March 2, 2022

U.S. oil giant, ExxonMobil, says it will discontinue its current operations in Russia over the country’s invasion of Ukraine, swelling the number of multinationals that have served intent to quit Vladimir Putin’s Russia.

“We deplore Russia’s military action that violates the territorial integrity of Ukraine and endangers its people,” ExxonMobil said in a statement.

“We are deeply saddened by the loss of innocent lives and support the strong international response.

“ We are fully complying with all sanctions.

“ExxonMobil supports the people of Ukraine as they seek to defend their freedom and determine their own future as a nation,” the statement stated.

The U.S. concern operates the Sakhalin-1 gas project on behalf of an international consortium of Japanese, Indian and Russian companies.

“In response to recent events, we are beginning the process to discontinue operations and developing steps to exit the Sakhalin-1 venture,” the statement added.

ExxonMobil has been in Russia for decades and holds 30 per cent of the Sakhalin-1 project.

The U.S. firm further said with the current situation, it will not invest in new developments in Russia.

Meantime, the International Monetary Fund (IMF) and the World Bank have announced plans to increase support for Ukraine on financing and policy fronts.

IMF Managing Director Kristalina Georgieva and World Bank Group President David Malpass said in a joint statement on Wednesday that commodity prices are being driven higher and “risk further fueling inflation,” which hits the poor the hardest.

“Disruptions in financial markets will continue to worsen should the conflict persist.

“The sanctions announced over the last few days will also have a “significant” economic impact,” they said.

The two institutions are assessing the situation and discussing appropriate policy responses with their international partners.

The IMF is responding to Ukraine’s request for emergency financing through the Rapid Financing Instrument, which the IMF Board could consider as early as next week.

The World Bank Group, meanwhile, is preparing a three billion U.S. dollar package of support in the coming months, starting with a fast-disbursing budget support operation for at least 350 million dollars that will be submitted to the board for approval this week.

Then followed by 200 million dollars in fast-disbursing support for health and education will follow.