US energy giant ExxonMobil said Thursday that US and European Union sanctions against Russia had cost it $1 billion last year.
In a securities filing, Exxon said the loss stemmed from suspending joint venture activities with Russian oil major Rosneft under the sanctions imposed in 2014 on the Russian energy sector.
"In compliance with the sanctions... prohibited activities involving offshore Russia in the Black Sea, Arctic regions, and onshore western Siberia have been wound down," it said.
Exxon said its maximum exposure to loss from the Rosneft activities stood at $1 billion on December 31.
The Western sanctions were imposed over the conflict in Ukraine, with the US and EU accusing Moscow of backing the separatists fighting Kiev government troops in the country's industrial east.
The sanctions include a ban on providing certain oil equipment and services, such as for drilling in offshore projects in deep water, in the Arctic, or in shale well drilling.
Rosneft is led by Igor Sechin, a confidant of Russian President Vladimir Putin who was also placed on US and EU sanctions lists.
Exxon was forced to abandon is its joint venture with Rosneft for exploration drilling in the Kara Sea, off northern Siberia, an area estimated to hold 87 billion barrels of oil.
Rosneft announced in September they had discovered oil in one drilling.
Shares of Dow member Exxon were down 1.1 percent in morning trade on the New York Stock Exchange.
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