In what could be a significant strategic reversal, the United States is considering a move that would welcome Exxon Mobil back into Russia’s energy sector, just two years after the company was forced to exit. This development comes as the US imposes heavy tariffs on India for its Russian oil trade.
The discussions center on the Sakhalin-1 project, a major oil and gas operation from which Exxon Mobil divested in 2022. The potential return of the American energy giant is being floated as part of a package of incentives aimed at persuading Russia to negotiate an end to the conflict in Ukraine.
This diplomatic track with Moscow is in stark contrast to the hardline stance taken against India. President Trump has authorized a total of 50% in tariffs on Indian imports, with the final installment due this week, citing the country’s energy relationship with Russia as the primary cause.
The situation highlights a complex foreign policy calculus. The administration appears willing to use both economic punishments and rewards to achieve its goals, even if it means creating friction with allies like India while re-engaging with adversaries like Russia on multi-billion dollar projects.