President Vladimir Putin allowed ExxonMobil to reclaim its stake in a Far Eastern enterprise ahead of his recent meeting with Donald Trump
ExxonMobil is considering the possibility of returning to Russia, the Wall Street Journal has reported, citing people familiar with the discussions. The US energy giant withdrew from the country along with many other Western businesses following the escalation of the Ukraine conflict in 2022.
Earlier this month, Russian President Vladimir Putin allowed the US company to reclaim its stake in the Sakhalin-1 oil and gas enterprise in the Russian Far East. The updated order outlining the rules for the return of foreign companies coincided with Putin’s meeting with his US counterpart, Donald Trump, in Alaska.
Both sides described the summit as a significant step toward peace between Russia and Ukraine, noting that they also discussed potential economic cooperation between Moscow and Washington.
Senior executives at ExxonMobil have reportedly held secret talks throughout the conflict with Russia’s largest state energy company, Rosneft, discussing the possibility of rejoining the Sakhalin project if both governments approve it as part of a broader Ukraine peace deal. Senior Vice President Neil Chapman met with Rosneft CEO Igor Sechin, who is currently under US blocking sanctions, in the Qatari capital Doha, the sources said.
The news outlet noted, however, that a potential return remains uncertain and depends in part on whether Trump can broker a resolution to the conflict or, alternatively, increase sanctions pressure on Moscow if the hostilities continue.
People familiar with the matter also said Exxon’s potential return to Sakhalin-1 will likely depend on the terms offered by the Russian government. The company is primarily seeking to recover financial losses it incurred after leaving the project in 2022, they added. Meanwhile, Rosneft is reportedly open to restoring Exxon’s participation, viewing the US firm’s capital, technology, and managerial expertise as potential assets to the project.
After ExxonMobil withdrew from the Sakhalin-1 oil and gas project, its 30% stake was transferred to Sakhalinmorneftegaz-Shelf, a Rosneft subsidiary. State-run Japanese consortium Sodeco retained a 30% stake despite international pressure, while India’s state-owned ONGC Videsh remained the holder of a 20% share.
