TotalEnergies, a French energy giant, has announced that it is halting any new financial contributions related to its partnerships with the Indian Adani Group. This decision follows the corruption indictment of Gautam Adani, the conglomerate’s founder, by U.S. authorities.
Corruption accusations against Adani
The Adani Group is under scrutiny following the indictment of its leader in a New York federal court. The allegations involve supposed payments of several hundred million dollars to secure contracts in the renewable energy sector in India, which reportedly caused harm to U.S. investors. These revelations triggered a significant drop in the group’s stock at the Bombay Stock Exchange, although a recovery was observed later in the week.
Financial ties between TotalEnergies and Adani
In an official statement, TotalEnergies clarified that its existing investments in the Adani Group comply with applicable laws and its own governance standards. The French group currently holds a 19.75% minority stake in Adani Green Energy Limited (Agel) and a 50% share in three joint ventures operating assets in the renewable energy sector.
Precautionary measures by TotalEnergies
The group added that it is not targeted by the accusations made by U.S. authorities, nor is it involved in the alleged acts of corruption. However, the company emphasized that it is closely monitoring the situation and will take all necessary steps to protect its interests, both as a shareholder and a business partner.
Implications for business relationships
Despite these reassurances, TotalEnergies announced that no new funding will be committed with the Adani Group until the legal situation of the executives and its implications are clarified. This decision, although limited, marks a strategic shift in the relationship between the two companies.
Repercussions for the Adani Group
The Adani conglomerate, known for its diversified activities spanning solar energy, mining, and port infrastructure, is under increasing pressure in financial markets. Investors are now closely watching the potential repercussions of these allegations on its global operations.
