(Corrects with the removal of the mention to EDF at $8)
PARIS, March 1 (Reuters) – TotalEnergies TTEF.PA will not develop new projects in Russia and continues to assess the consequences on its activities of Western sanctions imposed following the Russian offensive against Ukraine, announced on Tuesday. the French energy group.
The oil and gas company, which is also present in electricity and renewable energies, on the other hand, did not take such a radical decision as that of its competitors Shell SHEL.L and BP BP.L, which chose to withdraw completely. from the country.
“TotalEnergies approves the scope and strength of the sanctions put in place by Europe and will implement them regardless of the consequences (being assessed) on the management of its assets in Russia,” said the group headed by by Patrick Pouyanné, who “condemns the Russian military aggression towards Ukraine” and “expresses its solidarity” towards the Ukrainians.
“TotalEnergies will no longer provide capital for new projects in Russia,” the company added, without specifying the scope of this decision.
TotalEnergies is notably present in Russia via its 19.4% stake in the company Novatek, whose chairman Leonid Mikhelson is reputed to be close to the Kremlin.
Engie ENGIE.PA, which participated in the financing of the Nord Stream 2 gas pipeline project, the target of United States sanctions against Russia after its offensive in Ukraine, for its part declared at the end of the day that it was analyzing the consequences of this situation for the group.
The group, which reported having no industrial activity in Russia, further specified that it had “over the recent period (…) increased its purchases of gas of Norwegian origin and LNG.” nL8N2V47JO
According to TotalEnergies’ latest registration document, Russia accounted for 24% of TotalEnergies’ proven reserves and 17% of its combined oil and gas production in 2020.
TotalEnergies is also involved in major liquefied natural gas (LNG) projects in the country (Yamal LNG and Artic LNG 2), directly and through its stake in Novatek.
In the same document, published in the spring of 2021, the group stressed that the previous sanctions imposed since 2014 against Russia did not affect “significantly” its activities in the country, the French authorities having notably authorized it to continue its operations on various oil and gas fields and on LNG projects.
Before the announcements of TotalEnergies and Engie, the French Minister of Economy, Bruno Le Maire, had declared Tuesday morning that he would meet soon with Patrick Pouyanné and that there was now a “problem of principle” for Western companies to work in Russia. nL8N2V41Z9
The TotalEnergies share closed down 2.72% and the Engie share ended down 13.19%.
(Report Bertrand Boucey, Benjamin Mallet and Matthieu Protard, edited by Blandine Hénault)