French energy group TotalEnergies has unveiled its plan to withdraw its managers from the Russian gas giant Novatek.

The decision will mean that the company will not include its 19.4% stake in Novatek in its earnings – TotalEnergies expects that the move will result in a loss in assets amounting to $3.7 billion (£3bn).

In a statement, the company said: “In view of the European sanctions in force since the beginning of the war, the two directors representing TotalEnergies on the board of directors of Novatek are led to abstain from voting in meetings of the board of directors of this company, in particular on financial matters.

“They are therefore no longer in a position to fully carry out their duties on the board which might become an issue for the governance of this company.

“Under these circumstances, the Board of Directors of TotalEnergies has decided to withdraw the representatives of the company from the board of PAO Novatek with immediate effect.”