Despite condemning the Russian-Ukrainian war, which it called Moscow's military aggression, TotalEnergies announced Tuesday that it will continue its operations in Russia, and will "no longer provide capital for new projects."
"TotalEnergies supports the scope and strength of the sanctions applied by Europe and will implement them regardless of the consequences (currently being assessed) on its activities in Russia," reads a company statement quoted by Reuters.
The continuity of its work in Russia and an attitude contrary to the decision of the European oil giants, namely the German, Shell and the British, British Petroleum (BP), which announced the abandonment of their joint ventures in Russia.
The French oil major holds a 19.4% stake in Novatek, Russia's second largest natural gas producer and the seventh largest publicly traded company in the world by volume of natural gas production.
Russia constituted 24% of TotalEnergies' proven reserves and 17% of its oil and gas production in 2020.
BP and Shell's decisions have piled pressure on Western companies with stakes in Russia.
Total's decision could lead to retaliation from investors. For example, Italy may suspend financing of the $21 billion Arctic LNG project, in which the French company has a direct stake of 10% and Novatek has a stake of 60%.
French President Emmanuel Macron's office declined to comment on TotalEnergies' position.
In addition to its stake in Novatek, the French company also has a 20% stake in the Yamal LNG project, as well as a 10% stake in the Arctic LNG 2 project, which is expected to start production next year.
The Yamal LNG project in northern Russia started production in late 2017.
"TotalEnergies is more closely aligned than its peers, given that it includes combining Novatek's stake, operational projects like Yamal and projects under construction like Arctic LNG 2. It would be a more complex process than for BP, and that's not exactly straightforward either," said RBC analyst Biraj Borkhataria.
TotalEnergies said it was mobilized to provide fuel to the Ukrainian authorities and aid to Ukrainian refugees in Europe.