In a significant development in the energy sector, Russian President Vladimir Putin has given the green light for the sale of TotalEnergies’ 10% stake in the Arctic LNG 2 project. This major liquefied natural gas initiative, located in northern Siberia, will see the stake transition to NordLine, a subsidiary of Russia’s Novatek. Novatek already commands a majority interest with a 60% stake in the project. The financial terms surrounding this transaction have not been made public.
Arctic LNG 2 has been under considerable pressure since the U.S. implemented sanctions against it in late 2023. As a result of these sanctions, foreign stakeholders, including TotalEnergies, have paused their involvement. TotalEnergies has previously endured substantial financial losses from its Russian energy investments, exacerbated by the ongoing conflict in Ukraine.
In addition to the Russian interest, the project’s other foreign shareholders consist of several Chinese energy firms and a Japanese consortium, each maintaining a 10% stake in the venture. These entities have remained part of the project despite the geopolitical tensions and the financial challenges posed by international sanctions.
This strategic shift underscores Russia’s intent to reinforce its domestic hold over key energy assets amidst the tightening grip of international sanctions. As Europe continues to pursue stricter limitations on Russian gas imports, industry analysts are keenly observing the implications for foreign investment in Russia’s other LNG undertakings.