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US Fined ExxonMobil $2 Million For Violating Sanctions Related To Russia

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Oil and Gas giant ExxonMobil on Thursday was fined $2 million by the United States for alleged breach of sanctions imposed on Russia in 2014 when the secretary of the state Rex Tillerson was CEO of the ExxonMobil.

According to New York Times, Exxon has reportedly violated sanctions imposed after Russian armed actions against Ukraine, the breach involved the deal with Russian Igor Sechin, the head of Rosneft the Russian state-owned oil and gas company.

US Treasury commented on the case and said, “ExxonMobil acted frivolously and disregarded the US sanctions, ExxonMobil caused significant harm to the Ukraine-related sanctions program.” Treasury said in a report announcing the penalty.

The office of foreign assets control, the principal agency in charge of US sanctions program said, “Exxon failed to reveal the activity as required and the violations constitute an egregious case.”

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OFAC also claimed that eight legal documents were signed with Sechin by two Exxon subsidiaries in the US in May 2014.

However, Reuters reported that Exxon sued the US over $2 million unlawful fine. ExxonMobil claimed that it was operating compliantly with previous government’s regulations and the deals in oil and gas with Rosneft were permitted at that time, said Alan Jeffers Exxon’s spokesperson in a statement.

The treasury now is retroactively enforcing a new interpretation of the executive orders, which is inconsistent with its prior guidance which Exxon followed properly, OFAC’s action is inherently unfair and unjust, Jeffers added.