The decision comes shortly after British Petroleum and Shell announced they would be exiting investments in Russia following the country’s invasion of Ukraine.
“ExxonMobil 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.
Exxon said it will not invest in new developments in Russia moving forward.
The company’s subsidiary Exxon Neftegas Limited (ENL) has a 30% stake in the Sakhalin-1 drilling project and operates the project on behalf of an international consortium that includes Japanese, Indian and Russian companies.
Since it began, the Sakhalin-1 project has generated more than $16 billion in taxes, royalties and other payments to federal and regional governments in Russia, according to the project’s website.
Exxon previously touted Sakhalin-1 as “one of the largest single international direct investments in Russia.”
Due to the company’s role as the project’s operator, exiting the venture could take time, Exxon said, warning that the process “will need to be carefully managed and closely coordinated with the co-venturers in order to ensure it is executed safely.”
Exxon joins Apple, Disney and Ford on a growing list of U.S. companies that are halting business operations in Russia amid the Ukraine crisis.