ExxonMobil “demonstrated reckless disregard for U.S. sanctions” – @StateDept says go over there for QQQs!

Posted: 12:42 am ET
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The State Department spokesperson Heather Nauert did one of her twice a week Daily Press Briefing at the State Department and was asked about the Treasury Department’s Exxon fine for violating the Russian sanctions when Secretary Tillerson was the CEO. A quick note here.  We realized that they’ve changed the name of this briefing into “Department Press Briefing” but as a daily reminder that the Bureau of Public Affairs is now unable to handle the daily demands of briefing the press, we will continue calling this the State Department’s Daily Press Briefing.

Below are excerpts from the DPB:

MS NAUERT: The Secretary – we’re not going to have any comments today for you on some of the alleged facts or the facts underlying the enforcement action. Treasury is going to have to answer a lot of these questions for you. I’m not going to have a lot for you on this today. The Treasury Department was involved in this. They were the ones who spearheaded this. And so for a lot of your questions, I’m going to have to refer you to Treasury.

MS NAUERT: Yes. I’m not going to comment on that at this time. The Secretary recused himself from his dealings with ExxonMobil at the time that he became Secretary of State. This all predates his time here at the Department of State, and so —

MS NAUERT: I think I will say this: The Secretary continues to abide by his ethical commitments, including that recusal from Exxon-related activities. The action was taken by the Department of State – excuse me, the Department of the Treasury, and State was not involved in this.

QUESTION: And does – can you tell us if the Secretary believes in the objectives of the Ukraine-related sanctions programs?

MS NAUERT: I know that we have remained very concerned about maintaining sanctions. That will continue. We’ve been clear that sanctions will continue until Russia does what Russia needs to do.

QUESTION: For the record, will he come down and talk with us —

MS NAUERT: Well, I’m sorry, who —

QUESTION: — talk about this? Just for the record, will he come down and talk about this to us himself?

MS NAUERT: Well, I’m here to speak on his behalf and on behalf of the building. There’s not a whole lot that we can say about this right now. Again, you can talk to Treasury or to Exxon about this. Okay.

MS NAUERT: The Secretary has been – not to my knowledge. I can tell you this, that he has been extremely clear in his recusal of anything having to do with Exxon. When this information come to us here at the State Department, it did not come to the Secretary himself. It came to the Deputy Secretary John Sullivan. The Secretary has taken this very seriously, that Exxon-related activities are not something that he is involved with here as Secretary of State.

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In assessing the maximum monetary penalty, Treasury/OFAC outlined the following as aggravating factors (via):

(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; (note: Specially Designated Nationals)

(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 ofthe 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. Secretary of State Rex Tillerson delivers remarks at the 22nd World Petroleum Congress opening ceremony in Istanbul, Turkey, on July 9, 2017. [State Department photo/ Public Domain]

 

AND NOW THIS — the State Department’s “employee-led redesign initiative” with no “predetermined outcomes” is a runner up for “Best in Show.”

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Steve Coll on the Tillerson Pick Plus Excerpt From ‘Private Empire: ExxonMobil and American Power’

Posted: 1:11 am ET
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Steve Coll writes in The New Yorker that Trump’s reported pick of Tillerson as Secretary of State is “astonishing on many levels.”

As an exercise of public diplomacy, it will certainly confirm the assumption of many people around the world that American power is best understood as a raw, neocolonial exercise in securing resources.
[…]
Compared to the records of some of the other people around Trump, Tillerson’s is at least one of professional integrity; Exxon is a ruthless and unusually aggressive corporation, but it is also rule-bound, has built up a relatively strong safety record, and has avoided problems such as prosecutions under the Foreign Corrupt Practices Act, even though it operates in many countries that are rife with corruption.
[…]
In his career at ExxonMobil, Tillerson has no doubt honed many of the day-to-day skills that a Secretary of State must exercise: absorbing complex political analysis, evaluating foreign leaders, attending ceremonial events, and negotiating with friends and adversaries. Tillerson is a devotee of Abraham Lincoln, so perhaps he has privately harbored the ambition to transform himself into a true statesman, on behalf of all Americans. Yet it is hard to imagine, after four decades at ExxonMobil and a decade leading the corporation, how Tillerson will suddenly develop respect and affection for the American diplomatic service he will now lead, or embrace a vision of America’s place in the world that promotes ideals for their own sake, emphatically privileging national interests over private ones.

Read in full here.  Steve Coll is the author of the book on ExxonMobil, excerpt below courtesy of Kindle Preview:

 

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Insider Quote: The Business of US Mission India?

Is business.

Here is the notable quote:

“This helps me to emphasize a point I intend to make again and again: the business of the U.S. Mission in India is business.”

Remarks by Ambassador Nancy J. Powell at the American Chamber of Commerce’s 20th Annual General Meeting (As Prepared for Delivery)
New Delhi | April 27, 2012

A paraphrase of the most famous “misquotation” (according to the CC Memorial Foundation) of Calvin Coolidge’s “The Business of America is Business?”

Which makes me think of two things – one, it’ll be a lot easier this year to solicit contributions from American companies, or local outlets of U.S. companies in India for the US Embassy’s Fourth of July big bang do.

And two, it’s not so surprising that economic statecraft is coming back big time, after all, did it ever go away? Steve Coll has a new book, and put out an excerpt in Salon.com about U.S. foreign policy, brought to you by ExxonMobil:

“As part of the research for “Private Empire,” I filed Freedom of Information Act requests with the U.S. State Department seeking embassy cables and other documents about how the Bush administration managed ExxonMobil’s position in the Aceh conflict. The cables revealed a startling series of episodes in which the administration worked with ExxonMobil in Indonesia to extract the corporation from the conflict and reduce the violence that was destabilizing Indonesia’s fledgling democratic order. In one episode previously unreported, the Bush administration threatened to designate G.A.M. as a terrorist organization if it did not stop attacking ExxonMobil’s property and personnel. The excerpt below, from a chapter titled “Do You Really Want Us as An Enemy?” describes what happened.” –Steve Coll

Active links added above.  It is not a pretty read, really, especially if you joined the service to change the world; this world, I mean.

Oh, and I just thought of a third thing – it’s probably time to update the State Department’s Mission Statement:

“Shape and sustain a peaceful, prosperous, just, and democratic world and foster conditions for stability and progress for the benefit of the American people and people everywhere.”
–From the FY 2011 Agency Financial Report, released November 2011

And then I don’t have any more thought, thank goodness!

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