MOSCOW (MRC) -- TotalEnergies condemned what it called Moscow's military aggression in Ukraine but stopped short on Tuesday of joining rivals Shell and BP in planning to exit positions in resource-rich Russia, reported Reuters.
The French oil major, which holds a 19.4% stake in Novatek, Russia's largest producer of liquefied natural gas, said it "will no longer provide capital for new projects in Russia".
"TotalEnergies supports the scope and strength of the sanctions put in place by Europe and will implement them regardless of the consequences (currently being assessed) on its activities in Russia," it said in a statement.
"We are somewhat surprised that TTE didn't follow Shell and BP and signal intentions to exit Russia," said RBC equity analyst Biraj Borkhataria.
TotalEnergies announced in January it was pulling out of Myanmar almost a year after a coup there. In 2018 it had to drop its involvement in Iran's South Pars gas field after it failed to receive sanctions waivers for the project.
Earlier, French Finance Minister Bruno Le Maire had said he would be holding discussions with the heads of TotalEnergies and energy company Engie about their business interests in Russia.
"I believe there is a question of principle in working with any political or financial person close to Russian power," Le Maire told France Info radio.
Russia constituted 24% of TotalEnergies proven reserves and 17% of its oil and gas production in 2020. The Yamal LNG project in northern Russia launched production in late 2017.
As MRC informed previously, Total Petrochemicals and Refining USA, the US petrochemical major and part of TotalEnergies, restarted all of its three polypropylene (PP) units in La Porte as of 17 June 2021. At the same time, the force majeure (FM) at this plant with an annual capacity of 1.15 million tons/year remains in place as the company attempts to stabilize operating rates and build inventories ahead of the hurricane season. Previously, Total Petrochemical declared FM on its PP output after an abrupt loss of electricity supply during a severe weather condition on 18 May, 2021.
According to MRC's ScanPlast report, PP shipments to the Russian market totalled 1,494.280 tonnes, up by 21% year on year. Deliveries of homopolymer PP and PP block copolymers increased, whreas.shipments of PP random copolymers decreased significantly.
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