The French company has come under heavy criticism for clinging to its investments in Russia. France’s TotalEnergies will exit its 19.4% stake in Russian energy company Novatek at a cost of $3.7 billion, the company announced on Friday.
TotalEnergies will remove its two representatives from Novatek’s board of directors “with immediate effect” and will no longer include income from its investment in Novatek in its financial reports, the company said.
This decision will also affect the proven reserves of TotalEnergies, reducing them by 1.7 billion barrels.
Unlike rivals Shell and BP, TotalEnergies has come under heavy criticism for clinging to its investments in Russia despite the war in Ukraine.
In September, the company defended itself once morest press reports accusing it of supplying fuel to Russian fighter jets in Ukraine. TotalEnergies argued that it had “not operated or cooperated” in the Termokarstovoye field in northern Russia, which produces kerosene that might potentially be used by the military.
The company’s CEO, Patrick Pouyanné, said last month that TotalEnergies’ “sole motivation” to keep its Russian assets was to “bring [le gaz naturel liquéfié] and Europe ».
TotalEnergies said its two representatives on Novatek’s board abstained from voting on company business and “particularly on financial matters” following Russia’s invasion of Ukraine. and subsequent Western sanctions.
The company retains a stake in the Russian Yamal LNG and Arctic LNG 2 projects.
