The sanctions imposed on Russia for its war with Ukraine so far do not include oil and gas exports from the country, a step that would severely hurt Russia’s ability to generate revenue.
"We don't have a strategic interest in reducing global supply of energy ... that would raise prices at the gas pump for Americans," White House Principal Deputy Press Secretary Karine Jean-Pierre said at a White House news briefing.
However, the administration warned it could block Russian oil if Moscow heightens aggression against Ukraine. "It’s very much on the table, but we need to weigh what all of the impacts will be," White House spokeswoman Jen Psaki told MSNBC earlier on Wednesday.
Supermajors Shell, ExxonMobil and bp have announced, to varying degrees, intentions to discontinue operations in Russia.
“We are shocked by the loss of life in Ukraine, which we deplore, resulting from a senseless act of military aggression which threatens European security,” said Shell’s CEO Ben van Beurden.
Shell’s staff in Ukraine and other countries has been working together to manage the company’s response to the crisis locally, the company said in a news release. Shell will also work with aid partners and humanitarian agencies to help in the relief effort, it continued.
“Our decision to exit is one we take with conviction,” said van Beurden. “We cannot – and we will not – stand by. Our immediate focus is the safety of our people in Ukraine and supporting our people in Russia. In discussion with governments around the world, we will also work through the detailed business implications, including the importance of secure energy supplies to Europe and other markets, in compliance with relevant sanctions.”
bp announced it will exit its shareholding in Rosneft, a Russian integrated energy company headquartered in Moscow. bp has held a 19.75% shareholding in Rosneft since 2013.
Additionally, bp CEO Bernard Looney and former group chief executive of bp Bob Dudley both resigned from the board of Rosneft.
“Russia’s attack on Ukraine is an act of aggression which is having tragic consequences across the region,” said bp Chair Helge Lund. “bp has operated in Russia for over 30 years, working with brilliant Russian colleagues. However, this military action represents a fundamental change. It has led the bp board to conclude, after a thorough process, that our involvement with Rosneft, a state-owned enterprise, simply cannot continue,” he said.
ExxonMobil announced it will discontinue operations at the Sakhalin-1 Project, one of the largest single international direct investments in Russia.
“ExxonMobil 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,” officials said in a release. “We are deeply saddened by the loss of innocent lives and support the strong international response. We are fully complying with all sanctions.”
Reuters reported on Tuesday that Chevron CEO Michael Wirth expressed concern over the "tragic situation" unfolding in Ukraine, forcing oil companies to make "very difficult decisions" on continued operations in Russia. Chevron is less exposed to sanctions on Russia than many of its rivals, stated the article.
TotalEnergies issued a statement regarding its Russian activities that fell far short of matching its peers. The French major is thus far committing only to no longer providing capital for new projects in Russia.
“TotalEnergies supports the scope and strength of the sanctions put in place by Europe and will implement them regardless of the consequences (currently being assessed) on its activities in Russia,” the firm says. It is a 19.4pc shareholder in Russian gas producer Novatek, holds a 20pc stake in the Yamal LNG project and has a 10pc holding in Arctic LNG 2.
Internal pressure across all industries is rocking Russian businesses with 6,000 medical workers, 3,400 architects and engineers and 500 teachers having signed separate open letters against the war — a rare mass statement of defiance, reported NBC, in a country where merely criticizing the government can lead to arrest.
