Oilfield services company suspends new investments in Russia amid invasion

Oilfield services company Baker Hughes announced on Saturday that the company would be suspending new investments in its Russian operations amid the country’s invasion in Ukraine, following in the footsteps of competitors Halliburton and Schlumberger.

“The crisis in Ukraine is of grave concern and we strongly support a diplomatic solution. We condemn violence and our hearts go out to the people and families of those impacted,” Baker Hughes CEO and chairman Lorenzo Simonelli said in a statement.

“The health and safety of our employees, customers, partners, and their families always remains our top priority. We have been continuously monitoring the situation, and today’s announcement follows an internal decision made with our Board of Directors and communicated to our leadership team earlier this week. We remain committed to act in full compliance.”

The move follows similar announcements made by competitors Halliburton and Schlumberger on Friday. Schlumberger said it would be pausing technology deployment and new investments in its Russian operations. 

Halliburton said it would be halting future business with Russia to be compliant with sanctions and had already stopped shipping out certain parts to Russia that were affected by sanctions several weeks earlier.

Up to five percent of Baker Hughes’s total sales come from Russia, as do roughly two percent of Haliburton’s, according to Forbes. 

The development comes as a number of companies have paused or nixed business with Russia as the ongoing conflict in Ukraine runs into its fourth week. U.S. penalties against Russia include a ban on Russian imports of oil, natural gas and coal as well as sanctions against Nord Stream 2 AG, the parent company of the Nord Stream 2 pipeline. 

Earlier this month, ExxonMobil said it would be suspending future investments in Russia and phasing out an oil and gas project’s operations in the country.