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

TotalEnergies had already written off $4.1 billion in Russian assets in 2022, primarily reflecting its Arctic LNG 2 stake, and declared force majeure on the project after Western sanctions made construction, financing, and offtake agreements impossible .

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.