Exxon Reaches Non-Binding Agreement With Rosneft To Pave Way For Recouping $4.6B Write-Down From Russian Operations: Report

Exxon Mobil (XOM) has reportedly signed an initial non-binding agreement with Russian state-run energy company Rosneft aimed at recovering a $4.6 billion write-down tied to its Russian operations in 2022.

According to a Reuters report, citing sources familiar with the matter, this agreement is a tentative move aimed at restoring commercial relations between the two nations. However, meaningful progress is unlikely unless Moscow makes significant advances toward a peace resolution in Ukraine and sanctions from both the U.S. and the EU are eased.

Rosneft told Reuters it had not signed a cooperation agreement to work with Exxon in Russia. The report noted that both the Trump and Biden administrations had permitted Exxon to engage in talks with Rosneft.

Retail sentiment on Exxon remained unchanged in the ‘bearish’ territory, with message volumes at ‘normal’ levels, according to data from Stocktwits. Shares of Exxon were up 2% during midday trading on Tuesday.

The talks on recouping the losses have been ongoing since 2023, chief executive Darren Woods told Reuters last week.

The report noted that both companies signed the agreement in late August or early September and that the new deal with Rosneft sets the terms for talks that could help lead to Exxon recovering the $4.6 billion writedown, and is not legally binding.

Reuters noted that when Woods was asked about Exxon and Rosneft reaching an agreement, he said the discussions were about recouping losses, without providing further details.

Shares of Exxon have gained more than 6% this year but have lost 2.4% of their value over the last 12 months.

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