European sanctions scrutiny lags as TotalEnergies keeps Yamal LNG stake
This digest was compiled by AI from multiple sources — links to the originals are below.
European regulators have sanctioned over 3,400 Russian entities since 2022, yet European firms like TotalEnergies continue to earn hundreds of millions from Russian energy assets. The EU's 21st sanctions package targets Russian financial and energy actors, but scrutiny of European subsidiaries operating in Russia remains limited.
Key Facts
- The UK has sanctioned more than 3,400 individuals, entities, and ships under its Russia sanctions regime since 2022, including 500 designations this year alone.
- TotalEnergies earns about $400 million a year from selling liquefied natural gas from Russia's Yamal LNG plant.
- In July 2026, TotalEnergies announced it would exit its 10% stake in the Arctic LNG 2 plant in Russia after Russian authorities approved the transfer to Nordline, a Novatek subsidiary.
- The EU's 21st sanctions package introduces transaction bans and asset freezes targeting Russian financial institutions, energy actors, crypto platforms, and entities linked to Russia's military.
Sanctions Expansion
UK Foreign Secretary Ed Miliband announced his first Russia sanctions package, targeting six Russian banks, six shadow fleet tankers, and four Russian companies importing materials believed to support Russia's war in Ukraine, including tantalum and niobium. The EU sanctioned five individuals linked to Russia's military-industrial complex in response to recent Russian attacks on Ukraine's economic infrastructure. The European Central Bank has been increasing pressure on Eurozone lenders to reduce their Russian exposure or leave the country.
Corporate Exposure
TotalEnergies has kept its stakes in Yamal, Russia's biggest LNG plant, but deconsolidated the holdings, meaning the money no longer appears in the company's official consolidated reporting. CEO Patrick Pouyanne said other income comes from dividends on TotalEnergies' 20% ownership stake in Yamal LNG and its 19.4% stake in Yamal's parent company, Novatek. In 2024, Pouyanne said dividends from Novatek represented about $600 million per year but were stuck abroad. Similar policy questions can arise in the UK where investors have exposure to companies that continue to maintain operations in Russia.
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European sanctions scrutiny lags as TotalEnergies keeps Yamal LNG stake
