In a significant development for the energy sector, Russian President Vladimir Putin has approved the sale of a 10% stake in the Arctic LNG 2 project, previously owned by French energy company TotalEnergies. This major liquefied natural gas project located in northern Siberia will see its stake transferred to NordLine, a subsidiary of the Russian gas producer Novatek, which already possesses a 60% stake in the venture. The financial specifics of this transaction have not been made public.
The Arctic LNG 2 project has encountered substantial hurdles following the imposition of U.S. sanctions in late 2023. These sanctions prompted foreign stakeholders, including TotalEnergies, to suspend their involvement. TotalEnergies has already suffered significant financial setbacks, recording billions in losses tied to its Russian energy investments since the onset of the Ukraine conflict.
Aside from TotalEnergies, other international entities hold stakes in Arctic LNG 2. Notably, Chinese energy companies and a Japanese consortium each own a 10% share of the project. These foreign shareholders face an uncertain future as international sanctions continue to shape the landscape of Russian energy endeavors.
This move by Russia underscores its strategy to tighten domestic control over key energy assets amid ongoing international sanctions that limit foreign participation in the country’s energy sector. Analysts are keenly observing the potential impact of stricter European restrictions on Russian gas imports, which could further influence foreign investment decisions in other Russian LNG projects.