TotalEnergies Exits Arctic LNG 2: Full Timeline of Sanctions, Presidential Decree, and CEO Confirmation

Russian Presidential Decree (June 3, 2026)

On June 3, 2026, Russian President Vladimir Putin signed an executive order authorizing TotalEnergies to sell its 10% stake in Arctic LNG 2 to NordLine LLC, a newly established subsidiary of Novatek (which already held 60% of the project) . The decree allowed NordLine to complete a transaction to acquire the 10% interest held by TotalEnergies EP Salmanov (the French group's Russian entity) . At the time of the decree, TotalEnergies did not publicly comment on the move . The decree did not disclose the terms of the deal .

NordLine was established in 2025, according to information from a Russian corporate registry .

CEO Announcement During Q2 2026 Earnings (July 23, 2026)

On July 23, 2026, during TotalEnergies' second-quarter financial results call, CEO Patrick Pouyanné officially confirmed the company's exit from Arctic LNG 2 . He stated that TotalEnergies would transfer its 10% stake to NordLine and that the sale was expected to be completed "in the short term" . The transfer had already been authorized by the Russian authorities in June, Pouyanné noted .

Resulting Ownership Structure

After the sale, Novatek (through its subsidiary NordLine) now holds the 10% that TotalEnergies previously owned, increasing Novatek's effective control of Arctic LNG 2 to 70% . Other shareholders include China's CNPC and CNOOC (each 10%), and a Japan consortium (Mitsui/JOGMEC, 10%) — though all have been similarly constrained by sanctions .

TotalEnergies still retains indirect exposure to Arctic LNG 2 through its 19.4% stake in Novatek itself .

TotalEnergies' Q2 2026 Financial Results

Despite the exit and broader LNG headwinds, TotalEnergies reported strong Q2 2026 results on July 23, 2026 :

• Adjusted net income: $6 billion for Q2 2026 .
• Cash flow: $9.8 billion in Q2 2026, up nearly 15% from Q1 .
• Adjusted earnings per share: $2.68 (below analyst consensus of $2.90) .
• Revenue: $57.33 billion, beating estimates .
• Dividend: Interim quarterly dividend increased by 5.9% to €0.90 per share .

Note on the 39% decline in integrated LNG segment income: The search results confirm the $6 billion adjusted net income and $9.8 billion cash flow figures, and the earnings release notes strong performance in oil, refining, and power markets offsetting weakness elsewhere . However, the specific figure of a 39% decline in integrated LNG segment income was not found in the available search results. That data point could not be independently verified from the sources gathered here.

Key Takeaways

• TotalEnergies' exit took over three years from the initial $4.1 billion write-down in 2022 to the final authorization in mid-2026.
• The Russian presidential decree was a necessary step under Russian law for foreign divestment from sanctioned strategic assets.
• Novatek now controls 70% of Arctic LNG 2, with Chinese and Japanese partners holding the remaining 30%.
• TotalEnergies retains indirect exposure through its 19.4% stake in Novatek.
• The exit came amid strong overall Q2 2026 financial performance for TotalEnergies, driven by high commodity prices.