Western oil companies boycott Moscow, Russia bank files for bankruptcy

Italian oil giant Eni intends to sell its 50 per cent stake in the Blue Stream gas pipeline, which it controls equally with the Russian giant Gazprom, in the wake of Moscow’s invasion of Ukraine, a company spokesman announced yesterday evening.

“Eni intends to sell its stake” in the Blue Stream gas pipeline linking Russia with Turkey via the Black Sea, the spokesman said. Eni is following the example of major oil companies, including Shell and BP, the two British companies, which announced their withdrawal from projects in Russia.

The US oil giant ExxonMobil announced yesterday that it will gradually withdraw from a major oil field it operates in Russia on behalf of a consortium of Russian, Indian and Japanese companies, known as the Sakhalin-1 project.

ExxonMobil has been managing the Sakhalin-1 project, located in the far east of Russia, since 1995. It owns 30 per cent of it.

In a statement the company said: “In response to recent events, we are beginning the process to discontinue operations and developing steps to exit the Sakhalin-1 venture”, stressing that it will no longer invest in new projects in Russia.

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The French company, Total Energies, chose not to leave Russia, but decided not to increase its investments in the country.

ExxonMobil clarified that its withdrawal would not be immediate, saying, as it is the operator of Sakhalin-1, and has an obligation to ensure the safety of people and the environment.

The company added: “The process to discontinue operations will need to be carefully managed and closely coordinated with the co-venturers in order to ensure it is executed safely.”

British oil and gas giant Shell announced on Monday that it will give up its stakes in several joint ventures with the Russian Gazprom group in Russia, due to Moscow’s invasion of Ukraine.

Shell has maintained a presence in Russia over the past two decades, despite rising geopolitical tensions, maintaining cordial relations with the authorities.