SLB, the leading U.S. oilfield services provider, reported that its net assets in Russia remained stable at approximately $600 million at the close of 2024, mirroring the 2023 figures. However, the company acknowledged a decrease in revenue generated from the region. This comes amidst increasing scrutiny and pressure for Western companies to withdraw from Russia following the 2022 invasion of Ukraine and subsequent sanctions.
The U.S. Treasury Department implemented new sanctions on January 10, 2025, further restricting Russia’s access to American services crucial for crude oil and petroleum product extraction and production. These sanctions intensified the pressure on SLB to reconsider its operations in Russia. Despite this, SLB remains one of the few Western companies continuing to operate within the country.
According to SLB’s recent regulatory filing, revenue derived from its Russian operations constituted 4% of its total revenue in 2024. This represents a decline from the 5% contribution in the preceding year, indicating a shrinking footprint in the Russian market. The persistent geopolitical tensions and escalating sanctions likely contributed to this downward trend. While SLB has maintained its asset value in Russia, the declining revenue suggests a complex operational landscape and potential challenges for the company moving forward. The long-term implications of the sanctions and the evolving geopolitical situation remain uncertain, posing ongoing challenges for international companies operating in Russia.
SLB’s decision to maintain its presence in Russia while navigating a complex web of sanctions and declining revenue underscores the challenging decisions faced by multinational corporations in the current global environment. The company’s future strategy in Russia will likely depend on the evolving geopolitical landscape and the long-term impact of international sanctions.
