TotalEnergies Exits Arctic LNG 2 Project Amid Ongoing Sanctions

TotalEnergies has completed its exit from the Arctic LNG 2 project in Russia. The French energy company had announced plans to transfer its 10% stake to Novatek, a Russian gas producer, and has now confirmed that this transfer is complete.

As part of this deal, TotalEnergies will retain its right to reimbursement for $1.3 billion in loans it provided to the project, but acknowledges that repayment may be unlikely due to current sanctions.

TotalEnergies initially took a $4.1 billion write-down on its stake in Arctic LNG 2 following Russia's invasion of Ukraine in 2022.

The company remains a significant shareholder in Novatek and the Yamal natural gas field, but is unable to sell these stakes under current sanctions against Russia.