Russian President Vladimir Putin has authorized TotalEnergies to sell its 10% stake in Arctic LNG 2, giving the French energy major a path out of the U.S.-sanctioned LNG export project.
The stake can be transferred to NordLine LLC under a presidential order. Interfax reported that NordLine LLC is a newly created subsidiary of Novatek, which holds 60% of Arctic LNG 2. No transaction terms were disclosed.
The decision is unusual because Kremlin approvals for major foreign asset sales have become less common in recent years. TotalEnergies was among the few large Western energy companies that kept interests in strategic Russian projects after the invasion of Ukraine.
Arctic LNG 2 is valued at more than $21 billion and was sanctioned by the United States in late 2023 as part of efforts to limit Russia’s LNG export growth. The project began shipping LNG the following year using shadow fleet vessels, but production remains far below planned capacity. So far, cargoes have been delivered only to one port in southern China.
The approved sale will consolidate Russian control over the country’s largest LNG export project by capacity. The move also fits Moscow’s wider push to expand gas sales to Asia, while the European Union plans to ban all Russian gas purchases from 2027.
TotalEnergies had already written down the value of its Arctic LNG 2 interest because of Russia’s war in Ukraine. The company has also said it has not received revenue from the project.
The French company still holds stakes in other Russian assets, including Yamal LNG, which is not directly sanctioned, and Novatek. TotalEnergies agreed to take its Arctic LNG 2 stake in 2018.
TotalEnergies declined to comment. Novatek did not immediately respond to a request for comment.
