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US oil and gas corporation ExxonMobil and Rosneft have reached a non-binding agreement that opens the door for Exxon to recoup $4.6bn in losses incurred due to its withdrawal from Russia's Sakhalin-1 project in 2022. This was reported by Reuters on 23 September, citing two sources familiar with the talks.

The agreement sets the terms for negotiations that could provide Exxon with compensation for its $4.6bn write-off, Reuters says, but notes that concrete results are unlikely until Moscow takes meaningful steps towards a peaceful settlement in Ukraine and US and EU sanctions are eased.

Exxon announced its withdrawal from Russia shortly after the outbreak of the conflict in Ukraine in February 2022. In October 2022, Russian President Vladimir Putin transferred the Sakhalin-1 project to Russian jurisdiction, replacing Bahamas-registered Exxon Neftegaz (an ExxonMobil subsidiary) with Sakhalin-1 LLC as the project operator. Sakhalin-1 LLC itself is controlled by Sakhalinmorneftegaz-Shelf JSC (a Rosneft subsidiary).

The talks between Exxon and Rosneft took place against the backdrop of the Russia-US summit held in mid-August in Alaska. Since then, talks between the two countries aimed at resolving the situation in Ukraine have stalled, but the two companies have continued their dialogue, Reuters sources said. Their agreement, according to one source, was signed in late August or early September.

Rosneft has not responded to Reuters' query about the signing of the non-binding agreement with Exxon on potential loss compensation. ExxonMobil CEO Darren Woods only told the agency that negotiations on loss compensation are underway.

On 15 August, Putin signed a decree defining the de facto conditions for Exxon's return to the Sakhalin-1 project. The conditions include crediting the Russian operator's bank account with funds from the liquidation account, concluding contracts for the supply of foreign-made equipment and spare parts required for the project, and taking actions that lead to the lifting of sanctions negatively affecting the project's implementation. "At present, the Russian presidential decree has opened up opportunities for Exxon to return to the Sakhalin-1 project," Sakhalin Region Governor Valery Limarenko said on 25 September.