Iona is based in New York City. Since joining The Telegraph in 2024, she has covered major international stories, including the Russia-Ukraine war, conflicts in the Middle East and US politics 10:36pm GMT The Trump administration is reportedly exploring options for major oil deals with Russia as part of talks to end the war in Ukraine.

The White House and the Kremlin are in discussions about allowing American companies to return to the Russian oil market after the conflict ends, sources told the Financial Times.

It marks the latest effort by the US to entice Vladimir Putin to break the deadlock in negotiations as the war edges deeper into its fifth year.

Talks have focussed on resuming the joint US-Russian venture off the coast of Sakhalin in Russia’s Far East, along with a plan to resume sales of Russian oil to Europe via the Druzhba pipeline, people familiar with the matter told the Financial Times.

Steve Witkoff, Donald Trump’s special envoy, allegedly discussed potential business deals during his meeting with Putin in early September. Mr Witkoff, a former real estate developer, has long faced criticism from Democrats and Republicans for appearing to be too soft on Putin.

Washington is hoping to make progress at planned peace discussions between Russian, Ukrainian and US officials in Abu Dhabi next month, their first since February, the sources added. Steve Witkoff, Trump’s special envoy, arriving in Corpus Christi Texas today US officials have stated that such deals would be part of a wider peace framework and would only be implemented after the war ends.

However, the business agreements are highly dependent on two variables: Russia’s willingness to end the conflict and whether US companies are prepared to risk a return to the Russian market.

ExxonMobil, the only American company involved in Sakhalin, said last year it had no plans to resume operations. It is unclear whether it has changed its position.

Other reported proposals include US companies cooperating with Russia on the production of titanium, a key component of aircraft, along with resumed access to fly through Russian airspace to reduce fuel costs.

Since Mr Trump returned to the White House, Moscow has been pushing for increased economic cooperation with the US after years of economic isolation since its invasion of Ukraine in 2022.

This marks the latest controversial effort by the US to entice Vladimir Putin to break the deadlock in negotiations The Trump administration has also suspended a new sanctions package targeted at Moscow’s energy exports and has intensified pressure on Kyiv to halt its strikes on Russian oil refineries.

The news of fresh business discussions is likely to further inflame tensions between Ukraine and the White House.

Kyiv’s refusal to halt its long-range drone strikes, particularly when faced with reported interruptions to US intelligence-sharing and its access to Starlink, has plunged the relationship between Volodymyr Zelensky and Mr Trump to one of its lowest points.

It comes as the leaders of Finland and Norway phoned Putin directly on Tuesday to urge him to end the war in Ukraine, breaking with a longstanding practice among Western European leaders of shunning direct contact with the Kremlin.

Alexander Stubb, the Finnish president, and Norwegian prime minister Jonas Gahr Store said they had “stressed the importance of de-escalation” in the 90-minute call in which both voiced strong support for Ukraine.

The Kremlin said that Putin had blamed Kyiv’s allies’ “confrontational” policy for dragging out the Ukraine war.

The local truce is intended to allow aid into the war-battered town and allow civilians desperate for food, water and medicine to leave.

Russia and Ukraine both said they were abiding by the local ceasefire, which went into force early on Tuesday morning and is expected to last until Sunday.