French energy giant TotalEnergies has completed the transfer of its 10 per cent stake in the Arctic LNG 2 project to NordLine, a subsidiary of Russian natural gas producer Novatek, bringing an end to its direct shareholder involvement in the venture.
While TotalEnergies is no longer a shareholder in the mega-development, the group retains the right to be reimbursed roughly US$1.3 billion (AU$1.9 billion) for shareholder loans it previously provided to fund construction.
However, any future repayment remains strictly contingent on applicable international sanctions regimes.
The divestment marks the final step in a withdrawal strategy for the French group from the sanctioned Siberian development located on the Gydan Peninsula.
Following Russia’s invasion of Ukraine in early 2022, TotalEnergies announced it would halt capital allocations to Arctic LNG 2 and subsequently recorded a US$4.1 billion impairment charge against its assets in the project.
Sanctions imposed by Western nations, including target restrictions directly aimed at Arctic LNG 2 by the United States in late 2023, severely complicated operations, supply chains and export logistics for the LNG facility.
Russian President Vladimir Putin granted regulatory approval for the share transfer earlier this year, paving the way for Novatek to consolidate its control via NordLine alongside remaining partners from China and Japan.
Despite relinquishing its holding in Arctic LNG 2, TotalEnergies continues to navigate a footprint in Russia. The company retains a minority interest in Novatek itself, as well as a 20 per cent stake in the operational Yamal LNG project.
These holdings remain locked due to current restrictions preventing the legal sale of such assets under existing regulatory frameworks.
