Here's What Exxon 'Lost' From Russia Sanctions

The sanctions particularly impacted Exxon's $723 million joint project with Rosneft, Russia's largest state-owned oil company, which was set to commence oil drilling in the Kara Sea in the Arctic Circle. Despite the setbacks, Exxon reported in its 2014 activities filing that its "maximum exposure" to loss from these joint ventures was $1 billion, which the company clarified as "potential and not actual" losses.

Moreover, Exxon has significant investments in Russia, notably owning a 30% stake in the Sakhalin oil fields in Russia's far east through its subsidiary Exxon Naftegas Limited. The Sakhalin Consortium, formed in 1996 with partners from Japan, India, and Rosneft, has started production this year despite the sanctions. However, Exxon cannot collect revenues from this facility as long as the sanctions remain in place, to avoid substantial fines from the U.S. government.

Rosneft's CEO, Igor Sechin, asserted that oil production in the Sakhalin Island and Kara Sea would continue without Exxon's involvement. In September, Rosneft and Exxon initiated a new drilling well in the Kara Sea, but Exxon has had to pause its participation due to the sanctions.