US, Russia Discuss Oil Deals in Ukraine Peace Talks – FT

The US and Russia are discussing a possible return of American oil companies to the Russian market as part of negotiations to end Moscow’s war against Ukraine, the Financial Times (FT) reported on Tuesday, Oct. 27.Proposals include reviving joint production off Sakhalin and involving US oil companies in restoring Russian crude exports to Europe through the Druzhba pipeline, the newspaper reported.JOIN US ON TELEGRAMFollow our coverage of the war on the @Kyivpost_official.Other ideas include resuming Russian titanium exports to the US and reopening Russian airspace to American airlines to reduce fuel costs.No final decisions have been made.Lukoil’s $22 billion assets already under discussionThe proposals would expand an economic dialogue that has continued alongside efforts to revive peace negotiations.The Kremlin confirmed talks over Lukoil following Putin’s Oct. 21 meeting with US special envoy Steve Witkoff in St. Petersburg.Kremlin foreign policy aide Yuri Ushakov said the two governments were reviewing numerous commercial projects, including the future of the sanctioned oil company’s overseas holdings.The portfolio, initially valued at approximately $22 billion, includes oil production interests, refineries, and fuel distribution businesses across Europe, the Middle East, Africa, and Central Asia.Lukoil put the assets up for sale after Washington imposed sanctions on the company in October 2025.The US Treasury subsequently extended authorization for negotiations over their sale until Nov. 21. That permission allows due diligence and conditional purchase agreements – completing a transaction would require separate US approval. Other Topics of Interest ‘Taken Off the Street’: Russia’s Forced Mobilization Spreads to Siberia Men are stopped on the streets, often under the pretext of minor offenses, and taken to enlistment offices, where they are allegedly pressured through deception or threats to sign contracts. Treasury conditions require a sale to sever ties with the sanctioned company and prevent it from receiving immediate financial benefits. Proceeds owed to Lukoil must remain blocked until sanctions permit their release.European energy proposals face separate obstaclesReports of possible oil cooperation follow earlier proposals to revive Nord Stream and restore Russian gas supplies to Europe as an incentive for Moscow to accept a settlement.The Economist described those ideas as part of a broader package involving sanctions relief, American commercial agreements, and normalized political relations.Some proposed benefits, however, depend on decisions by European governments and institutions.EU countries adopted a legally binding phaseout of Russian gas imports in January. The timetable ends remaining long-term Russian liquefied natural gas supplies from January 2027 and long-term pipeline imports later that year.Germany also opposes reopening Nord Stream, which faces US and EU sanctions.Nord Stream 1 stopped operating in 2022, while Nord Stream 2 never entered commercial service. Explosions damaged three of the system’s four lines in September 2022.A revival would therefore require regulatory decisions as well as arrangements for damaged infrastructure. Washington and Moscow cannot independently guarantee access to Europe’s energy market.Zelensky warns of an ‘economic marriage’Ukraine has warned that expanding commercial ties could give Russia benefits before it ends its invasion.In remarks published on Wednesday, Oct. 28, President Volodymyr Zelensky said Moscow could offer Washington an “economic marriage” built around its natural resources and centralized control over major industries.“I believe the ‘diesel deal’ opens the door for the Russians to take further similar steps,” he said.Zelensky suggested that future arrangements could involve fertilizers, gas, frozen assets, and sanctions relief for individuals and companies.He warned that agreements with Russia could contain longer-term costs that were not immediately apparent, even when they appeared commercially attractive at first.The concern echoes Ukrainian negotiators’ earlier fears that profitable US-Russian transactions could advance before a settlement of the war.The sequencing of economic concessions remains central to the diplomatic dispute: US officials describe potential projects as part of a postwar settlement, while Kyiv is warning against allowing commercial incentives to weaken pressure on Moscow before peace is secured. Kyiv Post is Ukraine’s first and oldest English news organization, reporting since 1995. Its international reach – 90% of readers are outside of Ukraine – make it truly Ukraine’s global voice.