Russian President Vladimir Putin has given the green light for the sale of TotalEnergies’ 10% interest in the Arctic LNG 2 project to NordLine, a subsidiary of Novatek, which already owns a majority 60% stake. Located in northern Siberia, Arctic LNG 2 is a significant liquefied natural gas project that has faced challenges due to international sanctions.
Following the imposition of U.S. sanctions in late 2023, TotalEnergies, among other foreign partners, halted their involvement in the project. This decision followed substantial financial losses that TotalEnergies incurred in its Russian investments amid the ongoing Ukraine conflict. The financial specifics of the transaction with NordLine have not been disclosed.
The Arctic LNG 2 project also includes other international stakeholders such as Chinese energy companies and a Japanese consortium, each holding a 10% interest. This transaction underscores Russia’s strategy to strengthen domestic control over key energy assets as foreign participation wanes under the pressure of international sanctions.
The shift in ownership comes as analysts keep a close watch on the fate of foreign investments in Russia’s LNG sector. European nations are increasingly moving towards more stringent restrictions on importing Russian gas, casting uncertainty on the future of such projects.