Senators urge crackdown on U.S. firm aiding Russian oil sector
According to the Financial Times on Sunday, fifty senators from both American parties are demanding that the U.S. administration tighten sanctions against the Russian oil services sector. They argue that existing regulations allow the American company SLB to fuel the Russian war machine.
The senators also want explanations from the Treasury Department and the State Department regarding the circumstances under which SLB, an American company providing services to the oil sector, imported equipment into Russia valued at $24 million CAD between August and December 2023, despite sanctions.
According to the "Financial Times" website, the senators were prompted to take this step by a journalistic investigation that revealed SLB "has continued to expand operations in Russia, capitalising on the withdrawal of western competitors despite international sanctions in response to Russia’s invasion of Ukraine."
"This US-based company is keeping Vladimir Putin’s war machine well-oiled with financing for the barbaric invasion of Ukraine," wrote the senators, urging both departments to "continue supporting our Ukrainian allies by pursuing more rigorous oil sanctions to effectively restrict Putin’s profits."
Representatives from the Treasury Department, the State Department, and SLB did not respond to "FT's" requests for comment.
SLB is a provider of oil services. This industry, "FT" explains, constructs oil infrastructure and also provides access to technology. In August 2023, SLB, formerly known as Schlumberger, announced it would end "halting shipments of products and technology into Russia."
Despite this, the company signed new lucrative contracts and, as suggested by Reuters, took over those of its competitors who left the Russian market. Last year's operations brought the company $2.2 billion CAD in revenue, media reported in the summer of 2024. The Ukrainian National Agency for the Prevention of Corruption added the company to the list of "international sponsors of the war."
Western governments avoid imposing comprehensive sanctions on services related to the oil sector in Russia, fearing it could drive up global oil prices, noted "FT."
Stop adding fuel to the fire
Lloyd Doggett, a Democratic congressman from Texas, said that by allowing American companies to operate in Russia, the U.S. government and its European allies are "in essence funding both sides of the war." In an interview with "FT," the congressman stated that "While well aware of concerns about the price of gasoline at the pump, we must stop oiling the Putin war machine to win this war."
In May, a U.S. State Department official stated that SLB "thus far" had not violated sanctions and that the company is well aware of where the risk threshold lies. Last week, the company announced that its profits in the third quarter of 2024 exceeded analysts' expectations.
