Exxon Mobil (NYSE:XOM) has no plans to return to working in Russia, CEO Darren Woods told the Financial Times on Thursday, despite efforts by the Russian and U.S. governments to link energy investments to a peace deal in Ukraine.
“We don’t have any plans to re-enter Russia,” Woods told FT in an interview, adding that Exxon (NYSE:XOM) executives are involved in talks with Russian officials about recouping $4.6B in assets expropriated by the country but not about investing there.
Woods said the talks began in early 2023, shortly after the company filed an arbitration case against the Russian government, which had seized control of Exxon’s (XOM) 30% stake in the huge Sakhalin-1 oil project.
Analysts say Russia is eager to attract western oil majors to provide investment and technical skills that are needed for complex offshore operations such as Sakhalin-1, but the western companies are hesitant to return to Russia after writing off billions of dollars following Russia’s invasion of Ukraine.
Senior Exxon (XOM) executives reportedly held talks with Russian officials last month about returning to the Sakhalin-1 project as part of a wider push by the Trump administration to secure a peace deal in Ukraine, following President Putin’s decision to amend the Russian decree that seized Exxon’s (XOM) Sakhalin stake, potentially paving the way for the return of western oil firms.