TotalEnergies Ditches Arctic LNG 2 Stake Amid Ongoing Sanctions

French energy company TotalEnergies has sold its 10% stake in the sanctioned Russian Arctic LNG 2 project to Nordline, a subsidiary of Novatek. The transfer was reported by TotalEnergies' press office on Thursday. TotalEnergies reserves the right to seek reimbursement from Arctic LNG 2 for its share of the loans provided by the project's shareholders, amounting to approximately $1.3 billion.

The Arctic LNG 2 project, being developed by Novatek, Russia's largest private natural gas producer, was intended to become Russia's largest LNG export facility. However, after the U.S. and other Western countries imposed sanctions on the project in response to Russia's war against Ukraine, its Western partners suspended their participation.

TotalEnergies still holds stakes in other Russian assets, including a 20% stake in Yamal LNG and a 19.4% stake in Novatek itself.