The French group TotalEnergies announced, Friday, December 9, to distance itself from its historical Russian partner Novatek. Its board of directors has “decided to withdraw the representatives of the company from the board of directors of PAO Novatek with immediate effect”announced in a press release the French hydrocarbon giant present in 130 countries.
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TotalEnergies however explained that “not being able to give in” its 19.4% stake in Novatek, “since he is prohibited from selling assets to a major shareholder of Novatek due to the sanctions” Europeans targeting Russia.
“As the significant influence criteria are no longer met within the meaning of the accounting regulations followed by the company, the 19.4% stake held by TotalEnergies in Novatek will no longer be consolidated in the company’s accounts”is added.
Unlike other Western companies, TotalEnergies has maintained most of its investments in Russia since the outbreak of war in Ukraine in February, notably in liquefied natural gas (LNG) projects. TotalEnergies also pointed out that its “gradual withdrawal of Russian assets” was done “making sure to continue the supply of LNG to Europe”.