Halliburton Co. said it’s winding down operations in Russia and will halt future business in the nation amid sanctions imposed in response to President Vladimir Putin’s invasion of Ukraine.
The world’s biggest provider of fracking is alone among the three major oilfield-service providers to publicly declare a pullout from one of the world’s largest crude producers. The Russian oil sector relies on foreign technology, gear and expertise to sustain domestic output of of the Kremlin’s key sources of revenue.
“The war in Ukraine deeply saddens us,” Halliburton Chief Executive Officer Jeff Miller said Friday in a statement. “We have employees in both Ukraine and Russia, and the conflict greatly impacts our people, their families, and loved ones throughout the region.”
Spending on fossil-fuel exploration in the region that includes Russia and the former Soviet Union already was seen growing at a slower pace than the rest of the world, Evercore ISI said in December.
Schlumberger, the No. 1 oilfield-service provider, said earlier this month it will take an earnings hit from the combined effects of Russia’s attack on Ukraine and an increasingly snarled global supply chain. Baker Hughes Co. is seen by analysts as having the second-highest exposure to Russia, after Schlumberger.
Halliburton generates about 2% of its sales from Russia, according to JPMorgan Chase & Co.