Exxon Mobil 'seeks waiver' from Russia sanctions
Oil giant once under the control of Rex Tillerson wants to resume its oil exploration venture with Rosneft
Oil giant Exxon Mobil, whose former chief executive Rex Tillerson is now US Secretary of State, has reportedly applied for a waiver from US Treasury sanctions on Russia so it can continue to drill in the Black Sea in a venture with the Russian state oil company Rosneft.
While the waiver application was launched under the Obama administration, before Tillerson's appointment, it comes "at a delicate time in Russian-American relations, with rising tensions over the war in Syria and a looming congressional inquiry into reports of Russian efforts to influence the United States presidential election", says the New York Times.
The request has provoked uproar, with Republican senator John McCain, asking: "Are they crazy?"
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Why are there sanctions on Russia?
Washington and the EU imposed economic sanctions on Russia after its annexation of Crimea in 2014.
The sanctions "prevent US companies from dealings with Rosneft involving technology transfer, and also target Rosneft chief - and Putin confidant - Igor Sechin", says Foreign Policy.
However, despite the Ukraine crisis deepening, "Exxon continued pressing for deeper involvement in Russia's oil industry", says the New York Times.
Why does Exxon want a waiver?
"The financial incentives for Exxon are powerful when it comes to Russia," says CNN. "The undeveloped oil fields near the Black Sea are thought to be the most promising in the Russian Arctic."
Last year, Tillerson said the company was "very anxious to get back to work there", referring to a deal struck between Exxon and Rosneft before the sanctions were implemented. "In Russia, we're there for the long term," new chief executive Darren Woods told Forbes in February.
Will they get a waiver?
It's unlikely. Hal Eren, a former official in the Treasury Department's Office of Foreign Assets Control, said such waivers were rarely requested or granted and that in most cases, permission was given only for environmental or safety reasons.
"I don't think they would issue a licence, especially given the political context in which this takes place," he added.
Adam Schiff, the top Democrat on the House Intelligence Committee, also said the waiver should be denied.
"Until Russia abides by the Minsk accords and ends its illegal occupation of Crimea, the only changes to sanctions should be their intensification, not their dilution," he said.
Create an account with the same email registered to your subscription to unlock access.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
'A speaker courageous enough to stand up to the extremists in his own party'
Instant Opinion Opinion, comment and editorials of the day
By Harold Maass, The Week US Published
-
How could the Supreme Court's Fischer v. US case impact the other Jan 6. trials including Trump's?
Today's Big Question A former Pennsylvania cop might hold the key to a major upheaval in how the courts treat the Capitol riot — and its alleged instigator
By Rafi Schwartz, The Week US Published
-
Today's political cartoons - April 18, 2024
Cartoons Thursday's cartoons - impeachment Peanuts, record-breaking temperatures, and more
By The Week US Published
-
Puffed rice and yoga: inside the collapsed tunnel where Indian workers await rescue
Speed Read Workers trapped in collapsed tunnel are suffering from dysentery and anxiety over their rescue
By Sorcha Bradley, The Week UK Published
-
Gaza hospital blast: What the video evidence shows about who's to blame
Speed Read Nobody wants to take responsibility for the deadly explosion in the courtyard of Gaza's al-Ahli Hospital. Roll the tape.
By Peter Weber, The Week US Published
-
Giraffe poo seized after woman wanted to use it to make a necklace
Tall Tales And other stories from the stranger side of life
By Chas Newkey-Burden, The Week UK Published
-
Helicopter sound arouses crocodiles
Tall Tales And other stories from the stranger side of life
By Chas Newkey-Burden, The Week UK Published
-
Woman sues Disney over 'injurious wedgie'
Tall Tales And other stories from the stranger side of life
By Chas Newkey-Burden, The Week UK Published
-
Emotional support alligator turned away from baseball stadium
Tall Tales And other stories from the stranger side of life
By Chas Newkey-Burden, The Week UK Published
-
Europe's oldest shoes found in Spanish caves
Tall Tales And other stories from the stranger side of life
By Chas Newkey-Burden, The Week UK Published
-
Artworks stolen by Nazis returned to heirs of cabaret performer
It wasn't all bad Good news stories from the past seven days
By The Week Staff Published