Russian President Vladimir Putin has approved the transfer of a 10% stake in the Arctic LNG 2 project, owned by French energy giant TotalEnergies, to NordLine, a subsidiary of Russian gas producer Novatek. This major liquefied natural gas development, situated in northern Siberia, will see NordLine increasing its ownership, as Novatek already controls 60% of the project. The financial specifics of this transaction have not been disclosed.
The Arctic LNG 2 project has encountered significant hurdles following the imposition of U.S. sanctions in late 2023. These sanctions led foreign shareholders, including TotalEnergies, to halt their involvement. TotalEnergies has already faced substantial financial losses, amounting to billions of dollars, due to its investments in Russia’s energy sector amid the ongoing conflict in Ukraine.
Other foreign stakeholders in the Arctic LNG 2 project consist of Chinese energy firms and a Japanese consortium, each holding a 10% share. This shift in ownership underscores Russia’s strategy to strengthen domestic control over key energy assets, particularly as international sanctions continue to impact foreign participation in the country’s energy ventures.
The development is being closely watched by analysts who are assessing the potential impact on foreign investments in other Russian LNG projects. This comes as Europe is increasingly gravitating towards stricter regulations on Russian gas imports, which could further influence the dynamics of international involvement in Russia’s energy landscape.