TotalEnergies exits Russia’s Arctic LNG 2 project

TotalEnergies has completed the transfer of its 10% stake in the Arctic LNG 2 project to NordLine, a subsidiary of the Russian gas operator Novatek. This move marks the French energy giant’s exit from the sanctioned Siberian liquefied natural gas project.

Despite no longer being a shareholder, TotalEnergies retains rights to be reimbursed approximately $1.3 billion for loans previously provided to the project. The company noted that such reimbursement remains subject to applicable international sanctions. CEO Patrick Pouyanné stated that the divestment was in the joint interest of both companies, noting that the stake had been fully impaired in 2022.

The Arctic LNG 2 project, located on the Gydan Peninsula, has been under US sanctions since November 2023. While TotalEnergies is exiting this specific project, it maintains other significant ties to the Russian energy sector, including a 19.4% stake in Novatek and a 20% stake in the Yamal LNG project.