TotalEnergies invokes force majeure over Russia’s sanctioned Arctic LNG

French energy giant TotalEnergies said Tuesday that it had invoked force majeure in relation to its investment in Russia’s Arctic LNG 2 liquefied natural gas project, after Washington hit it with sanctions last year.

The project, controlled by Russian gas company Novatek and designed to tap into the country’s vast Arctic resources, was seen as a flagship example of Moscow’s deepening cooperation with international energy companies.

But unprecedented Western sanctions in response to Moscow’s full-scale military offensive in Ukraine have forced foreign energy majors to write off billions of dollars in Russian assets and leave the country.

The declaration of force majeure by TotalEnergies, the largest foreign investor in Arctic LNG 2, is the latest example of a Western energy company further retreating from Russia.

TotalEnergies told AFP that it had “initiated the force majeure process in accordance with existing contracts”.

Force majeure is a legal clause that allows companies to absolve themselves of contractual obligations based on factors beyond their control.

“Consequently, no offtake of LNG from Arctic LNG 2 by TotalEnergies is planned in 2024,” the company said.

It added it “will comply with applicable sanctions regimes in accordance with our principles of conduct”.