Media: Exxon Mobil in secret talks to rejoin Russia’s energy sector Following Trump-Putin talks

After meeting with President Trump in Alaska, President Vladimir Putin told reporters that Russia and the U.S. “could do more business together—for example, between their Pacific coastlines.” “We look forward to dealing,” Trump replied.

Behind the scenes, the two countries’ largest energy firms have already mapped out a potential return to oil and gas operations off Russia’s far-eastern coast, Caliber.Az reports, citing The Wall Street Journal.

Sources familiar with the matter say that a senior Exxon Mobil executive held confidential discussions this year with Russia’s state energy giant, Rosneft, about resuming the Sakhalin project if the U.S. and Russian governments approved as part of a broader Ukraine peace process.

The talks were highly sensitive. Only a small number of executives at Exxon were aware they had taken place, with Senior Vice President Neil Chapman leading negotiations for the company.

Exxon, along with other major U.S. firms, has been allowed by the Treasury Department under both the Biden and Trump administrations to discuss stranded Russian assets. Initial discussions began shortly after Exxon exited Russia in 2022.

According to sources, the company has also sought U.S. government support for a potential return and received a receptive hearing. CEO Darren Woods reportedly discussed the matter with Trump at the White House in recent weeks.

Resuming operations in Russia would mark a significant reversal for Exxon, which exited Moscow amid tensions following the 2022 invasion of Ukraine. The company, one of the West’s most invested in Russia, had owned 30% of Sakhalin-1 alongside Rosneft and Japanese and Indian partners.

After the invasion, Exxon wrote down its stake by more than $4 billion and announced plans to sell, only for Moscow to block the sale and eventually expropriate the asset.

Enticing Exxon back would be a strategic win for the Kremlin, which seeks Western investment as part of peace negotiations aimed at stabilising Russia’s economy. However, a return is not guaranteed and may hinge on whether Trump succeeds in brokering an end to the Ukraine conflict—or imposes tighter sanctions should hostilities continue.

Despite sanctions, Russia has maintained high oil production, though analysts warn that long-term capacity could decline without foreign expertise and investment. Recent Ukrainian drone strikes have also disrupted domestic fuel supplies.

Exxon-Rosneft discussions gained momentum around the time of Trump’s inauguration in January. In February, U.S. and Russian officials met publicly in Riyadh to explore a peace deal, with Russia offering investment opportunities in Arctic energy projects.

Privately, Chapman met Rosneft CEO Igor Sechin in Doha, Qatar—a neutral venue where Sechin often meets foreign leaders and which hosts Qatar’s sovereign-wealth fund, a stakeholder in Rosneft. U.S. sanctions largely bar dealings with Sechin without a Treasury license, which Exxon had obtained.

Reuters has reported that U.S. and Russian officials have discussed energy deals, including Exxon’s possible return, earlier this month. A production-sharing framework established in the 1990s at Sakhalin provides a model for the company’s re-entry. Oil exports from the project primarily go to Asian markets, which continued purchasing Russian crude after the invasion, unlike European buyers.

On the day of the Alaska summit, Putin removed one regulatory hurdle by signing a decree allowing foreign firms to own shares in the Russian entity managing Sakhalin. Conditions include supplying overseas equipment and parts and advocating for sanction relief.

Exxon’s potential return depends on the terms offered by Russia. Sources say the company aims to recoup losses from its prior exit. The firm maintains longstanding ties with Russia, with former CEO Rex Tillerson receiving an Order of Friendship from Putin in 2013.

Despite tensions after the 2022 invasion, back-channel communications with Rosneft reportedly continued throughout the conflict.

Rosneft hopes to leverage Exxon’s investment, technology, and management expertise. However, the environment has changed: the Russian economy faces slower growth, high inflation, and widespread state intervention in the energy sector. 

By Aghakazim Guliyev