Exxon Mobil Scraps a Russian Deal, Stymied by Sanctions<br />Under the last four years of sanctions, Exxon and other Western oil companies have been prevented<br />from using their technological expertise to help Rosneft’s oil and gas development.<br />28, 2018<br />HOUSTON — Exxon Mobil is abandoning its joint exploration ventures with the Russian oil company Rosneft,<br />retreating from what was one of its most promising investments until Western sanctions got in the way.<br />Exxon and Rosneft, which is only half-owned by the Russian government<br />but state-run, agreed to invest $3.2 billion to search for oil in deepwater fields in the Arctic and elsewhere.<br />During the early years of the Obama administration, when there was a brief warming<br />of relations, Exxon Mobil signed an exploration deal with the Russians.<br />In a regulatory filing on Wednesday, Exxon said that it had decided late last year to<br />abandon the ventures this year and would take an after-tax loss of $200 million.<br />"They are an enormous source of friction with the government,<br />and it is better business for them to steer their business away from sanctioned activities." In July, Exxon sued the Treasury Department after it was fined $2 million for violating the Russia sanctions.
