Exxon to Discontinue Operations at Major Oil and Gas Project in Russia

Exxon Mobil  said it will exit a multi-billion dollar oil and gas project in Russia and stop investing in the country in response to Vladimir Putin’s invasion of Ukraine.

The Texas-based energy giant said it will discontinue operations at the Sakhalin-1 offshore project in Russia’s Far East, and leave the venture.

Exxon (ticker: XOM) said it would start a  “carefully managed” exit, but didn’t provide a timeframe for the move.

“Exxon Mobil supports the people of Ukraine as they seek to defend their freedom and determine their own future as a nation. We deplore Russia’s military action that violates the territorial integrity of Ukraine and endangers its people,” the company said in a statement.

Shares in Exxon rose 2.13% in premarket trading. The stock has gained 29.38% so far this year.

Exxon, which owns a 30% stake in the Sakhalin-1 project, operates the project on behalf of an international consortium that includes Russian state-controlled oil producer Rosneft , Japan’s Sodeco and India’s ONGC Videsh.

The move follows those of BP (BP) Shell (SHEL) and Norway’s Equinor (EQNR) which have all said they will sell substantial stakes in Russia, while France’s TotalEnergies (ticker: TTE) said it would no longer provide capital for new projects in Russia.