BP declared Sunday that it was selling its 19.75 percent stake at Rosneft (a Russian-controlled oil company).
Former exec Bob Dudley and Bernard Looney, BP CEO, have resigned from Rosneft’s board. This is effective immediately. Looney was a Rosneft director since 2020. He is one of two BP-nominated directors. According to the company, Dudley was a director since 2013.
BP has been working in Russia for over 30 years. However, the Russian invasion has forced the company into a reassessment of its stake.
Helge Lund, BP chair, stated in a statement that “this military action represents a fundamental shift.” After a thorough review, the BP board concluded that Rosneft’s involvement, a state-owned company, could not continue.
The Wall Street Journal reported that BP was under increasing pressure from the British government, to sell its stake. According to the newspaper, British officials accused Rosneft in facilitating the Kremlin’s entry into Ukraine.
Kwasi Kwarteng (UK’s business secretary) said that he attended a talk with BP last week and that he was happy for the company’s decision.
Kwarteng stated that “Russia’s unprovoked invasion of Ukraine must be a wake-up call for British businesses having commercial interests in Putin’s Russia.”
According to the Journal, Rosneft contributed around a third of BP’s oil-and gas production.
BP stated that it will report a material non cash charge in May as a result of selling its stake.
