U.S. and Russian officials explored several energy deals during this month’s negotiations aimed at advancing peace in Ukraine, according to sources familiar with the discussions. The proposed deals were intended to encourage the Kremlin to engage in peace talks and potentially ease U.S. sanctions on Russia.
Options discussed included the possible return of Exxon Mobil to Russia’s Sakhalin-1 oil and gas project and Russia purchasing U.S. equipment for its LNG projects, such as Arctic LNG 2. Talks also covered the potential U.S. purchase of Russian nuclear-powered icebreaker vessels.
The negotiations occurred during U.S. envoy Steve Witkoff’s trip to Moscow, where he met with President Vladimir Putin and investment envoy Kirill Dmitriev, and were also discussed within the White House with President Donald Trump. Some of the issues were touched upon at the Alaska summit on August 15.
These discussions coincide with Trump’s threats to impose further sanctions on Russia unless progress is made in peace talks and to place tariffs on major Russian oil buyers, including India. U.S. officials are reportedly trying to steer Russia toward buying U.S. technology instead of Chinese equipment, as part of a broader strategy to reduce China-Russia cooperation.
The Sakhalin-1 project, from which Exxon exited in 2022 after the Ukraine invasion, could allow foreign investors to regain shares if they support lifting Western sanctions. Arctic LNG 2, majority-owned by Novatek, has resumed limited gas processing despite sanctions, with plans for additional LNG trains still in progress.
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