SCHLUMBERGER: BETWEEN MORALITY AND PROFIT IN THE CONDITIONS OF FULL-SCALE WAR

Since the beginning of Russia’s full-scale invasion of Ukraine, a lot of well-known companies have refused to cooperate with the aggressor country. But there are also those for whom ethics and morality give way to the desire to increase their wealth.

Thus, according to various statistical data, more than 1,200 international companies continue to work in Russia. The market for sales and transportation of oil and gas, trade in resources, and other areas that traditionally finance the activities of terrorist countries continue to attract companies that are indecipherable in their business methods. Therefore, unsurprisingly, the largest oil service corporation – Schlumberger (after rebranding – SLB), is among the specified risk structures.

While the oil industry remains a crucial source of income for Russia to continue the war, Schlumberger took advantage of the situation and did not miss the opportunity to get even richer. In exchange for loyalty to the aggressor and ignoring sanctions restrictions, the company opened a treasure trove of deceptive successes. Growing revenues, increasing the number of employees, stock euphoria, and contracts with the Russian government are only part of Schlumberger’s “achievements”. This is not just business and profit from the existing situation. This is deliberate support of the regime, which kills civilians of neighbouring countries daily and threatens the whole world with a nuclear massacre.

SLB began its activities in the Russian Federation during the Soviet Union. Since then, the company has grown and branched out. As of today, there are 15 legal entities in the Russian structure. Schlumberger’s activities in Russia are established through the representative company “Schlumberger Logelko, Inc.” (Moscow), as well as through the legal entity that belongs to it — “Schlumberger Technological Company” LLC (Tyumen).

Despite the sanctions restrictions and the position of the entire democratic world regarding the unacceptability of cooperation with Russia, for 2022, the company’s total revenue increased by 23%, reaching the mark of 28.1 billion dollars. This is indicated in the financial statements of the company. And such high efficiency is not at all the result of successful management. This growth is significant against the backdrop of previous years when revenue ranged from $22.9 billion to $23.6 billion. At the same time, the company’s revenue from the Russian market increased to $1.6 billion and accounted for 6% of the total. In particular, 320 million dollars of taxes were paid to the budget of the Russian Federation. According to these figures – tanks, rockets, and bombs were manufactured with these funds. These are thousands of peaceful lives and support for the painful aggressive ambitions of the Russian government. SLB’s financial performance is already killing today. Maybe right now.

At the same time, no doubts or reproaches. The company is betting on development in Russia. The number of employees on the territory of the terrorist state is increasing significantly. According to a Reuters publication, the number of employees at SLB Russia’s enterprises increased by 70 in 2022. At the same time, in 2023, we observe positive dynamics of vacant jobs in the Russian Federation. According to the data on the HeadHunter resource, as of March 17, 229 vacancies were published, which is 19 more vacancies than at the beginning of the specified month. Demand for Schlumberger services in Russia is growing.

And the economic success of the company is not at all the result of successful management. The main competitors of the oil service giant — Baker Hughes and Halliburton — decided that their reputation does not allow them to make money on blood and death and left the Russian market. SLB, for its part, received orders that were previously shared among its competitors.

SLB shareholders could rejoice: revenues are growing, and the company is growing. After all, the company’s shares grew at the end of 2022 and the beginning of 2023. The price of one share reached almost $60. The last time such indicators were 5 years later. But such revenues in a short time may turn out to be too toxic for the holders of shares: cooperation with the militarist machine on the part of SLB is evident and unquestionable, and in the event of post-war trials, all accomplices will be forced to answer.

Today, however, SLB continues to serve its Russian clients: oil and gas under-sanction giants Gazprom and Rosneft. At the same time, according to published data on the RosTender website, the total amount of contracts only with Russian state structures for the period from 2013 to 2018 amounted to 51.016 billion rubles (at the exchange rate as of 2023: 685 million dollars). Additional confirmation that SLB works with Russian oil and gas players is the executive director’s statement — Olivier Le Peche. He claims that the unique corporate structure of SLB allows the company to work flexibly in Russia, with full compliance with the sanctions imposed by the US and the EU. And if there may still be different points of view regarding the observance of sanctions, then this fact is not subject to discussion regarding the continuation of cooperation. According to the analysis of open databases on import and export, there is a continuation of cooperation between foreign and Russian structures of the SLB company.

At the same time, the conclusions in the company’s 2022 reports, which confirm the company’s desire to move on and pave the way forward for a sustainable future, sound no less cynical:

“the company’s new identity symbolizes SLB’s desire to move further and faster in meeting the world’s energy needs today and pave the way forward (!) for a sustainable future“.

Given that SLB fully supports the Russian Federation, it comes to mind that a stable future for this particular company is a dictatorial regime, a regime of blood and death of innocent people. And suppose we remember that SLB also helps to carry out mobilization in the Russian Federation. In that case, even more so — it does not allow remote employment of its employees to avoid possible mobilization for military service, then this is already direct evidence of not purely economic but also political support for the Kremlin’s criminal actions. Such company actions provoke a negative reaction from society, and the Minister of Foreign Affairs of Ukraine, Dmytro Kuleba, openly accuses SLB of financing war crimes and genocide, as well as cooperation with the Russian authorities.

A civilized community is united in its desire to ensure peace and security. It cannot be denied that those behind Russia’s war crimes must bear full responsibility. Unfortunately, the Schlumberger company provides material support and assistance to the oil sector of the Russian Federation. And so, already today, SLB is actually an accomplice to a war that has already claimed many lives. The price of today’s shareholders’ dividends will be their direct legal liability tomorrow and a devastating blow to their reputation. Bringing to justice all those responsible for the terrible crimes committed by the terrorist country is only a matter of time.

The publication was prepared by the Underdog The Unlawyers News Agency specifically for the “Don’t Fund Russian Army” project.