FX.co ★ Rex Tillerson’s close ties with Russia

ExxonMobil's operation in Russia

Oil company ExxonMobil, where Tillerson works for more than forty years, perticipates in the Russian project Sakhalin-1 (ExxonMobil owns 30%). The project envisages development of oil and gas fields on the Sakhalin shelf.

Tillerson and Putin's meetings

Putin and Tillerson go way back. They have known each other for over 13 years. In 2003, Putin spoke with Tillerson during a meeting with representatives of foreign and domestic energy companies. In 2005, during Putin's working visit in the US, he again met with Tillerson. In 2012, Rex Tillerson arrived in Russia to sign agreement with Rosneft CEO Igor Sechin on joint development of hard to recover reserves in Western Siberia. Putin attended the signing ceremony.

Tillerson and the Order of Friendship

In 2013, the Russian president Vladimir Putin bestowed Tillerson with the Order of Friendship. This award was established in 1994 to reward foreigners “whose work, deeds and efforts were aimed at the betterment of relations with the Russian Federation and its people.”

ExxonMobil CEO was awarded the Order of Friendship for “significant contribution to developing cooperation in the energy sector.”

Tillerson's visit to Russia in 2016

In 2016, despite strained relations between the US and Russia, ExxonMobil CEO arrived at the International Economic Forum in St. Petersburg. Experts believe that ExxonMobil, the biggest US oil company, more than others were affected by the anti-Russian sanctions. Due to the restrictive measures against Russia, ExxonMobil had to halt nine projects that were implemented jointly with Rosneft.

Tillerson has purely business interest in Putin

People close to Tillerson and Trump say that ExxonMobil CEO builds relations with Vladimir Putin on mutually beneficial business interests. Putin and Tillerson are not childhood friends and meet only during discussions of important projects. Purely business status of their relations can be indirectly confirmed by the fact that ExxonMobil filed a lawsuit against Russia for refund of taxes paid for Sakhalin-1. ExxonMobil is arguing that, after the VAT rate was cut in Russia in 2008, the company should pay the 20 percent tax rate. However, other participants in the Sakhalin-1 project continue to pay 35 percent, as the original agreement implies no possible change in taxation.