Exxon held secret talks with Rosneft about going back to Russia

illuminem summarises for you the essential news of the day. Read the full piece on The Wall Street Journal or enjoy below:

🗞️ Driving the news: Exxon Mobil has held discreet, high-stakes talks with Russia’s state energy giant Rosneft about re-entering the Sakhalin‑1 oil and gas project — where it previously held a 30% stake
• The discussions, led by Exxon Senior Vice President Neil Chapman and Rosneft CEO Igor Sechin, hinge on political developments, including a potential Ukraine peace agreement and easing of sanctions
• These negotiations coincide with recent diplomatic warming, including Exxon CEO Darren Woods’s conversation with President Trump and Russia’s decree permitting foreign reentry into Sakhalin‑1

🔭 The context: Exxon was forced out of Sakhalin‑1 following Russia’s 2022 invasion of Ukraine, taking a $4–4.6 billion loss and denouncing the move as expropriation
• Since then, the company has maintained back‑channel communications with Rosneft under U.S. Treasury licenses that permit talks around stranded assets
• The recent return of permission via Putin’s August 15 decree loosens one major barrier to reentry, laying groundwork for potential reinvestment if diplomatic conditions permit

🌍 Why it matters for the planet: Returning to Sakhalin‑1 could restore Exxon’s access to stable hydrocarbon production, impacting global energy supply and markets
• Yet the move raises critical considerations about climate accountability and the alignment of corporate strategy with decarbonization commitments — particularly as investment in Russia conflicts with broader energy transition goals
• It also reflects the broader geopolitical dynamic where energy diplomacy is now tightly interwoven with peace negotiations and environmental policy

⏭️ What's next: Exxon’s actual return remains contingent on several uncertain factors: whether a peace deal is brokered, whether sanctions are eased or lifted, and whether political alignment between Washington and Moscow holds
• Even if diplomacy advances, reshaping the project’s terms in a way that ensures both profitability and compliance will require delicate negotiations
• Skeptics, such as industry leaders, warn that geopolitical volatility and reputational risk may deter re‑entry, even if allowed  

💬 One quote: “Such is the sensitivity that only a handful of people at Exxon knew the talks had taken place.” — Wall Street Journal report 

📈 One stat: Exxon’s departure from Sakhalin‑1 resulted in a $4–$4.6 billion impairment hit—a stark measure of what is at stake financially

See on illuminem's Data Hub™ the sustainability performance of Exxon Mobil and its peers Chevron, Shell, and BP

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