Russian President Putin Approves TotalEnergies Exit From Arctic LNG 2 Project

Russian President Vladimir Putin has authorized TotalEnergies SE to sell its stake in a U.S.-sanctioned liquefied natural gas export project in the Arctic, a rare move that will allow the French major to exit a project constrained by Western restrictions.

TotalEnergies will be allowed to transfer its 10% stake to a company called NordLine LLC, according to a presidential order. Interfax reported that the company is a newly created subsidiary of Novatek, which owns 60% of Arctic LNG 2. No financial terms were disclosed.

TotalEnergies previously wrote down the value of its interest in Arctic LNG 2 due to Russia’s war in Ukraine and has consistently stated that it has received no revenue from the project.

The $21 billion-plus Arctic LNG 2 project was sanctioned by the U.S. in late 2023 in an effort to curb Russia’s ability to expand exports of super-chilled fuel. The facility began shipping LNG via shadow fleet vessels the following year and has slowly ramped up output, although it is operating far below intended capacity. So far, shipments have only been delivered to a single port in southern China.

The move will consolidate Russia’s control over its largest LNG export project by capacity, as part of a broader strategy by Moscow to expand sales to Asia. The European Union plans to ban all gas imports from Russia from 2027.

TotalEnergies was among a handful of major Western energy companies that retained stakes in strategic Russian projects after the invasion of Ukraine. While a number of foreign investors have exited Russia since then, Kremlin approvals for the sale of significant assets have become relatively rare in recent years.

TotalEnergies declined to comment. The company still holds stakes in other Russian assets, including the Yamal LNG export project—which is not directly sanctioned—and Novatek itself. TotalEnergies agreed to take the stake in Arctic LNG 2 in 2018.