When the White House, working with European allies, moved in early September to tighten sanctions against Russia, Pres Barack Obama promised the damage to Russian interests would be severe. The rules gave US companies engaged in Arctic, deepwater, or shale oil exploration and production in Russia 14 days to halt operations. One project was immediately affected: Universitetskaya-1, the $700 million joint exploration project that Rosneft, the Russian state-owned oil company, is developing in the Arctic with ExxonMobil. The well, which the companies began drilling in August, is key to Russia's quest to find new oil fields to replace its declining Soviet-era wells. Russia represents Exxon's biggest exploration prospect outside the US. At Exxon's annual meeting in Dallas in May, Exxon's chairman and CEO, Rex Tillerson told shareholders that sanctions on Russia won't achieve the desired political result. The company doesn't find them to be effective unless they are very well implemented, he said.