US Eyes Russian Oil Deals As Part of Ukraine Peace Talks

Washington and Moscow are discussing bringing American oil companies back into Russia and restoring Russian crude sales to Europe as part of Ukraine peace negotiations.

Proposals include reviving an offshore venture near Sakhalin in Russia’s Far East and having U.S. oil majors restart deliveries through the Druzhba pipeline, according to the Financial Times.

The energy initiatives form part of a broader commercial package intended to encourage a settlement.

U.S. officials say the ventures could proceed only after the war ends.

Washington and Moscow Differ on Timing

Moscow views the proposals as incentives for President Donald Trump to normalize relations before the fighting stops, two people familiar with the discussions said.

“Economic agreements would be included in and subject to a comprehensive peace framework that stops the killing in this brutal war; nothing is finalised,” a U.S. official told the FT.

Trump’s envoy Steve Witkoff discussed potential deals with Vladimir Putin in St. Petersburg in early September.

The initiative builds on earlier talks involving Witkoff, Jared Kushner and Kremlin economic envoy Kirill Dmitriev, who valued potential projects at $14 trillion in February.

That effort stalled over Russian demands for Ukrainian territorial concessions.

Washington hopes three-party talks in Abu Dhabi next month will advance negotiations, with postwar security guarantees expected to dominate.

Oil Companies Remain Wary

Corporate reluctance presents another obstacle. ExxonMobil, the only American participant in Sakhalin-1, said last year that it was discussing compensation for Russia’s seizure of its 30% stake but had no plans to resume operations.

Geoffrey Pyatt, a former senior U.S. energy diplomat, questioned whether major publicly traded companies would return under current conditions.

“I can’t see any of it lasting contact with the real world,” he said.

Other energy proposals include selling Lukoil’s international assets to White House-connected investors, involving Novatek in an Alaska LNG project and restoring European gas supplies through surviving Nord Stream infrastructure.

A separate idea would transfer management of the Zaporizhzhia nuclear plant in Russian-occupied Ukraine to a U.S. entity, dividing its electricity between Ukraine and Russia.

Europe Resists Early Normalization

European diplomats have opposed sanctions relief or business agreements before the war ends and insist that decisions affecting EU interests require European approval.

That complicates proposals to restore energy trade and ease potash fertilizer sanctions for exports through Baltic ports.

The EU has agreed to phase out Russian gas imports, while German Chancellor Friedrich Merz has rejected reviving Nord Stream 2.

Several proposals have been discussed without direct Ukrainian or European participation.

Commercial Package Extends Beyond Energy

Other options include reopening Russian airspace to U.S. airlines and renewing titanium cooperation.

Boeing suspended its Russian titanium venture after the invasion and has since diversified suppliers.

The FT reported that Washington has already arranged Russian diesel imports, paused new energy sanctions and pressed Kyiv to halt refinery attacks.

Putin has shown no indication of moderating his negotiating position. The proposals remain dependent on political agreement, sanctions decisions and companies willing to return.