Ukraine designates Weatherford oilfield service company int’l sponsor of war

Ukraine’s National Agency for the Prevention of Corruption (NAZK) has added the Irish-American company Weatherford to its list of international sponsors of war due to the company’s continued operations in Russia, according to the Agency’s statement. According to NAZK, the oil extraction sector remains strategically important for Russia, as it allows the country to use energy resources as a weapon and influence other states. Despite sanctions imposed on Russia in this sector, Weatherford International continues to operate in the country, paying millions of dollars in taxes and providing technological capabilities to the aggressor state in the oil industry, the Agency stated. Weatherford International specializes in producing and supplying oil extraction equipment and offering services to oil and gas enterprises. The company has been operating in Russia for 16 years, creating over 2,500 jobs and maintaining service enterprises, bases, and machine-building enterprises in the Russian Federation territory. In 2022, three manufacturer subsidiaries paid over $15 million in taxes to Russia's budget, NAZK reported.

"Weatherford intends to continue fulfilling existing contracts and concluding new agreements with customers in Russia," NAZK added.

Weatherford's partner in Russia is the oil company Rosneft, which remains the main customer of its services. Weatherford also continues to be an active participant in import-export operations with Russia. From 24 February 2022 to 31 December 2023, it imported goods to Russia worth almost $1.5 million, including materials and spare parts for the oil and gas industry (fittings, valves, shafts, gaskets, plastic products, bearings). Read also:

• FT: Hungary stalls approval of EU’s latest Russia sanctions
• EU adopts new measures to isolate frozen Russian funds
• Bloomberg: EU to consider sanctions on three Chinese firms over Russia support
• US tightens sanctions on Russian diamond imports