October 21, 2024
Bipartisan House members call for tighter sanctions on oil field servicers in Russia
A bipartisan coalition of more than 50 congressional representatives called on the Biden administration to tighten sanctions on Russian oil and specifically address a major U.S. oil field servicer’s presence in Russia.
In the letter, led by Reps. Lloyd Doggett (D-Texas) and Jake Auchincloss (D-Mass.), the members asked Treasury Secretary Janet Yellen and Secretary of State Antony Blinken to restrict activity by the firm SLB in Russia after the February 2022 invasion of Ukraine.
Since the invasion, they wrote, SLB has imported millions of dollars worth of equipment into Russia, including hydraulic packers and drilling tools. At least $3 million of the equipment SLB has imported into Russia in the final five months of 2023 falls into categories that should be subject to international controls if exported from the U.S. or Europe, they wrote.
“This U.S.-based company is keeping Vladimir Putin’s war machine well-oiled with financing for the barbaric invasion of Ukraine. We urge you to continue supporting our Ukrainian allies by pursuing more rigorous oil sanctions to effectively restrict Putin’s profits,” the members wrote. “In concert with our allies in the [Group of Seven], we must tighten oil sanctions to prevent the billions in revenue currently flowing into the Kremlin’s budget. Permitting Western investment in the oil and gas sector strengthens Russia’s wartime economy and its military strength.”
The representatives asked Yellen and Blinken to clarify whether SLB is aware of “where the guard rails are” regarding sanctions, as a State Department official has reportedly said it is.
They also questioned whether the current sanctions program is effective in its goals if it allows an arrangement where American companies can import equipment into Russia from third nations, and they requested a list of all approved exceptions to American sanctions.
The invasion of Ukraine prompted a round of international sanctions against Russian oil, which was predominantly exported to Europe before the war began. Since the invasion, the U.S. substantially increased its exports of natural gas to the EU, although the Biden administration temporarily paused new export licenses to analyze the fuel’s environmental impact.
By:
Zack Budryk
Source:
The Hill
