ExxonMobil pledged Tuesday to leave its last remaining oil-and-gas project in Russia, and it will not invest in new developments in the oil-rich country.
By moving to discontinue its Sakhalin-1 project in Russia, Exxon joins a growing list of energy companies, including BP (BP) and Shell, that have announced their intention to leave Russia. Other Western companies including Apple (AAPL), Ford (F) and General Motors have also distanced themselves from Moscow in recent days.
“ExxonMobil supports the people of Ukraine as they seek to defend their freedom and determine their own future as a nation,” the company said in a statement. “We deplore Russia’s military action that violates the territorial integrity of Ukraine and endangers its people.”
Sakhalin-1 is “one of the largest single international direct investments in Russia,” according to the project’s website. Exxon Neftegas Limited, an Exxon subsidiary, has a 30% stake and serves as the operator. Russia’s Rosneft also owns a stake.
An Exxon spokesperson confirmed to CNN that this is the company’s last remaining Russian project. By quitting this project, Exxon would end more than a quarter-century of continuing business presence in Russia.
Exxon, the largest US oil company, was a glaring omission among the big brands cutting ties with Russia. The company operates the Sakhalin-1 project on behalf of a consortium that includes Russian, Japanese and Indian companies.
“In response to recent events, we are beginning the process to discontinue operations and developing steps to exit the Sakhalin-1 venture,” Exxon said.
The company did not detail the financial toll of unwinding a project it has sunk considerable resources into over the years.
Exxon signaled that its exit will not take place overnight, saying it has an obligation to ensure the safety of the people and environment as it quits the project.
“The process to discontinue operations will need to be carefully managed and closely coordinated with the co-venturers in order to ensure it is executed safely,” the company said.