Putin invites investors to Sakhalin-1 project after dialogue with Trump

Volodymyr Putin signed a decree on Friday, which opens up opportunities for foreign investors, including the American company ExxonMobil, to return to participating in the Sakhalin-1 oil and gas production project.

This became known thanks to the Reuters news agency.

This decree appeared against the backdrop of Putin’s visit to Alaska, where he discussed investments and business with Donald Trump, as well as possible ways to resolve the war in Ukraine.

This document is a continuation of the decree signed earlier in October 2022, when the Sakhalin-1 project was actually confiscated. Exxon, which previously held a 30% operating stake in the project, became the only foreign investor to withdraw from it after the war began.

However, the prospects for Western investments returning to Russia remain uncertain. In particular, the US and the EU must lift several sanctions, while companies that have already made significant financial investments will face severe difficulties from the Russian government.

According to the new decree, foreign shareholders who wish to return must assist in lifting sanctions, conclude contracts for the supply of necessary equipment, and transfer funds to the accounts of the Sakhalin-1 project.

Exxon’s exit from Russia in 2022 resulted in a $4.6 billion asset. In December 2024, Putin extended the term of sale of an unused Exxon in the project until 2026.

The project, which Exxon attended, also involved Russian company Rosneft, Indian ONGC Videsh, and Japanese Sodeco. The Russian Government has allowed ONGC Videsh and Sodeco to save their shares.

The project is controlled through a subsidiary of Rosneft-SakhalinMorneftegaz-Shelf, which is responsible for managing foreign investors’ ownership rights.