By Rosalind S. Helderman and Tom Hamburger
Days after Donald Trump’s election victory, a news agency in the
former Soviet republic of Georgia reported that a long-stalled plan for a
Trump-branded tower in a seaside Georgian resort town was now back on
track.
Likewise, the local developer of a Trump Tower planned for
Buenos Aires announced last week, three days after Trump spoke with
Argentina’s president, that the long-delayed project was moving ahead.
Meanwhile,
foreign government leaders seeking to speak with Trump have reached out
to the president-elect through his overseas network of business
partners, an unusually informal process for calls traditionally
coordinated with the U.S. State Department.
All of it highlights
the muddy new world that Trump’s election may usher in — a world in
which his stature as the U.S. president, the status of his private
ventures across the globe and his relationships with foreign business
partners and the leaders of their governments could all become
intertwined.
In that world, Trump could
personally profit if his election gives a boost to his brand and results
in its expansion overseas. His political rise could also enrich his
overseas business partners — and, perhaps more significantly, enhance
their statuses in their home countries and alter long-standing
diplomatic traditions by establishing them as new conduits for public
business.
It is also possible, of course, that a controversial presidency
inflaming international opposition could cause damage to the brand.
Trump has done little to set boundaries between his personal and official business since winning the presidency.
He
has indicated that his children may take over the business, but he has
also appointed them to formal roles with his presidential transition and
included daughter Ivanka on calls with world leaders.
And he has
continued to offer signs that he may remain engaged, at least on some
level, in his private ventures.
For instance, Trump took a break
from selecting his Cabinet last week for a brief meeting in his Trump
Tower office with the developers of a Trump project in Pune, India,
shaking hands and posing for photos with the men. When asked about the
meeting, Trump told the New York Times: “I mean, what am I going to say?
‘I’m not going to talk to you, I’m not going to take pictures’?”
Trump also acknowledged to the Times, after he received a
congratulatory visit the weekend after the election from British
politician Nigel Farage, that he “might have” encouraged the leader of
the UK Independence Party to oppose offshore windmill farms, like one he
has fought off the Scottish coast because he believes it will mar the
view from his Trump Turnberry golf resort there.
Trump has
reacted defensively to suggestions that his conversations about his
private business are somehow inappropriate. He told the Times this week,
“the law’s totally on my side. The president can’t have a conflict of
interest.”
On Monday evening, he tweeted: “Prior to the election,
it was well known that I have interests in properties all over the
world. Only the crooked media makes this a big deal!”
Ethics experts say that if Trump takes no action to distance himself
from his business holdings, he is likely to face questions about whether
he is pursuing policy in the national interest or for his own business
advantage. It is also possible that Trump could run afoul of a
constitutional provision prohibiting presidents from accepting favors,
or “emoluments,” from foreign leaders.
Trump representatives did not respond to questions this week about his business interests in Argentina, Georgia or elsewhere.
It is unclear how much real progress Trump’s election has prompted
for some of these foreign projects, several of which had stalled in
recent years. Some of the promises of renewed activity could be the work
of foreign partners who have paid for the use of his name and who may
be looking to take advantage of the moment as a marketing opportunity.
The
Trump project in Argentina, for instance, has not been issued new
permits since Election Day, a city official in Buenos Aires said. But
public reports that the project is moving ahead show how foreign
developers could stand to benefit if their governments were to grease
the skids for Trump-branded projects as a way to curry favor with the
new American president.
In Argentina, President Mauricio Macri connected by phone with
President-elect Trump and his daughter Ivanka on Nov. 14. Three days
later, Trump’s development partner in Argentina, the YY Development
Group, put out word that the $100 million project was moving forward,
featuring on its website a South American news report touting the
progress. “The magnate Donald Trump expands his ‘ultraexclusive’ towers
in South America,” the story read.
The development firm’s chief
executive, Felipe Yaryuri, has touted his personal relationship with the
Trumps, particularly with Trump’s son Eric. He was in Trump campaign
headquarters on election night, posting a photo of himself with Eric
Trump and tweeting that he had breakfast with Eric Trump the day after
the election. Again, Trump officials declined to respond to inquiries
about the tweets.
Yaryuri declined to be interviewed but said in a
statement that his company has filed permit requests with the city of
Buenos Aires that are awaiting approval. A city official said the
request was made earlier this year but that no determination had been
made.
Macri, the president, denied reports in local media that
Trump had mentioned the project to him in their post-election
conversation. However, a spokesman confirmed that Macri had relied on
the Trump business partner to put him in touch with the newly elected
president, a sign of how the local developer’s stature has risen since
the American election.
Entanglements between Trump’s business interests and his official
relationships also appear possible in Georgia, a U.S. ally where many
are fearful of Trump’s potential rapprochement with Russian President
Vladimir Putin.
Trump swept into the Black Sea resort town of
Batumi in 2012 and announced that a new luxury Trump Tower would soon
rise from the empty field in which he stood with the country’s
then-president.
Once scheduled to break ground in 2013,
however, the project was halted by an economic downturn, a local land
planning dispute and, some analysts said, the electoral defeat of
then-Georgian President Mikheil Saakashvili, a personal friend of Trump’s who had championed the deal.
In recent months, long-standing roadblocks to the
project’s groundbreaking resolved without government assistance, said
Giorgi Rtskhiladze, a U.S.-based partner working with the local
developer, the Silk Road Group, which paid Trump a licensing fee to put
his name on the building.
Rtskhiladze said the developers
informed the Trump Organization in September or October that the project
could now proceed. After Trump was elected, he said he emailed a
congratulatory note to Trump’s adult children and to a top Trump
Organization executive — and reiterated that developers are prepared to
move forward. He said Trump executives have indicated the project is
being “reevaluated,” as they discuss how his company will be operated
after Trump takes office.
“We’re ready,” Rtskhiladze said. “We’re waiting for them to give us the green light.”
He said it would add distinction to the project to bear the name of the U.S. president.
“There’s
only one word: Pride,” he said of how he would feel to help construct a
building bearing Trump’s name. “What else can you possibly feel? You
can’t even imagine it, and then suddenly it happens.”
Although
the United States stood beside Georgia when it was invaded by Russia in
2008, leaders of the small nation fear that an ascendant Russia could
escalate simmering hostilities. The current Georgian government is led
by political rivals of Saakashvili’s, the president who brought Trump to
Georgia in 2012 but who has since left the country.
Georgian
officials antsy with Trump’s rhetoric on Russia and eager to forge their
own good relationship with the new American president could be tempted
to curry favor by pushing ahead with the proposed 47-story building
bearing his name, predicted Lincoln Mitchell, an American expert on
Georgian politics who served as a paid adviser to the current governing
party in 2012.
“The gray areas Trump has between where his job as
president ends and where his business interests begin, that’s normal in
that part of the world. Renewing this deal, that’s just an obvious
thing to do,” said Mitchell, who opposed Trump’s election, quitting his
job this summer writing for the New York Observer, which is owned by
Trump’s son-in-law, Jared Kushner.
Indeed, on Georgian state television last week, a U.S.-based Georgian
real estate entrepreneur enthusiastically predicted that Trump’s win
would mean a new era of economic cooperation and growth for both
countries. In a separate interview with The Washington Post, the
entrepreneur, Roman Bokeria, expressed optimism that a new Trump Tower
would soon rise in Batumi.
“Cutting the
ribbon on a new Trump Tower in Georgia will be a symbol of victory for
all of the free world,” said Bokeria, chief executive of Miami Red
Square Realty.
Rtskhiladze said the project will move forward based only on the
“attractive business case” that can be made for it, not any government
intervention.
While Trump and his advisers have noted that U.S.
conflict of interest and gift laws do not apply to the president, a
bipartisan group of ethics experts has emphasized that the U.S.
Constitution prohibits the president from accepting favors — emoluments
is the constitutional term — from foreign leaders.
“It appears
from the reports we’re seeing this week that Donald Trump may be opening
up a wholesale emoluments business,” said Norm Eisen, former White
House ethics counsel to President Obama, who is joining with colleagues
from both parties to sound an alarm about the perils of Trump’s business
holdings.
“The pattern we are seeing this week of stalled Trump
projects jump-starting and the president-elect himself conceding that he
may have raised business issues with a foreign official is stunning,”
he said.