TotalEnergies writes down Novatek stake for $3.7 bln
TotalEnergies has held on to several investments in Russia .
PARIS (Reuters) - French oil and gas giant TotalEnergies (TTEF.PA) said on Friday it was withdrawing its two members from Novatek s board and would take a $3.7 billion hit in its fourth-quarter accounts for the write-down of its stake in the Russian company.
Unlike London-based rivals BP and Shell, TotalEnergies has held on to several investments in Russia after the country invaded Ukraine, and faced criticism for doing so.
Among its Russian investments are a 19.4% stake in gas producer Novatek (NVTK.MM) and minority holdings in liquefied natural gas (LNG) projects Yamal LNG and Arctic LNG.
"In view of the European sanctions in force since the beginning of the war, the two directors representing TotalEnergies on the board of directors of Novatek are led to abstain from voting in meetings of the board of directors of this company, in particular on financial matters," a statement from the company said.
"Under these circumstances, the board of directors of TotalEnergies has decided to withdraw the representatives of the company from the board of PAO Novatek with immediate effect."
It said it would also "no longer equity account for its 19.4% stake in Novatek", which in turn will result in TotalEnergies recording an impairment of approximately $3.7 billion in the fourth quarter.