ExxonMobil wants a sanctions waiver for Russian oil project
- Author: Zachary Reyes Apr 25, 2017,
Apr 25, 2017, 14:54
The Trump administration has denied ExxonMobil's request to skirt USA sanctions on Russia and drill for oil in the Black Sea with the Russian state oil company, Rosneft.
The Trump administration delivered a setback to Exxon Mobil Friday, announcing that it would not grant the oil giant a waiver from sanctions against Russian Federation that would allow drilling in the Black Sea.
Economic sanctions were imposed on Russian Federation following its annexation of the Crimea region in 2014 and its alleged role in the conflict in eastern Ukraine.
Tillerson has recused himself from any matters involving Exxon for two years, and will not be involved in any decisions by the United States government involving the company during that period, the paper reported.
Other hedge funds also recently made changes to their positions in the company.
Can Trump "Reset" U.S. -Russia Relations?Simmons upped their price target on shares of Exxon Mobil from $76.00 to $81.00 and gave the company a "neutral" rating in a report on Wednesday. According to media reports, the USA oil giant is looking to reinstate its Black Sea oil exploration rights, which were established in 2012 by then-CEO Rex Tillerson.
Exxon said in a statement that it had applied in 2015 for a licence under the USA sanctions rules, "to enable our company to meet its contractual obligations under a joint venture agreement in Russia", in a region "where competitor companies are authorised to undertake such work under European sanctions". John McCain, who wondered in a tweet whether Exxon was "crazy", to Sen.
Secretary of State Rex Tillerson served as Exxon's CEO until joining the Trump administration in early 2017.
WASHINGTON (AP) The Trump administration has denied a request from Exxon Mobil to waive US sanctions against Russian Federation to allow the company to resume oil drilling around the Black Sea.
Tillerson opposed the sanctions in 2014, two years after agreeing a landmark deal with Rosneft to explore the potentially lucrative Arctic, Siberia and Black Sea, collectively believed to be worth over $3 billion (2.8 billion euros).
During his confirmation hearing in January, Tillerson said he never personally lobbied against sanctions and that he was not aware of Exxon Mobil directly doing so, later acknowledging that he spoke to former U.S. Treasury Secretary Jack Lew regarding gaps between American and European sanctions on Russian Federation. Six investment analysts have rated the stock with a sell rating, fifteen have issued a hold rating and seven have issued a buy rating to the company's stock.
In July 2015, ExxonMobil had asked the Treasury's Office of Foreign Assets Control to make an exception to the Russian Federation sanctions, which were imposed after Moscow annexed Ukraine's Crimea region in early 2014.