Major Oil Companies Cut Ties with Russian Oil Firms

Russia’s invasion of Ukraine has been met with heavy economic sanctions from the U.S. and most European countries, while companies across the oil and gas value chain have announced plans to abandon investments in Russia. The Railroad Commission of Texas has also shown its support to encourage oil and gas companies to discontinue business associations and ties with any Russian oil and gas business.

BP, ExxonMobil, and Shell announced plans to withdraw from oil and gas investments in Russia, while Wintershall Dea decided to write off around $1.1 billion in the financing of the Nord Stream 2 natural gas pipeline between Russia and Germany. Over the past week, in response to the situation in Ukraine, some companies in Europe are retreating from purchasing Russian crude.

ExxonMobil said it will no longer invest in Russia and exit its current projects, following other major oil and gas producers in leaving the country in protest of the invasion of Ukraine. The biggest U.S. producer will suspend operations at the Sakhalin 1 oil and natural gas project in Russia’s Far East where it is the operator, joining European peers including BP and Shell that have also pledged to cut ties with Moscow.

Trading firm Trafigura is also reviewing options for its 10 percent stake in Russia’s giant Vostok Oil project in east Siberia. Trading firm Glencore is similarly reviewing its small shareholding in Rosneft, as well as its 10.5 percent stake in Russian private-sector aluminum producer En+.

The Railroad Commission is the agency that regulates drilling, pipeline permitting, flaring, and other industrial operations in the state.