Exxon Mobil fined $2 million for violating sanctions against Russia

Russian Prime Minister Vladimir Putin, right, and then-Exxon Mobil Chief Executive Rex Tillerson meet in Sochi, Russia, on Aug. 30, 2011. (Alexei Druzhinin / Associated Press)

Exxon Mobil Corp. showed “reckless disregard” for U.S. sanctions on Russia three years ago while Secretary of State Rex Tillerson was the oil giant’s chief executive officer, the Treasury Department said Thursday.

It fined the company $2 million, the maximum civil penalty under the law, calling the violation an “egregious case.”

Exxon “is a sophisticated and experienced oil and gas company that has global operations” and should know better when it comes to U.S. sanctions, Treasury said.

The Texas-based company has denied wrong doing and indicated late Thursday that it would sue the U.S. government to block the fine.

In a statement, Treasury said Exxon had violated U.S. sanctions when it signed contracts in May 2014 with Russian oil magnate Igor Sechin, chairman of government-owned energy giant Rosneft.

The Obama administration had blacklisted Sechin, Tillerson’s longtime business associate, as part of its response to Moscow’s annexation of Crimea and its support for armed separatists in eastern Ukraine.

The same month Exxon signed the contracts, Tillerson said the energy company generally opposes sanctions and finds them “ineffective.”

Read more of this story

Source: News Now/Los Angeles Times

(Visited 82 times, 1 visits today)
About Cholo Brooks 17834 Articles
Joel Cholo Brooks is a Liberian journalist who previously worked for several international news outlets including the BBC African Service. He is the CEO of the Global News Network which publishes two local weeklies, The Star and The GNN-Liberia Newspapers. He is a member of the Press Union Of Liberia (PUL) since 1986, and several other international organizations of journalists, and is currently contributing to the South Africa Broadcasting Corporation as Liberia Correspondent.