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TotalEnergies assessing position in Russia, will not pursue new projects
France-headquartered TotalEnergies is assessed to have ’by far the largest’ position in Russian interests among energy majors that have yet to formally cut all Russian ties
Announcing an end to new investments in Russia, TotalEnergies said it will implement sanctions against Russia enacted by Europe in response to the Russian invasion in Ukraine, "regardless of the consequences" on its economic activities in Russia.
The energy major said those consequences are "currently being assessed" but it will "no longer provide capital for new projects in Russia".
TotalEnergies reportedly holds a 19.4% stake in publicly traded natural gas producer Novatek, Russia’s largest producer of liquefied natural gas.
"Exposure to Russia is concentrated in the hands of a few: BP and TotalEnergies have by far the largest positions of the majors," analysts at global energy consultancy Wood Mackenzie said.
Novatek is not currently under sanction by the US, UK or EU, but the UK has sanctioned Volga Group founder and Novatek shareholder Gennady Timchenko, who has held a 23.5% stake in Novatek, according to Bloomberg data. Recent estimates of Novatek’s market cap have put the company’s value at US$35.5Bn, significantly down from a May 2021 Bloomberg estimate of US$58.4Bn.
BP announced on 27 February it is exiting its 19.75% interest – valued at US$14Bn – in Russian oil giant Rosneft, which reportedly has been under sanctions from the US and EU since Russia annexed Crimea in 2014. Meanwhile, Equinor’s board said it would stop new investments into Russia, and start the process of exiting Equinor’s Russian joint ventures.
On 1 March, Shell joined British oil major BP and Norway’s Equinor in exiting Russia-linked oil and gas investments in response to the Kremlin’s war on Ukraine. Shell’s interests in joint ventures with sanctioned Gazprom and related entities and its stake in the Nord Stream 2 pipeline from Russia to Germany top US$3Bn in value.
TotalEnergies’ statement on the war in Ukraine and its decisions on activities in Russia on 1 March expressed "solidarity" with both Ukrainian and Russian citizens, which Total said would suffer because of Russia’s decision to invade Ukraine.
"TotalEnergies condemns Russia’s military aggression against Ukraine, which has tragic consequences for the population and threatens Europe. TotalEnergies expresses its solidarity with the Ukrainian people who are suffering the consequences and with the Russian people who will also suffer the consequences. TotalEnergies is mobilised to provide fuel to the Ukrainian authorities and aid to Ukrainian refugees in Europe," the company said.
Also on 1 March, TotalEnergies announced its bunker fuels-focused marine fuels division would join the Methanol Institute, the global trade body representing the methanol industry’s producers, distributors and technology companies.
"Low-carbon methanol is emerging as one of the promising alternative marine fuel contenders, with strong potential to significantly reduce harmful greenhouse gas emissions in the maritime industry,” TotalEnergies marine fuels strategy and projects director Frederic Meyer said.
“We are pleased to join the Methanol Institute and look forward to connecting with association members to identify opportunities and partnerships that will help to advance and standardise the application of low-carbon methanol as a marine fuel.”
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