An American Giant in the Heart of Russia

An American giant in the heart of Russia

Trade and business in various dimensions with Russia in various European and American countries are facing restrictions, and the continuous and heavy sanctions have forced Western businesses, both large and small, to leave Russia.

Many companies have managed to maintain a part of their business dimensions and activities in Russia, but gradually in many cases, they have been forced to leave Russia and abandon their facilities and offices.

In some cases, Vladimir Putin has taken action to seize the remaining assets and take over the hardware and abandoned facilities. The losses of various companies from leaving Russia may have been somewhat forgotten, but the missed opportunities are definitely unforgettable. Among them, there is an American company that is active in Russia without any particular problems, SLB, which is the largest oilfield services company with a strong presence in Russia and has recently signed several important new contracts with the Russians.

Human rights watchdogs and international trade observers have identified more than a thousand job postings by this company for work in Russia.

While European and American competitors are expected to complain about SLB’s presence in Russia and the profitable trade opportunities it offers, some key competitors have calmly assessed this period, which may not match reality.

SLB continues its work without any issues, and US regulatory authorities have explicitly stated that they have not observed any violations of sanctions laws in the company’s operations in Russia. It’s simple, Russians are naturally extracting oil, and their oil extraction is not sanctioned.

Oilfield services are also profitable activities. SLB has not transferred sensitive and suspicious dual-use parts and technologies from the US to Russia. The company purchases these items from other countries, and the transfer process is monitored by regulatory authorities.

Russia continues oil extraction and naturally has to sell at cheaper prices to the Chinese, keeping oil prices lower than expected. The American company also provides services, records its income in the US, creates employment, and pays taxes to the US government. Everyone wins.