TotalEnergies remains tight-lipped about Russian approval for Arctic LNG 2 asset sale.

Russian President Putin has given the green light to a key asset transfer involving TotalEnergies, specifically its 10% stake in Arctic LNG 2. According to official documentation, this stake is being transferred to Nordline LLC as per a recent decree.

President Putin has given his approval for TotalEnergies to sell a 10% share in the Arctic LNG 2 project, which is subject to sanctions, to Nordline LLC as per a recent decree made public on Wednesday.

TotalEnergies maintains silence regarding the status of its Arctic LNG 2 asset sale in Russia so far.

Two Russian companies, Nordline LLC, connected to Novatek, the majority owner of Arctic LNG 2, have been identified by as potentially involved in a decree, although it's unclear which entity is being referenced specifically.

A query was sent to Novatek, but no response has been received yet.

Following Russia's 2022 invasion of Ukraine and subsequent Western sanctions, numerous international companies have either divested their Russian holdings or had them confiscated due to asset freezes overseas.

Gazprom's acquisition of a 27.5% stake in Sakhalin II, a Russian LNG project, occurred through a decree in 2024, marking a significant shift from previous ownership by BP (BP.L), which had taken a $1.6 billion impairment earlier on.

Novatek retains TotalEnergies' 19.4% stake, despite the company's decision to sell smaller Russian oil holdings, allowing it to maintain a significant presence in the Yamal LNG project with rising European demand for LNG.

A June 3 decree regarding Arctic LNG 2 was issued without providing information on Nordline's involvement or the proposed agreement's specifics.

TotalEnergies invoked force majeure on its LNG off-take agreements from the project due to US sanctions imposed over Russia's incursion into Ukrainian territory, effective by 2024.

The deal's completion would nonetheless result in TotalEnergies retaining an interest in Arctic LNG 2 via its holding in Novatek.

The remaining stakeholders in this venture comprise Novatek with a 60% share, followed closely by China National Petroleum Corp at 10%, China National Offshore Oil Corp also holding 10%.