Media: Energy deals on the table as Trump seeks peace incentives for Russia

U.S. and Russian officials held discussions on potential energy deals earlier this month as part of broader negotiations aimed at achieving peace in Ukraine, according to five sources familiar with the talks.

The proposed agreements were intended as incentives for the Kremlin to consider a peace settlement and for Washington to ease certain sanctions on Russia.

Since Russia’s invasion of Ukraine in February 2022, its energy sector has been largely cut off from international investment and major deals due to Western sanctions. Among the options discussed was the possibility of Exxon Mobil re-entering Russia’s Sakhalin-1 oil and gas project, according to three sources, quoted by Reuters.

Officials also explored Russia buying U.S. equipment for LNG projects such as Arctic LNG 2, which has been under sanctions, according to four sources. Another idea reportedly considered was the U.S. purchasing Russia’s nuclear-powered icebreaker vessels.

These discussions took place during U.S. envoy Steve Witkoff’s recent trip to Moscow, where he met with Russian President Vladimir Putin and investment envoy Kirill Dmitriev. The matters were also discussed within the White House and with President Donald Trump. Some aspects of the deals were briefly raised at the Alaska summit on August 15.

One source indicated that the White House was eager to announce a headline-grabbing investment deal following the summit, reflecting Trump’s desire to show tangible results.

A White House official emphasised that Trump and his national security team continue to engage with both Russian and Ukrainian officials to seek a bilateral meeting to stop the war, but further negotiations are not being made public for national security reasons. Dmitriev’s office declined to comment, and Exxon, Rosneft, and Novatek did not respond to requests for comment.

The talks coincided with threats from Trump to impose additional sanctions on Russia if peace negotiations fail, as well as plans to place tariffs on India, a major Russian oil buyer. Such measures could restrict Russia’s ability to sustain oil exports.

Earlier in 2025, U.S. officials explored ways to revive Russian gas flows to Europe, but those plans stalled due to EU proposals to phase out Russian gas imports entirely by 2027. The current discussions have shifted to bilateral U.S.-Russia agreements, moving away from reliance on the European Union, which remains committed to supporting Ukraine.

On the same day as the Alaska summit, Putin signed a decree potentially allowing foreign investors, including Exxon, to regain shares in Sakhalin-1, contingent on measures supporting the lifting of Western sanctions. Exxon had exited its Russian operations in 2022 following the Ukraine invasion, taking a $4.6 billion impairment, and its 30% stake in Sakhalin-1 was seized by the Kremlin.

Arctic LNG 2, majority-owned by Novatek, has also been affected by U.S. sanctions, which have restricted access to ice-class ships required for year-round operation. The plant resumed low-level gas processing in April, and five cargoes have been loaded onto sanctioned tankers this year.

The project is designed to include three LNG processing trains, with technology for the third expected to come from China. U.S. officials aim to encourage Russia to use American technology instead, as part of a broader strategy to weaken Moscow’s ties with Beijing.

Russia and China, who declared a "no limits" strategic partnership just before the Ukraine invasion, have maintained close ties, with Xi Jinping and Vladimir Putin meeting over 40 times in the past decade.

By Tamilla Hasanova