U.S. Fines ExxonMobil $2 Million for Violating Russia Sanctions

The U.S. Treasury Department announced on Thursday that oil giant ExxonMobil has been fined $2 million for violating sanctions against Russia. Following Russia's annexation of Crimea in 2014, the U.S. imposed sanctions on Moscow. According to the Associated Press, the Treasury Department stated that Exxon’s action in May 2014 to enter into a contract with Igor Sechin, the head of Rosneft, constitutes a violation of sanctions against Russia. During the imposition of sanctions against Russia due to its interference in Ukraine in 2014, Igor Sechin was placed on the sanctions list. Under these sanctions, any cooperation by U.S. entities, institutions, and citizens with these individuals is prohibited. The report indicates that this contract was signed shortly after the sanctions were imposed, while Rex Tillerson was the CEO of ExxonMobil at that time. Neil Duffin, head of one of Exxon’s subsidiaries, signed the contract with the head of Rosneft for the development of the Sakhalin project on Russia's eastern coast in May 2014. Meanwhile, ExxonMobil has responded to this fine, calling it unfair. However, the U.S. Treasury Department claims that ExxonMobil's management was aware at the time of the contract that Igor Sechin was on the sanctions list.