The three largest oil companies in the world are suspending future operations in Russia in response to the invasion of President Vladimir Putin in Ukraine, announcing their decisions separately and within 24 hours from each other, Bloomberg reported.
Baker Hughes said on Saturday it was suspending new investment in companies in Russia, but was continuing existing work there, according to a statement.
“The crisis in Ukraine is a matter of grave concern and we strongly support a diplomatic solution. We condemn the violence and our hearts go out to the people and families of those affected,” Baker Hughes chief executive Lorenzo Simonelli said in a statement.
A similar statement from Schlumberger was released late Friday, when the company announced that it was immediately suspending all new investment in Russia, continuing its existing operations.
Halliburton is the company that stopped current and future operations in Russia, a country whose oil sector relies on foreign technology, equipment and know-how to maintain domestic production of the Kremlin’s main sources of revenue. Halliburton followed in the footsteps of some of the largest oil exploration companies, including BP and Shell, announcing plans to leave Russia.
Baker Hughes, which accounts for up to 5% of total sales from Russia, received approval from its board earlier in the week, according to a knowledgeable person who asked not to be named. The Houston-based company has been operating with a model of new investment cessation in recent days. A Baker Hughes spokesman declined to comment.
Another oil service provider, Houston-based Weatherford International, said on Sunday it had suspended all new investment in Russia. Weatherford has no consortia or partners in Russia, CEO Girish Saligram said in a statement.
Baker Hughes has the second largest exhibition in Russia, after Schlumberger, analysts say. Halliburton produces about 2% of its sales from Russia, according to JPMorgan.
Source: Capital
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