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(Bloomberg) — Russian and European officials say the US is exploring ways to work with energy giant Gazprom PJSC on global projects, a step toward forging closer ties with the Kremlin while trying to broker a peace deal on Ukraine.

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European assessments suggest there have been preliminary contacts between US and Russian representatives on the issue, but it’s not clear who’s leading the conversations or whether the Trump administration is directly involved, according to people familiar with the matter. The White House declined to comment.

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Discussions between the US and Russia about possible collaboration with Gazprom are at an early stage, according to the people, who asked not to be identified discussing private deliberations. 

President Vladimir Putin alluded to potential US-Russia energy cooperation on Thursday, telling reporters it could pave the way for restoration of supplies to Europe.

“If, say, the US and Russia agree on cooperation in the energy sector, then a gas pipeline for Europe could be ensured,” Putin said at a briefing in Moscow. “And this will benefit Europe, as it will receive cheap Russian gas.”

European gas futures dropped as much as 4.5% after his comments. 

President Donald Trump has suggested the US is interested in the idea of cooperation despite crippling US and European sanctions on Russia’s energy sector dating back years. Those were ramped up following the Russian invasion of Ukraine three years ago.

After speaking with Putin last month, Trump posted to Truth Social that the two had discussed energy among other issues including Ukraine, the Middle East and artificial intelligence. Natural resources are also part of the conversation with Kyiv, as Washington links work on a potential Russia ceasefire to a minerals deal with the US. 

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Even so, a US-Gazprom deal would be a massive U-turn for Trump, who criticized Europe for its dependence on Russian gas during his first term and has overseen a push to massively expand sales of US liquefied natural gas to European nations.

Trump threatened to add even more sanctions on Russia unless it comes to the table with Ukraine, saying in a Truth Social post last week he was “strongly considering large scale Banking Sanctions, Sanctions and Tariffs on Russia until a Cease Fire and FINAL SETTLEMENT AGREEMENT ON PEACE IS REACHED.”

Earlier this week, the US secured Ukraine’s agreement for a 30-day ceasefire. In his comments Thursday, Putin didn’t outright reject the idea, saying any truce should lead to a long-term peace.

China, Iran 

US-Gazprom energy initiatives could cover Europe and Asia, and may fit with a broader US push to weaken Russia’s ties to China and Iran, some of the people said. It would also be in keeping with Trump’s desire to dangle business opportunities that could result from a peace deal to end the war in Ukraine, which he’s said is a top priority.

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Secretary of State Marco Rubio said last month that Washington wants to dilute ties between Russia and China without sowing division. Rubio warned that closer relations between the nuclear-armed neighbors would pose a problem for the US — if Moscow became the “permanent junior partner” to Beijing.

European officials said they doubted the Trump administration would be able to drive a wedge between Russia and China, given how much closer the two countries have grown since the invasion of Ukraine. They added that many of Gazprom’s energy-related ideas are still at the speculative stage. 

Separately, Russian officials have agreed to assist the Trump administration in communicating with Iran on issues including the Islamic Republic’s nuclear program. China has said it will host talks with Iran and Russia on the Islamic Republic’s atomic activities in Beijing on Friday. 

Nord Stream

Gazprom is keen for the US to help restart the Nord Stream gas pipelines, which run under the Baltic Sea from Russia to the German coast, following a sabotage attack in 2022, two of the people said. 

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Russia delivered gas to Europe via Nord Stream before the invasion of Ukraine. After Gazprom reduced and later stopped flows at the start of the war, the pipeline was damaged alongside one of Nord Stream 2’s strings in a mystery assault. 

An American businessman is seeking to acquire the Swiss-based operating company that controls Nord Stream 2, according to media reports late last year, which would give the US a stake in the project. 

Putin has repeatedly said his country is ready to resume gas flows to Europe through the undamaged part of Nord Stream 2, but the decision would ultimately be up to Germany, which is backing Ukraine. Germany was one of the hardest hit countries by the halt of Nord Stream, which pushed gas prices higher and led to the permanent closing of a portion of the country’s industry.

The European Union and Trump administration have discussed the possibility of the bloc’s companies importing more LNG from the US as a way of easing tensions over trade. But several EU nations have grown cold on that prospect given uncertainty around Trump’s approach to Ukraine and Europe – and any deal with Gazprom would further exacerbate those concerns.

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The EU has been trying to quit Russian gas since the war began and Gazprom cut Nord Stream flows. That reduced supply from Russia to just TurkStream, that runs between the country and Turkey under the Black Sea.

Europe’s weak spot is LNG. Despite calls for sanctions, Europe is still buying a record amount of Russian LNG, predominantly from the Novatek PJSC-led Yamal plant. It highlights how hard it is for Europe to cut ties with Russia, which over the last decade entrenched itself as a key commodities supplier to the continent.

Gazprom could offer the US involvement in ventures in the Arctic region and offshore projects like the Sakhalin liquefied natural gas project — if sanctions that restrict foreign investments are lifted, one of the people said.

The Trump administration has so far provided mixed messages on Russian sanctions. It has signaled they should remain in place until a peace deal between Russia and Ukraine is agreed, and even threatened new restrictions if Moscow doesn’t come to the table.

However, the US has blocked Group of Seven allies from tightening several existing energy measures. European officials said they expected the Trump administration to provide waivers allowing some investments and transactions if peace talks progressed.

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