TotalEnergies exits Russia's Arctic LNG 2, transfers 10% stake to Novatek

August 27, 2026 at 06:30 PM2 min

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TotalEnergies has completed the transfer of its 10% stake in Russia's Arctic LNG 2 project to operator Novatek, ending its participation in the sanctioned export venture. The French energy major retains rights to reimbursement of around $1.3 billion in shareholder loans, subject to sanctions. The exit follows sanctions by the UK, EU, and US that prompted TotalEnergies to suspend its obligations under project contracts.

Key Facts

TotalEnergies transferred its 10% stake in Arctic LNG 2 to NordLine, a subsidiary of project operator Novatek, completing the exit.
TotalEnergies retains rights to reimbursement of approximately $1.3 billion in shareholder loans to Arctic LNG 2.
TotalEnergies fully wrote off its $4.1 billion stake in Arctic LNG 2 in 2022.
The transfer was authorized by Russian authorities in June.

Stake Transfer

TotalEnergies confirmed on Thursday that the transfer of its 10% interest in Arctic LNG 2 to NordLine, a subsidiary of Novatek, has been completed. The French major is no longer a shareholder in Arctic LNG 2. TotalEnergies had announced in its second-quarter earnings call in July that an exit from the sanctioned project was imminent. Novatek initiated discussions for the transfer of the 10% stake to NordLine, and the transfer was authorized by Russian authorities in June.

Financial Terms

As part of the transfer agreement, TotalEnergies retains its rights to be reimbursed by Arctic LNG 2 for its share of loans provided by shareholders to the project, amounting to around $1.3 billion. Such reimbursement might be implemented in the future, subject to applicable sanctions, the French company said. TotalEnergies fully wrote off its $4.1 billion stake in 2022, chief executive Patrick Pouyanné said on the earnings call last month.

Sanctions Context

Following UK, EU, and US sanctions on Arctic LNG 2, TotalEnergies immediately initiated the suspension of its rights and obligations under contracts related to the project. Pouyanné said the transfer was in the joint interest of TotalEnergies and Novatek, noting the shares were fully impaired in 2022. While TotalEnergies sought an exit, Russia recently added four LNG carriers to its dark fleet of tankers exporting cargoes from the sanctioned project.