In response to the Russian invasion of Ukraine that has world leaders concerned about a possible large-scale conflict breakout, Texas-based ExxonMobil has announced that it is discontinuing ongoing projects and investments in Russia.
ExxonMobil is not alone in their withdrawal, joining the movement this week. A host of energy companies have announced divestment from Russian oil and gas companies and projects.
"ExxonMobil announced on Tuesday, March 1, that they would be disinvesting from a Russian energy project and would cease investing in Russia," a statement posted on ExxonMobil's corporate website said.
"ExxonMobil operates the Sakhalin-1 project on behalf of an international consortium of Japanese, Indian and Russian companies," a press release issued by the company this week said. "In response to recent events, we are beginning the process to discontinue operations and developing steps to exit the Sakhalin-1 venture. 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. Given the current situation, ExxonMobil will not invest in new developments in Russia."
The company, which is based in Irving, Texas, has a 30% stake in the project, the Houston Chronicle said. The divestment is motivated by the Russian aggression against Ukraine but is also in line with the energy company's relatively new goal of transitioning to renewable energy and commitment to progressive social and energy causes.
Exxon previously exited some Russian investments in 2014 following the country's military operations in eastern Ukraine, resulting in a $200 million loss for the company. Sakhalin is one of the largest single direct investments in Russia. The project has exported more than 1 billion barrels of oil and 1.03 billion cubic feet of natural gas since production began in 2005.
In 2018, ExxonMobil's guiding principle was clear: "Exxon Mobil Corporation is committed to being the world’s premier petroleum and petrochemical company," a recent release on GlobeBanner.com said, quoting The Wall Street Journal. The company had also stated that its purpose was to make money for shareholders. The company is now dedicated to reducing carbon emissions and pursuing green energy.