U.S. Floated Energy Deals With Russia as Incentives for Ukraine Peace Talks

Representatives of the U.S. and Russian governments quietly discussed potential energy deals this month as part of efforts to advance peace talks over Ukraine.

The Gaze reports this, referring to Reuters, citing several sources familiar with the matter.

The proposals were framed as incentives for the Kremlin to agree to a settlement in Ukraine, while Washington would consider easing some sanctions on Moscow.

Three of the sources stated officials discussed the possibility of Exxon Mobil re-entering Russia’s Sakhalin-1 oil and gas project. 

Four others said talks also touched on allowing Russia to purchase U.S. equipment for its liquefied natural gas (LNG) ventures, including the Arctic LNG-2 project, which is currently under Western sanctions. 

Another idea under consideration was the potential sale of Russian nuclear icebreakers to the United States.

The discussions took place during U.S. envoy Steve Witkoff’s visit to Moscow earlier this month, when he met Russian President Vladimir Putin and his investment emissary Kirill Dmitriev, three sources said. 

Elements of the proposals were also briefly raised at the Aug. 15 Alaska summit between U.S. and Russian delegations.

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

On the same day as the summit, Putin signed a decree that could allow foreign investors, including Exxon, to reclaim stakes in Sakhalin-1, if they take steps to support the rollback of Western sanctions. 

Exxon had exited Russia in 2022 following Moscow’s full-scale invasion of Ukraine, incurring $4.6 billion in losses. Its 30% stake in Sakhalin-1 was subsequently seized by the Russian state.

Since 2022, the U.S. has imposed successive rounds of sanctions on Arctic LNG-2, cutting access to ice-class tankers crucial for operations in the Far North.

One source emphasized that Washington’s broader strategy is to steer Moscow toward buying American technology instead of Chinese alternatives, in a bid to weaken the deepening partnership between Russia and Beijing.

As The Gaze reported earlier, Ukraine called on the United States to impose additional sanctions on Russia if Moscow refuses to agree to a summit with President Volodymyr Zelenskyy.