US lawmakers question the SLB of oil service companies' exemption from Russian sanctions

Dozens U.S. Both political parties sent representatives to urge the Biden administration on strengthening sanctions against Russian oil shipments. They also questioned the exception granted to SLB, the largest oilfield service company in the world to operate within the country.

The U.S., Europe and other countries have been trying to reduce Moscow's revenue from energy for the fight against the war since the 2022 Russian invasion of Ukraine. This led several oilfield services companies to leave Russia, but SLB remained in the country and helped keep Russian oil flowing.

The 52 members of Congress, including Democratic Representatives Jake Auchincloss, Lloyd Doggett, and Republican Representative Brian Fitzpatrick said that SLB had signed new contracts since the invasion on February 20, 2022. They also claimed to have recruited hundreds of employees and imported equipment worth nearly $18,000,000 into Russia.

This U.S. company keeps (Russian President Vladimir Putin) Vladimir Putin’s war machine well oiled by financing the barbaric invasion of Ukraine. We urge you continue to support our Ukrainian allies, by pursuing stricter oil sanctions that will effectively limit Putin's profit," the lawmakers wrote in a letter sent to Treasury Secretary Janet Yellen.

Requests for comments were not immediately responded to by the departments of Treasury or State. SLB did respond immediately to a comment request.

The lawmakers claimed that the administration of President Joe Biden had pointed out a Treasury Department license which authorizes U.S. citizens to process transactions involving energy that involve certain sanctioned Russian institutions.

The lawmakers stated that they were aware of the arguments made often to the effect that Russian oil is a vital and irreplaceable part of the global supply of oil. "However, allowing Russia the benefit of Western technology and expertise will only increase their oil and gas industry's resilience against Western sanctions, and prolong its ability to fund its illegal offensive."

Geoffrey Pyatt, assistant secretary of state at the time, said in May that SLB did not violate sanctions against Russia.

SLB received 5% of revenue last year from Russia. When the war started in 2022, it had over 10,000 employees working in Russia to help energy companies pump oil and natural gas.

(source: Reuters)