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Washington and Moscow: Secret Discussions on US Investments in Russian Energy Sector in Exchange for Peace

Russian President Vladimir Putin meets with Kherson Region Governor Vladimir Saldo (not pictured) at the Kremlin in Moscow, Russia, 26 August 2025. EPA/VYACHESLAV PROKOFYEV / SPUTNIK / KREMLIN POOL
Russian President Vladimir Putin meets with Kherson Region Governor Vladimir Saldo (not pictured) at the Kremlin in Moscow, Russia, 26 August 2025. EPA/VYACHESLAV PROKOFYEV / SPUTNIK / KREMLIN POOL
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Washington and Moscow: Secret Discussions on US Investments in Russian Energy Sector in Exchange for Peace

Russian President Vladimir Putin meets with Kherson Region Governor Vladimir Saldo (not pictured) at the Kremlin in Moscow, Russia, 26 August 2025. EPA/VYACHESLAV PROKOFYEV / SPUTNIK / KREMLIN POOL
Russian President Vladimir Putin meets with Kherson Region Governor Vladimir Saldo (not pictured) at the Kremlin in Moscow, Russia, 26 August 2025. EPA/VYACHESLAV PROKOFYEV / SPUTNIK / KREMLIN POOL

US and Russian government officials discussed several energy deals on the sidelines of negotiations this month that sought to achieve peace in Ukraine, according to five sources familiar with the talks.

These deals were put forward as incentives to encourage the Kremlin to agree to peace in Ukraine and for Washington to ease sanctions on Russia, they said.

The officials discussed the possibility of Exxon Mobil re-entering Russia’s Sakhalin-1 oil and gas project, three of the sources said.

Government officials also raised the prospect of Russia purchasing US equipment for its LNG projects, such as Arctic LNG 2, which is under western sanctions, four sources said.

Another idea was for the US to purchase nuclear-powered icebreaker vessels from Russia, Reuters reported on August 15.

The talks were held during US envoy Steve Witkoff’s trip to Moscow earlier this month when he met with Russian President Vladimir Putin and his investment envoy Kirill Dmitriev, three of the sources said. They were also discussed within the White House with Trump, two of the sources said.

These deals were also briefly discussed at the Alaska summit on August 15, one source said.

“The White House really wanted to put out a headline after the Alaska summit, announcing a big investment deal,” said one of the sources. “This is how Trump feels like he’s achieved something.”

Trump and his national security team continue to engage with Russian and Ukrainian officials towards a bilateral meeting to stop the killing and end the war, a White House official said in response to questions about the deals. It is not in the national interest to further negotiate these issues publicly, the official said.

Trump has threatened to impose more sanctions on Russia unless peace talks make progress and to place harsh tariffs on India, a major buyer of Russian oil. Those measures would make it difficult for Russia to maintain the same level of oil exports.

Trump’s dealmaking style of politics has been on display before in the Ukraine talks, when earlier this year the same officials explored ways for the US to revive Russian gas flows to Europe. These plans have been stalled by Brussels, which put forward proposals to fully phase out Russian gas imports by 2027.

The latest discussions have shifted to bilateral deals between the US and Russia, pivoting away from the European Union, which, as a bloc, has been steadfast in its support for Ukraine.

On the same day as the Alaska summit, Putin signed a decree that could allow foreign investors, including Exxon Mobil, to regain shares in the Sakhalin-1 project. It is conditional on the foreign shareholders taking action to support the lifting of Western sanctions on Russia.

Exxon exited its Russian business in 2022 after the Ukraine invasion, taking a $4.6 billion impairment charge. Its 30% operator share in the Sakhalin-1 project in Russia's far east was seized by the Kremlin that year.

The US has placed several waves of sanctions on Russia’s Arctic LNG 2 project, starting in 2022 and cutting off access to ice-class ships that are needed to operate in that region for most of the year.

The project is majority-owned by Novatek, which started working with lobbyists in Washington last year to try to rebuild relations and lift the sanctions.

The Arctic LNG 2 plant resumed natural gas processing in April, albeit at a low rate, Reuters reported. Five cargoes have been loaded from the project this year onto tankers under sanctions. A production train was previously shut down due to the difficulties in exporting given the sanctions.

This project was intended to have three LNG processing trains. The third is in planning stages, with technology expected to be supplied by China.

Washington is seeking to prompt Russia to buy US technology rather than Chinese as part of a broader strategy to alienate China and weaken relations between Beijing and Moscow, one of the sources said.

China and Russia declared a “no limits” strategic partnership days before Putin sent troops into Ukraine. Xi has met Putin over 40 times in the last decade and Putin in recent months described China as an ally.

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Business

Most Asian Stocks Advance as Attention Turns to Warsh Speech

Kevin Warsh's speech at Jackson Hole will be closely followed by investors hoping for some clues on the bank's rate plans. Brendan SMIALOWSKI / AFP/File
Kevin Warsh's speech at Jackson Hole will be closely followed by investors hoping for some clues on the bank's rate plans. Brendan SMIALOWSKI / AFP/File
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Most Asian Stocks Advance as Attention Turns to Warsh Speech

Kevin Warsh's speech at Jackson Hole will be closely followed by investors hoping for some clues on the bank's rate plans. Brendan SMIALOWSKI / AFP/File
Kevin Warsh's speech at Jackson Hole will be closely followed by investors hoping for some clues on the bank's rate plans. Brendan SMIALOWSKI / AFP/File

Asian stocks mostly rose Friday ahead of a closely watched speech by Federal Reserve boss Kevin Warsh that investors will be parsing for clues about the outlook for interest rates amid elevated inflation and no sign of an end to the Middle East crisis.

With the euphoria following Nvidia's blistering earnings report petering out, the attention is back on the economy as debate surrounds if or when the US central bank will tighten monetary policy, said AFP.

Last month's Fed meeting saw policymakers keep borrowing costs on hold but with three of them dissenting in favor of a hike, and while the latest figures showed inflation easing slightly it remains well above the two percent target.

Worries that price rises will remain elevated for some time -- fueled largely by a spike in energy costs caused by the Iran war -- have put upward pressure on long-term Treasury yields, making government borrowing increasingly expensive.

Traders are hoping Warsh's speech at the annual meeting of central bankers and economic leaders at Jackson Hole, Wyoming, will give them an insight into decision-makers' thinking.

However, his last major public appearance after the July meeting was widely panned as giving an ambiguous message, and analysts warn that his refusal to give forward guidance will likely mean investors are left disappointed.

Stephen Innes at Quintex Intel said the address -- Warsh's first since taking the helm at the Fed -- was "the most consequential central bank speech left this year", and comes almost three weeks before the next policy announcement.

"Recent data have reduced the immediate need for tighter policy, giving Warsh room to re-establish the Fed's inflation-fighting message without signaling imminent action," he wrote.

"The speech arrives against a difficult policy backdrop. Inflation remains above target for a sixth consecutive year, while Fed officials have begun debating whether tighter policy may still be required."

Asian equity markets were broadly higher in early trade, with tech firms struggling to extend Thursday's rally that came on the back of Nvidia's profit blowout and bumper forecast, which soothed worries over the AI boom.

Tokyo, Hong Kong, Shanghai, Sydney, Singapore, Jakarta and Taipei all rose, though Seoul retreated along with Wellington and Manila.

Wall Street had provided a positive lead, with all three main indexes rising, though the gains were based entirely on the tech sector, which was the only one of 11 to advance.

Oil prices edged down but remain in danger of spiking further as investors await a breakthrough in efforts to reopen the Strait of Hormuz to tanker and cargo traffic.

US officials have vowed further economic pressure to make Iran open the waterway -- through which about a fifth of world oil passes -- after six months of war, but attempts at a diplomatic solution remain elusive.

Business

Visa, Mastercard Launch International Card Payments in Syria after US Lifts Terrorism Designation

Visa and Mastercard credit cards are seen in this illustration taken February 3, 2026. REUTERS/Dado Ruvic/Illustration
Visa and Mastercard credit cards are seen in this illustration taken February 3, 2026. REUTERS/Dado Ruvic/Illustration
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Visa, Mastercard Launch International Card Payments in Syria after US Lifts Terrorism Designation

Visa and Mastercard credit cards are seen in this illustration taken February 3, 2026. REUTERS/Dado Ruvic/Illustration
Visa and Mastercard credit cards are seen in this illustration taken February 3, 2026. REUTERS/Dado Ruvic/Illustration

Visa and Mastercard carried out their first international card transactions in Syria on Wednesday, a major step in reconnecting the country with global payment networks days after Washington removed it from its state sponsors of terrorism list.

The near-simultaneous moves by two of the world's largest payment networks offer one of the clearest signs yet of Syria's accelerating reintegration into the global financial system after decades of sanctions and isolation.

Qatar's QNB Group said it and Mastercard had completed what it described as the world's first end-to-end international card payment in Syria, while Visa said separately it had tested its first live international transaction in the country with Lebanon-based Fransabank.

Syrian President Ahmed al-Sharaa took part in the Visa test, making a card payment at a restaurant in Damascus's historic Old City, according to a video published by Syria’s state-run Syrian Response. Central Bank Governor Mohammed Safwat Raslan was seated alongside him.

The transactions came just two days after the US formally removed Syria from its list of state sponsors of terrorism.

The designation, imposed in 1979, had remained a major deterrent to international banks and investors even after Washington dismantled its broader sanctions program against the country.

Washington terminated comprehensive sanctions on Syria in December last year while retaining targeted measures against former President Bashar al-Assad and his associates, rights abusers, drug traffickers, ISIS and al-Qaeda affiliates and Iranian proxies.

But Syria's continued designation as a state sponsor of terrorism carried restrictions on financial transactions and remained a source of legal and compliance risk for banks considering doing business there. The US formally removed Syria from the list on Monday.

Syrian Foreign Minister Asaad al-Shaibani told Reuters before the removal that Damascus hoped lifting what he called the "last obstacle" would reconnect Syria with the global financial and economic system and boost investment.

"There is no longer any obstacle to investment, doing business and rebuilding economic life in Syria," he said.

Sharaa's government has made restoring access to global finance and attracting foreign investment a central part of its economic strategy since rebels led by him toppled Assad in December 2024.

STEP TOWARDS WIDER ACCEPTANCE

Visa said it planned to enable international visitors to use their cards while in Syria, and described the test as a step towards wider international card acceptance in the country.

QNB said its system now allows Syrian merchants including hotels, restaurants and government entities to accept international Mastercard credit cards through its point-of-sale terminals. It will gradually add eligible merchants as part of a phased rollout, subject to regulatory approvals.

Visa's transaction was carried out in cooperation with Fransabank Lebanon as the acquiring financial institution and Paymera, a Syrian payments technology company owned by the state's sovereign fund.

Business

Saudi Arabia Closes Loophole in White Land Fees: Develop or Pay

Construction work at the Shams Al-Diyar project, part of the Housing Program in Riyadh (SPA).
Construction work at the Shams Al-Diyar project, part of the Housing Program in Riyadh (SPA).
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Saudi Arabia Closes Loophole in White Land Fees: Develop or Pay

Construction work at the Shams Al-Diyar project, part of the Housing Program in Riyadh (SPA).
Construction work at the Shams Al-Diyar project, part of the Housing Program in Riyadh (SPA).

Saudi Arabia is moving to make white land fees more closely tied to the actual behavior of landowners, closing one avenue through which ownership of land could previously be transferred before outstanding fees were settled. The new decision gives owners of fee-subject land clearer options: pay the fees, develop the land, or sell it after settling their obligations, strengthening the system's effectiveness in increasing supply and bringing undeveloped land onto the market.

The Saudi Cabinet approved this week a decision not to document any real estate transaction transferring ownership of land subject to the White Land and Vacant Real Estate Fees Law until payment of the fees due on the land has been verified.

Minister of Municipalities and Housing Majid Al Hogail said the Cabinet's approval to regulate the documentation of real estate transactions involving land subject to the fees, by verifying payment of outstanding amounts before documenting any ownership transfer, aims to safeguard the state's rights, encourage landowners to develop their properties and increase real estate supply, thereby improving market efficiency and supporting market balance.

Evolution of the Fees

White land fees in Saudi Arabia have gone through several stages aimed at meeting the country's development targets and injecting more supply into the local market. In 2015, the fees were approved at a fixed rate of 2.5 percent. This was followed by the modern billing system introduced this year, under which annual fees can reach as much as 10 percent of the land's value, in implementation of directives from Crown Prince and Prime Minister Mohammed bin Salman.

The decision puts landowners before a clearer equation: develop the land, pay the fees, or sell after settling their obligations, closing one avenue for avoiding the fees by transferring ownership.

The significance of the move extends beyond the procedural collection of outstanding amounts, as it seeks to influence landowners' behavior, raise the cost of holding undeveloped land, and push more of it toward development or sale.

The modern fee system has expanded to include both white land and vacant real estate, tightening the pressure on vacant properties in the Kingdom to develop them and offer them for rent or sale, increasing market activity and achieving the real estate balance targeted by the government.

Rising Cost of Land

Khaled Al-Mubayyed, CEO of real estate company Manasat, told Asharq Al-Awsat that the Cabinet's approval prevents land from being transferred to a new owner while outstanding fees remain unpaid, or attempts to shed the obligation through a change in ownership. As a result, the fees become effectively tied to the land and transactions involving it, preventing attempts to circumvent the system.

Al-Mubayyed said the measure strengthens the collection of government dues by linking documentation to payment, making collection more effective because a sale and transfer of ownership are among the key pressure points that are difficult to bypass.

The CEO of Manasat added that the significance of the Cabinet's approval lies in putting the owner before two options: either develop the land or pay the fees if they wish to retain or sell it. This increases the cost of keeping land undeveloped and strengthens the incentive to bring it onto the market.

Monitoring the Property's Status

Real estate specialist and developer Ahmed Omar Basoudan told Asharq Al-Awsat that the new measure eliminates attempts to circumvent or evade development or payment of the fees, increases supply, and curbs speculative behavior and land hoarding.

He added that holding undeveloped land has become costly, forcing some owners to sell or develop rather than wait for prices to rise. This could therefore expand the pool of land available for development, which is the primary objective of the fee system.

Basoudan said increased supply of developed land would help ease bottlenecks in the land market, particularly in cities with high demand, and could gradually affect land prices as well as development and housing costs.

He added that the decision comes amid the expansion of the system to include white land and vacant real estate, with implementing regulations allowing fees to be calculated and the status of properties monitored, while reinforcing collection procedures and preventing evasion.