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TotalEnergies pauses new funding in Adani amid corruption case

Published 11/25/2024, 06:16 PM
TTE
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PARIS - TotalEnergies (EPA:TTEF) SE (Paris:TTE) (LSE:TTE) (NYSE:TTE), the global energy conglomerate, has announced it will halt any new financial contributions to its investments in Adani Group companies. This decision follows public announcements of indictments against certain Adani Group executives by U.S. authorities, concerning an alleged corruption scheme related to Adani Green Energy (NS:ADNA) Limited (AGEL). TotalEnergies emphasized that AGEL and its related companies are not the subjects of the indictment.

The company, which holds a 19.75% minority stake in AGEL and a 50% stake in joint ventures with AGEL, stated it is not involved in the allegations and will take necessary actions to safeguard its interests. TotalEnergies' investments in the Adani entities, including the acquisition of stakes in AGEL and three joint ventures operating renewable assets, were made in compliance with legal requirements and internal governance standards, with no knowledge of the investigation into the alleged corruption.

TotalEnergies' commitment to renewable energy investments in India began in January 2021 with the purchase of a minority interest in AGEL. The company has since acquired a 50% stake in three joint ventures with AGEL, with the latest acquisition occurring in 2024. These investments align with TotalEnergies' strategy to expand its development in renewables in the region.

The Paris-based company has reiterated its code of conduct, which rejects corruption in any form, and has assured that all investments were conducted lawfully and with due diligence. The press release statement from TotalEnergies notes that no further financial contributions will be made to the Adani group of companies until the accusations against the Adani group individuals have been clarified.

TotalEnergies is a major player in the energy sector, with operations in approximately 120 countries. The company's focus on sustainability is central to its business strategy and operations, aiming to provide energy that is reliable, affordable, and sustainable.

This announcement comes at a time when TotalEnergies is actively involved in the transition to renewable energy sources, reflecting the company's commitment to ethical business practices and corporate governance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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