TotalEnergies considers its exit from the Russian LNG project
TotalEnergies holds a 19.4% stake in Novatek and says it cannot cede it in a context of Western sanctions.
This Thursday, the French hydrocarbons giant TotalEnergies said it could soon «transfer» its 10% stake in the LNG megaproject Arctic LNG 2, which is subject to U.S. sanctions, to the Russian majority shareholder Novatek.
The United States imposed sanctions on this project in November 2023 over Russia’s invasion of Ukraine, and in this context Novatek approached TotalEnergies to begin talks.
The goal is to «transfer our 10% stake in Arctic LNG 2 to one of its own subsidiaries, NordLine,» the CEO of the French group, Patrick Pouyanné, said.
The «Russian presidency» «publicly» authorized this transfer process «in June», which should be completed soon—specifically, during a press conference to present quarterly results.
Pouyanné said the transfer was of interest to both companies and that TotalEnergies reduced the value of its stake by $4.1 billion in 2022.
After the 2022 invasion of Ukraine, most Western companies quickly sold their operations and assets in Russia, as sanctions have made trade of most goods difficult.
Since then, Russia has made it harder for companies to leave, requiring presidential authorization for transactions.
Founded in 1994, Novatek has been TotalEnergies’ main partner in Russia, and together they launched in 2013 the huge Yamal natural gas field in Siberia, from which they ship LNG to Europe.
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