Exxon sues U.S. over $2 million Russian sanctions fine
The U.S. Treasury Department on Thursday imposed a $2 million fine on Exxon Mobil Corp. for what it called a “reckless disregard” of U.S. sanctions on Russia while Secretary of State Rex Tillerson was the oil giant’s chief executive, a finding the company immediately said it would challenge.
Exxon XOM, +0.01% , under Tillerson, in early 2014 deepened the company’s longstanding partnership with the Kremlin despite Washington levying fresh sanctions against Russia for seizing territory in eastern Ukraine. In May of that year, the Treasury Department said the company signed eight documents relating to oil and gas projects in Russia that were also signed by Igor Sechin, chief executive of the state oil giant PAO Rosneft. Treasury said Thursday those deals violated U.S. sanctions against Sechin, a former Russian intelligence officer and top ally to President Vladimir Putin.
Tillerson, who had close business ties to Russia and received an “Order of Friendship” award from Moscow, left Exxon last year to become U.S. Secretary of State. The $2 million fine, Treasury said, was the maximum amount it could levy against the company.
Exxon doesn’t have any direct deals with Sechin but does have business dealings with Rosneft, where Sechin signed company documents in his capacity as CEO, Exxon said. According to the company, under President Barack Obama, the White House and the Treasury in 2014 said U.S. companies were allowed to participate in business dealings with Sechin if they were professional, not personal.
On Thursday afternoon, the Irving, Texas, company filed a complaint in U.S. District Court in the Northern District of Texas, seeking to toss the fine. In a court filing, Exxon said the sanctions unit “seeks to retroactively enforce a new interpretation of an executive order that is inconsistent with the explicit and unambiguous guidance from the White House and the Treasury issued before the relevant conduct and still publicly available today.”
Source: MarketWatch – Exxon sues U.S. over $2 million Russian sanctions fine
