Despite pressure from Le Maire, TotalEnergies continues to be a shareholder of Novatek in Russia

Doctrine “Business as usual” He led the wings when the bomb fell on the citizens. At FranceInfo this morning, Minister of Economy Bruno Le Maire spotlighted France’s two major energy suppliers, TotalEnergies and Engie, and pointed out the ethical issues of maintaining trade relations with Russia. .. .. Of particular concern are the continued participation of Russian companies in capital, the pursuit of investment programs, and the industrial cooperation with these companies not only internationally but also in Russian territory, with the Western camp being Russia. It is trying to paralyze the economy.

Collective action to participate in Russia’s containment

At France Info this morning, Bruno Le Mer clearly questioned the activities of the French giants TotalEnergies and Engie in Russia and are now “The question of the principle of cooperating with political or economic figures close to Russian power”..

“I will discuss it the Total Chairman, Patrick Pouyann, Managing Directorthe Engie’s Katherine MacGregor “, the French Minister of Economy of Franceinfo.

Therefore, French executives seem to be asking key businessmen to join the near-global movement to contain Russia. This includes the active participation of all banks and financial professionals. Russia from the Swift system) as well as industrial ones.

The Minister of Economy, with these two major energy companies “We can make decisions together in the next few days.”Emphasize “A keen awareness of the seriousness of the situation” This theme was presented by Patrick Pouyann, president of the French group.

Very quickly, at the end of the morning, the French oil group informed it by a press release and a tweet (below). “He no longer funds a new project in Russia” In the war with Ukraine.

At the beginning of this short but powerful five-paragraph statement, a French oil company “Condemns Russia’s military aggression against Ukraine, which has tragic consequences for the people and threatens Europe.”..

At the humanitarian level, The group also guarantees it will “We will fuel Ukrainian authorities and mobilize to support Ukrainian refugees in Europe.”

By taking the points home, TotalEnergies affirms Approval “Scope and strength of European sanctions” she is “Implement them regardless of their impact on wealth management in Russia (under evaluation).”

In fact, Patrick Puyanne said last week in this regard that his group took on the geopolitical risks inherent in international activities and knew how to manage them when they occurred, Russia’s global income. I recalled that it occupies 3% to 5% of. Of TotalEnergies.

Ukraine: According to Pouyanné (TotalEnergies), it is impossible today without Russian gas

The only drawback of this statement is in the conclusion: this fifth paragraph that must be read accurately:

“TotalEnergies will no longer fund new projects in Russia. »»

This means that multinational oil companies will not withdraw from the projects they are currently investing in.

Where TotalEnergies remains committed in Russia

So, recall the project that TotalEnergies is currently investing in.

TotalEnergies is a 19.4% shareholder of the giant Novatek, the second largest shareholder in Russian gas, and a 20% stake. Yamaru LNG, A project that started at the end of 2017 and produced more than 18 million tons of liquefied natural gas (LNG) in 2020. The group also holds a 10% stake in Arctic LNG 2, a project for which the first delivery of LNG is planned. 2023. Overall, taking into account Novatek’s own stock, TotalEnergies 29.7% of Yamaru LNG,and 21.64% for Artic LNG2.

Ukraine: Towards a European embargo on Russian gas?

Overall, Russia accounted for 16.6% of TotalEnergies’ annual liquid and natural gas production in 2020, according to the 2020 registration document.

Bruno Le Maire also mentioned at franceinfo this morning the case of Engie, a partner of the NordStream 2 gas pipeline, whose test run was suspended by Germany, but a French group invested in a “loan” for the project.

Would you like to leave or stay in Russia?Dramatic tanker

Still, TotalEnergies seems to be a bit off compared to other oil majors such as British Shell and BP, as well as other manufacturers that have decided to break their ties with Russia.

Sunday, the fourth day of Russia’s invasion of Ukraine, BP (Former British Petroleum) announced that it will withdraw Russia’s second largest oil producer after Gazprom Russian giant RosneftIt holds shares in 19.75%, She splits a press release accusing her of “aggression with tragic consequences for the entire region.”

The next day, Monday, another oil giant-and his compatriots-British shell Following in his footsteps, he announced that he had separated from his stock in several joint projects with a Russian group. Gazprom In Russia including its participation (joint venture) To gas project Sakhalin-2 In the Russian Far East, and so Salim Oil, Western Siberia.MeShell’s shares in the two Sakhalin-II projects were worth approximately $ 3 billion at the end of 2021 and generated an adjusted return of $ 700 million... Shell has also invested in the Nord Stream 2 gas pipeline, which will also be discharged now.

“Our decision to resign is confident,” said Ben van Baden, managing director of Shell, in a press release sent to the London Stock Exchange and quoted by the Canadian daily La Presse. I was. ” “We are shocked by the loss of life in Ukraine we mourn as a result of a pointless military aggression that threatens Europe’s security,” he said.

See you yesterday EquinorNorwegian oil and wind energy company (by the way, the largest Norwegian company with about 29,000 employees), Announced the end of investment in Russia and the withdrawal from the joint venture in Russia. FIn 2021, the Norwegian oil company has $ 1.2 billion in assets in Russia and has partnered with the state-owned oil company Rosneft since 2012... Equinor is 67% dominated by the Norwegian state, and its sovereign wealth fund also freezes investment in Russia.

Nevertheless, “It’s very difficult for a company operating in Russia to quit right now.”A summary of AFP Guntram Wolff, director of the think tank Bruegel in Brussels.

Particular attention should be paid to BP and shell. Unlike TotalEnergies, which has a partnership with a private company (Novatek), BP and Shell are engaged in companies belonging to the Russian state-emergency situations are not exactly the same.

The list of oil companies engaged in Russia is long: as an example, we can mention Americans Exon Or Norwegian Equinor Engaged in a joint venture with the Russian company Rosneft.

War in Ukraine: These French companies trapped in Russia

Stock market does not appreciate

Don’t forget the investor reaction: BPMonday, the day after the announcement, Me’BP stock Greenwich Mean Time around 11:00 -5.57% To 357.40p, which represents a decrease in market capitalization of over £ 4 billion.

On his side RosneftPart of its capital is also listed on the UK market -41.37% For $ 2.74.

Continued: A meeting between Bruno Le Mer and Patrick Puyanne this afternoon.

(Using AFP and Reuters)