UNHEARD OF
BP exiting stake in Russian oil and gas company Rosneft
A view of the BP logo at a petrol station in London, Tuesday, Aug. 1, 2017. BP PLC reported its biggest full-year profit for eight years on Tuesday, Feb. 8, 2022 its coffers boosted by soaring oil and gas prices that have hiked domestic fuel bills for millions of people.
(AP Photo/Caroline Spiezio, File) (ASSOCIATED PRESS)
DEE-ANN DURBIN
Sun, February 27, 2022,
BP said Sunday it is exiting its share in Rosneft, a state-controlled Russian oil and gas company, in reaction to Russia's invasion of Ukraine.
BP has held a 19.75% stake in Rosneft since 2013. That stake is currently valued at $14 billion.
London-based BP also said its CEO, Bernard Looney, and former BP executive Bob Dudley will immediately resign from Rosneft’s board.
“Like so many, I have been deeply shocked and saddened by the situation unfolding in Ukraine and my heart goes out to everyone affected. It has caused us to fundamentally rethink BP’s position with Rosneft,” Looney said in a statement.
BP Chairman Helge Lund said BP has operated in Russia for more than 30 years.
“However, this military action represents a fundamental change,” Lund said in a statement.
Kwasi Kwarteng, the U.K.'s secretary of state for business and energy, said he welcomed BP's decision.
“Russia’s unprovoked invasion of Ukraine must be a wake up call for British businesses with commercial interests in Putin’s Russia,” Kwarteng said in a tweet.
BP said it will take two non-cash charges in the first quarter to reflect the change, including an $11 billion charge for foreign exchange losses that have accumulated since 2013.
Rosneft's partnerships with Western oil and gas companies have been stymied before.
In 2011, Exxon Mobil, led at the time by future U.S. Secretary of State Rex Tillerson, signed a deal with Rosneft to potentially drill in the oil-rich Russian Arctic. But Exxon ended that partnership in 2017, citing U.S. and European sanctions against Russia.
DEE-ANN DURBIN
Sun, February 27, 2022,
BP said Sunday it is exiting its share in Rosneft, a state-controlled Russian oil and gas company, in reaction to Russia's invasion of Ukraine.
BP has held a 19.75% stake in Rosneft since 2013. That stake is currently valued at $14 billion.
London-based BP also said its CEO, Bernard Looney, and former BP executive Bob Dudley will immediately resign from Rosneft’s board.
“Like so many, I have been deeply shocked and saddened by the situation unfolding in Ukraine and my heart goes out to everyone affected. It has caused us to fundamentally rethink BP’s position with Rosneft,” Looney said in a statement.
BP Chairman Helge Lund said BP has operated in Russia for more than 30 years.
“However, this military action represents a fundamental change,” Lund said in a statement.
Kwasi Kwarteng, the U.K.'s secretary of state for business and energy, said he welcomed BP's decision.
“Russia’s unprovoked invasion of Ukraine must be a wake up call for British businesses with commercial interests in Putin’s Russia,” Kwarteng said in a tweet.
BP said it will take two non-cash charges in the first quarter to reflect the change, including an $11 billion charge for foreign exchange losses that have accumulated since 2013.
Rosneft's partnerships with Western oil and gas companies have been stymied before.
In 2011, Exxon Mobil, led at the time by future U.S. Secretary of State Rex Tillerson, signed a deal with Rosneft to potentially drill in the oil-rich Russian Arctic. But Exxon ended that partnership in 2017, citing U.S. and European sanctions against Russia.
BP abandons stake in Russian oil giant Rosneft with up to $25bn charge after Putin orders Ukraine invasion
Joe Middleton
Sun, February 27, 2022, 11:14 AM·2 min read
BP today announced it was ditching its 19.75% stake in Russian oil giant Rosneft, following Russian president Vladimir Putin’s decision to invade Ukraine.
The move by the UK-listed company to abandon its holding will cost it charges of up to $25bn and comes after growing pressure from the British government over its relationship with Rosneft.
In a statement released on Sunday, the oil group also said its chief executive Bernard Looney is resigning from Rosneft's board with "immediate effect".
BP said Russia’s attack on Ukraine represented a “fundamental change” in how the company could operate there.
On Sunday, Mr Putin ramped up tensions with the West after he placed Russia’s nuclear deterrence forces on high alert, in response to sanctions from the US, EU and UK.
Rosneft is also part-owned by the Russian government, and BP has held a 19.75% stake in the firm since 2013.
BP chairman Helge Lund said: “Russia’s attack on Ukraine is an act of aggression which is having tragic consequences across the region. BP has operated in Russia for over 30 years, working with brilliant Russian colleagues. However, this military action represents a fundamental change.
“It has led the BP board to conclude, after a thorough process, that our involvement with Rosneft, a state-owned enterprise, simply cannot continue. We can no longer support BP representatives holding a role on the Rosneft board.
“The Rosneft holding is no longer aligned with BP‘s business and strategy and it is now the board’s decision to exit BP‘s shareholding in Rosneft. The BP board believes these decisions are in the best long-term interests of all our shareholders.”
Ukrainian refugees arrive from their homeland at Zahonyi railway station close to the Hungarian-Ukrainian border (AFP/Getty)
Members of civil defense prepare Molotov cocktails in a yard in Kyiv, Ukraine (AP)
Mr Looney added: “Like so many, I have been deeply shocked and saddened by the situation unfolding in Ukraine and my heart goes out to everyone affected.
“It has caused us to fundamentally rethink BP‘s position with Rosneft.
“I am convinced that the decisions we have taken as a board are not only the right thing to do, but are also in the long-term interests of BP.”
Business Secretary Kwasi Kwarteng held a virtual call with Mr Looney for around 20 minutes on Friday to discuss the company’s position.
Today, he said: “I welcome BP‘s decision to exit its shareholding in Rosneft oil company.
“Russia’s unprovoked invasion of Ukraine must be a wake-up call for British businesses with commercial interests in Putin’s Russia.”
BP admitted last year that sanctions on Russia could be problematic for its business, as global leaders are lining up to impose an even more stringent economic retaliation against the Kremlin.
The company, which co-owns Rosneft with the Russian government, said in its annual report that “events in or relating to Russia, including trade restrictions and other sanctions, could adversely impact our income and investment in or relating to Russia”.
Additional reporting by agencies
Joe Middleton
Sun, February 27, 2022, 11:14 AM·2 min read
BP today announced it was ditching its 19.75% stake in Russian oil giant Rosneft, following Russian president Vladimir Putin’s decision to invade Ukraine.
The move by the UK-listed company to abandon its holding will cost it charges of up to $25bn and comes after growing pressure from the British government over its relationship with Rosneft.
In a statement released on Sunday, the oil group also said its chief executive Bernard Looney is resigning from Rosneft's board with "immediate effect".
BP said Russia’s attack on Ukraine represented a “fundamental change” in how the company could operate there.
On Sunday, Mr Putin ramped up tensions with the West after he placed Russia’s nuclear deterrence forces on high alert, in response to sanctions from the US, EU and UK.
Rosneft is also part-owned by the Russian government, and BP has held a 19.75% stake in the firm since 2013.
BP chairman Helge Lund said: “Russia’s attack on Ukraine is an act of aggression which is having tragic consequences across the region. BP has operated in Russia for over 30 years, working with brilliant Russian colleagues. However, this military action represents a fundamental change.
“It has led the BP board to conclude, after a thorough process, that our involvement with Rosneft, a state-owned enterprise, simply cannot continue. We can no longer support BP representatives holding a role on the Rosneft board.
“The Rosneft holding is no longer aligned with BP‘s business and strategy and it is now the board’s decision to exit BP‘s shareholding in Rosneft. The BP board believes these decisions are in the best long-term interests of all our shareholders.”
Ukrainian refugees arrive from their homeland at Zahonyi railway station close to the Hungarian-Ukrainian border (AFP/Getty)
Members of civil defense prepare Molotov cocktails in a yard in Kyiv, Ukraine (AP)
Mr Looney added: “Like so many, I have been deeply shocked and saddened by the situation unfolding in Ukraine and my heart goes out to everyone affected.
“It has caused us to fundamentally rethink BP‘s position with Rosneft.
“I am convinced that the decisions we have taken as a board are not only the right thing to do, but are also in the long-term interests of BP.”
Business Secretary Kwasi Kwarteng held a virtual call with Mr Looney for around 20 minutes on Friday to discuss the company’s position.
Today, he said: “I welcome BP‘s decision to exit its shareholding in Rosneft oil company.
“Russia’s unprovoked invasion of Ukraine must be a wake-up call for British businesses with commercial interests in Putin’s Russia.”
BP admitted last year that sanctions on Russia could be problematic for its business, as global leaders are lining up to impose an even more stringent economic retaliation against the Kremlin.
The company, which co-owns Rosneft with the Russian government, said in its annual report that “events in or relating to Russia, including trade restrictions and other sanctions, could adversely impact our income and investment in or relating to Russia”.
Additional reporting by agencies
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