“We never said we would stay in Russia,” says TotalEnergies

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published on Thursday, April 28, 2022 at 5:45 p.m.

“Our business in Russia is essentially revolving around LNG from Yamal LNG. The volume of this contract is huge, it represents a lot of money and we have to honor it as much as the sanctions allow,” said TotalEnergies CEO Patrick Pouyanné. on Thursday 28 April.

This Thursday, April 28, TotalEnergies CEO Patrick Pouyanné explained his stay in Russia despite sanctions following the attack in Ukraine.

“We never said we would stay in Russia, we just did not do it do not say we will leave, is a little different “, he said in a conversation with economic analysts on the occasion of the publication of the results of the first quarter.
She also said that if she had to leave, her company could find substitutes for liquefied natural gas (LNG) from Siberia.

From now on, “our business in Russia is essentially revolving around LNG from Yamal LNG. The volume of this contract is huge, it represents a lot of money and we have to honor it if our sanctions allow it. And if that’s not possible, then we will act “accordingly, he added. The group had already announced the previous day that it was depreciating its assets in Arctic LNG 2, abandoning this gas project under construction due to the severity of EU sanctions against Moscow.

“It’s hard to believe it could be built because of the sanctions,” he added on Thursday. “We are looking at it step by step what are the sanctions, “What could they be and so we came to the conclusion about Arctic 2 and other assets,” he explained. The CEO of the French giant thus reported the cessation of production of lubricants in Russia “until the end of the month” and this, due to lack of additives, blocked by sanctions. “We are studying (the case) other assets,” he added.

Withdrawal from Russia is “a possible scenario”

“The Board decided to approach the Russian situation responsibly, in particular to try protecting the value of assets as much as possible, in the interest of our shareholders, “he said, stressing the importance of Yamal, a 20%-owned Siberian-owned plant. “Russia’s exposure to LNG terms for our portfolio, c is Yamal LNG” and 4 to 5 million tonnes, “said Patrick Pouyanné. But “can we find other opportunities to replace these tumors? “I think the answer is quite clear: yes,” he added. “We already have assets to develop,” he continued.

“And you could have it in a few weeks other announcements explaining to you how to replace them (…). “I do not expect a break in our LNG growth profile, even if we leave Russia altogether, which is not the case today (the case), but it is a possible scenario.”

intense critisism

TotalEnergies had distanced itself from Russia, strategic country for him, announcing in March refuse any purchase oil, diesel and petroleum products by the end of the year at the latest. He had also announced that he would no longer provide funds for new projects there. However, it has not withdrawn from this country in which it has settled since the early 1990s, where it produces 16.6% of its hydrocarbons and even 30% for natural gas alone.

The group belonged to strong criticism for its maintenance, who was then environmental candidate for the presidency Yannick Jadot still having accused of “conspiracy to commit war crimes”. The multinational had previously announced lawsuits for defamation.

The group has also been made public undertaken by investor Clearway Capital to ask it to cease its activities in Russia or to consult its shareholders for its continuation in the country.

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