US Congress calls upon Biden administration to tighten sanctions on oilfield service industry after investigation into SLB's alleged business expansion in Russia, FT reports
US firm’s Russia work prompts Congress to demand stricter sanctions, 19 October 2024
A bipartisan coalition in Congress is demanding the Biden administration tighten sanctions on Russia’s oilfield services industry, alleging the current rules are enabling a major US firm to fuel Vladimir Putin’s war machine.
They have also asked Biden’s Treasury and State departments to explain whether it authorised transactions in which Houston-based SLB, better known by its longtime former name Schlumberger, imported equipment into Russia worth $17.5mn between August and December last year....
The demands from Congress follow a Financial Times investigation in August which revealed that 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,” said the group in a letter signed by more than 50 members of Congress and addressed to Secretary of State Antony Blinken and Treasury Secretary Janet Yellen.
“We urge you to continue supporting our Ukrainian allies by pursuing more rigorous oil sanctions to effectively restrict Putin’s profits.”
Representatives of the state department and SLB did not respond to requests for comment.
Treasury said it remained “committed to using all our tools to reduce the Kremlin’s revenues and make it harder for Russia’s war machine to operate.”
“US firms are prevented from making any new investments in Russia and we plan to enforce all our sanctions against companies within our jurisdiction”...
Human rights groups and the Ukrainian government allege SLB’s work in the country helps generate billions of dollars of oil revenue that ultimately support the Kremlin’s war effort...
But western policymakers have avoided imposing comprehensive sanctions on oilfield services in Russia over concerns it would choke off fossil fuel exports and cause a jump in global oil prices...