Washington: In a significant development, U.S. and Russian officials have engaged in discussions on potential energy deals alongside ongoing peace negotiations regarding Ukraine. The talks are seen as part of efforts to encourage Moscow to agree to a peace settlement while creating conditions for Washington to ease sanctions on Russia.

Key proposals discussed include the possible return of Exxon Mobil to Russia’s Sakhalin-1 oil and gas project, the potential purchase of U.S. equipment for Russia’s Arctic LNG 2 project, and U.S. interest in acquiring Russian nuclear-powered icebreaker vessels. These initiatives were first discussed during U.S. envoy Steve Witkoff’s recent visit to Moscow and were later raised at the Alaska summit on August 15, with some proposals presented to President Trump.

Analysts suggest that these energy deals represent a broader strategy to balance geopolitical and economic interests, signaling a shift from Europe-focused energy diplomacy to more direct U.S.-Russia engagement. In support of such deals, Russian President Vladimir Putin has signed a decree potentially allowing foreign investors, including Exxon, to reclaim stakes in Sakhalin-1 if they contribute to easing sanctions. U.S. authorities are also encouraging Russia to acquire American technology rather than Chinese alternatives to reduce Beijing’s influence.

Despite ongoing sanctions affecting Russia’s energy sector, the Arctic LNG 2 project has partially resumed operations and continues to seek Western investment. These developments underscore the complex interplay between energy interests and geopolitical considerations as efforts to achieve peace in Ukraine continue.