TotalEnergies says it would no longer enter into or renew contracts contracts to purchase Russian oil and petroleum products on account of the country’s continuous attacks on Ukraine and the existence of alternative sources for supplying Europe.
The action, according to the global oil company, was taken in order to halt all its purchases of Russian oil and petroleum products as soon as possible and by the end of 2022 at the latest.
TotalEnergies already announced that it halted all spot market trading since February 25, 2022, on Russian oil and petroleum products. This is also the case for spot trading transactions concerning Russian natural gas or liquefied natural gas.
TotalEnergies has term contracts to purchase Russian oil and petroleum products that end, at the very latest, on December 31, 2022,it said, adding that these term contracts primarily cover supplies for the Leuna refinery in eastern Germany, which is served by the Druzhba pipeline from Russia. They also concern Europe’s gasoil supply, which is short of this product (around 12% of Russian gasoil imports in Europe in 2021).
According to the company,in close cooperation with the German government, TotalEnergies will terminate its Russian oil supply contracts for the Leuna refinery as soon as possible and by the end of 2022 at the latest, and will put in place alternative solutions by importing oil via Poland. Already, a first contract will not be renewed at the end of March 2022.
It added:”Concerning the gasoil shortfall in Europe, absent any instructions to the contrary from European governments, TotalEnergies will also terminate its Russian gasoil purchase contracts as soon as possible and by the end of 2022 at the latest. TotalEnergies will import petroleum products from other continents, notably its share of gasoil produced by the Satorp refinery in Saudi Arabia.
“TotalEnergies reaffirms its firmest condemnation of Russia’s military aggression against Ukraine, which has tragic consequences for the Ukrainian population and threatens peace in Europe.
“To act responsibly, as a European company and in accordance with its values, TotalEnergies has defined clear principles of conduct for managing its Russian related business:Ensure strict compliance with current and future European sanctions, no matter what the consequences on the management of its assets in Russia, and gradually suspend its activities in Russia, while assuring its workforce’s safety.
“TotalEnergies recalls that, contrary to remarks made by several commentators, it does not operate any oil and gas fields or any liquefied natural gas (LNG) plants in Russia”
