Donald Trump’s administration has refused to allow US oil company ExxonMobil to drill for oil in Russia.

US Treasury Secretary Steven Mnuchin said the government would not be allowing the oil giant to bypass sanctions on Russia that forbid US firms from working with their Russian counterparts.

“The Treasury Department will not be issuing waivers to US companies, including Exxon, authorising drilling prohibited by current Russian sanctions,” Mr Mnuchin said in a statement, adding that he had consulted Mr Trump before making the decision.

Exxon had applied for an exemption from the sanctions in order to allow it to continue a joint venture with PAO Rosneft, a huge Russian state oil company.

In response to the ruling the firm said they understood the decision. The application for the licence was in order to meet “contractual obligations” in Russia, it added.

Exxon signed a deal with Rosneft in 2011 to conduct drilling operations in the Black Sea and the Kara Sea in Siberia, where there are thought to be huge untapped oil fields.

Other agreements followed but the co-operation was halted in 2014 when the US and EU imposed sanctions on Russia in response to its annexation of the Crimean Peninsula.

The controversial orders Donald Trump has already issued Show all 9 1 /9 The controversial orders Donald Trump has already issued The controversial orders Donald Trump has already issued Trump and the media White House Press Secretary Sean Spicer takes questions during the daily press briefing Getty Images The controversial orders Donald Trump has already issued Trump and the Trans-Pacific Partnership Union leaders applaud US President Donald Trump for signing an executive order withdrawing the US from the Trans-Pacific Partnership negotiations during a meeting in the Roosevelt Room of the White House in Washington DC. Mr Trump issued a presidential memorandum in January announcing that the US would withdraw from the trade deal Getty The controversial orders Donald Trump has already issued Trump and the Mexico wall A US Border Patrol vehicle sits waiting for illegal immigrants at a fence opening near the US-Mexico border near McAllen, Texas. The number of incoming immigrants has surged ahead of the upcoming Presidential inauguration of Donald Trump, who has pledged to build a wall along the US-Mexico border. A signature campaign promise, Mr Trump outlined his intention to build a border wall on the US-Mexico border days after taking office Getty Images The controversial orders Donald Trump has already issued Trump and abortion US President Donald Trump signs an executive order as Chief of Staff Reince Priebus looks on in the Oval Office of the White House. Mr Trump reinstated a ban on American financial aide being granted to non-governmental organizations that provide abortion counseling, provide abortion referrals, or advocate for abortion access outside of the United States Getty Images The controversial orders Donald Trump has already issued Trump and the Dakota Access pipeline Opponents of the Keystone XL and Dakota Access pipelines hold a rally as they protest US President Donald Trump's executive orders advancing their construction, at Columbus Circle in New York. US President Donald Trump signed executive orders reviving the construction of two controversial oil pipelines, but said the projects would be subject to renegotiation Getty Images The controversial orders Donald Trump has already issued Trump and 'Obamacare' Nancy Pelosi who is the minority leader of the House of Representatives speaks beside House Democrats at an event to protect the Affordable Care Act in Los Angeles, California. US President Donald Trump's effort to make good on his campaign promise to repeal and replace the healthcare law failed when Republicans failed to get enough votes. Mr Trump has promised to revisit the matter Getty Images The controversial orders Donald Trump has already issued Donald Trump and 'sanctuary cities' US President Donald Trump signed an executive order in January threatening to pull funding for so-called "sanctuary cities" if they do not comply with federal immigration law AP The controversial orders Donald Trump has already issued Trump and the travel ban US President Donald Trump has attempted twice to restrict travel into the United States from several predominantly Muslim countries. The first attempt, in February, was met with swift opposition from protesters who flocked to airports around the country. That travel ban was later blocked by the Ninth Circuit Court of Appeals. The second ban was blocked by a federal judge a day before it was scheduled to be implemented in mid-March SANDY HUFFAKER/AFP/Getty Images The controversial orders Donald Trump has already issued Trump and climate change US President Donald Trump sought to dismantle several of his predecessor's actions on climate change in March. His order instructed the Environmental Protection Agency to reevaluate the Clean Power Plan, which would cap power plant emissions Shannon Stapleton/Reuters

Secretary of State Rex Tillerson was Exxon’s chief executive before being appointed to the State Department.

Mr Tillerson has recused himself from all government business relating to Exxon and sold all his stock in the company.

Mr Trump and his team have come under intense pressure over their alleged links with Russia. The US President’s former national security adviser Michael Flynn was forced to resign in February after it emerged he had discussed Russian sanctions with Sergey Kislyak, Moscow’s ambassador to the US, before taking office – something Mr Flynn had previously denied.