TotalEnergies has completed the transfer of its 10 percent stake in the sanctioned Arctic LNG 2 project to NordLine, a subsidiary of operator Novatek, ending the French major's participation in the Russian export facility.
The consideration is absent
The announcement on Thursday confirms the exit flagged on the July earnings call but discloses no cash consideration, no stock component, and no break fee. Chief executive Patrick Pouyanné said Novatek initiated the discussions and that Russia's authorities authorized the transfer in June. The absence of a price tag is consistent with a stake the company fully impaired in 2022.
The loan claim survives
TotalEnergies retains the right to be reimbursed for its share of shareholder loans to the project, an amount it puts at roughly $1.3 billion. Reimbursement remains subject to applicable sanctions, a condition that effectively defers any recovery indefinitely. The company wrote off the $4.1 billion equity investment two years ago; the loan claim is the only economic residue.
The write-off timeline
Pouyanné stated the $4.1 billion stake was fully written off in 2022, the year Western sanctions targeted the project. Following those measures, TotalEnergies immediately suspended its rights and obligations under related contracts. The transfer to NordLine formalizes a departure that has been economically complete for over two years.
The dark fleet expands
While TotalEnergies exited, Russia added four LNG carriers to the shadow fleet moving cargoes from Arctic LNG 2, according to market observers. The project continues to load despite the sanctions regime that prompted the French major's withdrawal.