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Sanctions Impede Exxon’s Arctic Sea Oil Exploration

The latest U.S. sanctions against Russia have put a crimp in Exxon Mobil’s plans to drill for oil in the Arctic Ocean, the Times reports. “The United States and Europe originally banned technology transfers that aided Russia’s deep water, Arctic offshore, or onshore shale rock formation projects over the summer, but the language did not stop Exxon Mobil from starting drilling in the Kara Sea,” an area that figures prominently in the company’s plans to develop new fossil fuel reserves, Reed and Krauss write. Now, the U.S. has moved to close loopholes in the sanctions plan. While the restrictions won’t harm Exxon profits for years, extended sanctions “could damage Exxon’s relationship with Russia, crimping the company’s growth strategy.”