Amid US bribery charges, French oil firm suspends investments in Adani
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TotalEnergies, the French oil giant, has announced that it will suspend further investments in Adani Group companies owing to continuing US bribery accusations against the conglomerate's founder, Gautam Adani.
The decision is a significant response to the indictment of Adani and his colleagues, who are suspected of arranging a $265 million bribery conspiracy involving the activities of Adani Green Energy Limited.
TotalEnergies indicated that it was unaware of any US inquiry prior to its investments and reiterated its commitment to combating corruption in all forms, Siasat Daily reported.
According to TotalEnergies, the indictment does not directly implicate AGEL or its affiliated entities. The company, which owns a 19.75% stake in AGEL and has previously engaged in joint ventures with Adani, has stated a desire to defend its interests as a minority shareholder and joint venture partner.
The French corporation has pledged to delay making any further financial commitments until the allegations against Adani Group executives are addressed.
TotalEnergies' financial exposure to the Adani Group is projected to be between $4 billion and $5 billion, including investments made since purchasing a stake in AGEL in January 2021, as well as subsequent projects targeted at increasing its renewable energy portfolio in India.
This suspension follows TotalEnergies' previous moves, which included suspending involvement in Adani's $50 billion green hydrogen program earlier this year following claims of accounting irregularities.
The ramifications of these developments have sparked major market reactions, with Adani Green Energy shares falling more than 11% upon the announcement before recovering slightly.