Norwegian state-owned energy firm Equinor has announced the halt of all new business activity in Russia and a withdrawal from existing operations within the country.
The move comes amid mounting pressure from Western countries on Russia in the forms of sanctions and other financial measures following Russia’s invasion of Ukraine.
Equinor’s announcement comes on the heels of news that Norway’s sovereign wealth fund worth $1.3 trillion will be withdrawing all investments in Russia. Oil and gas giant bp also announced the divestment of its 19.75% share in state-backed Russian partner Rosneft, thus ending operations in the country, but at the cost of over 50% of its oil and gas reserves.
According to a company press release, Equinor held $1.2 billion in non-current assets in Russia, having operated in the country for 30 years. Equinor also holds ties with Rosneft, signing a cooperation agreement for the development of the Kharyaga and North Komsomolskoye oil field developments. The Norwegian company also holds 12 exploration and production licences in Eastern Siberia.
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“We are all deeply troubled by the invasion of Ukraine, which represents a terrible setback for the world, and we are thinking of all those who are suffering because of the military action,” said company president and CEO Anders Opedal in a statement.
“In the current situation, we regard our position as untenable. We will now stop new investments into our Russian business, and we will start the process of exiting our joint ventures in a manner that is consistent with our values. Our top priority in this difficult situation is the safety and security of our people,” said Opedal.
Equinor stated to stay in close contact with the authorities in Norway, the European Union, the United States, and other countries and said to continue to comply with any new sanctions relevant to their operations.
