04 July 2017, 23:51 / Business Exclusively by subscription

ExxonMobil, Chevron against tightening sanctions against Russia

Their lobbying could make it difficult to pass a bill in the US Congress Bradley Olson Peter Nicholas American companies opposed tightening anti-Russian sanctions / Gregory Bull / AP

ExxonMobil, Chevron and other energy companies, following US President Donald Trump, opposed the bill to tighten anti-Russian sanctions. They claim that because of it, their oil and gas projects around the world, in which Russian partners participate, could be closed. Lobbying by companies could complicate the passage of the bill in the House of Representatives.

Exxon spokesman Alan Jeffers said the company does not take a position on sanctions. She provided information to Congress about how the bill could "disadvantage U.S. companies relative to foreign competitors." For Exxon, the stakes are especially high. The bill could further hit its fragile partnership with Rosneft, which was largely frozen after the imposition of US sanctions. A Chevron spokesman declined to comment.

Exxon's position could also create problems for the Trump administration, which is trying to avoid conflicts of interest because Secretary of State Rex Tillerson was the company's CEO. Although he did not openly oppose the bill, he called on Congress not to take action that would tie the administration's hands.

Lobbyists expressed to congressmen the oil industry's concerns about certain provisions of the bill. These include a ban on partnerships with Russian citizens and companies under sanctions, and congressional review of some exceptions for already imposed sanctions. Companies are also concerned that the bill could force them to disclose confidential information.

The bill could affect any American companies with Russian partners. Therefore, it also raised concerns among organizations from the industrial and banking sectors, people familiar with the situation say. “[The bill] has broad implications for a variety of companies and industries,” says Jack Gerard, head of the American Petroleum Institute.

Translated by Alexey Nevelsky