Russian President Vladimir Putin gives green light for ExxonMobil's comeback to Russia.

In a potential development that could signal the restoration of Russia-US economic relations, ExxonMobil is reportedly in talks to return to the Sakhalin-1 oil and gas project in Russia. The conditions for ExxonMobil's return include advocating for Russian interests, transferring frozen funds, supplying advanced drilling equipment and technologies, and adhering to all Russian laws.

The discussions come after a meeting between Russian President Vladimir Putin and US President Donald Trump at the Elmendorf-Richardson military base in Alaska on August 15. The main topic of the meeting was the settlement of the Russia-Ukraine conflict, and following the meeting, Trump stated that "there is no deal yet," but there is "a good chance of achieving peace."

If ExxonMobil accepts the offer and fulfills all conditions, other companies engaged in oilfield services, such as Baker Hughes and Halliburton, may also return to Russia. Experts believe that ExxonMobil's return could serve as a starting point for the restoration of Russia-US economic relations.

The Sakhalin-1 project, which encompasses three offshore fields on Russia's northeastern Sakhalin Island, holds estimated recoverable oil reserves of 307 million tons and gas reserves of 485 billion cubic meters. ExxonMobil lost its business in Russia three years ago due to repeated refusals to confirm its continued participation in the project.

However, the potential return of ExxonMobil depends on a hypothetical peace process in Ukraine leading to US and Russian government approvals, the lifting of Western sanctions, and Russia's extension of the ownership period for Exxon’s shares until 2026 via a decree signed by President Putin.

Meanwhile, the US and EU have concluded a trade deal, a development that may have implications for the broader economic landscape. On August 18, Trump hosted a reception at the White House with the participation of the Ukrainian President and leaders of EU countries, further underscoring the ongoing efforts to address the Russia-Ukraine conflict.

The Russian Ministry of Foreign Affairs expects an impetus in relations with the US after the Putin-Trump meeting, and the return of ExxonMobil could potentially provide a significant boost to these efforts. The US-based oilfield services company SLB (formerly Schlumberger) will also have the opportunity to restore its positions, not comply with sanctions requirements, and invest in Russia again.

It is more challenging to expect the return of British company Shell, as its stake in the Sakhalin-2 project consortium was sold to Gazprom. ExxonMobil's stake was also intended to be sold to one of the Russian companies, but the deadline has been repeatedly postponed and will expire on January 1, 2026.

As the negotiations continue, the potential return of ExxonMobil to the Sakhalin-1 project and the broader implications for US-Russia relations remain a topic of interest and speculation.

Russian President Vladimir Putin gives green light for ExxonMobil's comeback to Russia.