While India faces US tariffs, Russia’s state-controlled oil firm, Rosneft, is at the center of discussions that could see it partner once again with American energy giant Exxon Mobil. This highlights the significant potential gains for Moscow in the ongoing high-stakes negotiations.
The Sakhalin-1 project, from which Exxon Mobil exited in 2022, is a key asset for Rosneft. The return of a Western supermajor with advanced technology and capital would be a major boost for the project and for Russia’s energy sector, which has been hampered by sanctions.
Multiple discussions have reportedly been held over time between Exxon Mobil and Rosneft about a potential re-entry, contingent on a license from the US Office of Foreign Assets Control. The current US diplomatic push for a Ukraine peace deal may provide the political cover needed for such a license to be granted.
For Russia, a deal would not only be an economic victory but also a major geopolitical win. It would signal a crack in the Western sanctions regime and showcase President Putin’s ability to attract major investment despite international pressure, all while the US penalizes India for similar, albeit less direct, energy dealings.