Published by Global Banking & Finance Review®
Posted on September 4, 2025
2 min readLast updated: January 22, 2026
Add as preferred source on GoogleSakhalin's governor supports Exxon's return to the Sakhalin-1 project, following Putin's decree allowing foreign investors back.
VLADIVOSTOK, Russia (Reuters) -The governor of Russia's far eastern Sakhalin region told Reuters on Thursday that a potential return of U.S. energy major Exxon Mobil would be a boost for the local oil and gas business.
Russian President Vladimir Putin signed last month a decree that could allow foreign investors, including top U.S. oil major Exxon Mobil to regain shares in the Sakhalin-1 oil and gas project.
The signing of the decree came on the day Russian president Vladimir Putin met Donald Trump in Alaska for a summit where opportunities for investment and business collaboration were on the agenda, alongside talks to find peace in Ukraine.
The decree was published as a follow-up to one Putin signed in October 2022, which ordered the seizure of the Sakhalin-1 project.
Exxon previously held a 30% operator share in the lucrative project, and is the only non-Russian investor to have quit its stake.
Valery Limarenko, the Sakhalin governor, said Russia has its own technologies to produce oil and gas, including offshore, but Exxon's return would be helpful.
"We need to develop further and in this sense, it would be more efficient to develop further jointly," he said.
"Look, it's important that they want to return," he added.
Exxon took an impairment charge of $4.6 billion to exit its Russian business after Moscow sent troops into Ukraine in February 2022.
In December 2024, Putin signed a decree extending the sale period for the unclaimed Exxon stake in Sakhalin-1 until 2026.
Alongside Exxon, Russian company Rosneft, India's ONGC Videsh, Japan's SODECO were partner investors.
The Russian government allowed both ONGC Videsh and SODECO to keep their stakes.
(Reporting by Olesya Astakhova; writing by Vladimir Soldatkin; editing by Guy Faulconbridge)
Foreign investment refers to the investment made by individuals or entities in assets or businesses located in another country, often to gain returns or ownership in foreign enterprises.
An oil project involves the exploration, extraction, and production of oil and gas resources, typically requiring significant investment and technology to develop and operate.
An operator share is the percentage of ownership in a project that grants the holder the authority to manage and operate the project, often involving decision-making and operational responsibilities.
An impairment charge is an accounting term that reflects a reduction in the value of an asset, indicating that it is worth less than its recorded value on the balance sheet.
Economic growth is an increase in the production of goods and services in an economy over time, often measured by the rise in Gross Domestic Product (GDP).
Explore more articles in the Headlines category
