US and Russian officials quietly discussed potential energy deals earlier this month, while holding talks aimed at ending the war in Ukraine
Possible arrangements were presented as incentives for Moscow to consider peace terms and for Washington to ease sanctions, according to anonymous sources cited by Reuters on Tuesday evening (26 August).
The talks touched on whether ExxonMobil could return to the Sakhalin-1 oil and gas project on an Island east of Russia, after having exited in 2022 when its €4bn stake was seized by the Kremlin.
Officials also examined the prospect of Russia buying US equipment for liquefied natural gas (LNG) projects that remain under Western sanctions, including Arctic LNG 2.
Other ideas floated included US purchases of Russian-built nuclear icebreakers, as well as future investment deals that could be announced as part of peace initiatives.
Some of these options were raised during a White House meeting with president Donald Trump and at the Alaska summit held on 15 August.
The discussions came as Trump threatened new sanctions on Moscow, which have not materialised, and further tariffs on India over its purchases of Russian oil, which took effect on Wednesday.
Washington has in parallel been seeking ways to steer Russia away from Chinese suppliers by encouraging the use of US technology, particularly for Arctic LNG projects.
The EU has consistently opposed any revival of Russian gas flows to Europe and set a 2027 deadline to phase out remaining imports.
Earlier US proposals to channel Russian gas through Europe were blocked by Brussels. The latest round of discussions therefore focused largely on bilateral arrangements between Washington and Moscow, bypassing the EU.
That same day, Putin signed a decree opening the door for foreign investors, including ExxonMobil, to reclaim shares in Sakhalin-1 if they back efforts to lift western sanctions.
Since the 2022 invasion of Ukraine, Russia has been shut out of most foreign investment in its energy sector, with sanctions curbing exports of both oil and LNG.
Efforts to reconnect with Western companies now seem tied to broader political bargaining over the war and its possible end.
The energy discussions with Russia came negotiations with India, Russia's most important energy customer, failed.
On Wednesday, Trump's decision to double tariffs on Indian goods to as much as 50 percent entered into force after five rounds of negotiations between the two governments failed.
It hits sectors ranging from textiles and footwear to chemicals and jewellery.
Indian officials say exporters will be given financial support and encouraged to diversify towards China, Latin America and the Middle East, but trade groups warn that more than half of India's merchandise exports to the US could be affected.
The tariff escalation risks straining ties between Washington and New Delhi, however on Tuesday both governments issued identical statements expressing "eagerness to continue enhancing the breadth and depth of the bilateral relationship."
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Wester is a journalist from the Netherlands with a focus on the green economy. He joined EUobserver in September 2021. Previously he was editor-in-chief of Vice, Motherboard, a science-based website, and climate economy journalist for The Correspondent.
Wester is a journalist from the Netherlands with a focus on the green economy. He joined EUobserver in September 2021. Previously he was editor-in-chief of Vice, Motherboard, a science-based website, and climate economy journalist for The Correspondent.