The US and Russia are discussing a return of American oil companies to the Russian market as part of talks to end the war in Ukraine. US officials have repeatedly said the ventures would not happen until the war is over, and European diplomats oppose them.
The US and Russia are discussing a potential return by American companies to the Russian oil market as part of wider talks to end Vladimir Putin's war in Ukraine, the Financial Times reports. The idea is to offer incentives that bring Putin to the negotiating table.
US and Russia float Sakhalin and Druzhba projects
According to people familiar with the matter, the White House and the Kremlin have suggested resuming a joint venture of US and Russian oil majors off the coast of Sakhalin after the war ends. The sources said the two sides also discussed involving American majors in a plan to resume Russian oil sales to Europe via the Druzhba pipeline.
Other proposals cover the sale of Lukoil's international assets to White House-connected investors, a liquefied natural gas project in Alaska involving Russia's Novatek, and gas supplies to Europe through what remains of the Nord Stream pipelines. US officials have repeatedly said the ventures would not go ahead until the war is over.
A US official told the FT the talks include postwar economic collaboration with Russia. The official added: "nothing is finalised".
Companies and Europe push back
However, many of the deals face long odds because of Putin's intransigence and US companies' wariness about re-entering Russia. ExxonMobil, the only US company in Sakhalin-1, said last year it was in talks with Russia over compensation for the seizure of its 30% stake, and had no plans to resume operations there.
European diplomats have repeatedly told US counterparts they oppose relaxing sanctions or striking business deals with Russia before the war ends. One proposal, a deal on potash fertilisers, would require the EU to lift sanctions.
The US has already struck a deal to import Russian diesel and paused new sanctions on Moscow's energy exports. It also hopes to make progress at three-party talks with Ukraine in Abu Dhabi next month, the first since February.
Source: Financial Times
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