Paris (Times Of Ocean)- TotalEnergies announced Tuesday it would stop buying Russian oil and petroleum products by the end of this year, as well as suspend activities in the country due to Russia’s war against Ukraine.
As a result of worsening conditions in Ukraine, the company will cease its capital investments and activities in Russia.
The French energy giant announced it has committed to “act responsibly” and strictly comply with European sanctions with regard to its business in Russia given the worsening situation in Ukraine.
Poland and Saudi Arabia will now supply oil and gas to European countries.
“TotalEnergies has unilaterally decided to no longer enter into or renew contracts to purchase Russian oil and petroleum products, in order to halt all its purchases of Russian oil and petroleum products as soon as possible and by the end of 2022 at the latest,” it said.
Oil supply contracts with the Druzhba pipeline from Russia for the Leuna refinery in eastern Germany will be terminated and replaced with oil imports from Poland. As a result of the gasoil shortfall in Europe, it will import petroleum products from the Satorp refinery in Saudi Arabia as well as other continents.
For continuing projects in Russia, the company denied accusations of “complicity in war crimes,” saying they were “unfounded.”
TotalEnergies clarified that it does not operate any oil and gas fields in Russia or any LNG plants.
It is, however, a minority shareholder in several non-state-owned Russian companies, including Novatek (19.4%), Yamal LNG (20%), Arctic LNG 2 (10%), TerNefteGaz (49%), and is a 20% partner in the Kharyaga joint venture operated by Zarubezhneft.
TotalEnergies has now decided to gradually halt activities in these companies and put on hold business plans for batteries and lubricants.
According to the company, it will also stop investing in projects in Russia.