Putin Approves Sale of TotalEnergies’ Stake in US-Sanctioned LNG Project

With an annual dividend yield of 4.76%, TotalEnergies SE (NYSE:TTE) is included among the 10 High Yield Crude Oil Stocks to Buy Now.

TotalEnergies SE (NYSE:TTE) is a global integrated energy company that produces and markets energies.

A Bloomberg report on June 3 revealed that the Russian President Vladimir Putin has approved the sale of TotalEnergies’ 10% stake in the US-sanctioned Arctic LNG 2 project. The $21 billion project was sanctioned in late 2023 in an effort to curb the Kremlin’s ability to expand its LNG exports, prompting the French energy major to declare force majeure on LNG ​offtake contracts⁠ in 2024.

However, the facility began shipping the super-chilled fuel via Russia’s shadow fleet vessels and has slowly ramped up production. If completed, Total’s stake will be transferred to a company called Nordline LLC, consolidating Russia’s hold over its largest LNG export project by capacity. However, despite the sale, TotalEnergies will still retain indirect exposure to Arctic LNG 2 through its stake in Novatek.

While TotalEnergies SE (NYSE:TTE) declined to issue a comment on the sale, it marks a rare approval by the Putin administration to allow a company to exit a project strangled by Western restrictions.

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