Russian President Vladimir Putin has given the green light for the acquisition of TotalEnergies’ 10% stake in the Arctic LNG 2 project by a Russian entity. This project, which is a significant liquefied natural gas development located in northern Siberia, will see the French energy company’s share transferred to NordLine, a subsidiary of Novatek, the Russian gas producer that already owns 60% of the project. The financial terms of this transaction have not been made public.
The Arctic LNG 2 project has encountered numerous obstacles, particularly following the imposition of U.S. sanctions in late 2023. These sanctions led to a suspension of participation by foreign stakeholders, including TotalEnergies. The French company had previously incurred substantial financial losses in its Russian energy ventures, a situation exacerbated by the conflict in Ukraine.
Beyond TotalEnergies, the project’s international stakeholders include Chinese energy firms and a Japanese consortium, each holding a 10% interest in the project. These foreign entities have also been part of the shifting landscape of investment and involvement in Russian energy initiatives.
This development underscores Russia’s strategic move to bring more control of its energy assets under domestic ownership as ongoing international sanctions continue to impact foreign participation in the country’s energy sector. As Europe considers tighter restrictions on Russian gas imports, industry analysts are keeping a close eye on how these geopolitical shifts will influence foreign investments in other LNG projects within Russia.