US oil companies will not operate in Russia

The declaration served to make clear that the United States plans to maintain a tough stance on sanctions on Russia.
By Jason Spencer | Apr 23, 2017
United States Treasury Secretary Steve Mnuchin said on Friday that the country would not make an exception for American companies, including Exxon Mobil Corp, to drill in areas prohibited by U.S sanctions on Russia.

The declaration served to make clear that the United States plans to maintain a tough stance on sanctions on Russia.

"In consultation with President Donald J. Trump, the Treasury Department will not be issuing waivers to U.S companies, including Exxon, authorizing drilling prohibited by current Russian sanctions," Mnuchin said in a statement.

The United States and the European Union imposed economic sanctions on Russia over its annexation of the Crimea region in 2014.

Russia was also sanctioned over its role in the conflict in eastern Ukraine.

The sanctions forced Exxon, the world's largest publicly traded oil producer, to discontinue drilling in Russia's Arctic in 2014.

In a statement, Exxon spokesman Alan Jeffers said that the company understands Mnuchin's statement.

The oil company had asked for and received in 2015 and 2016 waivers to operate a joint venture with Russian oil producer Rosneft.

Exxon is annoyed that European Union sanctions do not prohibit European oil companies from working in Russia.

This week, The Wall Street Journal revealed Exxon had in recent months applied for a Treasury Department waiver to do joint drills with Rosneft.

Jeffers, however, refuted the report, saying that Exxon had not applied for waivers from Treasury since Donald Trump assumed office.

Such a request would have raised suspicion because of Exxon's former chief executive, Rex Tillerson who is now the United State's Secretary of State.

 

 

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