Exxon Fined $2 Million for Violation of Russian Sanctions

ExxonMobil Corp, the world’s largest publicly traded international oil and gas company that earned $7.8 billion on revenues of about $219 billion last year, has been fined $2 million by OFAC for signing a joint venture with Russia’s Government owned integrated oil company, Rosneft, despite its Ukraine-related trade sanctions.  Exxon executives signed 8 documents related to oil and gas projects with the President of Rosneft, Igor Sechin, after OFAC listed him as a “blocked” person on their SDN list.  

OFAC believes that Exxon showed “reckless disregard” for the US laws and requirements when it pursued the relationship with Sechin, despite his status as an SDN (Specially Designated National).  Exxon claims that the agreement was legal under existing law and OFAC rules and has filed a lawsuit in federal court, arguing that the sanctions applied only to personal assets of sanctioned individuals and did not restrict business with companies they managed.

The Ukraine-Related Sanctions Regulations do not contain a “personal” versus “professional” distinction and therefore a US person is prohibited from engaging in or conducting business with a designated or blocked person regardless of the the nature of the relationship.

For the full story, view: http://www.fcpablog.com/blog/2017/7/21/ofac-fines-exxon-2-million-for-violating-russia-sanctions-ex.html

 

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