Exxon Mobil Files SCC Claim Against Russia

US-headquartered Exxon Mobil has filed a claim against Russia at the Stockholm arbitration institute (SCC), after failing to converge on a common position in the context of the tax dispute with Moscow over the Sakhalin-1 oil and gas project. 

Russia’s Energy Ministry confirmed the news on Thursday, but did not provide details of the lawsuit. According to previous declarations, the American company says it overpaid $500 million in value added tax (VAT). 

Russian authorities cut the tax from 35% to 20% in 2008, but Exxon Mobil and other partners in the project continued to pay a 35% VAT.

Sakhalin-1 is an international consortium project comprised of a subsidiary of ExxonMobil (operator, 30% interest); Russian oil company Rosneft acting via its affiliates RN-Astra (8.5 percent) and Sakhalinmorneftegas-Shelf (11.5 percent); Japan’s consortium SODECO (30 percent); India’s Videsh Ltd. (20 percent).