TotalEnergies removing its representatives from Novatek's board of directors, recognizes $3.7 bln impairment

MOSCOW. Dec 9 (Interfax) - France's TotalEnergies is withdrawing its representatives from the board of directors of Novatek , where it owns a 19.4% stake, while recording an impairment of $3.7 billion for the stake in the fourth quarter of 2022, the company said in a press release posted on its website.

"TotalEnergies holds a 19.4% stake in the company Novatek, a stake that it cannot sell given the prevailing shareholders' agreements, as it is forbidden for TotalEnergies to sell any asset to one of Novatek's main shareholders who is under sanction," according to the press release.

"In view of the European sanctions in force (...), the two directors representing TotalEnergies on the board of directors of Novatek are led to abstain from voting at meetings of the board of directors of the company, in particular on financial matters. They are therefore no longer in a position to carry out their duties fully on the board, which might become an issue for the governance of the company. Under these circumstances, the board of directors of TotalEnergies has decided to withdraw the representatives of the Company from the board of PJSC Novatek with immediate effect," the company said.