MOSCOW, September 1 (RIA Novosti) - If sanctions against Russia broaden in the coming months Exxon may be affected by transfer restrictions on technology, NASDAQ reported on Monday.
New Western sanctions against Russia may put the $3.2 billion Exxon agreed to invest in the joint venture at risk, NASDAQ reported. In the long-term Exxon’s investments may be in jeopardy.
But the latest round of US and EU economic sanctions against Russia, targeting important banking and energy companies and preventing them from accessing Western debt and equity financing, as well as from selling and transferring Western technologies and equipment to the Kremlin, will not have near-term impact on ExxonMobil.
“Despite current political difficulties, pragmatism and common sense will prevail,” Russian President Vladimir Putin said on August 11 as he gave his assent for Exxon, in partnership with Rosneft, to begin drilling Russia’s northernmost oil well in the Arctic Ocean.
Exxon Mobil Corp., or ExxonMobil is an American multinational oil and gas corporation working closely with Rosneft in various regions of Russia. Unlike BP (BP Russian Investments Limited), which owns 19.75% of Rosneft's registered capital, Exxon doesn’t own an equity stake in Rosneft.
Through its joint venture, Exxon holds 85,000 net acres in Sakhalin and 11.3 million net acres in the Kara and Black Seas. This acreage contains a number of producing wells that contributed an estimated 6% of Exxon's total production last year. Nevertheless, the new round of sanctions will not affect Exxon’s near-term perspectives in Russia.