Attractive Title: Bipartisan Push for Tougher Oil Sanctions on Russia Raises Questions About SLB's Operations

A bipartisan group of 52 U.S. House members, including Jake Auchincloss, Lloyd Doggett, and Brian Fitzpatrick, has urged the Biden administration to strengthen sanctions on Russia's oil shipments. The group expressed concerns about the exemption that allows SLB, the world's largest oilfield services company, to continue operations in Russia despite the sanctions imposed following Russia’s 2022 invasion of Ukraine.

These lawmakers highlighted that SLB not only remained in Russia but has expanded its operations since the invasion. The company is reported to have signed new contracts, hired additional personnel, and imported approximately $18 million worth of equipment into Russia. The lawmakers argue that these actions are aiding President Vladimir Putin's war efforts in Ukraine.

In a letter addressed to Treasury Secretary Janet Yellen and Secretary of State Antony Blinken, the representatives criticized SLB for "funding Ukraine's barbaric invasion" and called for tighter oil sanctions. They voiced concerns that current sanctions allow Russia to leverage Western technology and expertise, thus enhancing the resilience of its oil and gas sector to sanctions and prolonging its ability to fund military aggression.

The Treasury Department had previously referred to a general license allowing U.S. citizens to conduct energy-related transactions with certain sanctioned Russian financial institutions. However, lawmakers argue that this undermines the effectiveness of the sanctions.

Deputy Secretary of State Geoffrey Pyatt stated in May that SLB has not violated any sanctions against Russia. SLB, which had 10,000 employees in Russia at the beginning of the war in 2022, derived 5% of its revenue from its operations in Russia last year.

The Treasury and State Departments, along with SLB, have not yet responded to the concerns raised by the U.S. House members.