Rabat – French energy company TotalEnergy announced today selling off its stakes in Russia’s energy giant Novatek.
TotalEnergies said that it sold off its 19.4% shares in Novatek at a price of $3.7 billion, according to converging news reports.
In addition, the French company explained that it will withdraw its two officials on Novatek’s board “with immediate effect.” Revenue from the company’s Novatek investment will no longer be included in the company’s financial report.
According to a report from Politico, the decision to exit Novatek will negatively impact TotalEnergies’s reserves, bringing them down by 1.7 billion barrels.
“In view of the European sanctions in force since the beginning of the war, the two directors representing TotalEnergies on the board of directors of Novatek are led to abstain from voting in meetings of the board of directors of this company, in particular on financial matters,” the company said in a statement.
It added: “Under these circumstances, the Board of Directors of TotalEnergies has decided to withdraw the representatives of the Company from the board of PAO Novatek with immediate effect.” TotalEnergies has faced significant backlash as media reports alleged that its operations in Russia are fueling the country’s war machine in Ukraine. The company spoke out against these allegations, maintaining that it is not involved in the kerosine-producing regions used to supply Russian troops.
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