Oil flowing at ExxonMobil, Rosneft well in Arctic

Oil has started flowing at the well owned by ExxonMobil and Russian oil giant Rosneft in the Arctic.

The well, located in the Kara Sea, is a controversial project due to the sanctions the U.S. and European Union ramped up against Russia for the annexation of Crimea.

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Rosneft and Exxon first began drilling this summer, Financial Times ($) reports, and continued despite the sanctions against the Russian oil company.

Newer sanctions, announced in September, banned U.S. technology exports to Russia's oil industry in the Arctic, causing further problems.

Sources close to operations told Financial Times on Friday that the two companies have struck oil at the well, quelling fears that the region would only yield natural gas.

Rosneft's CEO, Igor Sechin, said earlier this month that the company plans on spending $400 billion in Arctic operations over the next 15 years.