The US and Russia are discussing the possible return of US companies to the Russian oil market as part of broader talks to end the war in Ukraine. The Financial Times reports that among the ideas being considered is the restoration of a joint venture between US and Russian oil companies off Sakhalin Island in the Russian Far East.
The other area being discussed is the participation of major US companies in a plan to resume Russian oil exports to Europe via the Druzhba oil pipeline. The pipeline connects the Russian grid to refineries in Central Europe, but supplies have been limited since the start of Russia's full-scale invasion of Ukraine and the sanctions that followed.
Energy deals as an incentive for negotiations
According to the Financial Times' sources, the ideas are seen as an economic incentive with which Washington is trying to encourage the Kremlin to continue talks to end the conflict. Such a return would require changes to the sanctions regime, legal guarantees for investments and agreements on the ownership and management of assets.
The American ExxonMobil was a partner in the “Sakhalin-1“ project, but ceased its activities in Russia after the war began in 2022. The company owned a 30% stake in the project. The return of an American operator would also be linked to the issue of compensation and control over assets left after the imposition of sanctions.
Moscow talks about restoring economic ties
The discussion of oil deals comes amid signals from the Kremlin about a possible gradual restoration of relations with the United States. After talks between representatives of the two countries, the Kremlin said that Russian President Vladimir Putin is ready to consider restoring economic ties with the United States.
The US-Russian talks also include other energy topics, including the future of Russian supplies to Europe. Earlier in October, representatives of Washington and Moscow discussed the possibility of an American investor participating in the “Nord Stream“, Reuters reported.
The next stage of diplomatic efforts is expected in November, when talks between representatives of Russia, Ukraine and the United States are to be held in Abu Dhabi. The energy projects remain only discussed proposals and are not tied to a signed peace treaty or a formal lifting of sanctions.
Sources: newsquawk.com, apnews.com