Adani scandal: TotalEnergies stops investments – what now?

Adani scandal: TotalEnergies stops investments – what now?

The French oil giant TotalEnergies has stopped its investments in the Adani Group! This comes in the wake of a massive scandal that puts the Indian conglomerate in the focus of international investigations. Billionaire Chairman Gautam Adani and seven others have been charged by US authorities over an alleged $265 million bribery scheme. The allegations are explosive and cast a shadow over the integrity of the company, which operates in energy, infrastructure and more.

TotalEnergies, which holds a 20 percent stake in Adani Green Energy, has made it clear that it will not make any new financial contributions until the allegations are resolved. Analysts estimate that TotalEnergies has up to $5 billion in financial exposure to Adani. The decision to suspend investments is the first major setback for Adani following the charges, which also include false public statements about the ongoing investigation.

Shockwaves worldwide

The effects are already being felt worldwide! In India, shares of Adani Green Energy fell over 11 percent before recovering slightly. The situation is also being viewed critically in other countries where Adani has projects. A U.S. development agency is reviewing its agreement to borrow more than $550 million for a port project in Sri Lanka backed by Adani. In Kenya, a tender process for the country's main airport, which Adani was supposed to win, was canceled.

The allegations have also shaken Indian politics. Opposition parties are calling for a full discussion of the Adani scandal in Parliament, while Prime Minister Narendra Modi's government has distanced itself from the allegations and stressed that Adani itself must defend itself. The entanglements between Adani and Modi, which date back to when Modi was chief minister of Gujarat, are now at the center of the political debate. The situation remains tense and the next steps are eagerly awaited!