ExxonMobil exits Russia amid energy firm exodus
Exxon Mobil (Exxon) has followed in BP and Shell’s footsteps, and has announced it will exit its Russian assets valued at more than $4bn.
This follows Russia’s invasion of Ukraine, and the West bringing in a raft of heavy economic sanctions against the country.
In a statement, Exxon said: “Exxon supports the people of Ukraine as they seek to defend their freedom and determine their own future as a nation. We deplore Russia’s military action that violates the territorial integrity of Ukraine and endangers its people.”
The decision will see Exxon exit three large offshore oil and gas fields with operations based on Sakhalin Island on behalf of a consortium of Japanese, Indian and Russian companies – including state-supported Rosneft.
The Sakhalin facilities, which Exxon has operated since production began in 2005, represent one of the largest single direct investments in Russia.
Prior to the invasion, the group had also been advancing plans to add a liquefied natural gas (LNG) export terminal at the site.
The fossil fuel giant has not provided a timetable for its exit, nor has it commented on potential asset write-downs, and is scheduled to meet with Wall Street analysts later today.
Companies with ties to Kremlin-backed firms and Russian assets have faced intense pressure to divest, with multiple energy giants revealing plans to leave the country.
However, some firms such as Total Energies (Total) have gone for halfway house measures – announcing yesterday it will keep hold of its Russian investments but will not provide them with fresh funds.
BEIS committee member and Tory MP Alexander Stafford slammed Total’s failure to exit its Russian investments.
He told City A.M.:“I am disappointed to see that Total has not committed to divesting from Russia, unlike its market-leading peers BP and Shell. It is incumbent on all of us to do the right thing and this is particularly true of energy companies, with energy propping up so much of Russia’s economy.”