TotalEnergies records $4.1 bln impairment, mainly on Arctic LNG 2; sees further risks from new sanctions

MOSCOW. April 28 (Interfax) - TotalEnergies has decided to record an impairment of $4.1 billion in its accounts as of March 31, 2022, primarily concerning the Arctic LNG 2 project in Russia, the French energy company reported.

TotalEnergies recalled that on March 22 it announced that, given the uncertainty created by the technological and financial sanctions on the ability to carry out the Arctic LNG 2 project currently under construction and their probable tightening with the worsening conflict in Ukraine, the company had decided to no longer book proved reserves for the Arctic LNG 2 project.

"Since then, on April 8th, new sanctions have effectively been adopted by the European authorities, notably prohibiting export from European Union countries of goods and technology for use in the liquefaction of natural gas benefitting a Russian company. It appears that these new prohibitions constitute additional risks on the execution of the Arctic LNG 2 project," TotalEnergies said.