Barak Sought Role for Business Partner's Firm in Kirkuk-Banias Pipeline Project
Reuters, citing three informed sources, reported that US presidential envoy Tom Barak sought to involve TI Capital, a company linked to his business partner Ziad Ghandour, in the rehabilitation of the oil pipeline linking Kirkuk in Iraq to Banias in Syria.
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Key points
- Three sources told Reuters Barak sought TI Capital's involvement in the Kirkuk-Banias pipeline.
- Barak has a past business partnership with TI Capital chief Ziad Ghandour and retained interests in a real estate project.
- Baghdad and Damascus signed July memos of understanding with a consortium including TI Capital, Chevron and Qatar's UCC.
- Reuters found no evidence of direct financial benefit to Barak from the pipeline project.
- Two ethics lawyers said the relationship does not amount to criminal conflict of interest absent direct gain.
What did Reuters reveal about Barak and the Kirkuk-Banias pipeline?
Reuters, quoting three informed sources, reported that Tom Barak, the US presidential envoy, sought to involve TI Capital in rehabilitating the oil pipeline that once carried crude from the Iraqi city of Kirkuk to the Syrian Mediterranean port of Banias. Barak has a previous business partnership with the firm's chief, Ziad Ghandour.
The move raises questions about Barak's compliance with US federal ethics rules, given that he retained financial interests tied to one of the company's real estate projects, according to the agency.
The consortium of TI Capital, Chevron and Qatari UCC
In July, Baghdad and Damascus signed memoranda of understanding with a consortium comprising TI Capital, US oil major Chevron and Qatar's UCC Holding to conduct the technical and financial studies needed to rehabilitate the pipeline, which has been out of service for years. The pipeline historically moved Iraqi crude to the Syrian coast for export.
Is there a criminal conflict of interest?
Reuters said it found no evidence that Barak gained any direct financial benefit from the pipeline project. Two lawyers specializing in government ethics told the agency that the existing relationship does not rise to a criminal conflict of interest unless it results in a direct financial gain from the project.
What does this mean for Syria?
For Syria, where the pipeline runs to the coastal city of Banias, rehabilitation could restore the port's role as an oil export gateway and attract foreign investment into a battered energy sector. However, the controversy over the envoy's ties could affect the project's pace and the confidence of parties involved in it.
Frequently asked questions
What is Tom Barak's connection to TI Capital?
Barak has a previous business partnership with TI Capital chief Ziad Ghandour, and he retained financial interests linked to one of the company's real estate projects, according to Reuters.
Did Barak profit from the Kirkuk-Banias pipeline project?
Reuters found no evidence of direct financial benefit to Barak from the pipeline, though his push to involve his former business partner's firm raises questions about federal ethics rules compliance.
Who is in the Kirkuk-Banias pipeline consortium?
In July, Baghdad and Damascus signed memoranda of understanding with a consortium including TI Capital, US-based Chevron and Qatar's UCC Holding to conduct technical and financial studies for rehabilitating the pipeline.
Does Barak's role amount to a criminal conflict of interest?
Two government ethics lawyers said the relationship does not rise to a criminal conflict of interest unless it produces a direct financial gain from the project.
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