Canadian Manufacturing

Sanctions not impacting Exxon’s Russian business, says CEO

U.S. sanctions targeted high-profile Russians, including the president of the country's largest oil company, Rosneft

DALLAS—The CEO of Exxon Mobil says U.S. sanctions against Russian officials are having no effect on his company’s activities there.

Rex Tillerson also says that he is skeptical of sanctions and has discussed his view with U.S. government officials.

Tillerson made the comments Wednesday after Exxon Mobil Corp.’s annual meeting.

U.S. sanctions over Russia’s annexation of Crimea have targeted close associates of Russian President Vladimir Putin, including the president of Russia’s largest oil company, Rosneft, but not the company itself. Exxon has an exploration and production agreement with Rosneft in the Russian arctic and Siberia.

“There has been no impact on any of our business activities in Russia to this point, nor has there been any discernible impact on the relationship” with Rosneft, Tillerson told reporters. “The organizations continue to work business as usual.”

Exxon Mobil earned $32.6 billion last year, a decline of 26 per cent from 2012. Revenue fell 9 per cent to $438.3 billion. Exxon shares gained 17 per cent last year but have been flat in 2014. But, as it has for several years, environmental debates crowded out financial ones at the annual meeting of the nation’s largest oil company.

Tillerson received compensation worth $28.1 million last year, placing him 12th on the list of the highest-paid CEOs, according to an analysis by The Associated Press and executive-pay research firm Equilar.

Exxon is based in Irving, Texas.

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