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French TotalEnergies abandons oil supply contracts in Russia

FILE PHOTO: The logo of the French oil and gas company TotalEnergies is displayed at an electric car charging station and gas station in the economic and business district of La Defense in Courbevoie near Paris, France, June 22, 2021. REUTERS / G

March 22, 2022

By Geert De Clercq and Shadia Nasralla

PARIS / LONDON (Reuters) – French oil company TotalEnergies said on Tuesday it would not renew Russian and crude oil supply contracts for the German refinery, but would supply oil from Saudi Arabia and Saudi Arabia.

The company, with stakes in many Russian projects, has come under fire for ceasing to compete with Shell’s competitors. and BP in planning the sale of oil and gas assets in Russia.

European sanctions and Russian laws controlling foreign investment prevent TotalEnergies from finding a non-Russian buyer for its assets, he said. “The abandonment of these interests without consideration will enrich Russian investors, contrary to the purpose of sanctions.”

TotalEnergies aims to meet 10% of global LNG markets by 2025 with 50 million tonnes per year. Russia is a key source, through the Yamal LNG project and the Arctic LNG 2 project, which is not yet operational.

The French company said that “it will no longer record proven stocks for Arctic LNG 2 in its accounts and will not provide any other funds for this project.” He did not immediately respond to a request for comment.

BP faces $ 25 billion write-offs for exit from Russia and Shell over $ 3 billion.

DROUZBA EXIT

TotalEnergies said on Tuesday it would not renew contracts to supply 240,000 barrels a day of crude oil to the Leuna refinery in Germany, which is supplied with Russian oil via the Druzhba pipeline.

Leuna, far from German ports near the city of Leipzig, will be supplied with oil via Poland, although TotalEnergies’ statement was unclear about the source.

Having already stopped spot purchases of Russian fuel, TotalEnergies said the termination of its longer-term contract supplies from Russia meant that the last crude and petroleum products would be imported by the end of this year.

TotalEnergies said that in line with European Union decisions to keep Russian gas supplies at this stage, it would continue to supply Europe with liquefied natural gas from the Yamal plant if European governments deem Russian gas necessary.

(Report by GV De Clercq and Shadia Nasralla, additional by Benjamin Mallet, Edited by Jane Merriman, Jan Harvey, Paul Simao and Richard Chang)



French TotalEnergies abandons oil supply contracts in Russia

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