TotalEnergies CEO Patrick Pouyanné has acknowledged that a new EU ban on Russian liquefied natural gas (LNG) imports might compel the company to halt all exports from its Siberian plant, impacting plans to sell to markets outside Europe.
Initially, TotalEnergies hoped to reroute shipments from its Yamal LNG facility to buyers in Asia after the ban takes effect next year. However, Pouyanné stated on Wednesday that uncertainties regarding the ban’s implementation could lead to a complete stop of exports from Yamal, where TotalEnergies holds a 20% stake.
“We will not be able to market Yamal LNG to Europe, or potentially anywhere else,” Pouyanné mentioned, emphasizing ongoing discussions among EU states and the European Commission about the specifics of the ban. He questioned whether the ban would extend to any European firms engaged in business with Russia.
TotalEnergies had to write down some of its Russian assets following Russia’s invasion of Ukraine in 2022, choosing a more cautious approach compared to competitors. The company incurred charges related to an LNG project still in development, phased out oil purchases, and recorded nearly $15 billion in losses that year.
Despite reduced gas supplies through Russian pipelines, Europe continues to import significant amounts of Russian LNG by sea. The Yamal plant played a crucial role, supplying 15 million tonnes of LNG last year—approximately 14% of the EU’s total LNG imports for 2025. Europe comprises over three-quarters of shipments from Yamal.
TotalEnergies has a contract to purchase roughly 4 million tonnes annually from the facility until 2032, representing about 10% of its LNG operations. Pouyanné refrained from disclosing the financial impact of the comprehensive Russian ban, yet he pointed out that new LNG facilities in Qatar and Mexico are anticipated to come online soon, with a potential global surplus likely to lower gas prices.
His remarks came after a steep drop in oil prices led to a 13% decline in Total’s adjusted net income, dropping to $3.8 billion in the fourth quarter. The company announced plans to cut share buybacks in half to $750 million for the first quarter, while rival BP suspended buybacks entirely last week.
In addition to its stake in Yamal, TotalEnergies also owns 19.4% of Russian gas producer Novatek. Pouyanné indicated that this situation would remain unchanged for now, citing a lack of clear options for divestment. Although TotalEnergies is technically receiving dividends from its Russian interests, the funds are currently held within the country.