Russia appears to open door for potential Exxon return to Sakhalin-1 project

[Exxon Posts 38 Percent Decline In Quarterly Profit]
Spencer Platt/Getty Images News

Russia's President Putin has signed [https://www.reuters.com/business/energy/russia-decree-opens-door-exxon-return-sakhalin-1-project-2025-08-15/] a decree that could allow foreign investors, including Exxon Mobil (NYSE:XOM [https://seekingalpha.com/symbol/XOM]), to regain shares in the Sakhalin-1 oil and gas project, Reuters reported Friday.

The signing occurred on the same day that Putin met President Trump in Alaska to discuss a potential ceasefire in Ukraine, and possibly on opportunities for investment and business collaboration.

Exxon (NYSE:XOM [https://seekingalpha.com/symbol/XOM]) previously held a 30% operator share in the Sakhalin-1 project, and was the only non-Russian investor to have abandoned its stake after the invasion of Ukraine in 2022; the company took a $4.6B impairment charge to exit its Russian business.

Putin signed a decree in October 2022 that established Rosneft as Sakhalin-1's new operator, allowing the Russian government to decide foreign investors' ownership rights in the project; in December 2024, Putin signed another decree extending the sale period for Exxon's (XOM [https://seekingalpha.com/symbol/XOM]) unclaimed stake until 2026.

Any path to Western investment returning to Russia is unclear given the U.S. and European Union would need to lift far-reaching sanctions to facilitate investment.

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