TotalEnergies pauses business with Adani Group

French oil major TotalEnergies SE was not informed of a U.S. investigation into possible bribery and corruption at Adani Green Energy Limited, it said on Monday, adding it will stop financial contributions to its Adani Group investments following last week’s indictment.

Total holds a 20% stake in Adani Green Energy and has a seat on the Indian company’s board of directors.

“Until such time when the accusations against the Adani group individuals and their consequences have been clarified, TotalEnergies will not make any new financial contribution as part of its investments in the Adani group of companies,” the company said in a statement.

“TotalEnergies was not made aware of the existence of an investigation into the alleged corruption scheme,” the company added.

U.S. prosecutors on Thursday charged eight people – including Indian tycoon Gautam Adani, his nephew Sagar Adani and the former CEO of Adani Green Energy – with promising and then making improper payments to Indian officials between July 2021 and 2024 for business advantages.

The French firm purchased its stake in Adani Green Energy in January 2021 – after the Indian company won what was then the world’s largest solar order, and just months before the payments to officials were alleged to have begun.

Total also owns a 37.4% stake in Adani Total Gas Limited, as well as a 50% stake in three renewable joint ventures with Adani Green Energy.

Two of those joint ventures were entered into after the FBI served search warrants on Sagar Adani and seized evidence related to Adani Green Energy.

TotalEnergies has described India as a key market for developing both its natural gas and renewable energy businesses. Searing heatwaves and an uptick in economic activity have resulted in India’s electricity generation growing at an average of about 8% annually following the pandemic year of 2020/21, outpacing power demand growth in every major global economy.

The French firm has repeatedly characterised its relationship with the Adani Group as a “strategic alliance” — 25% of Total’s operational renewables portfolio comes from its stakes in Adani wind and solar assets.

Analysts at Bernstein Research estimate TotalEnergies’ financial exposure to Adani firms at between $4-5 billion, or around 3% of capital employed.

TotalEnergies shares were down 0.42% at 1145 GMT on Monday.