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US and Russian officials are reportedly in talks for several energy deals, being pushed as incentives to encourage Moscow to agree to peace negotiations in Ukraine. The development comes weeks after US President Donald Trump threatened additional 25% tariffs on India for buying Russian oil, duties that would take effect on Wednesday, taking the total tariffs on Indian imports to 50%.
The US and Russian officials are considering re-entering Exxon Mobil into Russia’s Sakhalin-1 oil and gas project, news agency Reuters reported, citing unnamed sources.
The US-based multinational corporation exited its Russian business in 2022 after the country was cut off from most international investment in its energy sector, over its invasion of Ukraine.
Exxon Mobil, a top US oil producer, has many a times held talks with Russian state-controlled oil firm Rosneft over re-entering the project, after an approval from the US Office of Foreign Assets Control, Reuters reported.
Besides, the possibility of Russia buying American equipment for its sanctioned LNG projects, including Arctic LNG 2, was also reportedly discussed. Another proposal involved the US purchasing nuclear-powered icebreakers from Russia.
Trump's 50% tariffs on India
Reports of the US and Russia mulling energy deals come at a time when India is facing an additional 25% tariffs on its exports to America, precisely for buying Russian oil over the years.
Trump had earlier announced 25% tariffs on Indian imports, which he then doubled to 50% a few days later, citing India's trade with Russia. “I determine that it is necessary and appropriate to impose an additional ad valorem duty on imports of articles of India, which is directly or indirectly importing Russian Federation oil," an executive order he signed read.
One half of the total duties he announced came into force earlier this month, and the remaining will take effect on Wednesday, August 27.
The US on Tuesday outlined its tariff plans for India in a draft notice published by the Department of Homeland Security, indicating that Washington was willing to push ahead with the 50% duties it threatened.
US-Russia energy deals
Discussions on potential energy deals, a top US oil producer re-entering Russian markets, and Russia planning to buy equipment for its sanctioned LNG projects, reportedly took place earlier this month when US envoy Steve Witkoff was in Moscow.
“The White House really wanted to put out a headline after the Alaska summit, announcing a big investment deal,” Reuters quoted its source. “This is how Trump feels like he’s achieved something.”
Witkoff met Russian President Vladimir Putin and investment envoy Kirill Dmitriev, and the proposals were also raised within the White House with former President Trump, Reuters reported.
