Exxon Mobil Seeks $4.6 Billion Compensation for Russian Asset, Rules Out Investments

Exxon Mobil is seeking $4.6 billion in compensation for its Russian asset holdings, which were seized by the government. CEO Darren Woods ruled out any future investments in Russia. The move comes amid ongoing tensions between the US and Russia.

American oil giant Exxon Mobil has confirmed that it has no plans to return to operating in Russia, even as Moscow and Washington push to link energy investments to a peaceful settlement of the conflict in Ukraine. This position was voiced by the company’s Chief Executive Officer, Darren Woods, in a conversation with The Financial Times.

According to Woods, Exxon leaders are holding talks with Russian officials about returning assets worth about $4.6 billion that were expropriated by the country, rather than about new investments in Russia. The talks began in early 2023 following the filing of an arbitration claim against the Russian government, which several months earlier had seized a 30% stake in Exxon’s Sakhalin-1 project in Russia’s Far East.

"We have no plans to return to Russia... These meetings with Russian officials, which Russian media had portrayed as 'steps toward Exxon’s return,' were related to negotiations for a settlement within the arbitration on the expropriation of our assets in 2022," Woods stated.

In August 2025, global analysts again turned their attention to the interaction between the United States and Russia in the energy sector, amid efforts to find ways to normalize economic ties. Despite the diplomatic developments, Exxon emphasizes that resuming its presence in the Russian market is not a priority, and the company focuses on managing its existing assets and complying with international sanctions, while also assessing opportunities to settle disputes over the expropriation.

Russian officials continue to hint at the potential possibility of Exxon’s return to the country. Deputy Foreign Minister Sergei Ryabkov noted that meetings between Special Envoy for Investments Kirill Dmitriev and American officials are considering approaches to cooperation in energy deals, particularly regarding Sakhalin-1. It is also reported that Vladimir Putin’s decision to amend the decree on the expropriation of Exxon’s stake in Sakhalin-1 creates clearer legal frameworks for the potential return of Western companies to the Russian market in the future.

Against these developments, Exxon Mobil clearly states: avoid new investments in Russia and focus on managing existing assets. The company is also actively working to resolve expropriation disputes through arbitration procedures to minimize financial risks and safeguard its interests in the global market.

Given the current realities, Exxon does not plan to return to the Russian business environment in the near term. The company continues to monitor the situation, manage assets, and comply with international sanctions, while also considering the possibility of resolving expropriation disputes through arbitration and legal mechanisms.