Amid Push for Ukraine Peace, US and Russia Revive Energy Discussions

The US has imposed a 50% tariff on India over its oil trade with Russia, even as several international media reports indicate that energy cooperation was discussed on the sidelines of the Trump-Putin summit, with both sides exploring ways to restart deals.

According to a Reuters report citing multiple sources familiar with the matter, US and Russian officials quietly explored potential energy deals this month during negotiations aimed at brokering peace in Ukraine.

The proposals were framed as incentives under which Washington could ease sanctions in exchange for Russia taking measured steps to end the conflict, which has largely excluded Moscow from global energy investment since 2022, the report said.

Among the ideas discussed was the possible return of ExxonMobil to the Sakhalin-1 oil and gas project, three sources told Reuters. Exxon, which pulled out of the venture after sanctions were imposed, has previously held informal talks with Rosneft, Russia’s state-controlled oil company.  It is pertinent to note that any such move would require approval from the US Treasury’s Office of Foreign Assets Control.

Sources also revealed that another proposal under consideration involved Russia purchasing US-made equipment for its liquefied natural gas (LNG) projects, including the sanctioned Arctic LNG 2. At one point, officials even discussed the prospect of the US buying nuclear-powered icebreaker vessels from Russia.

Also Read: Oil steady as investors eye Ukraine war, US tariffs on India | Republic World

The talks reportedly took place during US envoy Steve Witkoff’s visit to Moscow earlier this month, when he met President Vladimir Putin and investment envoy Kirill Dmitriev. Some sources added that the proposals were later reviewed at the White House with President Donald Trump and also surfaced briefly during the Alaska summit on August 15.

“The White House really wanted a headline after the Alaska summit, announcing a big investment deal,” one source told Reuters. “This is how Trump feels like he’s achieved something.”

None of the individuals could be identified, as they were not authorised to speak publicly. Neither Washington nor Moscow has officially commented on the report. However, if any of these ideas were pursued, they would mark a significant shift in US-Russia energy relations and could serve as bargaining tools in efforts to end the Ukraine war