Total agrees to halt new Russia funding but will keep existing projects

French oil giant Total has agreed to make no further investments in Russian projects but fell short of announcing it is severing ties in the country.

The company is one of the biggest investors in Russia, with a 19.4% stake in Novateck, the largest producer of liquefied natural gas in the country, a 20% holding in the Yamal LNG joint venture, and interests in oil fields, refineries and renewables projects.

On Tuesday, Total said it “condemns Russia’s military aggression against Ukraine, which has tragic consequences for the population and threatens Europe”, adding it will “no longer provide capital for new projects in Russia”.

But the move still gives the company a foothold in the country, unlike UK rivals BP and Shell, which both announced in recent days that they will be disposing of their own stakes in Russian projects.

BP could take a hit of as much as 25 billion dollars (£18.7 billion) by offloading its 20% holding in Rosneft, and Shell said it expects a hit of 3 billion dollars (£2.2 billion) by ending partnerships with Gazprom.

Total added: “TotalEnergies expresses its solidarity with the Ukrainian people who are suffering the consequences, and with the Russian people who will also suffer the consequences.

“TotalEnergies is mobilised to provide fuel to the Ukrainian authorities and aid to Ukrainian refugees in Europe.

“TotalEnergies supports the scope and strength of the sanctions put in place by Europe and will implement them regardless of the consequences (currently being assessed) on its activities in Russia.”