BP ditches its controversial 20% stake in Russian energy group Rosneft and chief executive resigns from the firm’s board after pressure from government
BP is ditching its controversial 20 per cent stake in the Russian energy group Rosneft ‘with immediate effect’, the oil giant announced on Sunday.
It comes after chief executive Bernard Looney was summoned to a meeting with Business Secretary Kwasi Kwarteng on Thursday amid growing unease about its Russian dealings.
Mr Looney said today: ‘I have been deeply shocked and saddened by the situation unfolding in Ukraine…
‘Our immediate priority is caring for our great people in the region….and looking at how BP can support the wider humanitarian effort.’
Meanwhile Helge Lund, BP chair, said while the company has operated in Russia for more than 30 years, with ‘brilliant Russian colleagues’, the invasion represents a fundamental change.
He added: ‘Russia’s attack on Ukraine is an act of aggression which is having tragic consequences across the region.’
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’.
BP boasts a 19.75 per cent stake in Rosneft and Looney sits on the company’s board alongside Rosneft chief executive Igor Sechin, who is a close ally of Vladimir Putin.
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.
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