Mohit ManghnaniMon, September 18, 2023, 12:58 PM EDTIn this article:
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Questions are being raised about the trade relationship between U.S. oil and gas companies and Russia following the revelation that equipment worth over $7.1 million from Halliburton Company (NYSE: HAL) has been exported to Russia.
This comes despite Halliburton’s announcement last year that it had ceased its operations in the country.
Halliburton sold its Russian office to local management in September 2022.
This move was in response to mounting pressure on American firms to halt trade with Russia after the invasion of Ukraine.
However, Russian customs data indicates that Halliburton’s subsidiaries exported equipment valued at $5.7 million to its former Russian operation in the six weeks following the sale, The Guardian reports.
The exported equipment primarily originated from the U.S. and Singapore, although some also came from countries like the U.K., Belgium, and France.
The last recorded shipment from a Halliburton subsidiary was a sealing element priced at $2,939.40, sent from Malaysia to a Russian firm called Sakhalin Energy on October 24, 2022.
After a brief hiatus, the import of Halliburton equipment to Russia resumed in December 2022 from companies not directly related to the U.S. multinational.
The situation has sparked frustration in Ukraine and highlights the challenges multinational companies face in severing their trade ties and controlling product distribution.
Earlier this month, Sen. Bob Menendez (D-NJ) expressed his concerns to Halliburton and other companies like SLB and Baker Hughes (NYSE: BKR), accusing them of prioritizing profits over standing in solidarity with Ukraine.
Halliburton has stated that it was the first major oilfield services company to exit Russia and has fully complied with sanctions. The company emphasized that it no longer conducts operations in Russia.
Despite writing off $300 million on the sale of its Russian operation, Halliburton posted a gross profit of $4.052 billion for the 12 months ending June 30, 2023, marking a 63.19% year-on-year increase.
Related Stocks and ETFs: Investors may also be interested in Exxon Mobil Corporation (NYSE: XOM) and Chevron Corporation (NYSE: CVX), as well as ETFs like the Energy Select Sector SPDR Fund (NYSE: XLE) and the VanEck Vectors Oil Services ETF (NYSE: OIH).
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.