American energy behemoth Exxon Mobil may be on the verge of returning to Russia, a move that would stand in stark contrast to the heavy sanctions the US is levying against India for its Russian oil trade. The corporation is in discussions to re-enter the Sakhalin-1 oil and gas project, which it abandoned in 2022.
Exxon Mobil’s initial withdrawal followed Russia’s invasion of Ukraine, as Western nations moved to isolate Moscow’s energy sector. Any return would necessitate an approval from the US Office of Foreign Assets Control, suggesting a significant policy shift is under consideration within the White House.
This potential corporate reversal is part of a broader set of energy-related proposals being discussed between Washington and Moscow. Other possibilities include Russia buying American equipment for its sanctioned LNG projects and the US purchasing nuclear-powered icebreakers from Russia.
The context for these developments is what makes them so notable. Even as the US explores these lucrative deals, it is finalizing a 50% tariff on Indian imports. The justification for these duties is India’s trade with Russia, creating an apparent contradiction that places a major US corporation’s interests at odds with the administration’s stated policy towards its allies.
