Evans faces resistance over Rosneft post

By Caroline Daniel in Washington

The prospect that Donald Evans, the former US Commerce Secretary, would accept the post of chairman of Rosneft, the Russian state-owned oil company, is being received poorly in Washington amid fears it could spark allegations of cronyism.

White House officials had declined to comment on reports that Mr Evans, a close friend of President George W.Bush, had been offered the job by President Vladimir Putin.

However the Financial Times revealed on Friday that he was “seriously considering” the position and Mr Putin, without naming anybody, confirmed he was “interested in inviting high-class foreign managers,” saying it reflected an “element of openness in Russia’s economy.”

Although Congressional reaction has been muted, several analysts and friends of Mr Evans cautioned that it would face resistance, especially with rising concern about the political direction of Russia, seen in moves to regulate non-governmental organizations.

One friend and former colleague of Mr Evans predicted he would decline the offer - perhaps as early as mid week. He noted that Mr Evans had left Washington for family reasons and would be unlikely to want to travel to Russia. “He would want to show respect for the offer and that he has given this deliberate thought.”

“Eyebrows would go up all over town,” said a former NSC official involved with energy issues. “The fact that he would be cashing in his political connections is not the problem, but doing it in a foreign county and a country like Russia. People would question whether is he just a figurehead and being used. Why take the political risk?”

Mr Evans’s appointment could confer legitimacy on Rosneft, which is controversial because of its role in the break-up of Yukos, the oil company formerly controlled by Mikhail Khodorkovsky, the former oligarch who is serving a prison sentence in Siberia. Rosneft took over the main production arm of Yukos, in a forced auction last December.

As Commerce Secretary, Mr Evans helped strengthen the US-Russian commercial energy relationship, creating the first joint energy summit in 2002. Since leaving office he has spearheaded critical fundraising for Mr Bush, such as for his presidential library and Gulf Coast reconstruction.

Another friend of Mr Evans who has discussed the offer with him said the approach had come as a surprise. “His political ties to the White House and his oil background in Texas brings immediate gravitas. Don is someone the Russians respect - he told them the likelihood of oil hitting $50.”

He warned that he would advise Mr Evans not to take the job: “The reality is the Russians want something that he should not feel comfortable delivering. You have got to worry about the motive, and whether he would have any real control. It is hard to believe the Russians would give that up. Democrats would say it is another example of cronyism.”

The Financial Times, 12.18.2005