en.Wedoany.com Reported - Russian President Vladimir Putin signed a decree approving TotalEnergies' sale of its 10% stake in the sanctioned Arctic LNG 2 project to Nordline LLC. TotalEnergies did not comment on the transaction and did not issue a statement as it had done in previous divestments.

The decree mentions two Russian-registered entities named Nordline LLC, both linked to private liquefied natural gas producer Novatek. Novatek subsequently responded to a request for comment. Since Russia's invasion of Ukraine in 2022 and the imposition of Western sanctions, numerous foreign companies have sold assets in Russia or had them seized in response to the freezing of Russian assets abroad. Kremlin-controlled energy giant Gazprom acquired a 27.5% stake in the Sakhalin II LNG project through a decree, shares previously held by British oil major BP, which recorded a $1.6 billion impairment loss as a result.

TotalEnergies had previously sold smaller Russian oil assets but retained a 19.4% stake in Novatek and its interest in the Yamal LNG project, which has seen increased LNG sales to Europe in recent years. The decree on Arctic LNG 2, signed on June 3, did not provide details on Nordline or the terms of the transaction. Due to U.S. sanctions imposed over Russia's invasion, TotalEnergies declared force majeure on all LNG contracts for the project in 2024. If the sale is completed, TotalEnergies will retain indirect exposure to the Arctic LNG 2 project through its stake in Novatek. The project's ownership structure includes Novatek (60%), China National Petroleum Corporation (CNPC) (10%), China National Offshore Oil Corporation (CNOOC) (10%), and Mitsui & Co. along with Japan Organization for Metals and Energy Security (JOGMEC).

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