French energy giant TotalEnergies has completed the transfer of its 10 per cent stake in Russia’s sanctions-hit Arctic LNG 2 project to NordLine, a subsidiary of Russian gas producer Novatek.
TotalEnergies confirmed on Thursday, August 27, 2026, that it was no longer a shareholder. It retains rights to recover about $1.3 billion in loans extended to the project, although repayment remains subject to sanctions.
The transfer followed approval from Russian President Vladimir Putin on June 3, 2026. TotalEnergies Chief Executive Patrick Pouyanné said on July 23 that approval had been secured and the deal would soon be completed.
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Arctic LNG 2 was hit by US sanctions in November 2023, severely disrupting its development and access to international markets.
TotalEnergies had already booked a $4.1 billion impairment on its Russian exposure in 2022 after the invasion of Ukraine and subsequent sanctions. It later halted further funding for Arctic LNG 2.
The exit ends TotalEnergies’ direct involvement in the project but not its broader Russian exposure. The company still owns 19.4 per cent of Novatek and 20 per cent of Yamal LNG, another major Russian gas venture.
TotalEnergies has said sanctions currently prevent it from selling its Novatek stake.