Exxon held secret talks with Rosneft on return to Russia

Exxon Mobil has quietly explored resuming business in Russia through talks with state-owned Rosneft, people familiar with the matter told the Wall Street Journal. The discussions center on the Sakhalin-1 oil project, one of Exxon’s largest foreign ventures before its 2022 exit after Moscow’s invasion of Ukraine. Senior Vice President Neil Chapman led Exxon’s side in meetings with Rosneft boss Igor Sechin, a close Putin ally under U.S. sanctions.

Ties rekindled after Alaska summit

The secret contacts coincided with Donald Trump’s summit with Vladimir Putin in Anchorage earlier this month. While the leaders publicly talked about trade “between their Pacific coastlines,” Exxon and Rosneft were already mapping a pathway back into cooperation. Exxon asked Washington for support, and Trump, according to officials, listened favorably.

Sakhalin as the prize

Sakhalin-1, agreed in 1995, was Exxon’s flagship project in Russia, producing crude for Asian markets. Exxon wrote down more than $4 billion after Moscow blocked its exit sale and reassigned its 30% stake. A Kremlin decree in August now permits foreign firms to reclaim stakes if they supply equipment and push for sanctions relief.

Risks and incentives

The Kremlin sees Exxon’s return as a coup that could restore Western technology and capital. Exxon, meanwhile, seeks to recoup losses and secure fresh crude supplies. Yet Russia’s economy remains under sanctions, asset seizures are common, and any deal would hinge on a Ukraine settlement that satisfies Trump’s administration. Analysts warn Russia’s oil capacity is declining without foreign know-how.