Home News The withdrawal of Total Energy from the Russian gas giant Novatek

The withdrawal of Total Energy from the Russian gas giant Novatek

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The French TotalEnergies group announced on Friday, December 9, the withdrawal of its managers from the Russian company Novatek and the lack of recognition in its results of the 19.4% it owns in the gas giant, thus providing an asset value of $ 3.7 billion in the fourth quarter. a fourth.

Unlike other major Western companies, TotalEnergies has kept most of its investments in Russia since the war broke out in Ukraine in February, mainly in liquefied natural gas (LNG) projects.

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Explains this fri ne “The inability to give up” its 19.4% stake in Novatek, Since he is prohibited from selling assets to a major shareholder of Novatek due to the sanctions. The Europeans are targeting Russia.

However, the TotalEnergies Board of Directors has “Decided to withdraw company representatives from the Board of Directors of PAO Novatek with immediate effect”announced in a press release the French hydrocarbon giant present in 130 countries.

“A decrease of approximately $3.7 billion”

Thus, the significant impact criteria within the meaning of the accounting regulations followed by the Company are no longer met, and the 19.4% stake owned by TotalEnergies in Novatek will not be consolidated in the accounts of the Company.added this.

This will result in TotalEnergies accounting for the fourth quarter of 2022 “A depreciation of about $3.7 billion.”said the group, which also announced that it would record 1.7 billion barrels less in its reserves, now excluding Novatek’s reserves.

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Novatek is the historical partner of TotalEnergies in Russia.

Apart from Novatek, TotalEnergies owns other minority stakes in several Russian private companies, such as the huge Yamal LNG gas field in the Siberian Arctic (20%) and the Arctic LNG 2 field (10%). But the French group states in its annual report that it does not own it “There is no activity or operational responsibility on these sites” And no longer work “There is no oil or gas field and no LNG plant in Russia”.

“TotalEnergies has begun its gradual withdrawal of Russian assets while ensuring that it continues to supply LNG to Europe”the group says in its press release on Friday.

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