“There is now a problem of principle in working with any political or economic figure close to Russian power”, estimated Bruno Le Maire on Tuesday March 1 on franceinfo, about the activities of TotalEnergies and Engie in Russia. While many economic sanctions have been decided by the European Union, the Minister of the Economy has indicated that he will “to discuss” with the leaders of the two French groups. “It is European freedom that is under attack, a sovereign nation that is under attack and threatened by Vladimir Putin”he justified in view of the Russian invasion of Ukraine.
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TotalEnergies is notably a 19.4% shareholder in the Novatek group, a private Russian gas group headed by an oligarch, Leonid Mikhelson, who appears on the list of personalities sanctioned by Europe. “All this did not escape me”reacted Bruno Le Maire who wishes “before announcing a decision, discuss with the first interested party”, the president of TotalEnergie, Patrick Pouyanné. According to the Minister of the Economy, this is “perfectly aware of the seriousness of the situation, of the problem of principle that this poses and I think that we will be able to make decisions together in the days to come”.
Should Total and Engie withdraw from Russia? ➡️ “I will discuss it with the directions. I believe that there is now a problem of principle in working with any political or economic personality close to the Russian authorities,” said the Minister of the Economy. pic.twitter.com/dZqzJ53za9
— franceinfo (@franceinfo) March 1, 2022
The Engie group is also linked to Russia. He converted into a loan the shares he held in the NordStream 2 gas pipeline project, the commissioning of which has been suspended by Germany, and Bruno Le Maire considered that “it was a bit different”.
Shortly after the declarations of the Minister of the Economy on franceinfo, TotalEnergies announced that“he will no longer provide capital for new projects in Russia”, without withdrawing from the projects in which it is currently invested. TotalEnergies says “approve the scope and strength of the sanctions put in place by Europe and will implement them regardless of the consequences (being assessed) on the management of its assets in Russia”. In 2020, Russia accounted for 16.6% of TotalEnergies’ annual liquids and natural gas production, according to its 2020 registration document.
Other oil majors, such as the British Shell and BP, have announced that they are withdrawing from their projects in Russia and selling the shares of Russian companies that they hold.