The US and Russia are discussing deals for American oil giants as part of peace talks - FT
Kyiv • UNN
Washington and Moscow are discussing the postwar return of US businesses to Russia’s energy sector and other economic deals. Ukraine and Europe are not involved in the consultations.
The United States and Russia are discussing the potential return of American companies to the Russian oil market as part of broader negotiations on ending the war waged by Kremlin head Vladimir Putin in Ukraine. Financial Times reports this, writes UNN.
Details
According to people familiar with the matter, "the White House and the Kremlin suggested that after the war ends, a joint venture involving American and Russian oil giants could be revived off the coast of Sakhalin, an island in the Far East."
They also discussed "bringing in American giants to a plan to resume sales of Russian oil to Europe via the Druzhba pipeline," they added.
The potential deals are part of broader U.S. efforts to end Putin's full-scale invasion, now in its fifth year, "by offering incentives to those who come to the negotiating table." American officials have repeatedly stated that these deals will not take place until the war ends.
Steve Witkoff, U.S. President Donald Trump's special envoy, "discussed potential business deals with Putin during a meeting in St. Petersburg in early September," sources said. During a subsequent visit to Moscow last week, Witkoff wrote "Business Deals" in his notebook, among other notes, according to photographs published by the Kremlin press pool.
A U.S. official told the FT: "Representatives of President Trump discussed economic proposals with both sides of the war, including a postwar economic structure to create long-term opportunities for growth and investment for Ukraine, as well as potential opportunities for postwar economic cooperation with Russia."
"Economic deals will be included in and be the subject of comprehensive peace frameworks that will stop the killing in this brutal war; nothing has been finalized," the official said.
Two sources said that "Moscow viewed these business deals as incentives for Trump to normalize relations with Russia before the war ends." The Kremlin makes no secret of its readiness to restore economic cooperation with the United States, even as it continues to wage war in Ukraine.
Many of the deals under discussion "have little chance of succeeding because of Putin's intransigence regarding ending the war and American companies' caution about re-entering the Russian market," the publication notes.
ExxonMobil, the only American company involved in the large-scale Sakhalin-1 project, said last year that it was negotiating with Russia over compensation for the confiscation of its 30 percent stake, but did not plan to resume operations in the country. It did not immediately respond to a request for comment.
Other proposals include "restoring U.S. airlines' access to Russian airspace for transit and overflights, which would significantly reduce fuel costs." Another proposal "would offer American companies the opportunity to resume cooperation with Russia in the production and supply of titanium, a key component of civilian aircraft," the publication writes.
Boeing previously had a joint Russian titanium venture, but suspended the arrangement after the invasion of Ukraine and has since diversified its metal supply chains, according to a person familiar with the matter. The company declined to comment.
"These ideas, among several being discussed by American and Russian officials without the direct involvement of Ukraine or Europe, would mark a sharp shift in Moscow's relations with the West after years of isolation," the publication points out. The United States has said that Russia and Ukraine must agree to end the war before a full economic recovery can begin.
The United States has already reached a deal to import Russian diesel fuel, suspended new sanctions on Moscow's energy exports, and pressured Ukraine to stop drone strikes on Russian oil refineries.
The ongoing negotiations, as stated, "are based on proposals that Witkoff and Trump's son-in-law Jared Kushner discussed with Kirill Dmitriev, Putin's special envoy for economic affairs, during negotiations on a peace plan for Ukraine late last year." Dmitriev estimated the value of potential projects at $14 trillion in February. These efforts ultimately soon reached an impasse, the publication indicates.
"Dmitriev's plan involved waiting for the war to freeze, but time is running out and the war is not ending, so they decided to move forward now," said a person informed about the business deals.
"Although Putin has shown no signs that he will soften his hard-line negotiating position, the United States hopes to make progress toward a potential deal at trilateral talks with Ukraine in Abu Dhabi next month, the first since February," the publication says.
The talks will reportedly "focus on possible security guarantees for Russia and Ukraine after the war ends." "The United States previously linked future guarantees for Ukraine to territorial concessions, but later said it would not force Kyiv to surrender territory at the negotiating table," said two sources familiar with the talks.
The United States and Russia also discussed the potential sale of the international assets of oil giant Lukoil to investors linked to the White House; a proposed LNG project in Alaska involving the Russian company Novatek; and the restoration of gas supplies to Europe through the remaining Nord Stream pipelines, all but one of which were destroyed in the 2022 blast, the publication writes.
"The White House and the Kremlin also discussed a broader deal to ease sanctions on potash fertilizers and their export through Baltic ports — a step that would require the EU to lift sanctions," the publication indicates.
"Another potential idea is to transfer management of the Zaporizhzhia nuclear power plant in Russian-occupied territory of Ukraine to an American entity that would divide the energy supply between Ukraine and Russia," the publication says.
European diplomats have repeatedly made clear to their American counterparts that they oppose easing any sanctions or concluding business deals with Russia before the war ends. They stressed that any decisions affecting the interests of the EU cannot be made without Europe's approval.
The United States has sought for years to encourage Europe to reduce its dependence on Russian energy. The EU agreed to gradually phase out imports of Russian gas, while German Chancellor Friedrich Merz ruled out the possibility of reviving the Nord Stream 2 pipeline.
A European diplomat "expressed deep skepticism that economic deals are enough to persuade Putin to end the war in Ukraine." "It's not about the money," they said. "It's about humiliation and control."
Previous U.S. efforts to steer Russia toward a peace agreement had not achieved much with Putin, said a former Trump administration official. "The negotiating team developed genuine proposals to create opportunities for Russia to end the war, but it could not overcome Putin's own paranoia," the person said. "None of this ever had a chance of becoming real."
"I don't see any of this having sustained contact with the real world," said Geoffrey Pyatt, a former assistant secretary of state for energy resources in the Biden administration, who expressed skepticism that any major public company would want to return to Russia under current conditions.
Kremlin spokesman Dmitry Peskov did not respond to a request for comment. A spokesman for Dmitriev declined to comment.