US, Russia Explore Energy Deals Amid Tariff Tensions With India Over Russian Oil Imports

The U.S. and Russia are in talks for energy deals, including Exxon Mobil’s return to Russian projects, amid Trump's decision to impose 50% tariffs on Indian imports due to its oil trade with Moscow. The discussions aim to support Ukraine peace talks but risk straining U.S.-India relations.

As tensions rise over India's continued oil trade with Russia, the United States and Russia are reportedly exploring energy deals aimed at paving the way for peace negotiations in Ukraine. This development comes just days before U.S. President Donald Trump's 50% tariffs on Indian imports are set to fully take effect.

According to sources cited by Reuters, discussions include the possible re-entry of U.S. oil giant Exxon Mobil into Russia’s Sakhalin-1 oil and gas project. The company had pulled out in 2022 following international sanctions imposed after Russia’s invasion of Ukraine. Now, both sides are weighing the strategic value of Exxon’s return, pending approval from the U.S. Office of Foreign Assets Control.

The talks also reportedly cover potential American purchases of Russia’s nuclear-powered icebreakers and the sale of U.S. equipment for Russia’s sanctioned LNG projects, including Arctic LNG 2. These proposals were discussed earlier this month during a visit by U.S. envoy Steve Witkoff to Moscow, who also met President Vladimir Putin and Russian investment envoy Kirill Dmitriev.

Simultaneously, Washington has confirmed plans to impose the second phase of tariffs on Indian goods beginning August 27, bringing total duties to 50%. Trump had cited India’s continued import of Russian oil as the reason, stating in an executive order that such trade undermines U.S. efforts to economically isolate Moscow.

The White House reportedly hopes the energy discussions with Russia could generate a positive headline following the recent Alaska summit between Trump and Putin. However, the juxtaposition of these backdoor deals with harsh tariffs on India has raised questions over the consistency of the U.S. foreign policy approach.

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While these negotiations may bring strategic leverage in Ukraine diplomacy, they also complicate Washington’s ties with long-time partners like India, which is now under economic pressure for its energy choices.