Reuters reports Thomas Barrack's business ties to pipeline project participant
Reuters reported that US diplomat Thomas Barrack promoted TI Capital's participation in an Iraq–Syria oil pipeline project while maintaining business ties to its founder. The State Department said he complied with ethics rules.
Three sources described Barrack's advocacy for TI Capital, led by his business partner Ziad Ghandour. In July, Iraq and Syria signed memorandums with a consortium of TI Capital, Chevron and UCC Holding for technical and financial studies to rehabilitate the Kirkuk–Baniyas pipeline.
Barrack is US ambassador to Turkey and special envoy to Iraq and Syria. A March 2025 financial disclosure listed his stake in ACD-TI Oakley Investment LLC, a housing venture near San Francisco. TI Capital manages the company and Ghandour heads it. The document entitled Barrack to 20% of profits once an established minimum was reached.
Reuters found no evidence that the diplomat would profit from the pipeline itself or other reported projects. Lawyers interviewed by the agency distinguished possible breaches of impartiality rules from a criminal conflict of interest. They said business ties can require recusal even without personal earnings from a project.
Former White House ethics lawyer Richard Painter considered advocacy for a business partner's firm a serious impartiality concern. Former Office of Government Ethics official Don Fox also cited rules against using public office to endorse affiliated businesses. These are expert assessments, not a court finding of misconduct.
The State Department said Barrack had no affiliation, role or financial interest in the pipeline project. It acknowledged his connection to the TI Capital housing venture but said he was certified as compliant with ethics rules. It attributed his pipeline comments to US policy supporting regional energy integration.
The pipeline has been inactive since 2003. Reuters sources in August estimated rehabilitation would take at least four years and cost $15 billion. The route to Syria's Mediterranean coast would bypass the Strait of Hormuz. Barrack's office and Chevron declined comment, while TI Capital, Ghandour and UCC did not respond.
