MOSCOW — U.S. oil company Exxon Mobil says it will withdraw from its joint venture with Russia’s state-controlled Rosneft due to U.S. and European sanctions against the country.
Exxon Mobil had signed a deal with Rosneft, Russia’s biggest oil producer, in 2011 that aimed to drill in difficult terrain, like Russia’s Arctic waters. It combined Exxon’s high level of technology with Rosneft’s access to the area.
The deal came under strain, however, after the U.S. sanctioned Russia in 2014 over the invasion of Ukraine and the Crimean Peninsula. The sanctions did not affect existing deals in the energy sector, but prohibited any business with Rosneft CEO Igor Sechin, an influential oligarch in Russia.