Russia and the United States are discussing plans to jointly develop data centers, potentially powered by small nuclear reactors, according to Kirill Dmitriev, Russian President Vladimir Putin’s investment envoy. Dmitriev disclosed the negotiations at the Russian Energy Week 2026 conference in Moscow.

He indicated that several projects involving Russian companies are under consideration, though he offered no details about potential locations, investment levels or technology partners.

The data center negotiations follow a recent agreement between President Donald Trump and Putin to resume large-scale Russian diesel shipments to U.S. and global markets. Trump has promoted the agreement as a way to lower fuel prices ahead of the November midterm elections.

But the diesel agreement has drawn sharp criticism from Ukrainian President Volodymyr Zelenskyy and U.S. lawmakers from both parties, who warn that easing sanctions on Russian oil could provide Moscow with additional revenue to fund its war in Ukraine.

That diesel agreement has created an opening for broader commercial ties between the two countries, even as Washington maintains restrictions on Russia’s energy sector.

Unresolved Issues Around Sanctions

The potential partnership raises questions about how U.S. and Russian tech companies could collaborate while major sanctions remain in place. Dmitriev criticized the Graham Act, signed by Trump in September, which imposed new sanctions and tariffs targeting Russian energy revenue. On October 16, Trump issued an executive order waiving the act’s sanctions and tariffs, citing U.S. national interests.

Other restrictions remain in place, including Executive Order 14071, signed by President Joe Biden in 2022, which prohibits “new investment in the Russian Federation by a United States person, wherever located.” The restriction generally prevents American companies from financing new infrastructure projects or establishing joint ventures in Russia without government authorization.

U.S. export controls on advanced computing technology could create additional barriers. Projects located outside Russia may face fewer restrictions, depending on their ownership, financing and technology requirements.

The Russian envoy expressed confidence that the two governments would announce additional agreements.

Security Risks for Data Centers

The data center negotiations come amid military attacks by Russia and Ukraine on each other’s computing infrastructure. Russian forces attacked a data center in Kyiv and several telecommunications facilities. Ukrainian attacks struck three Yandex data centers in the Ryazan, Kaluga and Vladimir regions. The strikes disrupted services including Yandex Cloud, Yandex Pay, navigation tools and search applications.

The attacks reportedly damaged advanced computing systems, demonstrating the exposure of major data centers to military operations.

Dmitriev has suggested that economic projects need not wait for a peace agreement. The Kremlin has previously objected to Washington’s position linking broader business cooperation to a settlement in Ukraine.