US and Russian officials quietly floated several energy-related deals during peace discussions about Ukraine earlier this month, five sources familiar with the matters told news agency Reuters. According to the report, these deals were offered to incentivise the Kremlin toward making peace and to justify relaxing sanctions imposed after Russia’s invasion of Ukraine in 2022.
What’s on the Table
Among the proposals:
- Exxon Mobil rejoining Sakhalin‑1: The supermajor previously pulled out of this Russian oil and gas project. Recent discussions, the report said, considered allowing its return.
- Supplying US equipment to Arctic LNG 2: Despite Western sanctions, American exporters could be permitted to sell equipment for Russia’s liquefied natural gas project.
- Buying Russian nuclear-powered icebreakers: Another idea that was reportedly discussed to boost commercial cooperation between the countries.
These talks took place during US envoy Steve Witkoff’s trip to Moscow, where he met with President Putin and investment chief Kirill Dmitriev, the report said, adding that they matters were discussed at the Alaska summit and during discussions with President Trump at the White House.
White House Looking for Headlines
A source told Reuters, “The White House really wanted to put out a headline after the Alaska summit, announcing a big investment deal… This is how Trump feels like he has achieved something.”
A White House official told the news agency that talks are ongoing, but noted, “It is not in the national interest to further negotiate these issues publicly.”
Sanctions, Tariffs and Shifting Strategy
These energy pitches come as Trump has threatened Moscow with tougher sanctions and tariffs on India for buying Russian oil. His administration’s earlier attempts to revive Russian gas flows to Europe were thwarted by the European Union, prompting a pivot towards bilateral US–Russia energy deals, the report said.
Meanwhile, Putin reportedly issued a decree during the summit allowing foreign investors, including Exxon, to reclaim shares in Sakhalin‑1 if they help support easing sanctions.
Arctic LNG 2 Keeps Moving Under Sanctions
Despite restrictions, Russia’s Arctic LNG 2 plant resumed low-level gas processing in April, with five cargoes shipped this year under sanctions.
Observers say the US wants to shift Russia away from Chinese technology dependence and toward American suppliers, aiming to weaken Sino-Russian ties.
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