US Prosecutors Charge Adani Leaders with Bribery and Corruption

TotalEnergies Stops Financial Contributions to Adani Group Investments

US prosecutors have charged eight people, including three top Adani leaders, with promising and then making improper payments to Indian officials between July 2021 and 2024 for business advantages. In response, French oil major TotalEnergies has announced that it will stop making financial contributions to its Adani Group investments.

TotalEnergies’ Stake in Adani Green Energy

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

TotalEnergies’ Relationship with Adani Group

TotalEnergies has described its relationship with the Adani Group as a “strategic alliance.” The French firm has a 37.4% stake in Adani Total Gas Limited and 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.

India’s Growing Energy Market

TotalEnergies has identified 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.

Financial Exposure to Adani Firms

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.

Conclusion

The charges against Adani leaders and the subsequent decision by TotalEnergies to stop making financial contributions to its Adani Group investments highlight the importance of transparency and accountability in business dealings. As the energy market continues to evolve, companies must ensure that their relationships with other firms are built on trust and integrity.

FAQs

Q: Who were charged in the US investigation?
A: Eight people, including three top Adani leaders, were charged with promising and then making improper payments to Indian officials between July 2021 and 2024 for business advantages.

Q: What is TotalEnergies’ stake in Adani Green Energy?
A: TotalEnergies holds a 20% stake in Adani Green Energy and has a seat on the Indian company’s board of directors.

Q: What is the financial exposure of TotalEnergies to Adani firms?
A: Analysts at Bernstein Research estimate TotalEnergies’ financial exposure to Adani firms at between $4-5 billion, or around 3% of capital employed.