12 Dec 2022 15:43

Novatek confirms that TotalEnergies' representatives have exited board of directors

MOSCOW. Dec 12 (Interfax) - PJSC NOVATEK has received notices from the representatives of TotalEnergies , Arnaud Le Foll and Dominique Marion, regarding their respective resignations from Novatek's board of directors, Novatek said in a press release posted on its website.

France's TotalEnergies reported last Friday that it had withdrawn its representatives from the board of directors of Novatek, where it owns a 19.4% stake, while recording an impairment of $3.7 billion for the stake in the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, according to the 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.