TotalEnergies CEO: Up to $2 billion in Russia still stuck

Patrick Pouyanne, CEO of TotalEnergies, told analysts that the French oil giant's stakes in Russian gas company Novatek and its Yamal LNG project in Russia generate between $1.5 and $2 billion annually in dividends.

Pouyanne stated that although the company was able to move some money out of Russia in the early stages of Russia's invasion of Ukraine, "today there is little or nothing coming" because of the Western sanctions against Moscow.

TotalEnergies has 19.4% ownership of Novatek. It cannot sell it because Gennady Timothy, a Russian billionaire sanctioned by the United States and other countries, has a first right of refusal.

The French company also owns a 20% stake directly in Yamal, Russia’s largest LNG export project. Novatek is the majority owner. The European Union does not sanction Russian LNG at this time.

Pouyanne stated that "dividends from Novatek represent about $600,000,000 per year or more -- most of them are still on Novatek's accounts... it represents around $1 billion or more."

He added, "Then there are the Yamal dividends... That's probably another 500 million. So by the end the year, $1.5 to 2 billion in cash dividends will be (trapped) someplace."

TotalEnergies does not include its Russia holdings as part of its financial statements. (Reporting and writing by America Hernandez, Dominique Patton, Jason Neely & Mark Potter; editing by Jason Neely & Mark Potter)

(source: Reuters)