Russian President, Vladimir Putin has signed a decree authorizing the sale of French energy giant TotalEnergies’ 10% stake in the heavily sanctioned Arctic LNG 2 project.
The move marks another step in the restructuring of Russia’s strategic energy assets as Western corporations continue their exit from the country following geopolitical fractures.
The Arctic LNG 2 project, located in the northern Yamal region, was designed to be a flagship liquefied natural gas export facility but has faced severe operational and financial headwinds due to successive waves of international sanctions.
TotalEnergies had previously written down billions of dollars associated with its Russian investments and halted new capital allocations to the venture before pursuing an official divestment route.
Under the newly approved decree, the stake will be transferred to a domestic entity, further consolidating state control over the country’s multi-billion-dollar gas infrastructure.
The transaction underscores Moscow’s broader strategy of rerouting its energy export capabilities toward non-sanctioning nations, particularly in Asia, despite persistent logistical and technology-sharing bottlenecks imposed by Western embargoes.