Headlines
Russia extends deadline for sale of Exxon's Sakhalin-1 stake to 2027
Published by Global Banking & Finance Review®
Posted on December 24, 2025
2 min readLast updated: January 20, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on December 24, 2025
2 min readLast updated: January 20, 2026
Russia extends ExxonMobil's Sakhalin-1 stake sale deadline to 2027, aiding loss recovery after exiting Russia due to the Ukraine conflict.
MOSCOW, Dec 24 (Reuters) - Russian President Vladimir Putin has extended by one year the deadline for the sale of U.S. oil major ExxonMobil's stake in the Sakhalin-1 oil and gas project until January 1, 2027, according to a decree published on Wednesday.
The extension is expected to help Exxon recover losses incurred in Russia after it exited the country following the start of Moscow's conflict with Ukraine in 2022.
In August, Putin signed a decree allowing foreign investors to regain shares in Sakhalin-1.
Exxon took a $4.6 billion impairment charge on its 30% operator stake in the project off Russia's Pacific coast in April 2022.
Two sources familiar with the talks told Reuters in September that Exxon and Russian state-run energy giant Rosneft had signed a non-binding initial agreement aimed at helping Exxon recoup its losses.
The agreement marked a tentative step towards repairing commercial ties, although little further progress is expected until a peace deal in Ukraine is reached and the United States and European Union ease sanctions on Russia.
Russia has said it would welcome the return of companies that pulled out of the country.
Alongside Exxon and Rosneft, India's ONGC Videsh and Japan's SODECO were partner investors. The Russian government allowed both ONGC Videsh and SODECO to keep their stakes.
Earlier this month, three sources familiar with the matter said ONGC would pay into a Sakhalin-1 abandonment fund to retain its 20% stake in the project.
(Reporting by Marina Bobrova and Vladimir Soldatkin. Editing by Elaine Hardcastle and Mark Potter)
The Sakhalin-1 project is an oil and gas extraction project located off the coast of Russia's Sakhalin Island, operated by ExxonMobil and involving several international partners.
An impairment charge is an accounting term that refers to a reduction in the book value of an asset when its market value falls below its carrying amount, indicating a loss.
Sanctions are restrictions imposed by countries or international organizations to influence or penalize a nation, often involving trade barriers, tariffs, or financial restrictions.
A stake in a project refers to the ownership interest or share that an individual or entity holds in that project, which can include financial investment and decision-making power.
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