Exxon Fined $2 Million for Russian Sanction Violations That Occurred Under Tillerson

Exxon Fined $2 Million for Russian Sanction Violations That Occurred Under Tillerson

Exxon Fined $2 Million for Russian Sanction Violations That Occurred Under Tillerson

The U.S. Department of the Treasury said on Thursday that it is imposing a US$2-million civil monetary penalty against ExxonMobil and some of its subsidiaries for having breached Ukraine-related sanctions on Russian Federation in May 2014.

The Treasury's Office of Foreign Assets Control (OFAC) "determined that ExxonMobil did not voluntarily self-disclose the violations to OFAC, and that the violations constitute an egregious case", the statement reads.

Treasury said that Exxon violated sanctions when it signed contracts in May 2014 with Russian oil magnate Igor Sechin, chairman of government-owned energy giant Rosneft. "No materials issued by the White House or the Department of the Treasury asserted an exception or carve-out for the professional conduct of designated or blocked persons, nor did any materials suggest that USA persons could continue to conduct or engage in business with such individuals".

The agency said Exxon Mobil showed "reckless disregard" for the sanctions by dealing with Sechin, a person they knew was on the US blacklist.

McFaul said, "I think it is a significant fine, however, because, you know, it is paradoxical, to put it diplomatically, that we have a secretary of state that violated the Department of State's rules and regulations and sanctions that were put in place before him". $2 million for violating sanctions against Russian Federation while now-Secretary of State Rex Tillerson was CEO of the company.

Sechin is the CEO of Russian state oil giant Rosneft and a close ally of Russian President Vladimir Putin.

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The same month that Exxon signed the deals, Tillerson said the company generally opposes sanctions and finds them "ineffective". BP CEO Bob Dudley, Exxon said, was allowed to keep working on Rosneft's board of directors alongside Sechin as long as he didn't deal with Sechin's personal business. It noted that Rosneft was not subject to sanctions at the time and maintained it understood transactions with Sechin in his personal capacity as an individual were not covered.

Concerns about Tillerson's potential conflict of interest dominated his confirmation hearings in January, and the secretary has recused himself from matters dealing with his former company.

"The secretary continues to abide by his ethical commitments, including that recusal from Exxon-related activities", Nauert said.

Mr. Tillerson, who has deep ties to Russian Federation and received an Order of Friendship from Moscow, left the firm to become U.S. Secretary of State.

The State Department directed further questions to Treasury and Exxon.

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