US and Russian officials discussed the latest Ukraine peace talks alongside energy deals
Five sources familiar with these talks claim that U.S. officials and Russian government officials discussed energy deals in parallel to negotiations to achieve peace in Ukraine this month.
They said that these deals were presented as incentives for the Kremlin, to encourage it to accept peace in Ukraine and Washington to ease sanctions against Russia.
Due to sanctions imposed after the Ukraine invasion in February 2022, Russia is no longer able to attract major international investments in its energy sector or sign large deals.
Three sources claim that the officials discussed the possibility of Exxon Mobil entering Russia's Sakhalin-1 project for oil and gas.
Four sources also said that they raised the possibility of Russia buying U.S.-made equipment for its LNG project, Arctic LNG 2, which faces western sanctions.
No sources were named, as they weren't authorised to publicly discuss the negotiations.
Reports on August 15 suggested that the U.S. could also purchase nuclear-powered icebreaker ships from Russia.
Three sources confirmed that the talks took place during Steve Witkoff’s visit to Moscow in early this month, when he met Russian President Vladimir Putin and Kirill Dmitriev's investment envoy. Two sources claim that they were also discussed in the White House by U.S. president Donald Trump.
One source stated that these deals were briefly discussed during the Alaska summit held on August 15.
One of the sources said, "The White House wanted to make a splash after the Alaska Summit by announcing an important investment deal." "This is the way Trump feels he has achieved something."
A White House official responded to questions regarding the agreements by saying that Trump and his team of national security officials continue to work with Russian and Ukrainian officials to arrange a bilateral meeting in order to end the violence and stop the war. The official stated that it is not in the nation's interest to continue these negotiations publicly.
A spokesperson for Dmitriev refused to comment.
Exxon Mobil refused to comment. Rosneft, Novatek and Exxon Mobil declined to comment.
Talks and threats are often indistinguishable
Trump has warned that he will impose additional sanctions on Russia until peace talks progress, and he will impose harsh tariffs on India as a major purchaser of Russian oil. These measures would make it hard for Russia to continue its oil exports.
Trump's style of dealmaking politics was on display in the Ukraine discussions, earlier this year when the same officials investigated ways for the U.S. revive Russian gas flow to Europe. Brussels has slowed down these plans, proposing to phase out Russian imports of gas by 2027.
Recent discussions have focused on bilateral agreements between the U.S., and Russia. The European Union has been less vocal in its support of Ukraine.
Putin signed the decree on the same day that the Alaska summit took place. This could allow Exxon Mobil and other foreign investors to gain shares in the Sakhalin-1 Project. The foreign investors must support the lifting Western sanctions against Russia.
Exxon left its Russian business after the invasion of Ukraine in 2022, and took a $4.6bn impairment charge. The Kremlin seized its 30% operator stake in the Sakhalin-1 Project in Russia's Far East that year.
Starting in 2022, the U.S. will impose several waves of sanctions against Russia's Arctic LNG 2 Project. This includes a ban on access to ships of ice class that are required to operate in this region throughout most of the year.
Novatek is the majority owner of the project. It began working with Washington lobbyists last year in an effort to repair relations and lift sanctions.
Arctic LNG 2 resumed processing natural gas in April, although at a slow rate. The project has loaded five cargoes onto tankers this year under sanctions. An earlier production train had been shut down because of the difficulty in exporting due to sanctions.
The project originally called for three LNG trains. The third train is currently in the planning stages. Technology will be provided by China.
One source said that Washington wants to encourage Russia to purchase U.S.-made technology instead of Chinese, as part of an overall strategy to alienate China. This would also weaken the relationship between Beijing and Moscow.
China and Russia announced a strategic partnership with "no limitations" days before Putin sent his troops into Ukraine. Xi met Putin more than 40 times over the past decade, and Putin has described China in recent months as an ally. (Reporting from Anna Hirtenstein in London, Sheila Dang and Timothy Gardner in Washington; editing by Barbara Lewis.)
(source: Reuters)
