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 Washington to relax sanctions against Russia and to encourage the Kremlin into peace in Ukraine. Due to sanctions imposed after the Ukraine invasion in February 2022, Russia is no longer able to attract international investment into its energy sector or make major deals.
Three sources claim that the officials discussed the possibility that Exxon Mobil could re-enter Russia's Sakhalin-1 project for oil and gas.
Exxon, America's top oil producer, held multiple discussions with Rosneft, the state-controlled Russian oil company, about reentering the project following approval by the U.S. Office of Foreign Assets Control during the administrations of former President Joe Biden as well as President Donald Trump.
Four sources confirmed that officials from the Russian government also mentioned the possibility of Russia buying U.S.-made equipment for its LNG project, Arctic LNG 2, which is currently under Western sanctions.
No sources were named as they weren't authorised to talk publicly about the negotiations. The 15th of August reported that the U.S. could also purchase nuclear-powered icebreakers 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 Trump also brought up the issue at the White House.
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 coincide with threats Trump has threatened to impose additional sanctions on Russia, unless peace negotiations make progress. He also threatens to place harsh tariffs against India, which is a major purchaser of Russian oil. These measures would make it hard for Russia to continue its oil exports. Trump's style of deal-making politics was on display in the Ukraine negotiations, earlier this year when the same officials looked at ways to revive Russian Gas flows into Europe. Brussels has slowed down these plans, putting forward proposals that would completely phase out Russian imports by the year 2027.
Recent discussions have focused on bilateral deals between Russia and the United States, moving away from the European Union which has been staunch in its support of Ukraine. Putin signed an executive order on the day of the Alaska summit that would 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.
The U.S. placed multiple waves of sanctions against Russia's Arctic LNG 2 Project, beginning in 2022. This will cut off access to the ice-class vessels that are required to operate in this region throughout most of the year. Novatek is the majority owner of the project, and 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. A production train had previously 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 and Marwa Rashed in Washington; additional reporting from Sheila Dang and Barbara Lewis in Houston; editing done by Barbara Lewis, Nia Williams and Barbara Lewis)
(source: Reuters)
