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TotalEnergies has pledged to stop buying crude oil and diesel from Russia, in protest against Moscow’s invasion of Ukraine.
The French energy major has ‘unilaterally decided’ not to sign or renew contracts to purchase Russian oil and petroleum products for its German refinery by the end of this year.
The firm plans to instead source crude from Poland, and gasoil from Saudi Arabia.
TotalEnergies plans to keep its stakes in the companies and hydrocarbon projects in Russia.
In a press statement, the company said: “The current environment of European sanctions and Russian laws controlling foreign investments in Russia would prevent TotalEnergies [from finding] a non-Russian buyer for its minority interests, in Russia.
“Abandoning these interests without consideration would enrich Russian investors, in contradiction with the sanctions’ purpose.”
TotalEnergies said that the exit of its minority interests from Russian companies would not impact their operations and revenues.
The firm owns stakes in several non-state-owned Russian companies. These include a 19.4% stake in Novatek, a 20% interest in the Yamal LNG, a 10% stake in Arctic LNG 2, and a 49% interest in TerNefteGaz.
TotalEnergies said: “The company did indeed contribute to the construction phase of these companies’ projects, but has no activity or operational responsibility on those sites.”
The company said it will also not account for proved reserves from the Arctic LNG 2 project, which is still under construction, and will not provide additional capital.
TotalEnergies, together with its partners, is planning to develop gas discoveries in South Africa, reported Bloomberg News, citing its managing director in the country.
Since 2019, the oil major has made gas and condensate discoveries, offshore South Africa. The development would help the country in its transition away from coal, to cleaner energy.
Amid the Russia-Ukraine conflict, Dutch energy company Eneco has also announced its decision not to sign new gas contracts with Russian suppliers, reported Reuters.
Spokesperson Rianne de Voogt said it will not extend current contracts with Russian firms.