USA says Exxon under Tillerson violated Russian Federation sanctions in 2014

USA says Exxon under Tillerson violated Russian Federation sanctions in 2014

USA says Exxon under Tillerson violated Russian Federation sanctions in 2014

Exxon signed eight legal documents related to oil and gas projects in Russian Federation with Rosneft, a company that US interests are allowed to do business with.

"ExxonMobil demonstrated reckless disregard for US sanctions requirements", Treasury said, "when it failed to consider warning signs associated with dealing in the blocked services of an SDN".

The Treasury's Office of Foreign Assets Control said Exxon didn't voluntarily disclose its dealings with Sechin to the USA government, and called the violations egregious.

According to OFAC, ExxonMobil deliberately failed to disclose its dealings to regulators in order to bypass the restrictions.

In violation of these sanctions against Russia, ExxonMobil made various deals with Rosneft OAO, an oil company owned by the Russian government, the Treasury Department said.

ExxonMobil had fully complied with guidance from Democratic former President Barack Obama's administration that ongoing oil and gas business activities with Rosneft were permitted, Exxon spokesman Alan Jeffers said in a statement. The company said the eight legal documents it signed were related to ventures with Rosneft, not Sechin personally.

"OFAC's action is fundamentally unfair", he said.

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Treasury stated that "ExxonMobil's senior-most executives knew of Sechin's status as an SDN when they dealt in the blocked services of Sechin".

The Treasury Department called the violation an "egregious case" and noted that Exxon "is a sophisticated and experienced oil and gas company that has global operations" and should know better when it comes to USA sanctions.

"Based on the Enforcement Information published today, OFAC is trying to retroactively enforce a new interpretation of an executive order that is inconsistent with the explicit and unambiguous guidance from the White House and Treasury issued before the relevant conduct and still publicly available today", the statement said.

The State Department referred questions about the fine to ExxonMobil and the Treasury. It leveled the statutory maximum civil penal of $2 million for the breaches. Tillerson knew both Sechin and Russian President Vladimir Putin for more than a decade before he became secretary of state.

The same month that Exxon signed the deals, Tillerson said the company generally opposes sanctions and finds them "ineffective".

Exxon stock traded slightly up late in the afternoon.

Mr. Tillerson, who has deep ties to Russian Federation and received an Order of Friendship from Moscow, left the firm to become U.S. Secretary of State.

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