a good foundation is critical for success in the Arctic and elsewhere. ExxonMobil’s Sakhalin-1 project with Rosneft is an example where we have put this experience to work.” – Rex Tillerson

On Russia:

“Tillerson said he valued the efforts of the Russian government to improve the tax regime and that it would have a positive effect on Russian and foreign investors.The moves will help expand cooperation in the complex situation in Russia, he said. Tillerson said he was encouraged to see Russia move to create a competitive environment, taking into account the experiences of other tax regimes in other countries” (WikiLeaks, 2011). “Prime Minister Vladimir Putin yesterday put the total of direct  investment in joint projects by Rosneft and ExxonMobil at 200-300  billion dollars, but “if we are talking about infrastructure, the construction of the necessary buildings, and surface facilities, the  investment could reach 500 billion dollars”. However, ExxonMobil expects  its agreement with Rosneft to encourage the Russian authorities to ease the tax regime for the industry. “Such steps will help the government to  expand cooperation in the difficult situation that is taking shape in  Russia,” the head of ExxonMobil, Rex Tillerson, explained” (WikiLeaks, 2011).

On Fracking:

“Exxon CEO Rex Tillerson speaking at a January 2010 congressional hearing concerning the $41 billion merger of Exxon with XTO Energy (one of the worlda**s biggest natural gas drilling companies), said he could support revealing toxic frack mixes. He added that, by combining the hydraulic fracturing and horizontal drilling processes a**we can now find and produce unconventional natural gas supplies miles below the surface in a safe, efficient and environmentally responsible manner.a** Exxon has threatened to nix its XTO acquisition if Congress makes fracking a**illegal or commercially impractical.a**” (WikiLeaks, 2010).

Article about Tillerson faith in Global Warming:

“They’re clearly cognizant of global warming – they employ some of the world’s best scientists, after all, and they’re bidding on all those oil leases made possible by the staggering melt of Arctic ice. And yet they relentlessly search for more hydrocarbons – in early March, Exxon CEO Rex Tillerson told Wall Street analysts that the company plans to spend $37 billion a year through 2016 (about $100 million a day) searching for yet more oil and gas.

There’s not a more reckless man on the planet than Tillerson. Late last month, on the same day the Colorado fires reached their height, he told a New York audience that global warming is real, but dismissed it as an “engineering problem” that has “engineering solutions.” Such as?” (Bill McKibben – ‘Global Warming’s Terrifying New Math’ 09.07.2012).

David Fenton sent an E-Mail titled: “Murdoch climate campaign” on the 19.02.2015 to Clinton Campaign Manager John Podesta that said: “Hi again. Here is the plan to go after WSJ and FOX on climate. I have 500,000 of this pledged if I can raise another million. It’s a real pledge from Graeme Wood in Australia. I sure hope something like this can happen it’s long overdue. Thanks again, David”. This E-Mail had an attachment where this we’re said:

“1)       A climate science ad series (surprisingly affordable) on the Wall Street Journal’s opinion page, sponsored by a mainstream institution like Columbia University’s Earth Institute or the Union of Concerned Scientists.  These would be unassailably factual and scientific but also compelling, memorable and clear. They would show the facts the Journal denies — Co2 from fossil fuels traps heat, the earth has warmed, the CEO of EXXON believes it why not this paper? This series would stress consequences for the economy and mainstream support from groups like the World Bank, International Energy Agency, PWC, NAS, the Royal Society, etc. Of course the Journal would attack the series in editorials, which will help it get more attention” (WikiLeaks, 2015).

This here shows some of the stories of the man in the past, Rex Tillerson who has apparently massive faith in fracking and negotiation with Putin for the business he was running ExxonMobile. The WikiLeaks stories are special in themselves, but there other lost tales that needs to show the character of the man.

Like the Kurdistan adventure:

“Exxon Mobil Chief Executive Rex Tillerson refused Tuesday to answer questions about a controversial deal the oil company has signed with the Kurdish government in northern Iraq” (…) “Exxon, (XOM, Fortune 500) which holds big contracts with the Iraqi government to develop oil fields in the southern part of the country, was sharply criticized by Iraqi government ministers last month over the deal. The Iraqis suggested Exxon might be sanctioned over the move, possibly putting their deals in the southern part of the country in jeopardy” (…) “Iraqis in Baghdad are loathe to see oil companies sign separate deals with the semi-autonomous government in the Kurdish north, preferring instead that all deals go though the central government” (Hargreaves, 2011). So the next Secretary of State is ruthless in trade for fortunes that he picked deals with Kurdistan government over the Southern Iraqi Central Government that counters the diplomatic way that the governments do with Iraq. So Rex Tillerman could surely do the same in charge of the State Department under the Trump Administration.

Here is a story in the inner workings in Chad:

“There was Exxon’s meddling in a 2006 standoff between Idriss Déby, the authoritarian leader of Chad — a Central African country with rich oil reserves — and Paul Wolfowitz, then the leader of the World Bank. Déby wanted weapons to fight rebels supported by nearby Sudan, but good-governance clauses in loans Chad had received from the World Bank restricted the country’s ability to purchase arms. Wolfowitz was ready to freeze some of Sudan’s bank accounts, prompting Déby to threaten to effectively kick Exxon out of Chad. That could have cost the company billions of dollars. So Exxon lobbied the U.S. ambassador to Chad to fix the problem, which led to Déby getting his weapons and Exxon its oil” (…) “By now ExxonMobil had made its own choice clear,” Coll writes. “It was more interested in the survival of Chad’s oil production than it was in the World Bank’s experiment in nation building.” (Walsh, 2012). So he would use World Bank loans to trade weapons to make sure that the ExxonMobil get the possibility to the Oil Reserves in Chad. That proves how far the man will go for profit, that the authoritarian leaders needs for arms can be meet, if he get the oil as long as he makes a killing.

Than you have the story of how he worked in Guyana:

“US oil giant ExxonMobil made waves in Guyana last Thursday by announcing it had confirmed a “world-class discovery” of oil offshore. The company said results from its exploration well in the Stabroek block, about 120 miles (193 kilometres) offshore Guyana, found between 800 million and 1.4 billion oil-equivalent barrels” (…) “The waters around Guyana are largely unexplored. According to a Forbes story quoting Exxon CEO Rex Tillerson, the 3-D seismic survey that Exxon conducted in the area was its largest in history — “the equivalent of 1,400 Gulf of Mexico blocks” (…) “In November 2015, Guyana’s government faced accusations that the state didn’t have the capacity to independently monitor ExxonMobil’s compliance with environmental regulations. The worry arose after it was alleged that ExxonMobil was promoting and funding climate change denials” (Abdelwahab, 2016).

So now that he is peculiar connected into the oil developments outside Guyana, as it was profitable for the company without considering the environment of the ocean and the sea as the we’re even paying climate change deniers in Guyana. That the billions of barrel is more important that the effect that oil drilling will have on the nation.

This from the guy that are key part of the former Standard Oil companies that we’re re-merged from Exxon and Mobil Oil Companies, that we’re too powerful in the United States. The US Company now are now so big Multi-National that they can secure the World Bank to fund Chad Government loans so they can buy weapons, and exchange give possible oil fields to the ExxonMobil. If that doesn’t say anything nothing does. This sort of fellow will now run the Secretary of State, not to talk about the Foreign Affairs of the United States. The diplomatic correspondence and according to due procedure of the Trump Administration; that will be interesting as the CEO Tillerman has been focused on profits and not on anything else. We can wonder what will be his Modus Operandi as a Secretary of State, what his policies and foreign affairs chief under Trump. Peace.

Reference:

Abdelwahab, Alex – ‘ExxonMobil’s significant oil find off Guyana leads to questions about the country’s future’ (05.07.2016) link: http://www.caribbeannewsnow.com/headline-ExxonMobil’s-significant-oil-find-off-Guyana-leads-to-questions-about-the-country’s-future-30969.html

Bartiriromo, Maria – ‘ExxonMobil CEO: Open more federal land for oil and gas’ (18.04.2011) link: http://usatoday30.usatoday.com/money/companies/management/bartiromo/2011-04-18-bartiromo-rex-tillerson-exxonmobil.htm

Hargreaves, Steve – ‘Exxon silent on controversial Iraq oil deal’ (06.12.2011) link: http://money.cnn.com/2011/12/06/news/international/Exxon_Iraq_oil_deal/

Walsh, Bryan – ‘Inside the Death Star — Also Known as Exxon’ (01.05.2012) link: http://content.time.com/time/health/article/0,8599,2113546,00.html

Wikileaks –‘KAZAKHSTAN: ALL SIDES SMILING WITH KASHAGAN DEAL’ (18.01.2008) link: https://wikileaks.org/plusd/cables/08ASTANA91_a.html

WikiLeaks – ‘FAJA NEGOTIATIONS: NO NEWS IS BAD NEWS’ (25.05.2007) link: https://wikileaks.org/plusd/cables/07CARACAS1030_a.html

WikiLeaks – ‘KAZAKHSTAN/CYPRUS/UK – Programme summary of Kazakh Khabar TV “Zhanalyqtar” news 1400 gmt 21 Sep 11’ (21.09.2011) link: https://wikileaks.org/gifiles/docs/71/711052_kazakhstan-cyprus-uk-programme-summary-of-kazakh-khabar-tv.html

WikiLeaks – ‘RUSSIA/FORMER SOVIET UNION-Exxonmobil Hails Russian Government Efforts to Improve Tax System’ (31.08.2011) link: https://wikileaks.org/gifiles/docs/25/2574477_russia-former-soviet-union-exxonmobil-hails-russian.html

WikiLeaks – ‘Murdoch climate campaign’ (19.02.2015) link: https://wikileaks.org/podesta-emails/emailid/27241

WikiLeaks – ‘Re: FRACK – W.Va. eyes fluid disclosure; quote from Lachelt’ (09.03.2010) link: https://wikileaks.org/gifiles/docs/38/386876_re-frack-w-va-eyes-fluid-disclosure-quote-from-lachelt-.html

WikiLeaks – ‘RUSSIA/CANADA/MEXICO – Russia’s oil firm signs partnership deal with ExxonMobil’ (02.09.2011) link: https://wikileaks.org/gifiles/docs/70/705223_russia-canada-mexico-russia-s-oil-firm-signs-partnership.html