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Report: Exxon Mobil to exit Russian joint ventures over sanctions

Exxon Mobil Corp. is quitting a number of joint ventures with the Russian oil company Rosneft, citing the economic sanctions imposed by the U.S. and the European Union in 2014, Reuters reported March 1.

Exxon plans to begin the process of exiting the joint ventures within the year, the report said. The U.S. government fined Exxon $2 million when it entered into the joint ventures in 2014, shortly after the sanctions were imposed on Russia over its invasion of Crimea and involvement in conflicts in eastern Ukraine. Exxon appealed the fine, but slowed down drilling in the Russia's Arctic following the sanctions.

Exxon had also disagreed with the imposing of sanctions on Russia, as it put U.S. companies at a disadvantage when foreign energy rivals are allowed to operate in the country, Reuters reported.

"[Exxon] will suffer serious losses as a result of this [decision]," said Mikhail Leontyev, a spokesman for Rosneft. Leontyev also said Exxon was forced to make the "predictable" decision, according to the report.