TotalEnergies Exits Russia's Arctic LNG 2 Project

French energy giant TotalEnergies has finalized its exit from Russia's Arctic LNG 2 project, transferring its 10% stake to NordLine, a subsidiary of the project's operator, Novatek. The company confirmed the completion of the transfer on Thursday, marking its definitive departure from the sanctioned Russian export venture.

TotalEnergies had announced its intention to exit the project in July, citing the impact of international sanctions. As part of the agreement, the French major retains rights to seek reimbursement for its share of loans provided to the project, amounting to approximately $1.3 billion, contingent on future sanctions relief. In 2022, TotalEnergies had already fully written off the $4.1 billion value of its stake.

Following the imposition of sanctions by the UK, EU, and U.S. on Arctic LNG 2, TotalEnergies had initiated the suspension of its rights and obligations related to the project. Chief executive Patrick Pouyanné stated that the disposal of the shares, which were fully impaired in 2022, was considered to be in the mutual interest of both TotalEnergies and Novatek. The transfer was authorized by Russian authorities in June.