Despite sanctions, ExxonMobil (XOM) starts drilling in Russia. Putin cheers.
Russian president calls ExxonMobil a 'model of cooperation' for its partnership with Rosneft in the face of Western sanctions against the Russian oil company. The energy giants are drilling Russia's first well in the arctic Kara Sea, an area with huge reserves of oil and gas.
Russian president calls ExxonMobil a 'model of cooperation' for its partnership with Rosneft in the face of Western sanctions against the Russian oil company. The energy giants are drilling Russia's first well in the arctic Kara Sea, an area with huge reserves of oil and gas.
U.S. oil giant聽ExxonMobil聽began drilling in聽Russia's Arctic on Saturday, despite Western sanctions imposed on its Russian partner聽Rosneft, and was hailed by聽Russia's president as an model of "cooperation".
Although U.S. sanctions over the crisis in聽Ukraine聽are not designed to halt joint projects by Russian and U.S. companies, they nevertheless aim to starve聽Rosneft聽of dollar financing and ban access to modern technology.
"Today, commercial success is driven by efficient international cooperation,"聽Vladimir Putin聽told聽Rosneft聽CEO Igor Sechin and聽Glenn Waller,聽ExxonMobil's lead manager in聽Russia, on a videoconference call from his聽Black Sea聽residence in聽Sochi.
"Businesses, including Russian and foreign companies, perfectly realize that and despite certain current political difficulties, pragmatism and common sense prevail, and we are pleased to hear that," he said.
Exxon brought a rig from聽Norway聽to drill聽Russia's first well in the Kara Sea and its move will be seen as a vote of confidence in聽Rosneft, run by a close ally of Putin's, Igor Sechin, who has also had sanctions imposed on him by Washington.
"We of course welcome this approach (to cooperate) and are from our side are open to expand our cooperation," Putin said.
"I am convinced that the joint projects between聽Rosneft, Exxon Mobil and other companies will benefit our national economies, will contribute to strengthening the global energy situation," he said.
Waller, who spoke Russian, said the company was keen to keep working in聽Russia.
"Our cooperation is a long-term one," he said. "We see big benefits here and are ready to work here with your agreement."
The聽United States聽and the聽European Union聽have introduced sanctions, from asset freezes and visa bans for businessmen and officials thought close to Putin, to limits on access to Western capital for Russian state banks over what Western powers say is聽Moscow's role in the聽Ukraine聽crisis.
Moscow聽has responded by banning food imports from the United States,聽European Union,聽Australia,Canada聽and聽Norway, with Prime Minister聽Dmitry Medvedev聽threatening further counter-sanctions if the West presses ahead with more penalties.聽
As reported last month by the Monitor's David Unger, the West's current sanctions don't hit Russia's current oil and gas production, which could limit Russian exports to Europe:聽