Discussion on the Return of U.S. Companies to the Russian Oil Market

The U.S. and Russia are discussing the possible return of American companies to the Russian oil market as part of broader negotiations to end the war in Ukraine. This was reported on Tuesday, October 27, by the Financial Times (FT), citing informed sources. Thus, after the cessation of hostilities, the joint venture for oil production off the coast of Sakhalin ('Sakhalin-1') may be resumed. In addition, American oil giants could be involved in the supply of Russian oil to Europe via the Druzhba pipeline, the publication's sources said. ## Titanium Production Among other proposals is the resumption of access for American airlines to Russian airspace for transit and overflight. Furthermore, Moscow and Washington could restart cooperation in the production and supply of titanium, a key component for civilian aircraft. Boeing suspended its joint titanium production activities in Russia after the war began and diversified its supply chains. ## Sale of Lukoil's International Assets The U.S. and Russia also discussed the potential sale of the international assets of the oil giant Lukoil to investors linked to the White House, the newspaper writes. According to its data, the discussions also included a project for liquefied natural gas (LNG) production in Alaska involving the Russian company Novatek, as well as the resumption of gas supplies to Europe through the remaining sections of the Nord Stream pipelines. The White House and the Kremlin also considered the possibility of an agreement to ease EU sanctions on potash fertilizers and their export through the ports of the Baltic states. Finally, the previously mentioned idea of transferring control of the Zaporizhzhia nuclear power plant in the Russian-occupied territories of Ukraine to an American organization that would distribute the generated energy between the two countries was also discussed. ## Whitcoff's Efforts According to FT sources, U.S. Special Envoy Stephen Whitcoff spoke with Russian President Vladimir Putin about potential business deals during a meeting in St. Petersburg in early September. During a subsequent visit to Moscow last week, Whitcoff also made a note about "business deals" in his notebook, as per photographs released by the Kremlin press pool. ## FT: Many of the Discussed Deals Have Little Chance of Success At the same time, many of the discussed deals have little chance of success due to Putin's inflexibility on ending the war and the caution of American companies regarding returning to the Russian market, FT notes. On October 9, Trump reported on Truth Social about a "very successful" phone call with Putin and the agreement on the supply of Russian diesel fuel "to the American and global market." Russian companies, the head of the White House stated, would "immediately" ship more than 300,000 tons, another 500,000 in November, 1 million tons - "right after that" (that is, apparently, already in December), and in the future, "depending on the state of refineries," another 3 million tons. For its part, the U.S. Treasury issued a general license that suspends the application of American sanctions against Russian diesel until April 2027.

Discussion on the Return of U.S. Companies to the Russian Oil Market - FT