BP facing pressure from Government to ditch its controversial stake in Russian energy group Rosneft

By LUKE BARR FOR THE DAILY MAIL

PUBLISHED: 26 February 2022

BP is facing pressure from the Government to ditch its controversial stake in Russian energy group Rosneft.

The oil major's chief executive Bernard Looney was yesterday summoned to a meeting with Business Secretary Kwasi Kwarteng amid growing unease about its Russian dealings.

Rosneft – which is backed by the Kremlin – is providing fuel to Russia's troops as they wage war on neighbouring Ukraine.

 

Pressure: BP's chief executive Bernard Looney was summoned to a meeting with Business Secretary Kwasi Kwarteng (pictured)

A source familiar with the matter said Looney left the meeting 'with no doubt about the strength of the Business Secretary's concern about their commercial interests in Russia'.

Also on the Rosneft board is chairman Gerhard Schroder, the former Chancellor of Germany, and ex-BP boss Bob Dudley. Their positions have attracted fierce criticism while BP has been urged to ditch its stake in Rosneft.

Earlier this month, Looney said BP's strategy to 'avoid the politics' has served the company well around the world. However, he said the firm would comply with any Ukraine-related sanctions.

Rosneft's largest shareholder is state-owned Rosneftegaz, with 40.4 per cent, followed by BP.

VTB Capital, the investment arm of Russia's second-largest bank, has been suspended from the London Stock Exchange. 

The LSE's move followed the imposition of new UK sanctions on Russian firms and individuals following Vladimir Putin's decision to invade Ukraine on Thursday. The suspension means VTB Capital will not be able to trade assets such as stocks and bonds through the LSE. 

However, its parent company, VTB Bank, will still maintain a secondary listing of its shares on the exchange.