NOVATEK allowed to buy stake in Terneftegaz from TotalEnergies

NOVATEK received permission from the Russian authorities to buy 1,714,180,106 shares of Terneftegaz, owned by the French company TotalEnergies, Report informs via Kommersant.

The relevant order was signed by Russian President Vladimir Putin.

"I hope that NOVATEK, as it has been so far, will make a significant and noticeable contribution to the development of not only the industry, but also the regions. As Minister of Energy Nikolai Shulginov and supervising Deputy Prime Minister Alexander Novak and Minister of Finance Anton Siluanov reported to me, the company's financial result this year will be very good," Putin said at a meeting on the socio-economic development of Kamchatka. He added that the level of dividends paid would also be "solid".

After his positive forecasts, the company's shares rose by 4% and amounted to 1,196 rubles as of 16:09 Moscow time (GMT +3). NOVATEK's shares grew maximum by 4.4%, to 1,999 rubles, for the first time since April 11.

On August 25, Russian authorities consented to a proposed sale to NOVATEK of a 49% stake in Terneftegaz, which is developing the Termokarstovoye gas condensate field. Earlier, Putin banned the sale of strategic assets in the fuel and energy sector to foreign shareholders from "unfriendly" countries without a special decision.