U.S. Lawmakers Urge Tougher Sanctions on Russian Oil

By Timothy Gardner

WASHINGTON (Reuters) – Dozens of U.S. Representatives from both parties have urged the Biden administration to strengthen sanctions on Russian oil shipments. They questioned an exception granted to SLB, the world's largest oilfield company, to continue operations in Russia.

Since Russia's invasion of Ukraine in 2022, the U.S. and its European allies have aimed to diminish Moscow's energy revenues. While many oilfield service companies exited Russia, SLB has remained active, sustaining Russian oil production.

A bipartisan group of 52 lawmakers, including Democrats Jake Auchincloss and Lloyd Doggett and Republican Brian Fitzpatrick, pointed out that SLB has signed new contracts, hired hundreds of staff, and imported nearly $18 million of equipment into Russia since the invasion.

The lawmakers stated in a letter to Treasury Secretary Janet Yellen and Secretary of State Antony Blinken, "This U.S.-based company is keeping (Russian President) 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."

They noted that the Biden administration has indicated a general Treasury Department license allows U.S. persons to process energy-related transactions involving certain sanctioned Russian financial entities.

The lawmakers acknowledged the critical role of Russian oil in the global supply but argued that allowing Russia to benefit from Western technology only enhances its oil sector's resilience against sanctions, prolonging its ability to fund its offensive.

A U.S. Treasury Department spokesperson affirmed their commitment to reduce Kremlin revenues, stating, "U.S firms are prevented from making any new investments in Russia, and we plan to enforce all our sanctions against companies within our jurisdiction."

The U.S. State Department did not comment, and SLB did not respond to requests for comment.

In May, Assistant Secretary of State Geoffrey Pyatt informed Reuters that SLB had not breached sanctions against Russia.

SLB derived 5% of its revenue from Russia last year and employed 10,000 people there to assist in oil and gas production when the war commenced in 2022.