Exxon to end Russia joint ventures

Exxon Mobil Corp. is exiting some of its joint ventures with Russia’s state-owned oil company, citing sanctions first imposed in 2014.

Exxon had originally tried to fight the sanctions, which were imposed in retaliation for Russia’s annexation of Crimea, internationally recognized as part of Ukraine.

The United States’s largest oil company reached the deals with Rosneft starting in 2012 under the leadership of former Exxon chief Rex Tillerson, who is now secretary of State under President Trump.

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But it told investors late Wednesday that its position had changed.

One joint project off the eastern coast of Russia will not be affected by the exit, spokesmen for both companies told Reuters.

Rosneft spokesman Mikhail Leontyev further told Reuters that Exxon “will suffer serious losses as a result of this.”

Rosneft plans to continue with the affected projects by itself.