TotalEnergies Exits Arctic LNG 2 Project in Russia

TotalEnergies completed the transfer of its 10% interest in the Arctic LNG 2 project to NordLine, a subsidiary of the Russian gas producer Novatek, on August 27, 2026. The exit follows U.S. and Western sanctions imposed to limit Russia's liquefied natural gas exports after the invasion of Ukraine.

The French energy company is no longer a shareholder in the venture, having previously recorded a $4.1 billion write-down of its stake in 2022. While the company retains the right to be reimbursed approximately $1.3 billion for loans provided to the project, it noted that such repayment is unlikely for now and remains subject to applicable sanctions.

Despite the exit from Arctic LNG 2, TotalEnergies maintains a 19.4% stake in Novatek and a 20% stake in the Yamal LNG export project. The company stated that current sanctions prevent the sale of its Novatek holdings. The transfer further consolidates Russian control over its largest seaborne gas export operation as the European Union prepares to ban all Russian gas purchases by 2027.