The French group TotalEnergies announced on Friday that it would distance itself from its historic Russian partner Novatek and no longer recognize in its results the 19.4% it holds in the gas giant, consequently providing for an asset depreciation of 3.7 billion dollars in the fourth quarter.
Unlike other Western majors, TotalEnergies has maintained most of its investments in Russia since the outbreak of war in Ukraine in February, notably in liquefied natural gas (LNG) projects. He explains on Friday that he “is unable to sell” his 19.4% stake in Novatek, “since he is prohibited from selling assets to one of Novatek’s main shareholders because of the” European sanctions aimed at the Russia. The Board of Directors of TotalEnergies has however “decided to withdraw the representatives of the Company from the Board of Directors of PAO Novatek with immediate effect”, announced in a press release the French hydrocarbon giant present in 130 countries. “Consequently, the significant influence criteria no longer being met within the meaning of the accounting regulations followed by the Company, the 19.4% stake held by TotalEnergies in Novatek will no longer be consolidated in the Company’s accounts”, added this one.
This will lead TotalEnergies to record in its accounts for the fourth quarter of 2022 “a depreciation of approximately from Novatek.
Novatek is the historical partner of TotalEnergies in Russia.
Besides Novatek, TotalEnergies has other minority stakes in various private Russian companies, such as the gigantic gas field in Arctic Siberia Yamal LNG (20%) and the Arctic LNG 2 field (10%). But the French group specifies in its annual report that it has “no activity or operational responsibility on these sites” and no longer operates “any oil or gas field, or Liquefied Natural Gas (LNG) plant in Russia”.
“TotalEnergies has begun its gradual withdrawal from Russian assets while ensuring that it continues to supply LNG to Europe,” the group said in its press release on Friday.
The French group TotalEnergies announced on Friday that it would distance itself from its historic Russian partner Novatek and no longer recognize in its results the 19.4% it holds in the gas giant, consequently providing for an asset depreciation of 3.7 billion. dollars in the fourth quarter. Unlike other Western majors,…