TotalEnergies to halt all Russian oil purchases by year-end

Mar 22, 2022, 11:56 AM | Updated: 12:45 pm

PARIS (AP) — French energy giant TotalEnergies said Tuesday it has decided to halt all its purchases of Russian oil and petroleum products by the end of the year at the latest.

The French company said in a statement that it will “gradually suspend its activities in Russia” amid the worsening situation in Ukraine.

It stressed “the existence of alternative sources for supplying Europe” with oil.

TotalEnergies’ announcement comes almost a month after Russia’s invasion of Ukraine on Feb. 24 — in contrast with other oil giants like ExxonMobil, BP and Shell whose exits were more rapid and dramatic.

TotalEnergies committed to ensure “strict compliance with current and future European sanctions, no matter what the consequences on the management of its assets in Russia.”

Russia represented 17% of the company’s oil and gas production in 2020.

TotalEnergies holds a 19.4% stake in Russia’s natural gas producer Novatek.

It also has a 20% stake in the Yamal LNG project in northern Russia. The group said it continues to supply Europe with liquefied natural gas from the Yamal LNG plant “as long as Europe’s governments consider that Russian gas is necessary.”

“Contrary to oil, it is apparent that Europe’s gas logistics capacities make it difficult to refrain from importing Russian gas in the next two to three years without impacting the continent’s energy supply,” the statement said.

TotalEnergies has also decided to put on hold its business developments for batteries and lubricants in Russia. It will provide no further capital for the development of projects in Russia, the statement said.

The group said it will terminate its Russian oil supplies to the Leuna refinery in eastern Germany by the end of the year, and import oil via Poland instead.

TotalEnergies will also terminate its Russian fuel oil purchase contracts by the end of the year. Europe imported about 12% of fuel oil from Russia last year.

The group said it will import petroleum products from other continents, notably its share of fuel oil produced by the Satorp refinery in Saudi Arabia.

Energy firm BP said last month it would abandon its $14 billion stake in Russian state-owned oil and gas company Rosneft. The next day, Shell said it was leaving its joint venture with state-owned Gazprom and its involvement in the now-suspended Nord Stream 2 pipeline built to carry natural gas to Western Europe.

American giant ExxonMobil said it will pull out of a key oil and gas project and halt any new investment in Russia. Smaller energy firms have followed suit.

On March 9, U.S. President Joe Biden ordered a ban on Russian oil imports as part of sanctions against Russia.

The European Union was not able to make a similar decision, because of its heavy reliance on Russia for natural gas and oil. The 27-nation bloc struggled to find the right mix of sanctions to punish the Kremlin for invading Ukraine.

Officials said Tuesday the EU is moving toward the joint purchase of natural gas and ensuring its storage facilities are nearly full, to try to avoid another crisis tied to its dependency on Russian energy.

___

Follow the AP’s coverage of the war at https://apnews.com/hub/russia-ukraine

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

A person wearing a protective mask walks in front of an electronic stock board showing Japan's Nikk...
Associated Press

Asian shares trade mixed ahead of US jobs report

TOKYO (AP) — Asian shares were trading mixed Friday ahead of a closely watched U.S. jobs report that may affect global interest rates. Weaker than expected earnings reports from U.S. technology companies, announced after Wall Street trading ended, pulled Chinese benchmarks lower. Japan’s benchmark Nikkei 225 added 0.4% in afternoon trading to 27,501.03. Australia’s S&P/ASX […]
1 day ago
FILE - Travelers wearing face masks with their luggage head to the immigration counter at the depar...
Associated Press

China, Hong Kong scrap cross-border travel quota, COVID test

HONG KONG (AP) — Travel between Hong Kong and China will no longer require COVID-19 PCR tests nor be held to a daily limit, authorities announced Friday, as both places seek to drive economic growth. Hong Kong’s tourism industry has suffered since 2019 after months of political strife that at times turned into violent clashes […]
1 day ago
Peter Ellingwood delivers heating oil, Tuesday, Jan. 31, 2023, in Farmington, Maine. On Friday, the...
Associated Press

January may have delivered lower, if still solid, job growth

WASHINGTON (AP) — The American economy has an unusual problem: The job market looks too strong — at least to the inflation fighters at the Federal Reserve. Companies are still seeking more workers and are hanging tightly onto the ones they have. Putting aside some high-profile layoffs at big tech companies like Microsoft, Google, Amazon […]
1 day ago
FILE - Attendees walk past a booth advertising 5G telecommunications services at the PT Expo in Bei...
Associated Press

Chill pervades China’s tech firms even as crackdown eases

HONG KONG (AP) — A grinding crackdown that wiped billions of dollars of value off Chinese technology companies is easing, but the once-freewheeling industry is bracing for much slower growth ahead. Analysts say China’s easing of restrictions on companies like e-commerce giant Alibaba and online games company Tencent and talk of support for the private […]
1 day ago
Australia's Nick Kyrgios, left, and Serbia's Novak Djokovic shake hands following an exhibition mat...
Associated Press

Kyrgios pleads guilty to assault, has no conviction recorded

CANBERRA, Australia (AP) — Nick Kyrgios had suffered severe depression, suicidal ideation and insomnia in the past, a psychologist told a court on Friday when the Australian tennis star pleaded guilty to pushing a former girlfriend to the ground two years ago. The 2022 Wimbledon runner-up pleaded guilty in the Australian Capital Territory Magistrates Court […]
1 day ago
Kansas Gov. Laura Kelly discusses plans by Integra Technologies, of Wichita, Kansas, to build a new...
Associated Press

Kansas commits $304M to chip plant to lure federal funds

TOPEKA, Kan. (AP) — Kansas plans to give $304 million in taxpayer-funded incentives to a semiconductor company in its largest city to build a huge new factory, but the project won’t go forward without funds the U.S. government has promised for rebuilding the nation’s chip-making capacity. Gov. Laura Kelly announced Thursday that Kansas has an […]
1 day ago

Sponsored Articles

...
Day & Night Air Conditioning, Heating and Plumbing

Company looking for oldest air conditioner and wants to reward homeowner with new one

Does your air conditioner make weird noises or a burning smell when it starts? If so, you may be due for an AC unit replacement.
(Pexels Photo)...

Sports gambling can be fun for adults, but it’s a dangerous game for children

While adults may find that sports gambling is a way to enhance the experience with more than just fandom on the line, it can be a dangerous proposition if children get involved in the activity.
...
Children’s Cancer Network

Children’s Cancer Network celebrates cancer-fighting superheroes, raises funds during September’s Childhood Cancer Awareness Month

Jace Hyduchak was like most other kids in his kindergarten class: He loved to play basketball, dress up like his favorite superheroes and jump as high as his pint-sized body would take him on his backyard trampoline.
TotalEnergies to halt all Russian oil purchases by year-end