U.S. and Russia Discuss Energy Deals During August Ukraine Peace Talks, Sources Say
According to five sources familiar with the discussions, U.S. and Russian government officials explored several energy-related agreements on the sidelines of Ukraine peace talks in August.
The proposed deals aim to serve as incentives for the Kremlin to accept peace, while the U.S. would ease sanctions imposed on Russia following its invasion of Ukraine in February 2022. These sanctions have largely isolated Russia from most international energy investments.
What Did the U.S. Offer Russia?
Three sources indicated that officials discussed the possibility of Exxon Mobil returning to Russia’s Sakhalin-1 oil and gas project. Additionally, four sources mentioned talks about Russia potentially purchasing American equipment for its LNG projects, such as the Arctic LNG 2 plant, which remains under Western sanctions. In early August, Reuters also reported on the idea of the U.S. buying nuclear-powered icebreakers from Russia.
The discussions took place during a visit by U.S. envoy Steve Witkoff to Moscow, where he met with Russian President Vladimir Putin and his investment envoy, Kirill Dmitriev.
Inside the White House and the Alaska Summit
Two sources revealed that these topics were also discussed within the White House, including with then-President Donald Trump. The deals were briefly mentioned at the Alaska summit on August 15.
“One source said the White House wanted to make a big announcement after the Alaska summit, showcasing a major investment deal. This way, Trump would feel like he had achieved something,” they explained.
A White House official stated that Trump continues to work with Russian and Ukrainian officials to achieve peace, adding, “It is not in the national interest to negotiate publicly on these issues.”
Geopolitical Tensions and Strategic Moves
Simultaneously, Trump threatened to impose additional sanctions on Russia if peace talks stall, as well as high tariffs on India, a key buyer of Russian oil. The recent discussions mainly focused on bilateral agreements between the U.S. and Russia, bypassing the European Union, which has maintained strong support for Ukraine.
Interestingly, on the same day as the Alaska summit, Putin signed a decree that could enable foreign investors, including Exxon Mobil, to return to the Sakhalin-1 project.
U.S. Push for American Technology
The U.S. is reportedly urging Russia to purchase American technology rather than Chinese, as part of a broader strategy to weaken Moscow’s ties with Beijing. Just days before the invasion, Russia and China declared their “strategic partnership without borders.”
Background on Exxon Mobil in Russia
Exxon withdrew from the Sakhalin-1 project in 2022, incurring a loss of $4.6 billion, after which the Kremlin confiscated its 30% stake. The recent discussions suggest Washington is trying to encourage Russia to buy American technology to support the lifting of Western sanctions.
