TotalEnergies explains principles of conduct in Russia

TotalEnergies will share with its stakeholders the principles of conduct in conducting activities related to Russia and we will act responsibly after expressing serious and unfounded condemnation of “accomplices to war crimes”. To help you understand how. In the face of exacerbation of the conflict, TotalEnergies is also taking additional steps.
TotalEnergies reaffirms the strongest condemnation of Russia’s military aggression against Ukraine. This has tragic consequences for the Ukrainian people and threatens peace in Europe.

TotalEnergies, as a European company, defines clear principles of conduct for managing activities related to Russia in accordance with its values, in order to act responsibly.
-Whatever the outcome of wealth management in Russia, we will strictly adhere to current and future European sanctions, phase out activities in Russia and ensure the safety of our staff.
TotalEnergies recalls that Russia does not operate oil, gas or liquefied natural gas (LNG) plants, contrary to the ideas expressed by several commentators.
TotalEnergies is a minority shareholder of various Russian private companies, Novatek (19.4%), Yamal LNG (20%), Arctic LNG 2 (10%), TerNefteGaz (49%), and these companies are the number of TotalEnergies. Is managed by a limited number of unique staff. job assignment system. TotalEnergies is also a 20% partner of JV Kharyaga operated by Zarubezhneft. We have certainly contributed to the construction stage of these companies’ projects, but we are not responsible for the activities or operations of these sites.
As of February 24, 2022, TotalEnergies has only 11 employees seconded to these various companies and currently only three expatriates seconded to Russia. In this way, TotalEnergies has phased out its activities in Russia while ensuring the safety of the team. In the same spirit, TotalEnergies has decided to suspend commercial development in the field of batteries and lubricants in Russia.

-No longer funding for project development in Russia.
In particular, with regard to the Arctic LNG 2 project, the uncertainty posed by technical and financial sanctions on the ability to carry out the Arctic LNG 2 project under construction and the potential for increased power in the face of exacerbation of conflict. Given that, TotalEnergies SE has decided not to record confirmed reserves in the account for this Arctic LNG2 project and has stopped providing capital to the project.

-Do not reverse the purpose of sanctions against Russia. Do not excessively transfer value to Russian interests by withdrawing assets.
The current situation of European sanctions and Russian law regulating foreign investment in Russia will prevent TotalEnergies from finding non-Russian buyers to take over Russia’s minority stake. Therefore, abandoning these holdings without financial compensation would contribute to the enrichment of Russian investors, inconsistent with the very purpose of the sanctions. In addition, even if TotalEnergies abandons the holding company, which is a minority shareholder, the company has its own staff and is operated independently, so it will not affect the operation of the company and the profitability. There is none.
-Contribute to ensuring the security of the energy supply of the European continent within the framework defined by the European authorities.

TotalEnergies is an energy company on the continent of Europe and must contribute to the security of the supply of the continent of Europe, which does not have the same domestic resources as other Western countries such as the United Kingdom and the United States.
Following the European Union’s decision to maintain Russia’s gas supply at this stage, TotalEnergies will supply Europe with liquefied natural gas from the Yamal LNG plant under long-term contract terms that the government must respect as far as the government considers. continue. I need that Russian gas. In contrast to oil supply, Europe’s gas logistics capacity seems to make it difficult to do without Russia’s gas within a few years without affecting the continent’s energy supply.

However, given the worsening situation in Ukraine and the existence of alternative sources to supply Europe, TotalEnergies has signed a purchase agreement for Russian oil and petroleum products to stop all purchases in Russia. We are unilaterally deciding not to renew. Petroleum or petroleum products, as soon as possible, by the end of 2022 at the latest.

TotalEnergies has already announced that it has abandoned all trading operations in Russia’s oil or petroleum-related spot markets since February 25, 2022. This also applies to spot trading on natural gas or Russian LNG.

TotalEnergies has a forward contract for the purchase of Russian oil and petroleum products with a maximum maturity of 31 December 2022. The main purpose of these forward contracts is the Druzhba pipeline from Russia, located in eastern Germany. They are also related to the European diesel supply that is lacking in this product (about 12% of Russia’s diesel imports in Europe in 2021).

TotalEnergies, in close consultation with the German government, will end the refinery’s Russian oil supply contract as soon as possible, by the end of 2022 at the latest, and implement an alternative solution, especially by importing oil via Poland. .. Already, the first contract will not be renewed at the end of March 2022.

For diesels that are in the red in Europe, TotalEnergies will terminate Russia’s diesel purchase contracts as soon as possible, by the end of 2022 at the latest, unless instructed by the European government. TotalEnergies mobilizes product oils from other continents. In particular, the share of diesel produced at the Saudi Arabia Satorup refinery.