France says decision on TotalEnergies' Russian business within days
France and TotalEnergies should make a decision on the future of the oil major's business in Russia within days, French finance minister Bruno Le Maire said on France Info radio on March 1.
BP, Equinor and Shell have all announced plans to withdraw from the Russian oil and gas industry, and pressure is building on remaining international oil companies working in the country to depart. Financial group Morningstar recently flagged TotalEnergies along with BP as the majors with the greatest exposure to Russia.
TotalEnergies holds a 19.4% stake in Russia's top LNG exporter Novatek and is an investor in the company's Yamal LNG, Arctic LNG-2 and Terneftegas projects. It also has a 20% interest in the Zarubezhneft-operated Kharyaga oilfield.
"There is a question of principles," Le Maire said, noting he would discuss Russia with the heads of both TotalEnergies and French energy firm Engie. The latter is a supporter of Gazprom's now-halted Nord Stream 2 gas pipeline project.
On February 24, the day that war broke out in Ukraine, TotalEnergies CEO Patrick Pouyanne appeared to rule out any immediate action. He said he was "convinced the Russians don't want to use gas as a weapon in the dispute."
"We recently took a stance against Myanmar. We exited Myanmar, but people were criticising us – why didn't we do it immediately," he said at International Energy Week. "But you know in life you need to take time [to see] what exactly will happen. I think it is premature to make this type of conclusion."
TotalEnergies' departure from Russia would draw a line under more than 25 years it has been working in the country. Morningstar estimates that the company's stake in Novatek accounts for 5% of its global oil and 30% of its gas production. Over the past three years, Russian output has generated 7% of TotalEnergies' operating cash flow, the financial firm said.
Given the collapse of ruble and Russian stocks over the past week, TotalEnergies' shareholding in Novatek is now worth much less. From around $215 in mid-February, its shares are now worth less than $30. As such, Morningstar now values TotalEnergies' stake in the company at only $2.1bn, versus $13.1bn at the start of the year.