According to reports, US and Russian officials are negotiating a number of energy agreements, which are being promoted as inducements to Moscow to consent to peace talks in Ukraine. This comes weeks after US President Donald Trump threatened to impose 25% more levies on India for purchasing Russian oil.
The duties would go into effect on Wednesday, raising the total tariffs on Indian imports to 50%. According to news agency Reuters, which cited anonymous sources, US and Russian officials are thinking about re-entering Exxon Mobil into Russia’s Sakhalin-1 oil and gas project.
After Russia was shut out of the majority of foreign investment in its energy industry due to its invasion of Ukraine, the US-based multinational company left its operations in Russia in 2022. Following approval from the US Office of Foreign Assets Control, leading US oil producer Exxon Mobil has repeatedly discussed re-entering the project with Russian state-controlled oil company Rosneft, according to Reuters.
Additionally, it was reportedly considered if Russia might purchase American equipment for its sanctioned LNG projects, such as Arctic LNG 2. Another plan called for the US to buy Russian icebreakers with nuclear propulsion. The US and Russia are reportedly considering energy deals at a time when India is already subject to an additional 25% tax on its exports to the US, specifically for purchasing Russian oil over the years.
Citing India’s commerce with Russia, Trump first proposed 25% tariffs on Indian imports, which he later boosted to 50%. His signature appeared on an executive order that stated, “I decide 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.” Earlier this month, half of the responsibilities he announced went into effect; the other half will go into effect on Wednesday, August 27.
In a draft notice released by the Department of Homeland Security on Tuesday, the United States laid out its tariff plans for India, suggesting that Washington was prepared to move up with the 50% levies it had promised. According to reports, US envoy Steve Witkoff visited Moscow earlier this month to discuss possible energy deals, a major US oil producer re-entering Russian markets, and Russia’s plans to purchase equipment for its sanctioned LNG projects.
According to its source, “the White House really wanted to put out a headline after the Alaska summit, announcing a big investment deal.” “Trump feels like he’s accomplished something in this way.” According to Reuters, Witkoff met with Russian President Vladimir Putin and Investment Envoy Kirill Dmitriev. The suggestions were also discussed with former President Trump in the White House.