Exxon Mobil Corp XOM reportedly said on Monday it has made a complete exit from Russia after President Vladimir Putin expropriated its properties.
What Happened: Exxon’s decision to leave Russia completely comes after seven months of discussions over an orderly transfer of its 30% stake in a major oil project, reported Reuters.
Exxon did not clarify if it received any compensation for the assets, which it had valued at over $4 billion, the report said.
On the matter of contesting the seizure via an international arbitration process, an Exxon spokesperson declined to comment, according to the report.
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Other major energy players such as BP Plc. BP, TotalEnergies SE TTE, Equinor ASA EQNR and Shell Plc. SHEL have transferred properties to their Russian partners or left operations behind, the report added.
On March 1, Exxon announced it supports the people of Ukraine and “deplores Russia’s military action that violates the territorial integrity of Ukraine and endangers its people.”
The company operated the Sakhalin-1 project on behalf of an international consortium of Japanese, Indian and Russian companies.
“As operator of Sakhalin-1, we have an obligation to ensure the safety of people, protection of the environment and integrity of operations. Our role as operator goes beyond an equity investment. The process to discontinue operations will need to be carefully managed and closely coordinated with the co-venturers in order to ensure it is executed safely,” Exxon had said.
Exxon stated that in response to the events, the company is beginning the process to discontinue operations and developing steps to exit the Sakhalin-1 venture, adding that it will not invest in new developments in Russia.
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