The Russian bill is salty for TotalEnergies. The French group announced early Wednesday evening a depreciation of assets of 4.1 billion dollars concerning in particular the liquefied gas project Arctic LNG 2 made uncertain by the sanctions against Russia. This is a little less than its rival Shell ($5 billion).
The “new bans pose additional risks to the execution capacity of the Arctic LNG 2 project. As a result, TotalEnergies has decided to provision as of March 31 an amount of 4.1 billion dollars relating in particular to Arctic LNG 2”, indicates the group in a press release, thus signaling “the beginning of a decline”, according to a spokesperson.
On March 22, the tricolor hydrocarbons group had already decided to no longer register proven reserves for Arctic LNG 2, “given the uncertainties posed by the technological and financial sanctions on the ability to carry out the current project. of construction”. But since that date, April 8, “new sanctions have actually been adopted by the European authorities, prohibiting in particular the export from the territory of the European Union of goods and technologies intended for the liquefaction of natural gas for the benefit of a Russian company”, notes the oil company on Wednesday.
“TotalEnergies draws the consequences of what is happening. This provision of 4 billion shows that TotalEnergies has started to turn the page”, indicates the spokesperson.
This project, of which it owns 10%, was to make its first delivery of liquefied gas (LNG) in 2023.
Renault sells its stake in AvtoVAZ
This announcement comes as another French flagship is paying the price for its strong presence in Russia. This is Renault. The automotive group is indeed in negotiations to sell its stake in the Russian car manufacturer AvtoVAZ to a Russian scientific institute specializing in the automobile, announced the Russian Minister of Trade and Industry, Denis Mantourov.
According to the latter, quoted by Russian press agencies on the sidelines of a trip to Tashkent (Uzbekistan), the transaction would be for “a symbolic rouble” and would also concern the factory of the French group near Moscow, which produces cars Nissan and Renault.
“It will most likely be our central institute, NAMI, which will take over the shares,” added Denis Mantourov, adding that Renault will have a “five or six-year option, a period during which they can decide to buy back” their shares. .
Renault controls 68% of AvtoVAZ, the first Russian manufacturer which notably produces Lada cars, the leading brand on the Russian market. According to Dennis. Mantourov, the future director of Avtovaz, will be appointed by the NAMI, in collaboration with the Russian military-industrial conglomerate Rostec, the other shareholder of AvtoVAZ.
Russia is the Renault group’s second largest market in the world behind Europe, with nearly 500,000 vehicles sold in 2021, but the group’s presence in the country has been complicated since the launch of a Russian military operation in Ukraine on 24 february. Renault has been targeted by the Ukrainian authorities for its activities in Russia and the group is facing, like others, logistical problems due to a shortage of imported components caused by Western sanctions, putting the group’s factories almost at risk. ‘stop.