Russia and the United States have quietly discussed possible energy deals while negotiating a truce in Ukraine.

Five people familiar with the talks told Reuters that discussions centered on ExxonMobil’s potential return to the Sakhalin-1 oil and gas project in Russia’s Far East and the sale of American equipment for Russian liquefied natural gas ventures, including the Arctic LNG 2 megaproject.

The talks took place during US President Donald Trump’s special envoy Steve Witkoff’s early August visit to Moscow, where he met with Russian President Vladimir Putin.

Energy issues were also briefly raised during the Alaska summit between Trump and Putin later in the month, and discussed separately in the White House, two sources said.

“The White House really wanted to put out a headline after the Alaska summit, announcing a big investment deal,” one source familiar with the talks said. “This is how Trump feels like he’s achieved something.”

Neither the Kremlin nor the White House commented on the matter. ExxonMobil also declined to respond.

Exxon’s Complicated Exit

ExxonMobil withdrew from Sakhalin-1 in March 2022 after Russia’s full-scale invasion of Ukraine, abandoning a 30% stake and its role as operator. The project was later handed over to a Russian state-controlled company.

But on August 15, the same day Trump and Putin met in Alaska, Putin issued a decree easing restrictions on foreign companies’ participation in Sakhalin-1. The order opened the door for Western firms to return, though only under new terms set by Moscow.

LNG Projects Under Sanctions

Washington sanctioned the Arctic LNG 2 project in November 2023, citing its strategic importance to Moscow’s energy revenues. In December, Russia’s top LNG producer Novatek, which holds a 60% stake, declared force majeure on future deliveries, citing sanctions and equipment shortages.

Since 2024, Novatek has hired Washington lobbyists to push for a rollback of restrictions and explore possible cooperation with US firms, according to Reuters reporting.